US Government Releases New Voluntary Carbon Credit Market Policy Guidelines

The Biden administration announced the release of the “Voluntary Carbon Markets Joint Policy Statement and Principles”, aiming to enhance and advance the market for carbon credits by establishing the US government’s guidelines to ensuring the high integrity of voluntary carbon markets (VCMs). 

This policy statement arrives as demand for carbon offset projects and related credits will surge. It’s primarily due to companies pursuing net zero goals and using offsets to complement their emissions reduction efforts or to balance unavoidable emissions. Notably, the Science Based Targets initiative (SBTi) recently indicated that carbon credits may be allowed in net zero targets to address Scope 3 emissions.

Despite the growth, the market faces significant integrity challenges. Participants struggle to differentiate between high and low-quality projects due to insufficient or inconsistent data on project effectiveness.

Announcing the new carbon credits guidelines, US Treasury Secretary Janet Yellen stated:

“Voluntary carbon markets can help unlock the power of private markets to reduce emissions, but that can only happen if we address significant existing challenges. The principles released today are an important step toward building high-integrity voluntary carbon markets. This is part of the Biden administration’s ambitious efforts to tackle the climate crisis and accelerate a clean energy transition that benefits all Americans.”

Here Are the Key Points of the Policy Guidelines:

Certified Carbon Credits

Carbon credits and the activities that generate them must meet credible atmospheric integrity standards, representing real decarbonization. They should be certified to robust standards for design and MMRV (Measurement, Monitoring, Reporting, and Verification).

Core principles include additionality (activities wouldn’t occur without the crediting mechanism), uniqueness (one credit corresponds to one tonne of CO2 reduced or removed without double-issuance), and real, quantifiable emission reductions. Activities must prevent leakage and be validated and verified by an independent third party.

Permanence is essential, ensuring emissions stay out of the atmosphere for a specified period. More remarkably, robust baselines should avoid over-crediting and reflect advancements in climate policy and technology.

Climate and Environmental Justice

Credit-generating activities should avoid environmental and social harm, supporting co-benefits and transparent, inclusive benefits-sharing. Understanding climate and environmental justice impacts is crucial, and developers should avoid negative externalities for local communities.

Safeguards must prevent adverse impacts on people and the environment, including land use, tenure rights, food security, and biodiversity. Continuous monitoring and mitigation of adverse impacts are necessary, with efforts to enhance positive impacts where possible.

Verified co-benefits, such as sustainable economic development and increased biodiversity, are encouraged. Projects should be designed and implemented in consultation with relevant stakeholders, respecting Free, Prior, and Informed Consent where applicable.

Emissions Reductions Within Value Chains

Corporate buyers of credits should prioritize measurable emissions reductions within their own value chains. The use of credits involves purchasing and canceling or retiring them, and making public claims based on their climate impact. To achieve long-term climate goals, businesses must transform their models across economies.

Credit users should use VCMs to complement measurable within-value-chain emissions reductions as part of their net zero strategies. This includes taking inventory of Scope 1, 2, and 3 emissions, regularly reporting them, setting near-term emissions reduction targets, and adopting transition plans. Where feasible, companies should collaborate with their stakeholders to achieve these goals.

Disclosure of Purchased and Retired Credits

Credit users should disclose purchased, canceled, or retired credits annually, providing details to assess their integrity and environmental and social impacts. This disclosure may exceed legal requirements and should be in a standardized, easily accessible format for comparability.

Users should consider reporting to aggregating resources that disseminate this information publicly, ensuring stakeholders can evaluate the credibility and impacts of the credits.

RELATED: SEC Finalizes New Climate Disclosure Rule: Here’s What’s New

Accurate Public Claims

Public claims by credit users must reflect the true climate impact of retired credits, using only high-integrity carbon credits. Claims should support ongoing incentives for within-value-chain emissions reductions and align with developing frameworks.

Credits should meet high integrity standards, avoiding claims based on reversed or failed credits unless remediated. Corporate climate strategies should prioritize within-value-chain reductions, using credible credits to complement efforts.

Improving Market Integrity

Market participants should enhance market integrity by creating incentives for high-integrity carbon credits, improving transparency, and ensuring fair treatment of suppliers. Measures include preventing fraud, promoting global standards interoperability, and supporting equitable market participation.

Enhancing market functionality involves collaboration among private, public, and civil sectors, focusing on robust data, fair revenue distribution, and clear accounting practices to support the health of VCMs.

Facilitating Efficient Market Participation

Policymakers and market participants should lower transaction costs and support credit providers, especially those in developing countries. Addressing barriers for suppliers can enhance VCMs’ ability to produce high-integrity credits.

Efforts should include using robust models to reduce MMRV costs and providing market certainty for long-term decarbonization investments. Supporting credible credit providers is crucial for advancing decarbonization and generating economic opportunities as part of the climate strategy.

The new US’ voluntary carbon credit guidelines was co-signed by senior administration officials, including Treasury Secretary Janet Yellen, Agriculture Secretary Tom Vilsack, Energy Secretary Jennifer Granholm, Senior Advisor for International Climate Policy John Podesta, National Economic Advisor Lael Brainard, and National Climate Advisor Ali Zaidi.

READ MORE: CFTC’s New Proposal Guides Voluntary Carbon Credit Trading

The post US Government Releases New Voluntary Carbon Credit Market Policy Guidelines appeared first on Carbon Credits.

Xpansiv Secures Major Investment from Aramco Ventures

Xpansiv, a leading provider of market infrastructure for the global energy transition, has finalized a new capital raise led by Aramco Ventures, a major investor in low-carbon energy and sustainability, along with existing investors. This investment will help further develop Xpansiv’s global energy and environmental markets infrastructure solutions and support the company’s investment and acquisition strategy.

Strengthening Market Infrastructure for Sustainable Growth

Xpansiv runs the largest spot exchange for environmental commodities, including carbon credits and renewable energy certificates. As the premier provider of registry infrastructure for energy, power, and environmental markets, Xpansiv also operates the largest independent platform for managing and selling solar renewable energy credits in North America.

Aramco Ventures is the corporate venturing subsidiary of Aramco, the world’s leading fully integrated energy and chemical enterprise. Headquartered in Dhahran, Aramco’s investments primarily support Aramco’s operational decarbonization, new lower-carbon fuels businesses, and digital transformation initiatives. 

The investment from Aramco Ventures is part of its Sustainability Fund, which focuses on companies that can support Aramco’s goal of achieving net zero Scope 1 and Scope 2 greenhouse gas emissions across its wholly owned and operated assets by 2050. This aligns with Aramco’s broader sustainability objectives and commitment to reducing its carbon footprint.

RELATED: Saudi Aramco Net Zero Goal by 2050, with 16 Million Carbon Credits/Offsets

In 2023, the oil major’s Scope 1 emissions decreased by 2.4% compared to 2022, primarily due to lower hydrocarbon production and a revised CO2 venting emissions methodology for gas processing operations, leading to more accurate accounting. 

Conversely, Scope 2 emissions increased by 13.0% compared to the previous year. The company said it’s mainly due to the inclusion of the Jazan Refinery in the 2023 greenhouse gas emissions inventory.

As part of its decarbonizing efforts, the oil giant recently invested in a US-based direct air capture (DAC) company, CarbonCapture. Moreover, in line with Saudi Arabia’s Vision 2030 plan, Aramco partnered with ADNOC to launch ambitious lithium extraction projects.  

Aramco Ventures also operates Prosperity7, the company’s disruptive technologies investment program. Daniel Carter, Managing Director at Aramco Ventures, emphasized the significance of robust market infrastructure in driving the global energy transition. He noted, 

“We recognize the importance of markets to drive the global energy transition at pace, and further recognize Xpansiv’s core position as the innovator of new trading products, marketplaces, and institutional-grade market infrastructure to enable these vital markets to flourish and scale.”

Leading the Charge in Environmental Commodities and Market Integration

John Melby, Chief Executive Officer of Xpansiv, expressed his satisfaction with Aramco’s investment, stating: 

“We are pleased to receive this investment from Aramco Ventures and existing investors, which not only represents significant support for our organic and acquisition-driven strategy, but also our shared belief in the pivotal role of market infrastructure in accelerating investment in the global energy transition.”

Xpansiv continues to expand its suite of solutions for the global energy transition markets. The company recently launched its Xpansiv Connect, an open-access market infrastructure which facilitates efficient trading and market operations. This strategic investment will enable Xpansiv to further enhance its capabilities and support the broader push towards sustainable energy solutions.

Xpansiv manages over 1 billion asset transfers annually through its SaaS meta registry and portfolio management system at the core of Xpansiv Connect. This system is integrated with 13 leading carbon and renewable energy registries worldwide.

RELEVANT: Xpansiv’s CBL VCM Saw Significant Block Trades, Xpansiv Connect Launched

Xpansiv’s registry software supports more than 80% of global carbon credits and 60% of North American renewable energy certificates (RECs). This along with new environmental commodities such as digital fuels. Its CBL spot exchange holds over 90% global market share of exchange-traded and settled carbon credits.

In 2023, nearly 2 billion metric tons of carbon and over 36 million megawatt hours of renewable energy were transacted by Xpansiv market intermediaries. 

The company has completed 11 acquisitions and strategic investments recently, including a notable investment in Evident, a leading clean economy registry provider and certification body. This investment highlights Xpansiv’s support for the growing international renewable energy certificate (I-REC) market and emerging instruments. These include sustainable aviation fuel (SAF), green hydrogen, biomethane, and carbon removals.

Xpansiv’s investors include prominent names such as Aramco Ventures, Blackstone Group, Bank of America, Goldman Sachs, Macquarie Group Ltd., S&P Global Ventures, Aware Super, BP Ventures, Commonwealth Bank of Australia, and the Australian Clean Energy Finance Corporation.

By leveraging the new capital raise, Xpansiv will continue to lead in the environmental commodities sector, fostering innovation and efficiency in carbon credits and renewable energy market solutions, crucial for achieving sustainable energy goals and reducing global carbon emissions.

READ MORE: Xpansiv Chosen To Open Carbon Credit Exchange in Saudi Arabia

The post Xpansiv Secures Major Investment from Aramco Ventures appeared first on Carbon Credits.

Nvidia’s Record Earning Overshadow New Standard in Chip Energy Efficiency

Following Nvidia’s first-quarter earnings report, the company’s CEO Jensen Huang emphasized that it is facing overwhelming demand rather than a lull. This happens as the company transitions from its Hopper AI platform to the more advanced Blackwell system. Huang dismissed concerns about a potential slowdown in demand, stating, 

“People want to deploy these data centers right now. They want to put our [graphics processing units] to work right now and start making money and start saving money. And so that demand is just so strong.”

Surpassing Expectations with Stellar Q1 Results

For the first quarter, Nvidia reported stellar results. Adjusted earnings per share reached $6.12 on revenue of $26 billion, representing year-over-year increases of 461% and 262%, respectively. Non-GAAP operating income was $18.1 billion for the quarter. 

Nvidia expects its revenue for the current quarter to be around $28 billion, plus or minus 2%, surpassing analysts’ expectations of $26.6 billion.

Nvidia’s data center segment, crucial for AI and reliant on high-powered server farms, generated $22.6 billion or 87% of its revenue between February and April 2024. Other segments also saw growth, with gaming and visualization solutions increasing by 18% and 45%, respectively, compared to fiscal Q1 2024. However, the data center segment’s growth was extraordinary, surging 427% year-over-year, as seen below.

In addition, Nvidia announced a 10-to-1 stock split, effective June 10 for shareholders as of June 7, and increased its quarterly dividend to $0.10 per share, up from $0.04. Following the earnings report, Nvidia’s stock rose by as much as 6% in extended trading.

Moreover, Huang highlighted the growing customer base for Nvidia chips beyond the major cloud service providers, mentioning companies like Meta, Tesla, and various pharmaceutical firms. He specifically pointed out the automotive industry as a significant user of Nvidia’s data-center chips.

Setting New Standards in Energy Efficiency

Nearly 75% of global carbon emissions stem from the production and consumption of energy, primarily due to the burning of fossil fuels for electricity. Data centers, which currently consume 460 terawatt-hours of electricity annually, contribute about 2% to this total. However, this share is expected to nearly triple to 6% by 2030 as data centers continue to expand. 

Improving energy efficiency in data centers is crucial for reducing their carbon footprint and mitigating their environmental impact. By adopting more efficient technologies and practices, data centers can play a significant role in lowering overall carbon emissions.

RELEVANT: Data Centers Power Demand Fuel U.S. Utility Q1 Earnings Discussions

Nvidia aims to address growing concerns about AI’s monetary cost and carbon footprint by highlighting Blackwell’s energy efficiency. 

One expert at Microsoft has suggested that the Nvidia H100s currently in deployment will consume as much power as the entire city of Phoenix by the end of this year. What’s noteworthy about the new Blackwell GPU is its power efficiency, which Nvidia is now highlighting as a key selling point. 

Traditionally, more powerful chips have also required more energy, and Nvidia focused primarily on raw performance rather than energy efficiency. However, when unveiling the Blackwell, CEO Jensen Huang emphasized its superior processing speed, which significantly reduces power consumption during training compared to the H100 and earlier A100 chips. 

Huang noted that training ultra-large AI models with 2,000 Blackwell GPUs would consume 4 megawatts of power over 90 days, whereas using 8,000 older GPUs for the same task would consume 15 megawatts. This reduction translates to the power consumption of 8,000 homes compared to 30,000 homes.

RELATED: The Carbon Countdown: AI and Its 10 Billion Rise in Power Use

Tech Titans Drive Nvidia’s AI Dominance

Undeniably, Nvidia stands at the forefront of the exploding demand for AI applications, driven by major tech giants like Tesla, Meta, Microsoft, and Alphabet. These companies’ recent management commentary underscores the significant potential for Nvidia’s business expansion in the AI sector.

Tesla’s ambitious plans to increase its Nvidia chip use by 140% highlight the critical role of Nvidia’s GPUs in training AI models for its full self-driving capabilities and upcoming robotaxi launch. This substantial investment represents a major endorsement of Nvidia’s technology by Tesla CEO Elon Musk.

Similarly, Meta’s aggressive spending to bolster its AI infrastructure aligns with CEO Mark Zuckerberg’s vision of establishing Meta as a leading AI company globally. As Meta continues to develop its large language model (LLaMA) and Meta AI chatbot, Nvidia’s chips remain integral to its AI training efforts.

Microsoft is also experiencing surging demand for AI, outstripping its available capacity. The tech giant is investing in its own AI development using OpenAI’s GPT model. However, it plans to ramp up spending to meet the growing demand, with Nvidia’s chips playing a crucial role in its cloud service offerings.

Finally, Alphabet’s substantial capital expenditures in the first quarter, primarily directed towards Google Cloud and advanced AI models, further validate the importance of Nvidia’s technology in powering AI-driven initiatives. While Alphabet uses its chip designs for certain AI tasks, it continues to rely on Nvidia chips to meet its cloud customers’ needs.

While most AI runs on renewable energy, concerns persist about water consumption for data center cooling. As AI adoption grows, renewable energy demand could outpace supply, prompting interest in expediting nuclear plant approvals, notably by Microsoft.

READ MORE: Could Merchant Nuclear Plants be the Savior of Power-Hungry Data Centers?

Overall, the overwhelming demand for AI compute presents a significant opportunity for Nvidia, reflected in its robust financial performance and soaring gross margins. And with the company’s discussion of the Blackwell GPU’s energy efficiency, it signals that the company is starting to consider AI’s sustainability.

The post Nvidia’s Record Earning Overshadow New Standard in Chip Energy Efficiency appeared first on Carbon Credits.

Lithium Prices Today: What Are the Factors That Affect Them?

Lithium, a crucial element in energy storage, holds immense significance in powering various industries. With metal prices soaring, the demand for lithium has surged over recent years. 

This article delves into the intricate world of lithium dynamics, exploring the factors influencing lithium prices, recent trends, and future projections.

Key Factors Impacting Lithium Prices 

Supply and Demand

Global production of lithium has seen a remarkable increase. In 2020, the total demand for lithium worldwide was 292 thousand metric tons of lithium carbonate equivalent. 

Forecasts indicate a substantial rise to over 2.1 million metric tons by 2030, highlighting the industry’s exponential growth. This surge is primarily due to the rising battery demand for electric vehicles, which is expected to reach 3.8 million tons by 2035.

Source: The World Economic Forum

Data from the US Geological Survey shows that global lithium production reached 180,000 metric tons in 2021, with about 90% coming from just three countries.

Market Demand

Despite robust demand for lithium, growth experienced a decline year-on-year in 2023 due to economic slowdowns, particularly affecting the electric vehicle market in China. Additionally, accelerated capacity expansions led to an oversupply situation. These fluctuations underscore the delicate balance between supply and demand that significantly impacts lithium prices globally.

Economic Factors

Economic factors such as inflation rates and currency fluctuations also influence lithium prices considerably. These macroeconomic indicators directly impact production costs and subsequently affect pricing strategies within the lithium market.

Major Trends in Lithium Pricing

Recent Price Trends

Lithium prices have recently experienced a notable downward trajectory. As of December 18, prices plummeted by 80% within a year, and as of May 7, CIF North Asia price at $14,600/t. This decline has sparked discussions about the sustainability of this trend. 

Expert insights suggest that low prices may lead to reduced supply and hesitant new investments amidst strong demand and cautious predictions.

Effect on the EV Sector

The lithium price drop has a significant impact on the EV sector. Reduced input costs present opportunities for manufacturers to recalibrate pricing strategies, potentially driving down EV costs and increasing consumer adoption rates. This shift highlights the interconnected nature of commodity pricing and its far-reaching consequences on diverse industries.

What’s the Future of Lithium Prices?

As the lithium market navigates significant fluctuations, industry experts provide valuable insights into future price trajectories. By examining expert predictions and analyzing market opportunities and challenges, stakeholders can comprehensively understand the dynamic landscape ahead.

READ MORE: Why Lithium Prices are Plunging and What to Expect

In a recent interview, industry analyst Joe Lowry predicts that the lithium chemical supply is nearing equilibrium, with prices expected to rise by mid-2024 as inventories rebuild in key markets like China. Similarly, Andy Leyland emphasizes that the lithium market’s balance is delicate and that a projected surplus of 24,000 tonnes LCE in 2024 could quickly change due to market dynamics. 

Staying informed about lithium carbonate and hydroxide prices is crucial for industry participants to capitalize on opportunities and navigate challenges. Monitoring real-time lithium prices and commodity trends provides invaluable insights for strategic positioning amidst market uncertainty.

The post Lithium Prices Today: What Are the Factors That Affect Them? appeared first on Carbon Credits.

Japan Passes New Bill to Bolster its CCS Technology and Capacity

On May 17th, Japan’s House of Councillors passed a new law to bolster the business environment for carbon capture and storage (CCS) technology which is crucial for achieving a decarbonized society. The legislation received majority support in the plenary session.

Key Provisions of Japan’s New CCS Law

The law mandates that the government introduce a permit system for businesses to facilitate CO2 capture from industries operating at variable scales and their underground storage. This measure is part of Japan’s broader strategy to achieve net-zero carbon emissions by 2050. 

Role of Japan’s Ministry of Economy, Trade, and Industry (METI) 

To foster a conducive business environment for CCS projects, the Ministry of Economy, Trade, and Industry (METI) of Japan will establish a licensing system. It will cover storage and exploration drilling rights, and develop business and safety regulations for storage companies and CO2 pipeline transportation businesses. Test drilling permits at potential CCS sites will initially be valid for four years. METI will designate suitable geological storage areas as “specified areas” and solicit operators, granting licensed operators prospecting and storage rights.

Notably, this is the first time the CCS bill defines operators’ rights and regulatory requirements. The main highlights of the newly introduced bill are: 

CCS Sites and Business permits

Designate Suitable Areas: Identify specific regions where carbon dioxide (CO2) can be safely stored underground.
Grant CCS Business Permits: Select businesses through a public offering process and grant them permits to operate CCS projects.

Licensed operators will be given

Exploratory Drilling Rights: These rights allow businesses to drill and confirm if geological formations are suitable for CO2 storage.
Storage Rights: These rights permit the actual storage of captured CO2 underground.

Obligations and Liabilities

The law imposes several obligations on businesses:

Monitoring: Businesses must continuously monitor for any CO2 leaks.
Liability for Accidents: Businesses are liable for compensation regardless the leak was due to negligence or an intentional act.

CCS project operators must have their implementation plans approved by the Minister for Economy, Trade, and Industry. Once the stored CO2 is stabilized, the Japan Organization for Metals and Energy Security (JOGMEC) will take over the management. Operators will be liable for compensation during accidents, regardless of intent or negligence.

Subsidy System for Hydrogen

In addition to the CCS law, the House of Councillors also passed a law to establish a subsidy system. This system aims to narrow the price gap between hydrogen and natural gas, promoting hydrogen as a viable next-generation energy source.

This comprehensive approach strengthens Japan’s efforts to reduce carbon emissions through CCS and supports the broader adoption of hydrogen energy, aligning with the country’s long-term environmental goals.

Japan Advances Carbon Capture under Green Transformation (GX) Policy

Japan’s newly approved law is crucial to achieving a decarbonized economy. It’s an extension of the Green Transformation (GX) Policy that existed since last year. 

Unveiled in February 2023 and approved in July 2023, Japan’s GX policy integrates fiscal and policy measures, potentially amounting to a $1 trillion (150 trillion yen) budget. This policy provides a roadmap for the next decade, balancing economic growth with environmental sustainability.

Japan’s Prime Minister Fumio Kishida said,

 “First of all, green transformation, or GX in short, does not just mean the departure from fossil energy. It involves the implementation of major reforms of energy, all industries, and our economy and society, toward achieving the goal of carbon neutrality by 2050. To this end, Japan has made a highly challenging international pledge of a 46 percent reduction in greenhouse gas emissions by fiscal 2030.”

Image: The Tomakomai CCS Demonstration Project- Japan’s first full-chain CCS project, captured and stored CO2 from a coastal oil refinery on Hokkaido Island in Japan from 2016 to 2019. 

source: IEA

Based on International Energy Agency (IEA) calculations, 

Japan’s estimated annual storage capacity for CCS could range from 120 to 240 MTs by 2050. The goal is to have the first commercial CCS project operational by 2030.

By advancing these legislative measures, Japan aims to create a robust framework for CCS and low-carbon hydrogen, supporting its long-term decarbonization and economic growth objectives.

By enacting these laws, Japan is taking significant steps toward a sustainable and decarbonized future, leveraging both CCS technology and hydrogen energy to mitigate climate change.

READ MORE: Japan’s Nature-Positive Economic Strategy: A Sustainable Growth Roadmap • Carbon Credits

The post Japan Passes New Bill to Bolster its CCS Technology and Capacity appeared first on Carbon Credits.

How Top U.S. Universities Cut Their Carbon Emissions to Help Fight Climate Change

With almost every nation endorsing the Paris Agreement, the goal is to limit global warming to below 2°C by reducing greenhouse gas (GHG) emissions. However, a significant amount of carbon dioxide has already been accumulated in the atmosphere since the Industrial Revolution. Merely halting emissions would not be enough to reverse climate change. 

Climate scientists suggest to remove 10 gigatons of CO2 annually by 2050 and 20 gigatons thereafter to meet the climate target. 

In response, professionals and researchers worldwide are actively exploring carbon removal technologies to mitigate the impact of accelerating climate change. Research institutions, in particular, are focusing on curbing their GHG emissions and developing technologies for carbon capture and storage (CCS).

READ MORE: Carbon Dioxide Removal (CDR) and Carbon Capture and Storage (CCS): A Primer

Negative emissions solutions like CCS or carbon capture utilization and storage (CCUS) are gaining importance. Top universities worldwide are actively contributing to this effort, each with specialized research groups focusing on various aspects of carbon capture and utilization. These ranges from capturing CO2 from smokestacks to developing innovative products that use atmospheric CO2 in beneficial ways.

Other top universities are implementing ways on how to directly curb their own carbon emissions and footprint to reach Net Zero goals. Here are the top six universities in the United States and what they’re doing to help in this fight.

Harvard University and Its Zero Goal

Faculty and students from across the Harvard community are working on ways to address climate change and its effects. The university has implemented various sustainability and climate initiatives. Here are some of them:

Salata Institute for Climate and Sustainability: Established in fall 2022 with a generous $200 million gift from Melanie and Jean Salata, the institute serves as a hub for interdisciplinary collaboration, research, and engagement aimed at addressing the climate crisis.
Sustainability Management Council (SMC): Senior leaders in operations, facilities, and administration convene regularly to facilitate the sharing of best practices and achieve the University’s sustainability and energy management objectives.
Council of Student Sustainability Leaders (CSSL): Comprising graduate and undergraduate students involved in sustainability-related groups, the CSSL fosters collaboration, networking, and feedback on Harvard’s sustainability initiatives.
Climate Solutions Living Lab: This initiative combines pedagogy and applied research to advance climate goals through interdisciplinary student projects focused on solutions for the building and energy sectors.
Harvard Green Office Program: This program guides staff in creating sustainable workspaces, promoting environmental stewardship across the University.
Resource Efficiency Program (REPs): Founded in 2002, REPs promotes sustainability within undergraduate housing through peer-driven educational initiatives.

Harvard’s Sustainability Action Plan underscored the university’s unwavering commitment to environmental stewardship and its relentless pursuit of sustainability initiatives both on campus and in broader contexts. 

Central to Harvard’s agenda is the acceleration of clean energy adoption and the complete transition away from fossil fuels. Through these efforts, Harvard aims to establish a blueprint for a decarbonized world as shown by its decreasing carbon footprint.

Harvard University Carbon Emissions, 2006-2022

Goal Zero: A Fossil Fuel-Free Harvard 

Harvard has set a bold objective to achieve fossil fuel-free status by 2050, surpassing the benchmark of merely attaining “carbon neutrality.”

While carbon neutrality typically involves offsetting emissions through initiatives like renewable energy procurement and tree planting, Goal Zero, as embraced by Harvard, aims for the complete elimination of fossil fuel usage. This approach acknowledges the comprehensive spectrum of harms stemming from fossil fuel consumption, going beyond carbon emissions alone.

Recognizing the manifold negative impacts of fossil fuels, which extend to their role as key components in plastics and toxic chemicals, Harvard also endeavors to curb these dependencies. This multifaceted approach aligns with the university’s broader mission to mitigate waste and foster a healthier, more sustainable value chain.

As an interim measure to progress towards Goal Zero, Harvard has established a short-term target to achieve fossil fuel neutrality by 2026. This entails eliminating campus emissions (both Scope 1 and Scope 2) and investing in initiatives that not only neutralize GHG emissions but also mitigate the adverse health effects of fossil fuel usage, such as air pollution.

The university is intensifying efforts to reduce Scope 3 emissions, focusing on emissions generated throughout its value chain. This includes various areas such as construction, food production, air travel, commuting, and procurement of goods and services.

Its value chain (Scope 3) emissions goals and priorities are as follows:

25% reduction in food-related emissions by 2030
20% lower embodied carbon in new construction

In 2023, the Harvard Kennedy School took a significant step toward mitigating its environmental impact by purchasing its inaugural portfolio of high-quality carbon offsets. These offsets were to compensate for the climate and health-related damages stemming from Harvard Kennedy School (HKS) travel activities throughout the year, as well as to offset the institution’s broader global emissions footprint.

Harvard carbon footprint ecosystem

By prioritizing human health, social equity, and slashing carbon footprint, Harvard aims to generate positive impacts through its transition to fossil fuel neutrality.

MIT’s Plan for Action on Climate Change

Since the announcement of Massachusetts Institute of Technology’s Plan for Action on Climate Change in October 2015, MIT Energy Initiative (MITEI) has made significant strides in research, education, outreach, and engagement efforts aimed at combating climate change and advancing clean energy solutions.

MITEI established its Carbon Capture, Utilization, and Storage (CCUS) Center in 2006 as part of its commitment to addressing climate change through innovative energy solutions. The center brings together faculty members focused on research in 3 key areas: capture, utilization, and geologic storage of CO2.

Within the CCUS Center, researchers explore a range of technologies and methods, including molecular simulation, materials design, catalytic processes, fluid mechanics, and advanced imaging techniques. They are developing emerging technologies for gas storage and separation. 

Geologic storage research investigates the behavior of CO2 in underground reservoirs, including its interactions with pore fluids, and employs advanced imaging techniques to better understand the opportunities and risks associated with storing carbon dioxide underground. 

Through these efforts, MIT is contributing to the development of innovative solutions for carbon capture and storage, essential for mitigating climate change. Here are the other key achievements of the university in various aspects of its efforts in cutting carbon emissions:

Research:

MITEI’s research portfolio focuses on deep decarbonization across four major energy sectors—power, transportation, industry, and buildings—to address climate change and expand access to clean energy.
The establishment of Low-Carbon Energy Centers has facilitated collaborative research efforts with industry partners to tackle pressing energy challenges. These centers help in advancing projects related to mobility systems, energy storage, carbon capture, and more.
Major studies and reports, such as “Insights into Future Mobility” and “The Future of Nuclear Energy in a Carbon-Constrained World,” have provided comprehensive analyses of key technologies and sectors, informing policy and business decisions.

Education and Outreach:

MITEI has been actively involved in educating students and the public about climate change and clean energy solutions through various initiatives, including workshops, seminars, and educational programs.
The Mobility Systems Center, established as part of MITEI’s research efforts, has contributed to the understanding of individual travel decisions and the importance of sustainable mobility.

Engagement and Collaboration:

Collaboration with industry partners, including global engineering and energy companies like IHI, Iberdrola, Eni S.p.A., and ExxonMobil, has led to significant advancements in clean energy technologies and policies.

A new study [by Joel Jean, a former MIT postdoc, MITEI Energy Fellow, and CEO of startup company Swift Solar; Vladimir Bulović (Electrical Engineering and Computer Science; MIT.nano); and Michael Woodhouse (NREL)] shows that replacing new solar panels after just 10 or 15 years, using the existing mountings and control systems, can make economic sense, contrary to industry expectations that a 25-year lifetime is necessary. Credit: MIT

Membership agreements and collaborations with companies have resulted in substantial financial support for research projects, professorships, and technology development initiatives.

MIT is also joining the race to zero by aiming to eliminate direct emissions by 2050, with a near term milestone of net zero carbon campus emissions by 2026.

The university takes a multifaceted approach to achieve such climate goal. In general, the school will focus on:

Decarbonizing its on-campus energy systems,
Enabling large-scale clean energy generation on- and off-campus, and
Embracing new decarbonization solutions.

These efforts underscore MIT’s commitment to addressing climate change and accelerating the transition to a sustainable energy future.

Yale University’s Center for Natural CO2 Capture 

Founded with a transformative donation from FedEx and as a part of Yale’s Planetary Solutions Project, the Yale Center for Natural Carbon Capture is dedicated to exploring the science of natural carbon capture. Its mission is to develop solutions that contribute to addressing some of the most pressing challenges of our time.

The Center introduces fresh and innovative research and researchers to the Yale community, forging connections with relevant research laboratories both on and off-campus. Through funding research projects, workshops, and fellowships, the Center supports initiatives at the University and invests in training the next generation of scientists and practitioners. These efforts revolve around three primary Focus Areas:

Ecosystem & Biological Capture,
Geological & Ocean Capture, and
Industrial Carbon Utilization.

Over the past year, the Center has achieved several notable milestones. Among these, two standout initiatives have emerged: the Yale Applied Science Synthesis Program (YASSP) and significant advancements in enhanced rock weathering (ERW).

YASSP connects academic researchers, policymakers, and those managing lands to answer applied questions about how land management decisions affect the services provided by forests, croplands, wetlands, rangelands, and grasslands

Yale’s Net Zero Goal

Yale University is dedicated to achieving zero actual carbon emissions by 2050, with an interim objective of reaching net zero emissions by 2035. This goal will primarily be accomplished by reducing campus emissions by 65% below 2015 levels and, if needed, utilizing high-quality, verifiable carbon offsets.

The ultimate aim of zero actual carbon emissions will involve minimizing campus emissions entirely and implementing clean energy technology. The university managed to cut emissions by 28% since 2015, as seen below, despite a huge increase in campus size. 

The university’s approach to climate action is comprehensive and encompasses all aspects of its operations. Yale is expanding its educational offerings to address the complexity and magnitude of global climate challenges.

Additionally, investments are being made in campus infrastructure and emerging technologies to mitigate the university’s environmental impact. Yale has also adopted fossil fuel investment principles to facilitate a transition towards a decarbonized energy future.

Yale’s efforts to reduce carbon emissions include:

Responsible energy use through conservation, efficiency upgrades, and innovative approaches to campus operations.
Ensuring that energy generation on campus is efficient and environmentally friendly.
Implementing a greenhouse gas emissions reduction strategy to steadily progress towards zero emissions targets.
Purchasing and retiring high-quality, verified carbon offsets when necessary to meet emissions goals.

Stanford University Center For Carbon Storage

Stanford University leads global research on carbon sequestration, tackling critical questions on flow physics, monitoring, geochemistry, and more. They study CO2 storage in depleted oil and gas fields, saline reservoirs, and explore policies and techno-economics.

Stanford also focuses on capturing CO2 with engineered and natural applications, and combines bioenergy production with carbon capture to achieve net-negative emissions. Additionally, they research the impact of carbon taxes and cap-and-trade systems on CO2 capture and storage implementation.

The Stanford Center for Carbon Storage (SCCS)

The Stanford Center for Carbon Storage is focused on advancing crucial Carbon Capture and Storage (CCS) technologies aimed at capturing greenhouse gas emissions from smokestacks and securely storing them. Their research efforts are directed towards developing cost-effective methods for permanent storage on an industrial scale.

Visit this link to get to know more about the university’s CCS research highlights.

The center is actively addressing fundamental questions related to flow physics, monitoring techniques, geochemistry, and simulation of CO2 transport and behavior once stored underground. Their storage research encompasses a variety of geological formations, including fully-depleted oil fields, saline aquifers, and other unconventional reservoirs.

Stanford’s Path to Net Zero 

The university also aims to reach net zero emissions by 2050, following this pathway:

After completing the full year of 100% renewable electricity, Stanford University revealed new goals to get rid of construction and food-related emissions by 2030.

The university is currently monitoring Scope 3 emissions across eight categories, including business and student travel, fuel and energy activities, waste, employee commute, construction, purchased goods and services, leases, and food purchases.

There’s still much work to be done to decrease Stanford’s scope 3 emissions. But with the two emission reduction goals revealed last year, they represent significant progress in the university’s understanding of and ability to reduce these emissions.

These goals underscore climate action as a fundamental value for the departments involved and showcase close collaboration on sustainability initiatives across the university.

Arizona State University: The Center For Negative Carbon Emissions

Arizona State University’s Center for Negative Carbon Emissions is at the forefront of advancing direct air capture (DAC) technologies, crucial for achieving a carbon-negative economy. The center has developed an innovative carbon management cycle focused on capturing carbon dioxide directly from the air.

Their goal is to demonstrate a system that enhances the efficiency and scalability of DAC while reducing costs. Currently, they are testing a prototype technology utilizing “mechanical trees” to extract CO2 from the air. These 10-meter-high structures employ a sorbent, an anionic exchange resin, which absorbs CO2 when dry and releases it when exposed to moisture.

ASU “mechanical tree”

Within just 20 minutes, these “mechanical trees” can capture greenhouse gases brought by the wind. The collected CO2 is then converted into a liquid that can be used to produce carbon-neutral fuel, other products, or sequestered for permanent disposal.

The research on mechanical trees has been ongoing for two decades and was pioneered by Dr. Klaus Lackner, the director of the Center for Negative Carbon Emissions. These trees are remarkably efficient, being a thousand times more effective than natural trees at removing CO2 from the atmosphere.

In addition to technological advancements, the center also examines the economic, political, and social implications of widespread implementation of affordable DAC technology, aiming to lead the way in the field of direct air capture.

ASU Climate Positive Pledge

Since fiscal year 2019, the university has been carbon neutral for scope 1 and 2 emissions through energy efficiency measures, green construction, offsetting, and renewable energy acquisition. The university is working toward achieving the same for its Scope 3 emissions by 2035.

ASU emphasizes energy efficiency and conservation through various initiatives. The university also promotes low-carbon energy sources, with 43% of energy in 2022 coming from such sources.

The school further aims for carbon-neutral transportation by 2035, achieving a milestone with single-occupancy vehicle travel reduced to 59% in 2022. Initiatives include bike parking expansion, ride-sharing incentives, electrification of fleet vehicles, and free intercampus shuttles. ASU also imposes a carbon price on air travel to mitigate emissions.

ASU climate positive commitments are as follows:

Achieve carbon neutrality for Scope 1 and 2 emissions by FY 2025.

Update: achieved carbon neutrality for Scope 1 and 2 emissions in FY 2019.

Achieve carbon neutrality for Scope 3 emissions by FY 2035.

Update: in progress, reduced 69% since FY 2007.

According to its recent sustainability report, ASU cut net emissions for Scopes 1, 2 and 3 by 91% per 1,000 square feet of building space and 90% per student.

1. Scope 1 emissions result primarily from combusting natural gas to generate heat and electricity for university buildings and from university vehicles. Scope 2 emissions come from external utility providers that supply ASU with electricity and chilled water.
2. Scope 3 emissions primarily occur in third-party commuting and air travel associated with ASU operations.

Conclusion

In conclusion, top universities in the US are taking significant strides towards curbing their carbon emissions through innovative research, education, and operational changes. Institutions like Yale University, MIT, and Stanford University are leading the charge by focusing on carbon capture and storage technologies, sustainability initiatives, and carbon management programs.

 

Furthermore, other universities like Arizona State University and Harvard University are actively pursuing carbon neutrality and implementing measures to reduce carbon footprint across their campuses. Through collaboration, research, and sustainable practices, these universities are paving the way towards a more sustainable and net zero future.

The post How Top U.S. Universities Cut Their Carbon Emissions to Help Fight Climate Change appeared first on Carbon Credits.

US Power Demand Surge Spurs 133 New Gas Plants Amid Climate Targets

Nearly halfway through a decade critical for mitigating climate change, US utilities and investors plan to add 133 new natural gas-fired power plants to the nation’s grid, as reported by S&P Global Market Intelligence. Additionally, 4 oil-fired plants and two coal-fired plants are either under construction or in early development.

These plans for new fossil fuel-based power generation emerge amidst growing concerns over increasing power demand driven by electrification and industrial growth. 

Surging Power Demand in the U.S.

Electricity use in the United States was around 4,085 terawatt hours in 2022, per Statista data. Projections indicate that U.S. electricity consumption will rise to 5,178 terawatt hours by 2050. That’s an increase of about 27% from 2022 levels.

In December 2023, grid regulators warned of potential power demand surpassing supply in the coming decade. Notably, consulting firm Grid Strategies noted that the “era of flat power demand is over.”

According to some experts, long-term investments in natural gas infrastructure pose a threat to the nation’s commitment to halving economy-wide greenhouse gas emissions by 2030, which could result in stranded assets. 

For instance, Lauren Shwisberg, a principal in the carbon-free electricity practice at RMI, emphasized the need for a significant reduction in gas generation and emissions in the power sector by 2035. However, current utility plans suggest otherwise.

RMI’s latest forecast, based on data from 121 utility resource plans, projects an 18% increase in US natural gas-fueled power generation between 2024 and 2035. 

This trend raises concerns about aligning energy development with climate goals, highlighting the challenges of transitioning to a cleaner grid.

Balancing Climate Goals with Gas Infrastructure

Limiting global warming to 1.5°C above preindustrial levels calls for states to cut emissions across sectors by nearly 50% by 2030. However, US CO2 emissions from gas plants were 39% higher in 2023 than in 2017, as per the US Energy Information Administration. Notably, 2023 saw CO2 emissions from gas plants surpass those from coal for the first time.

More remarkably, the surge in energy use by data centers, driven by the rise of AI, has placed the energy industry in a challenging position. 

RELEVANT: Data Centers Power Demand Fuel U.S. Utility Q1 Earnings Discussions

Estimates show that power demand from data centers will explode. The International Energy Agency forecasts that energy use in data centers will rise to around 1,050 TWh in 2026, from 200 terawatt-hours (TWh) in 2022. Putting this in context, this is equivalent to the energy demand of Germany.

Ernest Moniz, head of the nonprofit energy research group EFI Foundation, addressed this power concern during a recent interview. 

“There’s some battery storage, there’s some renewables, but the inability to [quickly] build electricity transmission infrastructure is a huge impediment. So we need the gas capacity.”

Monitz emphasized that natural gas still has a role in a decarbonized world. Despite this, US utilities continue to advance new natural gas projects. And while ratepayer advocates, environmental groups and climate-conscious corporate customers closely scrutinize their plans.

Regional Developments and Controversies 

Wisconsin Electric Power Co., part of WEC Energy Group, seeks state approval for $2.1 billion in rate increases to fund 2 new natural gas-fired plants, an LNG storage facility, and 33 miles of pipelines. This infrastructure will replace 4 coal units shutting down by 2025.

In Arizona, the Salt River Project (SRP) plans to add 2 GW of gas-fired generation by 2035 to integrate 9.5 GW of renewables and storage and replace over 1.3 GW of retiring coal capacity. SRP cites a 40% rise in demand over the next decade. 

Critics, including the Sierra Club, argue this plan will exacerbate water issues, raise costs, and worsen the climate crisis. SRP’s analysis showed no-gas options would not be reliable or affordable.

In Texas and the Southeast, utilities are pushing for more natural gas generation. Duke Energy’s updated plans for the Carolinas include 10 new gas-fired units, adding nearly 9 GW by 2033. These “hydrogen-capable” plants aim to help Duke reach carbon neutrality by 2050, despite public concerns over rising renewables costs.

Georgia Power Co.’s proposal for over 1.4 GW of new gas and oil-fired power by 2027 was approved, despite Microsoft’s claims of over-forecasting demand. The Southern Environmental Law Center estimates these investments will cost customers about $3 billion.

Critics argue that regulators in states without emissions reduction laws focus solely on costs, ignoring climate benefits. For a watchdog utility group’s leader, David Pomerantz, utilities’ attempts to balance decarbonization goals with building new gas plants are contradictory.

As the US faces growing power demands and strives to meet climate goals, new fossil fuel plants raise significant concerns. The projected increase in natural gas infrastructure may conflict with the nation’s emissions reduction commitments, highlighting the challenges of balancing energy needs with environmental responsibilities.

READ MORE: US EPA to Invest $20B in Climate and Clean Energy Projects

The post US Power Demand Surge Spurs 133 New Gas Plants Amid Climate Targets appeared first on Carbon Credits.

Hydrogen Attracts Over $1 Billion in VC Funding Per Crunchbase Data

Hydrogen technology startups have secured over $1 billion in venture investment in the past four months, according to Crunchbase data. This already surpasses two-thirds of last year’s total, and the surge includes several significant early-stage rounds, including:

Hysata: Last week, the Australian electrolyzer developer raised $110 million in a Series B co-led by BP Ventures and Templewater.
Koloma: Denver-based Koloma, focused on geologic hydrogen resources, secured $246 million in a Series B led by Khosla Ventures earlier this year.

READ MORE: Bill Gates Backs Stealth Startup with $91M for Hydrogen Revolution

Hydrogen energy startup investment didn’t peak in 2021. Instead, funding reached its highest in 2022 and is on track to surpass that this year.

Notable Hydrogen Startups and Funding

Crunchbase data lists 13 well-funded hydrogen startups that raised significant capital recently. Collectively, they have secured $3.66 billion in equity funding, plus additional grant and debt financing. 

Key examples include:

HysetCo: Based in France, HysetCo operates hydrogen distribution stations and mobility services. It raised $216 million in April, managing a fleet of over 500 hydrogen vehicles and distributing nearly 30 tons of hydrogen monthly.
Ohmium: The Nevada-based company is manufacturing proton exchange membrane systems to produce pressurized, high-purity hydrogen. It secured $295 million in Series C in April last year. 
Tree Energy Solutions: This Brussels-based company closed a $150 million Series C in April to use renewable energy for generating green hydrogen, which it combines with recycled CO₂ to create e-NG.
ZeroAvia: The California-based developer of hydrogen-electric engines for zero-emission flight raised $116 million in a Series C in September. Airbus is the lead investor, along with United Airlines and Alaska Air Group.
Electric Hydrogen: This Massachusetts company raised $380 million in a Series C last October. It manufactures electrolyzers to produce hydrogen at the lowest cost and is the green hydrogen industry’s first unicorn.

A week ago, the US Department of Energy revealed its R&D priorities to cut clean hydrogen cost production, potentially at $1 per kilo by 2031.

READ MORE: DOE Sets Eyes on Cutting Clean Hydrogen Cost, $1/Kilo by 2031

Global Initiatives Driving Green Hydrogen Growth

Investors’ increasing interest in green hydrogen is driven by government incentives, technological advancements reducing costs, and favorable market conditions. This combination of factors suggests a promising future for low-emission hydrogen technologies, potentially marking a pivotal moment for the industry.

Data from Mckinsey & Company below shows that the hydrogen production capacity announced increased by 2030 (over 40%). This capacity is about 50% the volume necessary to be on track to net zero emissions.

Source: McKinsey & Company

In April, the EU Commission approved a $380 million German scheme to enhance renewable hydrogen production. This groundbreaking initiative will be administered exclusively through the European Hydrogen Bank’s “Auctions-as-a-Service” tool.

The scheme supports the objectives of REPowerEU and The European Green Deal. It outlines a comprehensive strategy to reduce reliance on fossil fuels and transition to a net zero economy.

By fostering renewable hydrogen production, the scheme aims to decrease dependence on Russian fossil fuels and contribute to the EU’s green energy future.

India, the world’s 3rd largest polluter plans to be the largest producer and exporter of green hydrogen by setting ambitious milestones. According to the Indian Ministry of New and Renewable Energy, the key goals include:

Production Capacity: Establishing a capacity to produce at least 5 Million Metric Tonnes (MMT) of green hydrogen annually by 2030.
Global Demand: Aiming to drive global demand for green hydrogen and its derivatives, such as green ammonia, to nearly 100 MMT by 2030. India targets capturing 10% of the global market, with an annual export demand of about 10 MMT of green hydrogen/green ammonia.
Decarbonization: Mitigating 50 MMT of CO2 emissions annually through the implementation of green hydrogen initiatives.

In the Gulf region, Oman Energy Development’s subsidiary, Hydrom, hosted a second-round public auction for green hydrogen development in the Dhofar Governorate. Hydrom offers three prime blocks ranging from 340km² to 400km² in the Dhofar Governorate for green hydrogen production. The auction will leverage the region’s abundant renewable energy resources to build a robust green hydrogen industry in the sultanate.

The surge in venture investments in hydrogen technology startups highlights the sector’s growing momentum. With significant early-stage funding rounds and robust global initiatives, the future of green hydrogen looks promising.

The post Hydrogen Attracts Over $1 Billion in VC Funding Per Crunchbase Data appeared first on Carbon Credits.

Google, Meta, Microsoft, and Salesforce Launch “Symbiosis”, Pledging for 20M Tons of Nature-Based CDR Credits

Tech giants including Google, Meta, Microsoft, and Salesforce have announced the formation of the Symbiosis Coalition, a significant advance market commitment (AMC) aimed at purchasing nature-based carbon removal credits in the voluntary carbon market. 

Collectively, these companies plan to contract up to 20 million tons of high-certainty impact nature-based carbon removal credits by 2030. This commitment emphasizes equitable outcomes for the communities involved in these projects.

Nature Restoration: A New Standard for Carbon Removal

Nature restoration is essential for meeting climate goals but is complex and costly. Effective projects need advanced technology, equitable community engagement, and balanced environmental benefits. 

Moreover, the market for nature-based carbon removal struggles due to perceived quality issues and uncertain investor willingness, affecting public trust. 

The Symbiosis Coalition members aim to address these challenges by signing long-term agreements for high-quality projects that use conservative climate impact assumptions, best practices, and fair compensation for Indigenous Peoples and local communities. By signaling strong demand and willingness to pay, they hope to set clear standards and promote more successful restoration projects.

Julia Strong, Executive Director of Symbiosis, highlighted that: 

“Symbiosis represents a steadfast commitment to the importance of nature to climate action and the role of carbon markets, when done right, to financing critical climate solutions…Symbiosis sends a strong signal to project developers that buyers are willing to pay what it takes for high-quality projects that benefit the environment and local communities.” 

Objectives and Strategy of the Symbiosis Coalition

Google, Meta, Microsoft, and Salesforce, and other Coalition members seek to achieve several key objectives:

High-Quality Carbon Removal Projects: By ensuring a strong demand signal and committing to pay the true cost of developing high-quality carbon removal projects, Symbiosis aims to set a standard for effective and equitable restoration projects.
Collaborative Partnerships: The coalition intends to work with investors, NGOs, market standard setters, and project developers to define and promote high-quality restoration practices.
Market Clarification and Development: By partnering with like-minded entities, Symbiosis aims to clarify what constitutes “good” restoration and enable the implementation of more projects that meet these standards.

Recent research by Carbon Direct, supported by Meta, emphasized that forming a “buyers club” focused on ecological restoration is crucial for ensuring quality and credibility in nature-based projects. Symbiosis has drawn inspiration and lessons from initiatives like Frontier, LEAF, and other AMCs to shape their strategy for the nature-based carbon removals market.

READ MORE: Frontier Fund Closes $53M Carbon Removal Deal With Charm

Filling the Investment Gap for Nature-Based Solutions

While acknowledging the necessity to reduce their own emissions, the companies involved in the Symbiosis Coalition recognize the importance of a robust carbon market and nature-based solutions in addressing climate change. The coalition’s approach is aligned with the insights from a recent McKinsey analysis.

The researchers indicated that carbon dioxide removal requires $6 trillion – $16 trillion in investment by 2050 to meet net zero targets.

Despite the urgent need for significant investment in carbon removals, only about $15 billion has been invested in such initiatives to date, highlighting a substantial under-investment in ecosystem protection and restoration. 

Projections indicate that the gap between the estimated investment and the necessary funding by 2030 to ensure CDR is on track to meet 2050 targets ranges between $400 billion and $1.6 trillion.

The Coalition aims to address this gap by providing the necessary financial support and market incentives to scale up high-integrity nature-based solutions.

Symbiosis will complement other critical, climate-focused advance market commitments (AMCs) that encourage investment in forest protection at the jurisdictional level and aim to scale the market for engineered carbon removals. By doing so, the coalition seeks to foster a more integrated and effective approach to mitigating climate change.

RELEVANT: Microsoft and Stockholm Exergi Strike Historic Deal for 3.33 MTs of Carbon Removal

The initiative establishes a strong foundation for specific quality criteria used in the procurement process, initially focusing on forest and mangrove restoration projects. It is guided by these 5 quality pillars:

Conservative accounting, 
Durability, 
Social and economic benefits, 
Ecological integrity, and 
Transparency. 

These pillars build on existing standards and align with the Integrity Council for the Voluntary Carbon Market (IC-VCM) Core Carbon Principles (CCPs).

Expanding the Coalition’s Impact

Members of the Symbiosis Coalition will have the opportunity to purchase carbon removal credits contributing to their pledges through a joint Request for Proposals (RFP), in addition to their own efforts. The initial RFP will target afforestation, reforestation, and revegetation (ARR) projects, including agroforestry. 

Add image of agroforestry…

With input from independent technical advisors, the Coalition will develop criteria for ARR projects, building on the most conservative standards for measuring real nature-based climate impact. These criteria include: 

dynamic baselining to ensure additionality, 
robust approaches to prevent leakage, and 
a focus on creating long-lasting projects. 

Furthermore, projects will be prioritized based on financial transparency, biodiversity benefits, and equitable engagement with Indigenous Peoples and local communities.

Finally, the Coalition seeks to expand its membership to include other companies and collaborate with the broader restoration and carbon market ecosystem, encompassing investors, NGOs, standards bodies, project developers, researchers, and other stakeholders.

In conclusion, the Symbiosis Coalition represents a forward-thinking approach to voluntary carbon markets, emphasizing high-quality, nature-based carbon removal credits. It aims to create a robust market for nature-based solutions that significantly contribute to global climate goals.

The post Google, Meta, Microsoft, and Salesforce Launch “Symbiosis”, Pledging for 20M Tons of Nature-Based CDR Credits appeared first on Carbon Credits.