January 2024 – Page 2 – The Global Carbon Fund

How to Find High-Quality Carbon Offsets

January 24, 2024/in Uncategorized /by

Are you looking for high-quality carbon offsets to address your harmful emissions? This guide will help you understand what’s offsetting all about, its benefits, and know what would be the best place to source the offsets.

High quality carbon offsets not only help individuals and businesses reduce their carbon footprint, but they can also have a positive impact on local communities and biodiversity. By supporting projects that focus on renewable energy, reforestation, and sustainable agriculture, carbon offsets can contribute to the development of clean technologies and create employment opportunities.

Additionally, investing in high-quality offsets provides a transparent and credible way to offset emissions, ensuring that the generated funds are effectively used for environmental conservation and social benefits.

Understanding Carbon Offsets

Carbon offsets are a way for your or your company or organization to voluntarily compensate for your carbon emissions. They allow you to invest in projects that reduce or remove an equivalent amount of CO2 from the air.

The main goal of this voluntary carbon market (VCM) mechanism is to balance out the emissions produced in one place by supporting carbon reduction or removal activities somewhere else. They’re often used as complementary strategy to address emissions that are challenging to eliminate completely.

When the reductions are verified, you then receive carbon offset credits. Each credit represents one metric ton of CO2 that has been either avoided or removed from the atmosphere.

By using these offsets, you can essentially cancel out your emissions. The idea is that the positive environmental impact of the offset project counterbalances the negative impact of the entity’s own carbon footprint.

Projections show that the VCM has to increase 15x and reach $50 billion by 2030 to achieve the Paris climate goals.

It’s important to note that while carbon offsets can be a valuable tool in the fight against climate change, they’re not a substitute for directly reducing emissions at the source. The primary goal should always be to minimize carbon footprints through sustainable practices and technologies.

Why Choose High-Quality Carbon Offsets

Choosing high-quality carbon offsets is crucial for several reasons, as it ensures the effectiveness and integrity of offsetting efforts. And as the number of these credits issued to increase massively, you have to be more vigilant about the quality of the offsets you buy.

Choosing reputable projects with rigorous verification processes ensures that the claimed reductions are genuine. The high-quality offsets they produce make sure that the reductions are not counted more than once.

Moreover, the best carbon offsets go beyond just reducing emissions; they also bring about environmental and social benefits.

For example, reforestation projects can enhance biodiversity and provide livelihoods for local communities. Choosing high-quality offsets from these initiatives allows you or your company to contribute to broader sustainability goals beyond just carbon mitigation.

There’s a catch though: you need to assure that the seller or provider of the offsets is credible.

Assessing the Credibility of Carbon Offset Providers

Weighing credibility involves looking at various factors such as the provider’s track record, transparency, adherence to standards, and the quality of their offset projects.

There are various standards and certifications that can guide you to the best place to buy high quality carbon offsets. These primarily include the Gold Standard, the Verified Carbon Standard (VCS) of Verra, American Carbon Registry, Climate Action Reserve, and Plan Vivo.

Verra’s VCS – focuses on GHG reduction attributes and doesn’t require projects to have additional environmental or social benefits.
Gold Standard (GS) – created by the WWF, focuses on projects that provide lasting social, economic, and environmental benefits.
Climate Action Reserve (CAR) – a certification body or registry for the North American carbon credit market.
American Carbon Registry (ACR) – the regulatory body of the California cap-and-trade offset credit market.
Plan Vivo – focuses on projects that support local communities and smallholders in developing nations.

Choosing offsets from projects that adhere to these recognized standards provides assurance of their quality.

Remember that the ultimate goal of carbon offset credits is to reduce the amount of carbon emitted into the atmosphere. Each carbon credit certification gives the owner the right to emit one ton of CO2 or other greenhouse gasses.

A carbon offset credit becomes certified only by going through the specified processes or procedures set by the certifying standards. This is what separates a high-quality and real carbon credit from other credits swarming the market.

An example of a carbon credit certification process by Verra’s VCS program is shown below.

Another thing to keep in mind is the provider’s project documentation practice. This refers to the detailed information and documentation associated with carbon offset projects. This includes project plans, methodologies, emission reduction calculations, and other relevant documentation.

Transparent and comprehensive project documentation is vital for assessing the integrity of offset projects. It allows you and other stakeholders, including third-party verifiers, to understand how emissions reductions are achieved, measured, and verified.

Reputable carbon offset projects undergo third-party verification by independent organizations. This process adds an extra layer of credibility and transparency, assuring you that the claimed emissions reductions are accurate. It confirms that providers are delivering on their promises to help mitigate climate change.

RELATED: Who Verifies Carbon Credits?

So always look for projects certified by recognized standards and certification bodies – it’s non-negotiable.

Here are the top carbon offset certification and standard bodies to consider.

Researching Carbon Offset Projects

Finding the right carbon project for your offsetting needs involves a range of factors, including project types, geographic considerations, project longevity, and other relevant aspects. It may not be that easy and quick given the plethora of projects available today. But, here’s how you can find the right offsetting partner.

Different projects may have varying impacts based on their geographic location. For example, reforestation projects in one region may have different ecological and social implications compared to a renewable energy project in another. Considering the geographic context is important for understanding the broader environmental and social implications of offset projects.

BlueSource, now Anew, is widely known for providing offset credits from improved forest management practices, carbon capture, and other projects. It covers the U.S. Canada and Europe, with an environmental commodities portfolio across five continents.

Under its core project development expertise, forestry, Anew follows these steps for a project to be eligible for offset crediting:

Finite Carbon is another big name in the field of forest improvement projects. With the developer’s wide coverage, their projects cover major forest type from the Appalachians to coastal Alaska.

Another provider, C-Quest Capital (CQC), creates high impact carbon offsets through three platforms: cleaner cooking, efficient lighting, and sustainable energy. It aims to transform the lives of families in poorer communities worldwide.

You also have to consider project longevity, which refers to the sustainability and durability of carbon offset projects over time. This involves assessing how well a project can maintain its emissions reductions or removals over an extended period.

Longevity is crucial to ensuring that the offsetting efforts have a lasting impact on reducing carbon emissions. Factors such as ongoing maintenance, community engagement, and adaptability to changing conditions contribute to the overall project longevity.

But before you pick a carbon offset provider, there are some things you have to keep in mind first. You need to calculate and verify your carbon footprint and learn the things to avoid so you’ll emerge successfully.

Calculating and Verifying Carbon Footprint

Quantifying your carbon footprint involves assessing emissions from various sources, such as energy consumption, transportation, and manufacturing. The role of the verification process is to ensure the accuracy and reliability of your calculated emissions data.

Measuring emissions is a critical step in calculating your carbon footprint. This involves quantifying the amount of greenhouse gasses such as CO2 released into the atmosphere by certain activities.

Different methodologies and tools are used for measuring emissions from different sources, and accuracy is critical for reliable calculation. This step often involves using emission factors, direct measurements, or modeling techniques.

The more complex your organization or company’s activities are, the harder it is to identify the sources of emissions. But most often, it involves the following three emissions scopes.

Here are also the common types of emissions sources under each scope that can help guide you identify them.

After calculating your carbon footprint, the next step is to choose appropriate offsets to compensate for the identified emissions. This is when you can now select carbon offset projects that align with your values and goals.

Go here if you want to know more about how to comprehensively calculate your carbon emissions, with specific examples provided.

Apart from considering the major things when assessing providers of high-quality carbon offsets, you also have to watch for the common pitfalls. Identifying and understanding these pitfalls is crucial for making informed decisions and ensuring that your offsetting efforts are effective.

Common Pitfalls to Avoid

First red flag is lack of transparency. It refers to situations where carbon offset projects don’t provide clear and comprehensive information about their activities.

Without sufficient information, it becomes challenging to verify the legitimacy of emissions reductions, project methodologies, and the overall impact of the offsets. Transparency, especially among intermediaries in the VCM, is critical.

Next, pay attention to additionality – it’s a key concept defining a high quality carbon offset. It ensures that the emissions reductions achieved by a project are additional to what would have occurred without the funding.

Concerns about additionality arise when there’s doubt about whether the supported project is genuinely making a positive environmental impact. Forest carbon offsets have been the target of scrutiny over additionality since last year.

Lastly, you should be aware of double counting. It happens when the same emissions reductions are claimed by multiple entities, leading to an overestimation of the overall impact.

This could arise where there’s insufficient oversight in the carbon offset market. For instance, you could have bought high-quality carbon offsets from a reforestation project but the developer sold them to another buyer. Those same offsets are double-counted.

Thus, robust accounting and adherence to established standards are crucial to avoid double counting. Addressing this and the other pitfalls is essential for you to be confident that the carbon offsets you support are of high quality.

Conclusion

In the realm of climate action, the quest for high-quality carbon offsets takes center stage. They offer you and other climate conscious entities a powerful tool to mitigate your carbon footprint. And as the demand for these offsets continues to surge, it becomes important to understand their role in fostering environmental and social benefits.

By choosing reputable projects and assessing the credibility of offset providers through recognized standards, you can ensure the quality of the offset credits. Ultimately, the journey towards high-quality carbon offsets propels us together closer to achieving the ambitious Paris Agreement climate goals.

The post How to Find High-Quality Carbon Offsets appeared first on Carbon Credits.

Green Manufacturing Startups Secured Over $10 Billion in Funding

January 23, 2024/in Uncategorized /by

Carbon-intensive practices likely come from manufacturing, where both mass-produced goods and the associated production processes contribute significantly to CO₂ emissions. As such, there has been a growing interest among founders and venture capitalists in greener manufacturing solutions.

Despite a more subdued funding environment, the space gained traction. It witnessed over $10 billion in global investments across substantial funding rounds, as per Crunchbase analysis.

Crunchbase’s close examination of the data reveals prominent sectors and investment themes within greener manufacturing. Some key areas that stand out include battery recycling and the development of green steel.

The following list highlights significant financings that showcase the diverse range of investments within this burgeoning sector. Three areas particularly stood out:

Battery Startups Sparking a Sustainable Revolution

Battery funding has experienced significant growth in recent quarters, primarily fueled by the increasing adoption of electric vehicles (EVs). The interest in funding startups developing technologies for longer-lasting, more affordable, and environmentally friendly batteries has surged.

Europe has emerged as a hub for battery-related funding, with notable investments going to Verkor. This French startup specializes in low-carbon battery manufacturing. Another company based in Stockholm and known for its lithium-ion batteries, Northwolt, got massive funding.

Just recently, the European Commission has approved Germany to provide €902 million ($987mn) in state aid to Northvolt. This marks the first-ever application of a landmark rule allowing EU nations to be competitive with foreign subsidies to prevent investments from diverting outside the region.

Battery recycling has also become a prominent focus, with substantial funding rounds for companies like the Nevada-based Redwood Materials. Ascend Elements, based in Massachusetts, specializing in sustainable materials recovered from discarded lithium-ion batteries, also got a substantial investment.

According to market research, the demand for battery power will rise to 2,035 GWh by 2030, an 11-fold increase from the 2020 level. The majority of this demand comes from the transportation sector alone. When it comes to size, the global battery market is projected to go over $475 billion by 2032.

Transportation Startups Redefining Mobility

Several funded startups are directing their efforts toward developing more environmentally friendly transportation modes and components.

For instance, Infinitum, based in Texas, has secured over $350 million in funding to develop engines that claim to be 50% lighter and smaller than traditional iron-core motors. The company envisions applications in mobility and has garnered significant interest for its innovative approach.

San Francisco-based Glydways focuses on creating small, autonomous EVs for public transport. The startup has secured over $90 million in funding by contributing to the evolution of sustainable and efficient transportation solutions.

Electrification of the global transportation sector has been ramping up as national governments push for supporting policies.

The United States government has shown its commitment to reshaping the transportation landscape in the country by providing a $623 million grant to propel the growth of EVs.

As per S&P Global projections, lithium-ion battery capacity would reach 6.5 TWh by the decade’s end. Of that, the EV transportation sector will win over a market share of 93%, standing at 3.7 TWh.

Building a Greener Tomorrow

Another activity that’s widely recognized as one of the most carbon-polluting is construction. The building industry is responsible for around 39% of the global greenhouse gas emissions.

Unsurprisingly, there has been an increased interest from investors in startups that adopt greener approaches in building and materials.

Investors are more willing to support environmentally conscious startups addressing various aspects of construction materials.

Oakland-based Mighty Buildings has secured over $150 million in funding for its innovative 3D-printed panels and materials. The company claimed it the design can facilitate faster construction with a reduced carbon footprint.

In the realm of glass technology, California-based Halio is developing dynamic glass that allows windows to change tint. This innovation would result in energy savings in heating and cooling costs.

Some startups are also focusing on manufacturing sustainable building materials to build carbon-negative houses. They’re changing how the world builds by introducing alternative materials that reduce or eliminate the use of carbon-intensive concrete.

As substantial investments flow into green manufacturing startups, it’s evident that these ventures are capital-intensive, infrastructure-heavy, and carry some risks.

The biggest challenge is to develop manufacturing processes that minimize environmental impact and carbon pollution. Addressing this concern presents an opportunity for substantial rewards. The positive outcomes in sustainability and reduced environmental harm will far outweigh the risks and investments associated with manufacturing startups.

The post Green Manufacturing Startups Secured Over $10 Billion in Funding appeared first on Carbon Credits.

Albemarle Shifts Focus in Lithium Strategy Amid Market Softening

January 22, 2024/in Uncategorized /by

Albemarle Corp., a major player in the lithium market, has altered its investment strategy due to evolving market dynamics. The company has deferred spending on its ambitious lithium conversion facility project in South Carolina. Instead, it redirected efforts towards permitting activities for the Kings Mountain lithium-spodumene mine resource in North Carolina.

This strategic shift responds to the softer conditions in the lithium market, prompting Albemarle to optimize its cost structure and re-evaluate growth investments.

Navigating Market Challenges and Reallocation of Funds

The world’s largest provider of lithium for electric vehicle batteries expects its 2024 capital expenditures to range from $1.6 billion to $1.8 billion, down from about $2.1 billion in 2023.

The proposed lithium production facility in South Carolina, with an initial capacity of 50,000 metric tons per year, was originally scheduled for construction starting in late 2024. It was designed to process both spodumene concentrate and recycled batteries. It has a potential capacity expansion to 100,000 t/y in a subsequent phase.

Funds reallocation will now prioritize the development of spodumene concentrate production at the Kings Mountain mine. The mine has a potential production capacity of 350,000 t/y of spodumene concentrate.

Kings Mountain is supported by grants of nearly $150 million from the U.S. Department of Energy in 2022 and $90 million from the US Defense Department in 2023. It could eventually supply the proposed lithium conversion facility in South Carolina.

Albemarle didn’t disclose whether the spending cuts would affect the capacity expansion project at its Nevada Silver Peak lithium operations. The company aims to increase its lithium carbonate production from 5,000 t/y – 10,000 t/y by 2025.

This decision is part of Albemarle’s proactive measures to re-phase organic growth investments and optimize its cost structure in response to changing market conditions. Remarkable changes are particularly happening in the lithium value chain.

Despite the deferral, the company remains committed to advancing its Meishan lithium conversion facility in China and the Kemerton lithium conversion facility in Australia in 2024. Albemarle also plans to reduce costs related to sales, general, and administrative expenses.

Market Dynamics Impacting Lithium Prices

Stalling spending on its lithium conversion facility project in South Carolina is largely due to a softer market in 2024. The global lithium market experienced a correction in 2023, witnessing a significant price decline from the record levels in 2022.

According to S&P’s Platts data, lithium carbonate CIF North Asia assessment stands at $15,000 per metric ton as of the beginning of 2024. This level approaches its historical range after surpassing $70,000 t/y for most of 2022.

S&P Global revised price projection for lithium carbonate stands below $20,000 t/y from 2024 to 2026. This decrease in expected prices is largely attributed to weakened near-term demand for EVs and a surplus of lithium globally.

Interestingly, despite weaker demand, Mercedes-Benz reported a new record for both volume and share of its all-electric cars in 2023. The company is directly sourcing lithium to scale up its fully EV production.

The German luxury car saw a 73% year-over-year growth rate in its all-electric car brand in 2023, selling over 240,000 units. This accounted for about 11% of the carmaker’s total sales volume.

For the same period, Mercedes-Benz also sold around 22,700 all-electric vans, accounting for over 5% of its total sales. The figure is up 51% year-over-year.

In the U.S., the automaker’s battery electric vehicle (BEV) sales totalled to over 13,000 units, representing a 139% increase. Electric vehicles in the country are getting a stronger policy support.

The Electric Vehicle Boom and the Lithium Race

Just recently, the U.S. government revealed a $623 million grant to drive the growth of EVs. The financial support aims to make EV chargers more accessible and convenient for EV drivers.

Globally, the EV market, including both BEV and plug-in hybrid, would reach a whopping $623 billion in sales. This huge growth potential would lead to a global EV units sold at 17 million by 2028.

What all these mean is the more intense race for securing lithium, the white gold that fuels the EV revolution. One of the companies positioned to take advantage of this lithium opportunity is Li-FT Power (LIFT; LIFFF). It is the fastest developing North American lithium junior, owning five various projects in Canada.

The electrification of transportation and the quest for sustainable energy solutions are poised to reshape the global resource landscape. The path forward is brimming with potential, driven by the dual forces of electric and lithium-powered advancements.

Albemarle’s move to prioritize cost and efficiency improvements aligns with market conditions and aims to navigate the challenges posed by the evolving lithium industry.

Disclosure: Owners, members, directors and employees of carboncredits.com have/may have stock or option position in any of the companies mentioned: LIFT

Carboncredits.com receives compensation for this publication and has a business relationship with any company whose stock(s) is/are mentioned in this article

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Taylor Swift Turns to Carbon Offsets for Her Sky-High Footprint

January 20, 2024/in Uncategorized /by

Pop sensation Taylor Swift, owner of a $40 million private jet, is making headlines as she turns to carbon offsets to address her substantial carbon footprint. Despite being the world’s most carbon polluting celebrity in 2022, Swift aims to offset her emissions.

However, questions arise about the transparency and legitimacy of these carbon offsets, raising concerns within the climate-conscious community.

Carbon offsets are mechanisms used by companies and individuals to compensate for their carbon emissions by investing in projects that reduce or remove an equivalent amount of greenhouse gasses (GHG). Each offset equals one tonne of carbon emissions.

Private Jets and Celebrity Carbon Footprints

The aviation industry contributes about 2.5% of global emissions. Despite airplanes emitting around 100x more carbon dioxide per hour than other transportation modes, celebrities like Taylor Swift seldom opt for public transport.

The pop star’s reliance on a private jet significantly amplifies her carbon footprint compared to an average individual.

Private jets are considered the most polluting form of transport, posing challenges in global decarbonization efforts.

In the U.S., a study by the Institute for Policy Studies (IPS), showed that the richest 1% of air travelers in the country are responsible for about 50% of all aviation carbon emissions.

In the UK, each of the wealthy fliers onboarding largest private jets release as much as 20-30x more pollution than those flying in economy class on ordinary commercial flights. These flights are several times more polluting than transit.

Celebrities and politicians, in particular, receive criticisms from environmentalists regarding their carbon footprints, which are higher than that of the average person.

Putting that in perspective, a flight from London to Dubai makes a private jet 11x more polluting than a regular commercial aircraft, 35x more than a train, and a whopping 52x more than a bus.

Jet-Set Stats: Unveiling Swift’s Sky-High Carbon Footprint

According to a digital sustainability consultancy, Yard, Taylor Swift is the world’s most carbon polluting celebrity due to her footprint in 2022. She is followed by Floyd Mayweather and Jay-Z.

The study revealed that only 15% of the population takes 70% of the flights annually. It also showed that the average CO2 emissions by the celebrities surveyed, through their private jet flights alone, stands at 3,376.64 tonnes each. In comparison, an average person emits only 7 tonnes of carbon every year.

Of the celebrities studied, the pop princess tops the list for 2022. With a staggering total of 170 flights since January, Swift’s jet has logged an extensive 22,923 minutes in the air. That’s roughly 16 days in total.

This substantial figure is noteworthy, especially considering that she’s not on tour that period. Her jet’s average flight duration is a mere 80 minutes, covering an average distance of over 139 miles per flight.

Swift’s cumulative flight emissions for the year reach 8,293.54 tonnes, representing a staggering >1,100x more than the average person’s total annual emissions. Her shortest recorded flight for 2022 was a brief 36 minutes, covering the distance from Missouri to Nashville.

Swift’s Bid for Environmental Redemption

In the middle of her Eras Tour in March 2023, Swift’s regular flights to see her NFL-playing boyfriend, Travis Kelce, emitted 138 tonnes of CO2 in 3 months. The superstar remains the world’s most carbon emitting celebrity.

In an Instagram post tracking Swift’s private jet flight records, she took 12 flights to see her love interest. These flights by her Desault Falcon 7x and Dessault Falcon 900 emitted a total of 138 tonnes of CO2. That means the popular singer can offset that footprint by growing almost 2,300 trees for a decade.

However, the pop star’s representative said that Taylor’s private jet is also loaned out to others, so it’s incorrect to attribute most or all of the trips to her. The spokesperson further noted that “Taylor purchased more than double the carbon credits needed to offset all tour travel.”

Carbon offsets are generated by projects or initiatives that reduce or capture carbon dioxide from the atmosphere. It could be through natural ecosystems or using carbon removal or carbon capture technologies.

From which project do carbon offsets Taylor Swift purchased come from?

Individuals or corporations are not required to publicly disclose their sources of carbon offsets. But as the carbon credit industry is strengthening its integrity and reliability, regulations are also tightening. Transparency in reporting and disclosing carbon offsets, despite being voluntary, would soon be the standard.

Universal, Swift’s record label, didn’t disclose where the singer had bought the offsets. These offsets, including those bought by corporations, undergo verification by third parties to ensure reliability and effectiveness.

Controversies surround the validity of offsets after an expose last year claimed that 90% of them approved by the leading verification body, Verra, were worthless. Verra disputed that the allegations aren’t valid.

The legitimacy of Taylor Swift’s offsetting her carbon footprint may remain uncertain. Despite this ambiguity, Swift appears determined to shed her climate villain reputation. Whether the pop princess will eventually disclose the details is unclear, but her move brings celebrity carbon accounting to the forefront.

The post Taylor Swift Turns to Carbon Offsets for Her Sky-High Footprint appeared first on Carbon Credits.

UEFA’s Green Goals: $7.6M Climate Fund for EURO 2024 Carbon Footprint

January 20, 2024/in Uncategorized /by

The football governing body in Europe, Union of European Football Associations (UEFA), plans to allocate funding competitively through a newly established ‘climate fund,’ to address the sports’ significant carbon footprint.

The climate fund was established in part of UEFA EURO 2024 in Germany following the slogan ‘United by Football – Together for Nature’. The event will kick off in Munich on June 14 and ends with the final in Berlin on July 14.

Football’s Scoring Big on Carbon Footprint

Being the most popular sport globally, football or soccer in American terms, may not be considered a major carbon emitter compared to certain industries. However, the global football industry contributes to over 30 million tons of carbon dioxide annually. That’s roughly equal to the emissions of a small country like Denmark.

Leveraging its popularity and influence, the football industry can have a pivotal role in educating fans about climate change. With a market value of ~$1.9 trillion in 2019, it can help promote innovative solutions to address environmental challenges.

A study conducted a calculation of greenhouse has (GHG) emissions related to transportation for tire 3 football games during the 2012/13 season. The estimated emissions for transport to and from stadiums amounted to 56,237 tons of CO2e. Notably, the carbon footprint tends to increase for more significant games, as supporters and players often travel greater distances for crucial matches.

The chart shows the distance travelled by participating teams during the EURO 2020 event.

Spectators and teams are using various means of transportation to attend the tournament. Each mode emits a certain amount of CO2 as shown below, with flying releasing the most pollution.

To accurately assess their emissions, football clubs must consider not only the transport to and from games. They also have to account for all materials purchased for players, business travel, and even the emissions associated with the production of merchandise sold to fans. This requires a comprehensive mapping of the club’s activities, purchases, and sales.

The football league in the U.S. opted to purchase carbon credits to offset a portion of its carbon emissions.

Kicking Off Change: UEFA’s €7 Million Climate Fund

For the Euro 2024 tournament this summer, UEFA will contribute €25 ($27) to the fund for every ‘unavoidable’ tonne of CO2e emissions. The estimated total of the fund stands at around €7 million ($7.6M) based on pre-event emissions projections.

Amateur football clubs in Germany, where the tournament takes place, have until June 30 to apply for financial support for their sustainability projects.

Eligible projects, focusing on the energy transition, water stewardship, waste management, or smart mobility, must be new initiatives. Clubs can seek up to 250,000 euros, and a streamlined application process is available for requests under 25,000 euros.

The objective is for UEFA’s financing to contribute to long-term emissions reduction, involving fans and local communities in the process.

Bernd Neuendorf, president of Germany’s football association (DFB), emphasized that the UEFA climate fund signifies the importance of amateur football in the country. He also noted that it provides clubs with an opportunity to enhance their commitment to environmental and climate protection.

Neuendorf further highlighted the collaborative efforts between the DFB, Germany’s federal government, UEFA, and other stakeholders to initially reduce the projected carbon footprint of the tournament, minimizing the necessity for offsetting.

Major sporting events, such as this, face challenges in decarbonization. Transportation accounts for a significant portion (60% – 70%) of football’s carbon footprint according to some estimates.

Addressing Scope 3 emissions, where transport footprint fall, is the most challenging task for professional sporting events. For instance, the 2022 FIFA World Cup in Qatar generated an estimated 3.6 million tonnes of CO2e. Over half of these emissions came from spectator transportation, highlighting the substantial impact of travel.

UEFA’s Unique Approach: Local Goals, Global Impact

UEFA’s approach to offsetting stands out for its emphasis on community engagement rather than tracking of individual emissions in tonnes.

A notable distinction is the investment in small-scale local projects, deviating from the trend among many corporations that favor large-scale global initiatives. While most of these projects are nature-based, there’s a growing interest in supporting early-stage man-made carbon capture and removal technologies.

The year 2023 posed challenges for advocates of large international nature-based carbon offsetting schemes within voluntary carbon markets (VCM). These markets exceeded $1 billion in value collectively in 2021, with projections indicating a potential 160-fold increase by 2050.

Amid the integrity issues surrounding the VCM, initiatives like the Voluntary Carbon Market Integrity Initiative (VCMI) launched the Claims Code of Practice. The Code serves as a rulebook for companies in project selection, offsetting claims, and decarbonization-offsetting strategies. Collaborating with the Integrity Council for the Voluntary Carbon Markets (ICVCM), VCMI aims to enhance confidence in the market.

As UEFA takes a leap towards a sustainable football future, the climate fund becomes a symbol of the sport’s commitment to environmental responsibility. With an innovative offsetting approach and community-centric projects, UEFA aims to drive lasting change in football’s carbon footprint.

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World’s Most Advanced Battery Energy Storage System Replace Hawaii’s Last Coal Plant

January 18, 2024/in Uncategorized /by

In a groundbreaking leap towards sustainability, Plus Power’s Kapolei Energy Storage (KES) facility in Hawaii has commenced commercial operations. As Hawaii bids farewell to its last coal plant, KES takes center stage, offering an innovative solution to maintain grid reliability amid the transition from fossil fuels to renewable energy.

The plant is considered as the most advanced grid-scale battery energy storage system (BESS) in the world. BESS are rechargeable batteries that can store energy from various sources and discharge it when necessary. The system is composed of one or more batteries often used to balance the traditional grid, provide backup power, and enhance grid stability.

The project, developed and owned by Houston-based Plus Power, began operations before Christmas. It features 158 Tesla Megapacks with a total capacity of 185 megawatts of instantaneous discharge. This capacity matches the power output of the retired coal plant but offers a faster response time of 250 milliseconds.

Hawaii’s Clean Energy Revolution

The state of Hawaii decided to shut down its last coal plant on September 1, 2022. This decision marked a significant step in the state’s commitment to achieving 100% renewable energy for electricity by 2045.

The challenge then arose of ensuring grid reliability with a mix of renewable sources subject to weather fluctuations.

The Kapolei Energy Storage system addresses this challenge by absorbing excess power from the grid during renewable generation peaks and delivering it during high-demand evening hours.

Brandon Keefe, Executive Chairman of Plus Power, expressed pride in contributing to Hawaii’s renewable energy goals and enabling the transition. Keefe particularly noted that:

“This is a landmark milestone in the transition to clean energy… This project is a postcard from the future — batteries will soon be providing these services, at scale, on the mainland.”

Despite facing construction setbacks, including disruptions caused by the COVID-19 pandemic and the project’s remote location, KES is now operational. It outpaces several other renewable energy projects in replacing the retired coal plant’s capacity.

The gigantic battery project aligns with Hawaii’s commitment to becoming a leader in clean energy adoption and grid transformation.

Beyond Energy: Kapolei’s Multifaceted Grid Stabilization

The Kapolei Energy Storage system operates differently from traditional coal plants, requiring a new framework to replicate essential grid functions. While the old coal plant provided energy, capacity, and grid services, the battery directly replaces the latter two aspects.

Kapolei’s 185 megawatts of instantaneous discharge capacity matches the coal plant’s power output. Plus, it offers grid services, such as synthetic inertia and fast frequency response, to stabilize the grid in real time.

Although the battery’s 565 megawatt-hours of storage cannot directly replace the coal plant’s energy production, it collaborates with solar energy sources to enhance clean renewable energy integration into the grid.

KES enables Hawaiian Electric to reduce the curtailment of renewables by an estimated 69% for the first 5 years. This minimizes the waste of surplus clean electricity.

Additionally, the battery provides black-start capability, allowing it to restart the grid in case of a complete outage due to disaster.

According to Keefe, Kapolei is considered the most advanced battery energy storage facility globally because of its multifaceted capabilities. These include capacity, grid services, and black-start functionality. He further added that since the project connects to 3 other power plants, the battery “can be AAA to jump-start those other plants”.

Lithium Powers the Clean Energy Transition

Lithium-ion batteries are seen to be the solution for helping the world to transition to clean, renewable energy sources. This is crucial to meet the critical 1.5 degrees Celsius scenario by 2050, otherwise known as the Net Zero.

Companies and governments are turning to battery energy storage systems (BESS) to achieve their sustainability goals. Research suggests that the market for BESS in the U.S. alone will grow to over $15 billion in 2027.

The surge in the use and future demand for renewable energy will further lead to global grid-scale BESS market growth. As per the International Energy Agency’s projections, renewables will account for over 90% of global electricity capacity expansion from 2022-2027. With that, growth seems to be quicker in locations where renewables are also expanding faster than average.

Hawaii’s Kapolei Energy Storage system represents a groundbreaking model for a reliable clean-energy grid, addressing the challenges of transitioning from fossil-fueled plants to renewable sources.

The KES battery project uses 158 Tesla Megapack 2 XL lithium iron phosphate batteries, each roughly the size of a shipping container.

In comparison to California’s grid battery fleet, which constitutes 7.6% of the state’s grid capacity, Kapolei alone represents about 17% of Oahu’s peak capacity, highlighting its central role in maintaining grid stability.

Looking ahead, Kapolei’s success underscores its significance in achieving U.S. climate goals by phasing out fossil fuels from the electric grid. As one of the first real-world instances of successfully transitioning grid functions, the model established by Kapolei provides valuable insights for scaling similar grid services nationwide, offering a blueprint for the future of sustainable grid solutions.

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ZERO13 and XTCC Reveals $100B Climate Finance for Net Zero at Davos WEF

January 18, 2024/in Uncategorized /by

ZERO13, the COP28 award-winning initiative providing a digital climate fintech platform-as-a-service, and XTCC, the world’s first exchange-traded investment products for high-integrity carbon credits, announce a Statement of Accord aiming to attract $100bn capital market investment into high-integrity carbon credits. The initiative would help address the multi-trillion dollar annual climate financing gap.

ZERO13 is an automated AI and blockchain-driven international carbon exchange, registry and aggregation hub and ecosystem by London-based GMEX Group.

XTCC’s high-integrity carbon credits are from verified, renewable energy and regenerative agriculture projects focused on the drive to net zero.

The Financial and Digital Gateway to Net Zero

The announcement was made at the World Economic Forum’s (WEF) Futur.IO Davos Executive Reception, taking place this week. The partners presented the Accord details, including its approach to current carbon market issues, call to action, and methodology to achieve its goals.

The WEF emphasizes the need for $4-5 trillion in clean energy investments annually by 2030 to avert a climate disaster. So far, renewable power got the biggest share of the investment since 2015.

RELADTED: Clean Energy Transition Investment Hits New Record

Signatories of the Accord commit to enhancing the integrity and credibility of carbon credits. Their goal is to strive for an economic model that rebuilds trust in the carbon credit market and enhances liquidity.

ZERO13 and XTCC encourage stakeholders throughout the climate value chain to collectively invest in digitally verifiable, high-integrity carbon credits.

The investment aims to drive community development and economic progress in the Global South and emerging nations. The aim is to empower others to initiate and drive change within the carbon credit industry.

The Accord serves as a financial and digital gateway for project funders and investors seeking returns. The initiative is in collaboration with various climate ecosystem partners.

By boosting liquidity through capital markets, ZERO13 and XTCC aim to create more opportunities to mobilize capital and fund projects.

Presently, the organizations are involved in over $1 billion worth of bankable projects in multiple countries. These include India, Brazil, Kenya, Rwanda, Seychelles, and South Africa.

Establishing Trust in Carbon Markets

The African region, in particular, has been ramping its efforts as it jumps into the carbon trading space. Take for example, Kenya, which leads carbon credit generation in the region, contributing over 20% of the continent’s volume over the 5 years.

At COP28 climate summit, the ‘Africa Green Industrialisation Initiative’ aimed at accelerating Africa’s green industrialization, co-hosted by Kenya and the UAE, saw the participation of African Heads of State and key figures from green developers, industry, multilateral development banks, and global institutions.

The partnership between ZERO13’s digital carbon climate market infrastructure ecosystem and XTCC’s exchange-listed investment products establishes trust in carbon markets. It also provides a platform to meet the anticipated growth in the demand for high-integrity carbon credits.

ZERO13 DIGITAL CARBON MARKET ECOSYSTEM

Moreover, ZERO13 and XTCC facilitate the distribution of high-integrity regenerative agriculture and renewable energy projects in capital markets. This, in turn, produces carbon credits with complete digitally verified provenance.

The collaboration positions itself as a precedence in climate markets, blending private climate financing with large-scale capital from public markets.

Hirander Misra, Chairman and CEO of GMEX Group and ZERO13, highlighted the importance of their initiative, noting that:

“Through our partnerships with XTCC, multiple exchanges, participants, custodians, and registries we increase interoperability, digitally interconnect silos, and bridge the gap between climate tech and fintech. This enables us to scale climate finance across multiple APIs and blockchains and build capacity where it is needed most, benefitting countries, corporations and communities.”

Professor Lisa Wilson, MD of XTCC, emphasized that the partnership between XTCC and ZERO13 goes beyond infrastructure and a call for investment.

The Accord represents a critical pledge with the full commitment of all stakeholders to a sustainable net zero future. Investing in high-integrity carbon credits could potentially stimulate carbon reduction initiatives, playing a crucial role in achieving net zero targets. Together, they have established the foundations for a full end-to-end trusted ecosystem for high-integrity carbon credits, removing obstacles to allow investment to flow freely with full investor confidence.

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Over $10 Trillion Funding Gap Looms for India’s Net Zero Goal

January 16, 2024/in Uncategorized /by

India is confronting a substantial “funding gap” of over $10 trillion to meet its commitment to achieving net zero emissions by 2070, according to Finance Minister Nirmala Sitharaman.

The minister stressed the importance of establishing a carbon credit market at Gujarat’s GIFT City’s International Financial Services Centre (IFSC). The goal is to address the financial challenges associated with transitioning to green technologies.

Gujarat International Finance Tec-City (GIFT City) is a central business district currently under construction in the Gandhinagar district of Gujarat, India. Positioned as the country’s first operational greenfield smart city and international financial services center, GIFT City is a significant greenfield project.

Sitharaman further emphasized GIFT City’s role as a gateway for India’s development, projecting a GDP exceeding $30 trillion by 2047. The IFSC, she stated, should evolve into a diverse fintech laboratory to support the country’s economic advancement.

The Gateway to India’s Net Zero Goal

Current regulations prevent Indian companies from directly listing overseas. Instead, they can access foreign equity markets through depository receipts like American Depository Receipts (ADRs) and Global Depository Receipts (GDRs) only after completing an initial public offering (IPO) in India.

Sitharaman announced that Indian companies would be able to access global capital by directly listing on exchanges at the IFSC. This will provide them a platform for raising funds for green initiatives.

Prime Minister Narendra Modi suggested creating a platform for trading green credits, facilitating the sale of carbon credits. These credits are usually from initiatives such as tree planting.

The PM specifically said that:

“According to certain estimates, India will need at least $10 trillion to achieve its net zero targets by 2070. This will need to be financed through global sources. Therefore, we must make IFSC a global hub for sustainable finance.”

Carbon markets play a crucial role in enabling businesses to trade carbon credits, aiding in achieving their emissions reduction targets. These markets allow carbon credits to be sold and bought by businesses and other entities. Voluntary carbon markets trade carbon credit offsets, which demand poised to grow rapidly.

Carbon credits are the underlying commodities that enable the buyer to retire a certain amount of greenhouse gas emissions and help them meet their targeted emissions cut. One carbon credit represents one tonne of carbon removal or reduction.

These carbon credit markets are gaining traction, as an increasing number of global firms are committing to net zero targets. These entities also play a pivotal role in curbing India’s emissions.

The super-emitter revealed its long-term strategy to achieve net zero by 2070 at COP27.

The Rise of Carbon Trading in India

The world’s third largest emitter has made ambitious NDC commitments. Some of them are definitive and measurable while some emission reduction plans still lack quantifiable aspects.

India’s updated NDC include two major climate goals:

Reduce emissions intensity of its GDP by 45% from 2005 levels by 2030, and
Achieve 50% cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030.

The Paris Agreement recognizes the principle of common but differentiated responsibilities, considering nations’ capabilities and bandwidth for emissions reduction.

To address this, key data should be made public, including the GDP projection for 2030, growth drivers under different energy scenarios, and the methodology used. This information will allow the calculation of carbon intensity of GDP under various energy mix scenarios.

To bridge the gap between estimated emission intensity and NDC commitment numbers, sector-specific GHG emission targets can be established. Sectors such as steel, aluminum, cement, and thermal power, known for higher emissions, could have quantifiable targets based on global best practices, adapted to domestic capabilities.

The projected reduction in emissions, assuming these targets are met, should then be considered when estimating the total emission intensity reduction by 2030.

Earlier this month, Gujarat and its forest department, has signed various Memorandums of Understanding (MoUs) worth over $266 million of carbon credits from planting mangroves. Agreements have also been inked for carbon credits through agroforestry.

Unlocking Global Capital Via Carbon Credits

The Indian Government has taken a positive step by notifying the Carbon Credit Trading Scheme (CCTS) under the Energy Conservation Act, 2001. The CCTS outlines GHG emission intensity reduction targets for entities in specific sectors. It aims to establish a regulated domestic carbon credit trading market with transparent price discovery.

The Bureau of Energy Efficiency (BEE) is responsible for administering the scheme and setting targets for obligated entities, while the Central Electricity Regulatory Commission (CERC) regulates carbon credit trading.

Now, Indian businesses find themselves on the verge of a lucrative venture by entering the thriving global carbon trading markets.

As India grapples with its funding gap for net zero ambitions, the emergence of GIFT City and innovative financial strategies offer a glimmer of hope. From carbon credit agreements to direct listings, the nation is poised for a transformative journey towards a sustainable future.

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Charging Ahead: USA’s $623 Million Boost for EV Infrastructure & Ireland’s Lithium Quest

January 16, 2024/in Uncategorized /by

In a bid to reshape the transportation landscape, the United States government has committed a staggering $623 million to propel the growth of electric vehicles (EVs). Across the Atlantic, Ireland is stepping into the limelight with promising lithium discoveries, aiming to bolster Europe’s battery supply chain.

The dynamics of these groundbreaking developments will have a potential impact on the future of sustainable mobility.

Empowering EVs in the US

The Biden administration grants, available through the 2021 Bipartisan Infrastructure Law, are geared towards supporting the increasing deployment of EVs.

Currently, there are over 4 million electric vehicles on the American roads, as per the U.S. Transportation Department’s data. But progress on the EV charging network has been slow. Only New York and Ohio have charging stations in operation.

Meanwhile, Pennsylvania and Maine are expected to open EV charging stations early this 2024.

EV Unit Sales 2016-2028

Last year, a total of around 11 million EV units were sold globally, according to Statista. This year, the EV market, including both battery and plug-in hybrid, would reach a staggering $623 billion in sales worldwide. Such a massive growth will lead to a market volume of $906 billion by 2028, reaching 17 million vehicle units.

With the grant, the U.S. aims to make EV chargers more accessible, reliable, and convenient for American drivers. Plus, this will also generate jobs in charger manufacturing, installation, and maintenance.

Of the total amount, $311 million from the Federal Highway Administration will support 36 community projects, including EV charging and hydrogen fueling infrastructure.

The remaining $312 million will go to 11 recipients for projects along designated alternative fuel corridors. In total, the grants will fund 47 EV charging and alternative-fueling infrastructure projects across 22 states and Puerto Rico. Overall, this would lead to the construction of approximately 7,500 EV charging ports.

The recipients include the North Central Texas Council of Governments, the New Jersey Department of Environmental Protection, and the Maryland Clean Energy Center.

The funds are part of the $2.5 billion Charging and Fueling Infrastructure Discretionary Grant Program under the infrastructure law. The regulation has a broader goal of installing 500,000 EV charging stations in the U.S. by 2030.

Since January 2021, EV sales have quadrupled, and publicly available charging ports have increased by 70%, per the Transportation Department. That figure is only ⅓ of the way to the current administration’s goal, with 6 years left.

What all these bullish projections mean is more requirement for lithium and Europe is also ramping up its lithium exploration. As seen below, projected lithium requirements for EV needed by 2040 is nearly 25 million metric tonnes.

Ireland’s Lithium Odyssey

Back in 1972, Irish Base Metals Ltd. identified traces of lithium in local granites during base metals exploration. However, the potential significance was overlooked at the time, as lithium was deemed “not of interest” and “not really a commercial mineral,” according to John Teeling, a former key adviser to Irish Base Metals.

The EU, heavily dependent on Australia for 87% of its raw lithium imports, is now keen on expanding exploration. The bloc’s Critical Raw Materials Act is supporting this move. The EU-backed GreenPeg project has considered southeast Ireland as one of 3 locations to study pegmatite ore deposits.

Pegmatite lithium deposits is also known as hard-rock lithium deposits, containing extractable amounts of a number of elements, including lithium,

Ireland is historically significant as Russia’s 3rd-largest alumina supplier in 2022. It is also home to Europe’s largest zinc-producing mine. However, recent mineral exploration has primarily focused on other resources like copper, lead, zinc, and gold.

S&P Global Market Intelligence data indicates only 2 established lithium projects in the country, Avalonia (Carlow) and Leinster (Wicklow).

John Harrop, senior project geologist at Canadian consultancy Coast Mountain Geological Group, which works on the Avalonia project, highlighted that:

“If exploration is successful in Ireland, it is more likely to contribute a number of small- to medium-size lithium bodies similar to the clusters that are being explored and discovered elsewhere in Europe.”

Harrop envisions Ireland becoming a contributor to lithium supply feeds for upcoming lithium processing plants in Europe. He further emphasized the potential for more discoveries in the Irish lithium belt.

Arkle Resources, in a new lithium exploration effort, discovered pegmatites in its Mine River gold project in November 2022. This area is west of the Avalonia project, a joint venture established in 2014 by Canada’s International Lithium Corp. and China’s Ganfeng Lithium Group.

These developments come as Ireland faces challenges in building a lithium sector. These particularly include a shortage of skilled professionals experienced in recognizing hard rock lithium.

One of the companies best prepared to take advantage of the looming shortage of lithium is Li-FT Power (LIFT; LIFFF). It is the fastest developing North American lithium junior, with 5 different projects across Canada.

As the wheels of innovation turn, the convergence of substantial investments in EV infrastructure and Ireland’s lithium exploration signals a transformative era. The electrification of transport and the pursuit of sustainable energy solutions will shape the global landscape in unprecedented ways. The road ahead is charged with potential, both electric and lithium-powered.

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