US Department of Agriculture to Invest $300M to Boost Carbon Data in Agriculture and Forestry

The U.S. Department of Agriculture (USDA) announced that it will invest $300 million to improve the measurement and reporting of greenhouse gas emissions and carbon sequestration by the country’s agriculture and forestry sectors.

The fund will be from the country’s climate law, the Inflation Reduction Act (IRA). The Act provided about $20 billion in total investments to boost climate-smart agriculture and forestry practices.

The money will be used for creating a rigorous research system for monitoring carbon levels in soil – a key to understanding how CO2 is stored in the ground. It will further help the department in enhancing its data management capacity and improving the methods it uses in quantifying and analyzing GHGs.

Slashing Carbon Emissions and Earning From It

As per the Environmental Protection Agency, agriculture is responsible for emitting 10% of the country’s GHG in 2021. With that, the USDA’s $300 million investment will give farmers and ranchers opportunities to earn more by adopting climate-friendly practices.

There are various carbon emission reduction strategies that farmers can employ and earn more from doing them. 

Common examples are no-till agriculture and planting cover crops, which both can make the soil healthier and less erosive. These and more practices are often called regenerative farming.

More importantly, the soil may be able to capture and store more carbon dioxide than conventional farming practices. If farmers can quantify and monitor how much their new practice sequesters CO2 in the soil, they become eligible for earning carbon credits

One credit represents one tonne of carbon reduced or removed from the atmosphere. 

Global companies are also investing in natural carbon sequestration projects and practices in agriculture. Each practice results in different carbon sequestration rates as reported by S&P Global in 2022 shown in the chart.

Carbon Sequestration Rates – Mt CO2e/ac

When it comes to their potential to help soil capture more CO2, here’s how different carbon farming practices could slash agriculture’s emissions by 2050. 

Better Data for a Robust Carbon Market

While soil carbon storage has been around for a long time, scientists warn that there are uncertainties on the exact amount of carbon emission reduction it delivers. 

Last month, a team of researchers found that carbon stocks stored underground in soil forests are vulnerable to global warming. More heating of the earth causes significant loss in carbon stored in deep soils, at over 30cm depth (12 inches).

Their findings pose challenges to how the sector used to measure carbon stored in soil and its climate impact. Add to this the fact that the process of measuring CO2 deep underground is highly technical and time-consuming.     

And switching to new carbon farming techniques may not be convincing for some farmers, especially if it means more expenses. 

This is why the Agriculture Department will heavily invest in finding more and better data on carbon sequestration. Better monitoring and reporting on soil carbon capture and storage data is crucial for a more robust carbon market. These markets can help incentivize farmers and ranchers to engage in carbon reducing practices. 

Remarking on this matter, John Podesta, Senior Advisor to the President for Clean Energy Innovation and Implementation said that:

“One of the big remaining technological challenges for tackling the climate crisis is ensuring that natural solutions in agriculture and forestry are working well… Today’s USDA announcement of $300 million from the Inflation Reduction Act to measure and verify emissions from those sectors is a big step in the right direction.”

The ultimate goal is to bring confidence in farmers and foresters to embrace climate-friendly practices, compensating their efforts while protecting them from any risks that may come in shifting to new technologies. Making this a national concern through a policy is indeed a good thing, both for America and the planet. 

USDA is engaging with stakeholders and technical experts to help inform its effort in finalizing the strategy. The Department will hold a webinar for those interested to learn more about it or contribute insights on July 21. 

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Carbon Capture Startup Secures $80M from Shell, ConocoPhillips, JetBlue

L.A.-based carbon capture startup Avnos signed strategic investment deals worth over $80 million with big oil companies, Shell and ConocoPhillips, and JetBlue to ramp up commercialization of its novel Hybrid Direct Air Capture (HDAC) technology. 

Founded in 2020, Avnos focuses on developing and deploying scalable, flexible, and cost-effective technology in the DAC market. 

The company has been awarded multi-million-dollar projects from the U.S. Department of Energy to demonstrate its HDAC solution. It also got awards from the U.S. Office of Naval Research to pilot carbon capture and e-fuel production.

Avnos’ Hybrid DAC Technology is a “Twofer”

Global greenhouse gas emissions hit record high in 2021 and projection shows the figures will continue to increase without rapid climate actions done. This year’s record-breaking wildfires, storms, floods, and heat events are the proofs. 

To prevent those disasters from getting worse, reducing carbon emissions and removing what’s already in the air are critical. Climate experts highlighted the need for billions of tons of annual CO2 removal (CDR) capacity to significantly reduce emissions.

That gave rise to the birth of different startups with the aim to remove carbon dioxide. Popular existing DAC companies include Climeworks, Global Thermostat, Charm Industrial, and Equatic among others. They’re taking different approaches to directly removing CO2 from the air and water. 

But what Avnos is offering to the market is unique and innovative: capturing carbon and producing water anywhere there’s air. 

The carbon capture company said that its novel HDAC tech is a “twofer” for tackling the climate crises. Its pioneering moisture-responsive carbon adsorbent tech directly sucks in CO2 from the air and produces water as a byproduct. 

In a sense, it’s addressing global warming and water scarcity. Plus, it doesn’t use heat as an input but employs a moisture swing adsorbent instead, which significantly lowers energy consumption. 

In comparison, existing DAC approaches consume large quantities of water while Avnos HDAC produces water. The water byproduct is then used to drive the company’s carbon capture operations. 

According to the startup, its HDAC performs best in four major areas versus other DAC systems in place. These include total energy use, thermal energy use, water consumption/production, and costs. The video shows how Avnos hybrid direct air capture technology works.

Last week, a similar carbon capture technology by another California-based startup, Capture6, secured a grant of over $8 million from the California Energy Commission. The company also produces freshwater in removing carbon but uses brine, a byproduct of water treatment facilities, to produce a solvent that captures CO2.

Removing Carbon and Selling Credits

Avnos HDAC system uses modules about the size of a 20-foot shipping container. It pulls in air and runs it in a series of filters and condensed water is then collected, pumped out, and stored. The captured carbon goes into the storage tank. 

The company said there’s a 5-to-1 ratio of water produced for each ton of captured CO2. This water may create more revenue streams for Avnos while the big oil backers can convert the CO2 into e-fuels. 

The $80+ million investment is a huge bet on engineered or technological solutions for mitigating climate change. 

ConocoPhillips finds Avnos carbon capture technology a promising solution that “reduces carbon emissions crucial to enable an orderly energy transition”. 

What captures Shell Ventures’ interest is the “potential of Avnos’ technology to reduce energy demand in capturing CO2”. JetBlue believes that the HDAC system plays an important role in e-fuels production. 

Remarking on their strategic partnerships, Will Kain, CEO of Avnos, said:

“Adding blue-chip strategic partners such as ConocoPhillips, JetBlue Ventures, and Shell provides us with an incredible opportunity to access more resources, know-how, and global reach to meaningfully accelerate our deployment schedule. Ultimately, we will be able to remove more atmospheric carbon, faster, and at lower costs than we would have been able to on our own.”

The amount of carbon removed by Avnos generates corresponding carbon credits that it can use to offset its own emissions. Each credit equals one tonne of carbon removal. Or the startup can turn it into an income source by selling them to other companies looking for carbon offsets. 

A pilot version of the Avnos HDAC facility will open later this year in Bakersfield, California. It can remove 30 tons of CO2 a year and produce 150 tons of water

A bigger, commercial-grade system can increase this capacity by 100x – 300 tons of carbon and 1,500 tons of water. The modules are stackable to increase the capacity even more but would need larger renewable power installations. 

Avnos will use the funding to supply commercial-ready HDAC systems by the end of 2025. 

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Sylvera and Pachama Release 2023 Carbon Market Trend Report

At the recent Carbon Markets Summit, research firm Sylvera along with Pachama convened a global assembly of thought leaders to delve into the present complexities and future potential of the carbon market. 

This comprehensive guide, a collaborative effort between Sylvera and Pachama, sums up the ten most significant trends that these experts foresee shaping the carbon market landscape in 2023 and beyond.

One of the key areas where this is happening is in the carbon credit market. It is where accurate and in-depth ratings and analytics are essential for effective decision-making.

Click here to download your copy of the report.

Five Key Points from the Pachama and Sylvera Report

Delving into the report, five key points emerge that summarize the current state and future trajectory of this critical sector.

Market in Flux: The voluntary carbon market is undergoing significant changes due to new climate disclosure regulations, guidance from market bodies, and increased media attention. This has caused some confusion and hesitation among potential buyers. Still, the need for carbon project funding is more critical than ever.
Flight to Quality: Corporate buyers are participating in a ‘flight to quality‘. They are becoming involved earlier in projects and focusing on contribution over ‘offsetting’. This trend will continue in 2023 and beyond.
Technology and High-Quality Projects: Technology is unlocking greater supplies of high-quality projects. Companies like Sylvera and Pachama are using data and artificial intelligence to help companies invest confidently in high-quality carbon credits.
Carbon Credits – ‘Last, but not Later’: The mitigation hierarchy encourages emission reductions first and carbon credits last. However, ‘last’ does not have to mean ‘later’. Companies can purchase carbon credits throughout their decarbonization journeys, as long as these purchases do not replace actual emissions reductions across the value chain.
Voluntary Carbon Market Growth: Despite challenges with legacy credits, limited high-quality supply, and ongoing work on official guidance, the corporate demand for carbon credits is strong. The voluntary carbon market is still growing, and the overall trajectory for the VCM looks positive.

Voluntary credit retirements remained strong in 2022 at 184 million and are on track to beat records in 2023.

These insights paint a vivid picture of the market’s present dynamics and future potential. The report underscores the pivotal role of carbon credits in steering corporate strategies towards decarbonization.

It also champions the cause of investing in high-quality projects, a move that promises both environmental and economic dividends. It also highlights the ongoing growth and evolution of the voluntary carbon market.

A lot of insights on carbon market trend were shared during the summit, but here are the ones that are worth sharing.

3 Meaningful Insights That Stand Out…

1. “Companies leading on climate are demonstrating the difference between hierarchy and chronology: ‘last’ does not have to mean ‘later’.” 

While carbon credits are often seen as the last step in a company’s decarbonization journey, they don’t have to be the final action taken. Companies can and should invest in carbon credits throughout their decarbonization process. But as long as these purchases are not used as a substitute for actual emissions reductions.

The report warns that critical carbon sinks, such as the Amazon Rainforest, are reaching a tipping point. Also, the need for funding for conservation and reforestation efforts is critical.

Companies are encouraged to invest in carbon credits as soon as they set science-based targets with clear plans for achieving them, not just once they have reached their decarbonization targets.

2. “Organizations that invest in carbon credits are cutting emissions at twice the rate of their non-credit-buying peers.”

3. “We’re seeing more and more people move upstream to secure these future optics of quality credits that they can’t find on the spot market today. So really, quality is front of mind, even in the upstream space.” 

This highlights a trend in the carbon market where corporate buyers are moving upstream. It means they’re investing in early-stage carbon projects to secure future supplies of high-quality credits

This shift is driven by the understanding that investing early not only shows commitment to the market but also allows for some control over the project’s development. 

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Mercedes-Benz Q2 EV Sales Up 123%, Aims to Bring New Fleet to Net Zero by 2039

Mercedes-Benz announced that they sold 56,300 electric vehicles (EVs) in Q2, up 123% from the same quarter in previous year. This affirms the German luxury carmaker’s commitment to reducing its carbon emissions and bringing its new fleet to net zero across the value chain by 2039. 

Fully EVs now account for 11% of Mercedes-Benz overall sales year-to-date that’s also up by 6% in Q2. The sales were bolstered by strong demand for EVs particularly in Germany and the U.S.

Increasing this percentage is crucial for the company to continuously reduce and eliminate its carbon emissions.

Mercedes-Benz’s Carbon Footprint

The luxury carmaker has been accounting for its carbon emissions – Scope 1 and Scope 2 – in accordance with standard protocols. 

In 2022, Mercedes-Benz has the following carbon emissions, which don’t include Scope 3 accounting. The first table is for its entire operations while the second is specific CO2 emissions per vehicle type.

Total carbon footprint from energy use in 2022 is 663 tons (market-based), down by 42% compared to 2021 (1,148 tons). The same trend can be observed for the CO2 emissions specifically from each vehicle type shown below. Total pollution from cars was down by over 51% while emissions from vans also went down by 43%

The company’s goal is to cut by at least 50% the emissions per passenger car by the end of this decade, compared to 2020. The goal of cutting the carbon emissions of its new car fleet by 40% compared to 2018 in relation to the use phase (well-to-wheel) has been approved by the Science Based Targets initiative (SBTi).

Mercedes-Benz Climate Pledge and Transform to Net Zero

The luxury car brand aims to go all electric by 2030 as part of its ambitious electrification and decarbonization goals. In detail, here are the company’s climate targets and its progress as of 2022.

Achieving these requires various means, including renewable energy, charging with green electricity, improving battery technology, among other emission elimination strategies.

The German automaker joined Amazon’s initiative “The Climate Pledge” aimed at contributing to meeting the Paris goals ten years earlier. In signing the agreement, Mercedes-Benz agrees to:

Measure and report GHG emissions regularly, 
Implement decarbonization strategies in line with the Paris Agreement, and
Invest in initiatives that compensate unavoidable emissions with real, additional, permanent, and quantifiable carbon offset credits

The carmaker joined the Amazon and Global Optimism climate pact in 2020, supporting it with its own decarbonization initiative – the Ambition 2039. This ambition means making the entire new vehicle fleet of the company carbon neutral across the value chain by 2039.

In the same year, Mercedes-Benz Vans and Amazon revealed the largest order by Amazon for EVs from the German carmaker. The giant retailer ordered over 1,800 battery-electric vehicles for use across Europe.  

About of total GHG emissions in Europe are a result of transporting people and goods. The Stuttgart-based carmaker is taking actions to address this trend and integrate climate change mitigation into its core business strategy. 

Hence, Mercedes-Benz is also a founding member of “Transform to Net Zero“, a climate initiative of nine large companies and launched by Microsoft. Its goal is to pool the companies’ expertise to create positive conditions for a broader decarbonization of the economy and society.

Emphasizing the importance of this net zero transformation, the company’s COO Markus Schäfer said that:

“With Ambition 2039, we have marked out a way for Mercedes-Benz to bring our new car fleet to “net zero CO2” within less than 20 years – and not only in driving operations, but along the entire value chain. Starting in 2022, our passenger cars and vans will be produced CO2-neutrally in the more than 30 plants of Mercedes-Benz AG worldwide.”

Directly Sourcing Lithium for Sustainable Electrification 

One big part of turning those ambitions into reality is by securing high-quality lithium for EV battery production. Directly sourcing this mineral is vital for Mercedes-Benz to scale up its fully EV production. 

Lithium hydroxide is needed for the production of lithium-ion batteries used in the German carmaker’s EVs.

Last year, the automaker inked a supply deal with Canadian-German-start-up Rock Tech Lithium for the supply of battery-grade lithium hydroxide. The deal provides that both companies work together to create a roadmap to achieving carbon neutral lithium production by 2030. 

Their partnership was revealed after the signing of agreement between Mercedes-Benz AG and Canada to explore more cooperation across the automotive value chain, focusing on natural resources development. Responsibly mined and processed materials like lithium are key for achieving a sustainable electrification of Mercedes-Benz entire vehicle fleet.

The U.S. is also in desperate need of a massive supply of domestic lithium to get to net zero. American Lithium Corporation, which has two of the largest lithium deposits in the Americas, aims to fill in the huge gap in supply and demand for this critical mineral. 

And as demand for luxury electric vehicles continues to rise, so too is Mercedes-Benz’s need for more lithium. In choosing resource sourcing partners, the German automaker decides based on protection of human rights and the environment. 

Ultimately, Mercedes-Benz never stops working on finding ways to further cut down its CO₂ emissions as well as the amount of rare metals needed for each electric vehicle it manufactures. 

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Amazon and Microsoft-Backed CarbonCure Raises $80M

CarbonCure Technologies closes more than $80 million in a new equity round led by Blue Earth Capital to bolster the company’s global scale of carbon removal technologies and supply of carbon credits. 

Nova Scotia-based CarbonCure Technologies is a leader in CO2 removal technologies for the concrete industry and a provider of high-quality carbon credits. The new funding will help strengthen the company’s carbon removal technology while expanding its supply of high-quality carbon credits. 

Blue Earth Capital is a mission-driven, global investment firm advocating for sustainability through its growth investments. Through its Climate Growth Strategy, it supports companies that significantly contribute to global energy transition and decarbonize major economic sectors.

In addition to Blue Earth Capital, other serial investors of the round include Amazon’s Climate Pledge Fund, Microsoft Climate Innovation Fund, Breakthrough Energy Ventures, Taronga Ventures, and 2150. New investors participating in the round are Samsung Ventures and BH3 Growth Equity.

Doubling Down Efforts in Cutting Concrete’s Emissions

Buildings are responsible for about 40% of global greenhouse gas emissions annually, making them a major source of carbon pollution. 

The embodied carbon – CO2 released in creating building materials – accounts for almost 50% of carbon emissions from new construction. Of that, about 8% is courtesy of producing cement, a key material in making concrete. 

Emissions from producing cement stood at 1.7 billion metric tons of CO2 in 2021. Here’s how its carbon emissions grow for decades.

Each 1,000 kg of cement production generates more than 900 kg of carbon emissions.

This is particularly what CarbonCure targets, to reduce the emissions of carbon-intensive concrete with its unique carbon removal technology. It injects captured carbon into fresh concrete, locking up the gas so it doesn’t return back into the atmosphere. As the process lowers the amount of cement needed in every mix, the concrete’s carbon emissions also decrease.

The climate tech company said that its technologies have already produced about 5 million truckloads of low-carbon concrete. This results in saving around 290,000 metric tons of CO2, or removing 64,000+ gas-powered cars off the road in one year.

The $80 million investment will allow CarbonCure to scale up its CO2 removal technology and remove millions of tonnes of carbon emissions annually. It will also support the company in ramping up its product roadmap and reaching its growth plans. To date, it operates in thirty countries. 

The majority of the new investment will be for expansions in ​​Europe, the Middle East, Latin America and Southeast Asia.

Overall, it will allow CarbonCure’s platform to provide more sustainability value to concrete producers while contributing to global climate goals. The company’s Chair and CEO, Robert Niven, asserts how important this new funding is to CarbonCure, saying:

“With more than 750 systems sold, this latest investment will drive CarbonCure’s deployment across the global concrete industry as the private sector doubles down on sustainability in new construction and as federal, state and even municipal procurement policies requiring green building materials continue to multiply.”

Carbon Removal and High-Quality Carbon Credits

Niven further noted the investment’s role in advancing decarbonization efforts and accelerating “immediate, permanent and verifiable” carbon removal pathways. 

It promotes CarbonCure’s solution for low embodied carbon concrete. The company’s carbon removal technology also tracks and measures carbon from the point of capture to mineralization in concrete mixes. 

This method allows carbon credit buyers to track the precise date and location of CO2 storage.

Other carbon removal solutions focus on removing CO2 and storing it deep underground. But CarbonCure’s tech brings more value to captured CO2 – use it for making low-carbon concrete. 

Thus, the carbon credits they create are of high quality as they don’t just remove CO2 but help the concrete industry in reducing its carbon footprint, too. 

CarbonCure’s cutting-edge innovations have attracted global recognition and prestigious awards, including Musk’s Carbon XPRIZE Grand Prize Winner. The company also won the Cleantech 100 Hall of Fame Company and the 2022 CNBC Disruptor 50 List Company awards. 

The climate tech firm signed the world’s biggest carbon credit purchase agreement for CO2 storage with Invert last year.

Further acknowledging its decarbonization efforts, Citi served as a financial advisor to CarbonCure during this latest round.

With its innovative technology, the carbon removal company is enabling the concrete sector to use captured CO2 to make low-carbon concrete mixes. This is crucial for the sector to stay competitive as stakeholders demand greener building materials to mitigate climate change.

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Revolutionizing the Glass Industry: LionGlass Halves Carbon Emissions and Boosts Durability

When discussing the reduction of global carbon emissions, the focus often falls on heavy-emitting sectors, with glass-making frequently overlooked. However, the manufacturing of glass contributes approximately 86 million tonnes of carbon each year. A new type of glass, however, could halve these emissions and is ten times more resistant to damage.

Researchers at Pennsylvania State University have created LionGlass, a glass that’s much stronger and has lower emissions than conventional glass. The researchers had requested for patent approval as the first step in bringing the new glass to market. 

A New Approach to Glass Manufacturing with Lower Emissions

The glass industry is well-established, yet it is capital- and energy-intensive, heavily reliant on durable raw materials. Glass is a ubiquitous material, found in everyday items ranging from smartphones to cars, but its production requires extremely high temperatures.

The primary components used in glass production are quartz sand, soda ash, and limestone. The melting of soda ash and limestone releases CO2, a significant contributor to climate change. Limestone, in particular, is a major reason why the cement industry emits large amounts of carbon.

Glass production is both sand and energy-intensive. It contributes around 86 million tonnes of CO2 annually, a significant contribution to global warming.

For context, consider the energy use and carbon emissions of a glass bottle compared to other materials like cans and plastic.

Source: Han et al., (2020).

The majority of these emissions come from the energy required to heat furnaces to the high temperatures needed to melt glass.

A research team at Penn State University has introduced a new glass product that is 10 times more resistant to damage and emits about half the CO2 of the current manufacturing process using soda lime.

The lead researcher and professor at the University highlighted the importance of their discovery in making glass production sustainable, stating:

“During the glass melting process, the carbonates decompose into oxides and produce carbon dioxide, which gets released into the atmosphere… Our goal is to make glass manufacturing sustainable for the long term. LionGlass eliminates the use of carbon containing batch materials and significantly lowers the melting temperature of glass.”

With LionGlass, the melting temperatures are reduced to about 300°C to 400°C. This reduction decreases the amount of energy needed to process glass by about 30% compared to soda lime glass.

Thinner and Lighter, yet Unbreakable

The researchers also noted that they can reduce the glass thickness without compromising its strength, making the new product lighter than conventional glass.

This is even more environmentally friendly because less material means less energy is required to process and transport the glass.

Surprisingly, scientists discovered that LionGlass has much higher damage resistance, ten times more than soda lime glass. It can resist cracks even under a 1-kilo-force load of a diamond indenter machine. In comparison, conventional glass can crack under just 0.1 kilo of force.

Resistance to damage or cracking is a crucial quality of glass to ensure its longevity. Glass that is resistant to forming micro-cracks is highly valuable.

LionGlass also comes in various compositions, each offering unique properties and uses. However, the team is still studying how the glass would react to different chemical environments. Their findings will help them better understand how their new discovery can be used worldwide.

Importantly, with improved performance, glass can help address not just environmental issues but also healthcare and urban development. The team aims to make a significant contribution to these areas.

The U.S. glass industry is a global leader in glass production and technology. Many valuable industries rely on glass for various products, including solar equipment, vehicle parts, building materials, consumer electronics, and semiconductor devices.

LionGlass’ Potential Industrial Applications 

Given the impressive properties of the new glass, it offers a wide range of potential uses across industries.

For example, it could improve the efficiency of solar panels, which use a sheet of glass to protect their inner components against harsh elements. Lighter panels could lead to lower solar installation costs.

Car manufacturers could use LionGlass to create unbreakable glass roofs using lighter but stronger materials. This could reduce the cost of manufacturing electric vehicles as well as consumer devices made with glass.

This breakthrough is remarkable because it signifies the glass industry’s participation in the global race to reduce carbon emissions. New scientific discoveries can improve products and make them in a way that’s less damaging to the Earth. Lighter but stronger glass with reduced emissions is one such innovation.

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Over $420M North American Forest Fund from Japanese Investors Kicks Off

Sumitomo Forestry, a top Japanese forestry company, has kicked off a bold initiative. They’ve launched a fund worth over $420 million to manage North American forests and create carbon credits. This move marks a significant step in the global fight against climate change.

The fund, amassing over $420 million, is the joint effort of 10 Japanese corporations, including Sumitomo Forestry. Their aim is to help reduce global carbon emissions by investing in forest management.

The nine other corporate investors of the fund include ENEOS Corporation, Osaka Gas Co., Tokyo Century Corp., Japan Post Holdings, Ltd., Nippon Yusen Kaisha, Fuyo General Lease Co., Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank, and Unicharm Corporation. 

Increasing the Value of Forests 

The fund, called “Forestry Fund I”, will buy and manage 130,000 hectares of forest mostly in North America by 2027. It will be managed by Eastwood Forests, an expert in US forest funds management, and will run for 15 years. 

The participating Japanese companies invested in this fund through their US subsidiaries. Through the fund, they aim to expand the forests they are managing and contribute to fighting climate change.

Sumitomo Forestry plans to build the world’s tallest building made from timber harvested from sustainably managed forests.

Highlighting the significance of the fund, Sumitomo Forestry President Toshiro Mitsuyoshi said that:

“[The fund can] “not only create economic value through timber trading but also contribute to the global environment through forest preservation and expansion and to helping investors offset their carbon emissions.”

Despite recent criticisms thrown at forestry projects, forests still have a big role to play in capturing carbon to limit global warming. And large companies continue to promote forests as a natural climate solution. They support forestry initiatives as part of their net zero and other climate goals.  

Japan has also pledged to achieve net zero emissions by 2050. By expanding into North America, the Japanese corporations will also help increase the value of forests as carbon sinks. 

The fund they invest in will generate carbon credits worth around 1 million tonnes of CO2 a year on average.

High-Quality Carbon Credits from Sustainable Forest Management

The carbon credits that will be created by the fund will be of high quality because of sustainable forest management activities, promoting the various functions of forests. These include carbon absorption, biodiversity, and water resource conservation.

Companies that find it difficult to reduce their carbon emissions to zero after performing robust reduction measures can buy the credits the fund generates. 

Big companies, such as Microsoft Corp. and BP PLC, are also backing up and buying forest carbon credits. They use it either to offset their emissions or support nature-based climate solutions. 

The new forest fund will keep track of global trends in carbon credits to create high-quality offsets. In addition to conventional forest management for timber production, the fund will focus on performing sustainable forest management.

Improved Forest Management (IFM) is one way to promote sustainable forestry. IFM promotes the recovery of forest vegetation by leaving promising young trees. It also creates forests with a hierarchical structure with trees of different species and ages. 

Forestry projects accounted for 30% of the total carbon offset credits issued by voluntary registries in 2022. These projects come in various types including IFM, REDD+ (Reducing Emissions from Deforestation and Degradation), and afforestation/reforestation.

According to an analysis by Haya et al. (2023), IFM projects have generated 193 million carbon offset credits since 2008. That amount represents 28% of the total credits from forest projects and 11% of all credits generated in voluntary markets. 

Source: Haya et al. (2023). https://doi.org/10.3389/ffgc.2023.958879

The review also found that in countries that issued forest offset credits from IFM projects, almost all credits (94%) were in the U.S. Moreover, the majority of them are registered under the ARB (California Air Resources Board) compliance carbon offset program. Almost 50% of these forest carbon credits are from projects in the U.S. 

To date, most forest offset credits across all registries have been issued for cutting forest carbon losses by significantly reducing tree harvests compared to baseline scenarios. 

Late last year, an Oak Hill Advisors-led consortium also bought 1.7 million acres of US timberland for $1.8 billion to reduce logging and improve forest carbon deals.

Overall, forestry projects like sustainable or improved forest management can potentially reduce carbon emissions and capture carbon in many ways. By restoring forests, enhancing biodiversity, promoting standing forests, etc., they can significantly contribute to mitigating global warming. Carbon offset credits have the potential to create important incentives to achieve this potential.

The carbon credits generated by the Sumitomo Forestry-led forest fund will be distributed to the investors.

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Samsung Reports Net Zero Progress, Pledges Over $5B by 2030

Samsung Electronics, the world’s biggest mobile phone maker, is almost a third through its goal to be net zero as it ramped up its sustainability efforts in 2022 and pledged more than $5 billion to decarbonize its consumer electronics operation.

The South Korean tech major achieves 31% in its transition to meet its target by 2030, up 11% from 2021. 

Samsung’s Carbon Emissions

Technology companies, which have a significant impact on people and economies, have also been one of the largest carbon emitters. The industry has a carbon emission of 2%-3% of global emissions in 2021, which is close to aviation’s footprint.

But the tech sector has been spending huge efforts in cutting down its carbon footprint, with major companies committed to slashing their carbon emissions and targeting net zero emissions

Among the major tech companies, Samsung has the biggest footprint of over 20 million metric tonnes (Mt) of CO2 equivalent in 2021. 

Samsung Electronics strongly rely on fossil fuels, which is significantly responsible for its carbon footprint. More than 80% of its power consumption is from non-renewable, fossil-fuel-based sources. Both its Scope 1 and 2 emissions for constructing manufacturing lines have been rising as shown below.

Another research by Electrics Hub further shows that the Seoul-based company emits more pollution than any other tech company. Its carbon footprint is equivalent to the emissions of 4.3 million cars on the road each year. 

According to the same report, Amazon, the world’s biggest e-commerce firm, came second with 16.2 million Mt of CO2. This makes the giant retailer the largest polluter among the “Big Five” tech companies, including Alphabet, Apple, Meta, and Microsoft. The four remaining companies emitted much lower CO2e compared to Samsung. 

They emitted 6.6 million, 1.0 million, 3.1 million, and 4.9 million Mt of CO2e, respectively. 

The tech industry has a crucial role to play in the world’s quest to net zero emissions by 2050. The major players, in particular, have a big influence in impacting the sector’s transition to a low-carbon future. 

Thus, the shift towards a climate-focused company means Samsung has a huge task to do. Its latest Sustainability Report outlines the ways in which the company has been tackling this matter. 

Samsung’s Net Zero Pledge and Strategy

Samsung has committed to net zero emissions by 2050, pledging over $5 billion to decarbonize its consumer electronics operation. 

Still, that target is 10-20 years later than Apple, Google, and Amazon. Apple aims to reach net zero by 2030, Google by 2030, and Amazon by 2040. 

Yet, Samsung has set various ambitious goals as part of its net zero strategy. Highlighting its commitment to sustainability, Jong-hee Han, chief executive and vice chairman of Samsung noted in its report:

“Growing environmental and socio-economic risks coupled with geopolitical uncertainties have reinforced our belief that sustainability needs to be a key force for driving our competitiveness and technological innovation… We aim to mitigate carbon emissions by using our innovative technologies and maximising resource circularity across the life cycle of our products.”

A big part of its sustainability and net zero quest is Samsung’s “New Environmental Strategy” launched in September last year. It aims to tackle global environmental issues through its technologies.

The initiative has three major pillars, namely:

Joining the global drive to fight climate change, 
Supporting the implementation of a circular economy, and 
Addressing environmental challenges through technological innovation.

In particular, the tech major plans to boost the share of renewables in its energy mix. For its Southwest Asia operations, Samsung aimed to match electricity consumption with renewable energy production by 2022. That goal comes later for Central and Latin America and Africa, by 2025 and 2027, respectively. 

Samsung has already achieved this target in China, the U.S. and Europe.

Moreover, the tech giant will further invest in new technologies that reduce process gasses produced by semiconductor manufacturing. It’s one of the areas that account for most of Samsung’s emissions. The company hopes to implement the necessary technology in its production facilities by 2030.

Other net zero strategies of Samsung are to:

optimize the energy efficiency of its products,
increase water recycling during manufacturing, and 
develop carbon capture technology.

For unavoidable emissions, Samsung are buying carbon offset credits as part of its climate adaptation efforts since 2013. These carbon credits are from different carbon reduction projects, including low-carbon cooking stoves, landfill gas treatment, and nature-based solution projects.

Here are the firm’s net zero and sustainability targets at a glance.

How Does Samsung Progress Towards Net Zero? 

Samsung shows that it’s serious about its net zero pledge and is making strides toward it. 

In 2022, the company achieved 10.16 million tonnes of CO₂e reduction (Scopes 1 and 2) compared to 2019 levels. That’s a whopping 59% increase from the previous year.

Also, the tech giant became a member of the RE100, a global movement pursuing a 100% renewable energy system. 

This commitment was proven by completing its transition to using renewables in Samsung’s Device eXperience (DX) divisions in Brazil, India and Vietnam. This is in line with the largest smartphone maker’s plan to utilize sustainable energy at its sites outside South Korea.

DX is the division that is making the Apple iPhone’s rival Galaxy smartphone series.

The South Korean major reported 8,704GWh of renewable energy consumed globally, reaching a transition rate of 31%.

Moreover, Samsung has increased the amount of recycled resin in its product and packaging plastic components by 200% (99,000 tonnes). Its Galaxy S6 phone is made with 99.9% recyclable material and comes in recyclable packaging. This innovation won the Sustainable Materials Management (SMM) Champion Award by the US Environmental Protection Agency. 

It also puts the company on track with its target of using recycled resin in 50% of plastic parts by 2030 and in all plastic components by 2050.

When it comes to water resource preservation, Samsung managed to reuse 117 million tonnes of water in 2022, up 29% from 2021. 

Lastly, the major tech company is working with various organizations to further improve its sustainability efforts. For instance, it partnered with the popular brand Patagonia to make a washing machine that minimizes the environmental impact of microplastics. 

To make its net zero ambition a reality, Samsung will invest $5.3 billion in those strategies by 2030. And as it’s making progress in this journey, it’s inspiring other companies to do the same.

The post Samsung Reports Net Zero Progress, Pledges Over $5B by 2030 appeared first on Carbon Credits.

Capture6 Secures Over $8M Grant for Innovative Carbon Capture Technology

In a significant boost to the carbon capture industry, Capture6, a California-based startup, has secured a grant exceeding $8 million from the California Energy Commission. 

This funding, the largest in the current round of the Commercialization Industrial Decarbonization (CID) Program, will propel the company’s groundbreaking Project Monarch at the Pure Water Antelope Valley (PWAV) Demonstration Facility.

Capture6 is a direct air capture (DAC) start-up specializing in climate resilience and industrial decarbonization. The company develops and commercializes highly scalable approaches to removing carbon dioxide.

Capture6’s Project Monarch will demonstrate the use of saltwater separation technology to remove CO2.

Producing Freshwater By Removing Carbon

Capture6 is revolutionizing the carbon capture sector with its unique, scalable technology. The startup’s approach integrates DAC with water treatment technologies and thus, creating a circular economy solution. 

This innovative process uses brine, a byproduct of water treatment facilities, to produce a solvent that captures atmospheric carbon dioxide. The result? A dual benefit of additional freshwater and reduced CO2 emissions, is a win-win for communities and the environment.

Water security is a global concern, with demand projected to surge by 55% by 2050

Traditional water sources, often high in salt and minerals, require significant treatment before use. The startup’s technology offers a solution to this escalating environmental crisis. 

By using salt water to create its carbon removal solvent, Capture6 can recover over 50% of freshwater from desalination waste brine. This process not only provides drinking and industrial water but also captures CO₂ and eliminates waste brine.

Capture6 Approach to Carbon Capture

The grant application was a collaborative effort, led by Capture6, with PSE Healthy Energy, Lawrence Berkeley National Lab, and Stantec. 

The Palmdale Water District (PWD) will partner with Capture6 to develop the PWAV Demonstration Facility. This facility will showcase Capture6’s cutting-edge technology and PWD’s advanced water purification through a visitor learning center and guided tours.

Berkeley Lab will play a crucial role in the project, developing a comprehensive monitoring, reporting, and verification protocol. They will also execute a life cycle analysis for the project, while PSE Healthy Energy will lead air pollutant assessments.

Dr. Ethan Cohen-Cole, CEO and co-founder of Capture6, expressed his gratitude for the grant, stating, 

“It represents one of the largest state-funded DAC investments to date. It confirms our process is viable in decarbonizing industries while at the same time reducing emissions and increasing freshwater supplies.”

Capture6’s Unique CO2 Removal Facility

The facility, named Pure Water Antelope Valley Demonstration Facility, which includes Capture6’s Project Monarch, will be the first fully integrated water management and CO₂ removal facility of its kind.

Project Monarch is a two-phase initiative with the ultimate goal of developing a large-scale commercial facility. The success of this project hinges on community support as well as positive outcomes from the demonstration facility.

Capture6’s carbon capture process has the potential for global replication. The company is actively pursuing opportunities, particularly in New Zealand, Asia, the Middle East, Canada, and across the US. The goal is to deliver high-value environmental and financial outcomes, including pure water, affordable carbon removal, and emissions reductions.

Here’s how the startup’s DAC process works, explained in the video below.



The CID Program is a key part of the California Energy Commission’s broader efforts to create a clean, modern, and thriving California. As the state’s primary energy policy and planning agency, the Commission plays a pivotal role in supporting the transition to a clean energy economy and reducing greenhouse gas emissions.

In conclusion, Capture6’s innovative technology and the recent grant from the California Energy Commission mark a significant stride in the fight against climate change. The company’s unique approach to carbon capture and water treatment could be a game-changer in the global effort to reduce CO2 emissions and secure water supplies. Stay tuned for more updates on this exciting development.

The post Capture6 Secures Over $8M Grant for Innovative Carbon Capture Technology appeared first on Carbon Credits.