July 2024 – Page 4 – The Global Carbon Fund

Rimba Raya Resumes Operations in Borneo with Epic Legal Victory

July 15, 2024/in Uncategorized /by

Rimba Raya, the world’s largest carbon offset REDD+ project developer, has won a legal victory in Indonesia. This win is a significant step towards resuming operations at their expansive site in Borneo. As reported by Bloomberg on July 11, the Jakarta State Administrative Court overturned Indonesia’s Ministry of Environment and Forestry’s decision, thereby restoring the license for the Rimba Raya Conservation project.

Rimba Raya: Absorbing Carbon Emissions and Generating Carbon Credits

The Rimba Raya project in Indonesian Borneo generates carbon credits by conserving a forest area nearly the size of Las Vegas. These credits mainly come from its High Conservation Value (HCV) peat swamp forest, making it one of the world’s largest REDD+ projects. This unique area separates oil palm plantations from Tanjung Puting National Park, which hosts a vast orangutan sanctuary and has a rich biodiversity. This makes Rimba Raya an excellent conservation project.

Another notable feature of Rimba Raya is its extensive coastal tropical heath and peat swamp forest, which once blanketed much of southern Borneo. This vast swamp area actively removes approximately 130 million tonnes of carbon emissions.

Rimba Raya project was the first REDD+ initiative to be validated under the Verified Carbon Standard (VCS) and achieved triple-gold validation from the Climate Community and Biodiversity Alliance Standard (CCBA).

CarbonPlan, the climate data provider has reported that Rimba Raya has issued more than 30 million credits since 2013 and more than 25 million of those have been retired. This makes it the world’s largest single source of offsetting.

The Epic Legal Victory Fuels Rimba Raya’s Revival

The legal case continued for almost a year, after which the Jakarta State Administrative Court gave its ruling in favor of Rimba Raya. From various credible media resources, we discovered that Rimba Raya can now operate across 36,000 hectares of tropical peat swamp forest in Central Kalimantan, the largest Indonesian province by area.

Rusmin Widjaja, President of The Board of Directors at PT Rimba Raya Conservation

Rimba Raya Conservation will now focus on rebuilding its capacity and is also working to resolve a separate dispute with its partner, Hong Kong-based InfiniteEARTH Ltd.

Going Back in Time of License Revocation and Legal Battle

In April carboncredits.com reported that The Indonesian Ministry of Environment and Forestry cited three main violations by PT Rimba Raya Conservation: The main allegation was the unauthorized transfer of the permit to a third party without approval from the Minister of Environment and Forestry. The second accusation was conducting carbon trading transactions beyond its licensed area, violating its agreement with Tanjung Puting National Park. The company also faced criticism for failing to pay Non-Tax State Revenue (PNBP) as required by the law.

According to Bloomberg, this decision had put the future of the Rimba Raya project at risk. It was significantly worrisome for prominent carbon traders like InfiniteEARTH Ltd and Carbon Streaming Corps who have heavily invested in Rimba Raya’s credits. The situation showcased how complex supply chains and uncertain regulations pose challenges, even though carbon offsets are crucial for projects like Rimba Raya.

KNOW MORE: Rimba Raya REDD+ Project Revocation Rattles Carbon Market

The Future of Rimba Raya: A Bloomberg Analysis

However, the recent court ruling lets Rimba Raya restart activities, rebuild capacity, and resolve disputes with InfiniteEARTH. How will this decision affect the Indonesian carbon credit market and Rimba Raya’s investors? Let’s read the Bloomberg analysis.

Will carbon credit demand rise?

BloombergNEF predicts that demand for these credits could rise sharply, possibly reaching a market value of $1 trillion by 2050. Despite turbulence and differing opinions on credibility, the demand for carbon offset credits is expected to increase in the future. Analysts at BloombergNEF (BNEF) foresee a significant expansion in VCMs, even as companies like Alphabet Inc., Google’s parent company, reassess their involvement.

Bloomberg tried to reach the Indonesian government and the CEO of PT Rimba Raya Conservation for their views but in vain.

Impact on partners and investors

The uncertainty around Rimba Raya’s future has impacted its partners and investors. Verra has temporarily suspended InfiniteEARTH’s account while clarifying its role with PT Rimba Raya. This consequently affected the fair value of the Rimba Raya stream, nullifying it to zero on March 2024.

On May 31, 2024, the company announced major management and board changes. Christian Milau, the former CEO of Equinox Gold, has been appointed as the new interim CEO, with Olivier Garrett taking on the role of board chairman.

However, on a positive note, Carbon Streaming, which has an agreement with InfiniteEARTH for Rimba Raya credits, is evaluating the situation. They are communicating with partners and considering the legal options to protect their investment. The company promised to continue the project, despite unclear regulations in Indonesia, as noted in its Annual Information Form on the SEDAR+ platform. Meanwhile, InfiniteEARTH argued that Indonesia’s legal framework for carbon projects lacks clarity and denied any wrongdoing.

Indonesia plans to lift its ban on overseas credit sales to boost revenue, ensuring compliance with carbon trading rules and the Paris Agreement. All in all, this epic ruling on Rimba Raya is going to etch a history in Indonesia’s carbon credit market.

FURTHER READING: What Makes Forest Project a High-Quality Carbon Removal?

Disclaimer: Data and facts have been collected primarily from Bloomberg.

The post Rimba Raya Resumes Operations in Borneo with Epic Legal Victory appeared first on Carbon Credits.

Lithium Markets in Limbo: Next Leg Up or Down?

July 12, 2024/in Uncategorized /by

In the quest for electrification and cleaner energy sources, all eyes are on lithium, a.k.a. white gold, and how the market strives with battery prices continuing to fall.

According to BloombergNEF, the dramatic lithium price dropping trend will persist for several years, making battery technology economically viable for global decarbonization efforts. Benchmark Mineral Intelligence echoes this sentiment, highlighting the impending lithium market expansion driven by surging EV demand.

What Drives Lithium Battery Prices Down?

In the past year, the price of lithium iron phosphate (LFP) battery cells in China has dropped 51% to an average of $53 per kilowatt-hour (kWh), which is significantly lower than the global average of $95/kWh last year, per BloombergNEF.

This price decrease is driven by several factors, including:

Falling Raw Material Prices: Raw material costs, particularly for the cathode, have sharply declined. The cathode’s share of total costs for LFP cells in China dropped from 50% in early 2023 to under 30% this year.
Overproduction: China’s battery production capacity exceeds global electric vehicle (EV) demand, leading manufacturers to cut prices to maintain market share. Average capacity utilization in Chinese battery plants fell from 51% in 2022 to 43% in 2023 and is expected to decrease further.
Technological and Manufacturing Improvements: Companies like CATL and BYD are investing heavily in R&D, automation, and new factories, launching new products rapidly.

A MESSAGE FROM Li-FT POWER

One of the most essential ingredients in the production of batteries, lithium powers some of the most important devices in our everyday lives. Dramatic lithium price dropping trends will persist for several years making battery technology economically viable for global decarbonization efforts. Li-FT Power Ltd. (TSX-V: LIFT | US: LIFFF) is the fastest developing North American lithium junior. Click here to learn more about their vast lithium assets including their flagship project, a 100%-owned Yellowknife Lithium project.

A Bright Prediction for Lithium Batteries

BloombergNEF predicts that low lithium battery prices will persist for several years, significantly impacting the automotive and power sectors. At $50/kWh, battery technology is already economically viable for decarbonizing road transport globally.

A major evidence is on point. In China, pack-level prices for the most common battery chemistries have been below the $100/kWh benchmark since October 2023. Lithium iron phosphate (LFP) pack prices are now at $75/kWh, making EVs competitive with combustion cars in most segments.

Chart from BloombergNEF website

Additionally, Chinese EVs are now the cheapest drivetrain by average transaction price, even excluding mini-city cars. This shift will gradually reflect outside China, benefiting commercial EV manufacturers and reducing the premium they pay for batteries.

Chart from BloombergNEF

With the lithium battery prices dropping fast, another market stands to gain a lot from it – energy storage.

Turnkey energy storage systems are 43% cheaper than a year ago. Global stationary storage installations are projected to rise to 155 GWh this year, up 61% from last year, according to BNEF data.

The narrative of perpetual battery and battery metal shortages has been challenged by recent developments. For instance, Toyota’s assertion last year that there were not enough batteries to meet global demand now appears outdated as battery prices continue to fall.

In fact, the substantial drop in battery prices in China could revolutionize the global automotive market by making EVs more affordable and accelerating the transition to renewable energy storage solutions.

More notably, it signals that the lithium market is on the verge of a significant expansion in the coming years, as what the Benchmark Mineral Intelligence highlights in its Q2 2024 Lithium Market Overview. Benchmark is a prominent provider of independent data and advisory services for the lithium-ion battery and EV supply chain.

On the Brink of a Major Expansion

While short-term volatility is expected, long-term prospects indicate a structural deficit as the lithium supply struggles to keep pace with the accelerating EV revolution.

According to Benchmark’s latest report, global lithium demand is projected to reach 1.15 million tonnes of lithium carbonate equivalent (LCE) by 2024, with an astounding 87% driven by batteries, particularly EVs—the dominant end-use application.

Looking ahead, demand is forecasted to more than double, reaching 2.89 million tonnes LCE by 2030. Batteries account for a staggering 94% of consumption, while industrial uses like glass and ceramics decline to just 6% of the total.

Simon Moores, CEO of Benchmark Mineral Intelligence remarked on this trend, saying:

“The lithium market is facing a demand tsunami from the rise of EVs that will put immense pressure on supply. Every auto maker has ambitious EV targets, and lithium-ion batteries are the enabling technology.”

On the supply side, Australia led lithium production in 2023 with a 40% global market share from hard rock mines, followed by Chile at 24%. However, Chinese production is anticipated to surpass Chile by 2025 as new projects come online.

Geographical diversification in lithium mining will increase as the market expands, yet the concentration of lithium chemical production remains high in China and South America. Significant capital investments are deemed necessary to expand current operations and meet future demand.

Benchmark’s price forecast sees spodumene concentrate, a key driver of lithium chemical prices, to average $5,000 per tonne longer-term. This translates to a lithium carbonate price of around $30,000 per tonne.

What All These Mean for Investors?

For investors, the lithium market’s growth trajectory presents opportunities across producers like Albemarle, SQM, Ganfeng Lithium, and Pilbara Minerals, as well as battery manufacturers, EV makers, and ETFs focusing on the EV supply chain. Moores emphasized that white gold is pivotal in unlocking the EV and clean energy revolution. This calls for unprecedented scaling that hinges on significantly higher prices.

Investors must meticulously navigate opportunities and threats in this dynamic market.

LITHIUM COMPANY SPOTLIGHT: Li-FT Power: The Fastest Developing Lithium Junior

Despite recent challenges such as oversupply and lower-than-anticipated EV sales in China, which led to substantial price declines for lithium carbonate, the long-term outlook remains optimistic. Anticipated strong rebound in demand with accelerating global EV adoption suggests potential price recovery from 2025 onwards.

But the caveat? Sustained high prices are necessary to incentivize new supply to meet future demand for lithium through the decade.

The post Lithium Markets in Limbo: Next Leg Up or Down? appeared first on Carbon Credits.

A Carbon Scam? BP-Owned and US Largest Offset Company’s Credits Are 80% Dubious

July 12, 2024/in Uncategorized /by

Some forest carbon offsets sold by Finite Carbon, the largest offsetting company in the US, offer minimal climate benefit, according to a satellite analysis by Renoster and CarbonPlan.

Finite Carbon, founded in 2009 and acquired by BP in 2020, manages over 60 projects covering 1.6 million hectares. These offset projects generate a quarter of the US’s carbon credits.

Finite’s business model involves encouraging landowners to protect forests that are supposedly at risk of being cut down. The carbon absorbed by these protected trees generates credits, which polluters can purchase to offset their emissions.

Since 2009, Finite claims to have offset over 70 million tonnes of emissions—more than double BP’s total emissions last year.

However, the credibility of Finite’s projects is under scrutiny amid rising concerns about the global carbon offset industry, which Barclays predicts could be worth $1.5 trillion by 2050.

An analysis of three projects, representing nearly half of Finite Carbon’s credits valued at $334 million, revealed significant issues. Their findings were alarming: about 80% of the credits should not have been issued.

Finite’s Carbon Offsets Under the Microscope

The scrutiny of Finite Carbon’s offsets coincides with growing concerns about the carbon offset industry. US Treasury Secretary Janet Yellen recently emphasized the need to address the industry’s significant challenges.

Finite Carbon defended its offsets, stating that all projects are independently verified and developed according to California’s cap-and-trade program standards.

The offsets developer sells most of its credits under California’s cap-and-trade system, which requires excessive polluters to buy offsets. Critics argue that flawed credits allow companies to continue polluting with impunity.

Finite’s offsetting process involves calculating a baseline of how many trees would be cut down without the project.

Renoster, an agency used by carbon credit buyers to verify real climate benefits, found significant issues in Finite’s offset projects.

One project in the Alaska Panhandle included trees not at risk of being cut down, resulting in about 79% of the credits being deemed invalid by Renoster.

Finite’s Sealaska project, covering 67,000 hectares, generated credits valued at over $100 million. The rating agency found that trees in the project area were unlikely to be cut down due to extensive prior logging, making the credits unjustifiable. They were in locations inaccessible to loggers, such as ravines and coastlines.

Finite’s approach of excluding logged areas and creating maps around small pockets of forest, sometimes fewer than 50 trees, may comply with technical rules but undermines the spirit of the regulations.

Gerrymandering Credits: The Integrity Crisis in Carbon Offsetting

Thus, Renoster concluded that the project’s credits should not have been issued, labeling the practice as “cheating,” accusing them of intentionally manipulating project boundaries to maximize credits. Elias Ayrey, Renoster’s head scientist, criticized this “gerrymandering,” which makes assessing real conservation efforts impossible.

Sealaska representatives defended the credits, claiming the remaining trees had economic value and could legally be cut. Brian Kleinhenz, a former Sealaska executive, argued that there was always market value for the trees, even in difficult-to-access areas.

The California Air Resources Board (CARB) supported the inclusion of these trees in baseline calculations. CARB spokesman Dave Clegern acknowledged concerns but maintained that projects are in compliance with all regulations.

Another Finite project analyzed is a 200,000-hectare forest in Washington state, owned by the Confederated Tribes of the Colville Reservation. It significantly overestimated the logging threat, according to CarbonPlan scientist Grayson Badgley. He noted that awarding credits for avoiding unlikely logging activities undermines the integrity of offsets.

Chart from SourceMaterial website Note: Finite Carbon timber harvest projection vs the tribe’s submitted management plan

The third project in West Virginia, covering 39,000 hectares and involving Lyme Timber, which promised to preserve trees in exchange for credits, was also found to be over-credited. Renoster concluded that many trees were in steep, inaccessible areas, making logging economically unfeasible.

Lyme Timber president David Hoffer contested Renoster’s findings, asserting that their harvesting practices have been conservative.

A Path Forward for the Carbon Offset Industry

Finite Carbon’s controversial offset projects highlight the complexities and challenges within the carbon offset industry. The scrutiny underscores the urgent need for increased transparency and accountability in the carbon offset market.

Amid all this turmoil, the moment represents a pivotal opportunity for the industry to evolve and enhance its credibility.

By implementing more rigorous verification processes, embracing advanced monitoring technologies like satellite analysis, and fostering collaboration among stakeholders, the carbon offset market can refine its practices and restore confidence. Ultimately, these steps will help ensure that carbon credits genuinely contribute to mitigating climate change.

READ MORE: Will This Be The End of Carbon Offsets?

The post A Carbon Scam? BP-Owned and US Largest Offset Company’s Credits Are 80% Dubious appeared first on Carbon Credits.

Truck Titans Clash: Tesla Semi vs. Nikola Hydrogen

July 11, 2024/in Uncategorized /by

The battle between Tesla and Nikola in the zero-emissions trucking world is thrilling. Tesla Semi’s all-electric power goes head-to-head with Nikola’s hydrogen-fueled trucks. The clash is driving innovation, breaking tech barriers, and shaping a greener future. Who will emerge supreme in the clean transport transition? Let’s read this interesting analysis…

Tesla’s Next Gen Semi Trucks

Tesla is ramping its green goals with a $3.6 B investment to expand Gigafactory Nevada at the Truckee-Reno Industrial Center. This major expansion introduces two key additions: a 100 GWh 4680 Cell Factory for advanced batteries and a High-Volume Semi Factory for Tesla’s new electric trucks. They want to establish Gigafactory Nevada as the main for manufacturing unit for EV trucks.

Tesla disclosed that combination trucks account for approximately 18% of U.S. vehicle emissions. The new cell factory will manufacture 1.5 million batteries annually for light-duty vehicles. Media reports say that till the end of last year, Tesla manufactured 70 Semi trucks, using them mainly within the company and for its partner PepsiCo.

We can comprehend the status of the Tesla Semi from the VP of Vehicle Engineering at Tesla- Lars Moravy’s statement.

“We’re finalizing the engineering of Semi to enable like a super cost-effective high-volume production with our learnings from our fleet and our pilot fleet and Pepsi fleet, which we are expanding this year marginally. In parallel, as we showed in the shareholders’ deck, we have started construction on the factory in Reno. Our first vehicles are planned for late 2025 with external customers starting in 2026.”

Tesla Semi-All Electric Specifications

Nikola Promises Zero Emissions Class 8 Hydrogen Truck

Talking of Nikola, the company has already sold 72 units of Class 8 Hydrogen Fuel Cell Trucks through its HYLA brand. That is insanely impressive as they have exceeded their sales target of 60 units for Q2, 2024. Notably, their shares also shot high with this massive sales volume. Nikola CEO Steve Girsky exuberantly said,

“We have maintained our 2024 momentum with solid wholesale numbers, new customers such as Walmart Canada, and repeat customers like 4GEN and IMC, purchasing vehicles through our dealer network. We are firmly on the field and are continuing to secure our first-mover advantage in zero-emissions Class 8 trucks in North America, as well as with our HYLA hydrogen refueling solutions.”

Nikola Class 8 Hydrogen Powered Truck Specifications

The market is supercharged with Tesla Semi and Nikola Hydrogen Class 8 competition. Some burning questions arise with these new launches…What will customers choose and what is the best model for net zero? Let’s do some comparison and analysis here.

Who will Win the Battle of the Trucks; Hydrogen or EV for a Net Zero Future?

Michael Lohscheller, Nikola’s President and CEO, emphasized the growing demand for zero-emissions trucking solutions among customers who aim to fulfill their shipping needs and meet their ESG goals. He highlighted the shift’s significant impact. One heavy-duty zero-emission truck reduces CO2 emissions as much as removing 23 gasoline-powered cars annually.

Both Nikola and Tesla are advancing clean transport with zero emissions. The difference is Nikola’s latest trucks run on hydrogen, while Tesla Semi relies on all-electric power.

Off Infrastructure, Charging, and Refueling…

There are 76 hydrogen refueling stations in the U.S., of which 66 are installed in California. Nikola must ramp up way higher to be a long-term player. Even though, hydrogen refuels faster, locating a proximal station might be challenging.

On the contrary, Tesla’s supercharger network is extensive and the EV charging infrastructure is easily accessible. Charging time is significantly reduced with advanced battery and charging technology. This makes EVs more energy-efficient, offering a quick choice to customers. Overall, Semi wins bonus points here with Musk claiming

“Semi Trucks are about to revolutionize the road!”

While the Tesla Semi hasn’t hit the market yet, Nikola’s Class 8 Hydrogen Trucks are already cruising the roads. This gives Nikola ample time to earn the trust of its valued consumers and solidify its market position. As for Tesla’s Semi, its on-road performance remains speculative for now.

P.S. Refer to the images to compare and understand the specifications, sourced from Nikola and Tesla’s official website.

In conclusion, both transport giants are sprinting toward achieving net zero goals. Tesla and Nikola are positioned for a win-win scenario in terms of technology and infrastructure. No wonder, both can harmoniously co-exist in the clean transport sector. As Tesla Semi makes its debut, customers will have the opportunity to determine their preferred choice.

MUST READ: New EPA GHG Standards for Trucks to Cut 60% Emissions by 2032

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The Race to Net Zero: Formula E Champ di Grassi Buys Carbon Offsets from Rubicon Carbon

July 11, 2024/in Uncategorized /by

Formula E Champion and ABT CUPRA driver Lucas di Grassi partnered with Rubicon Carbon, a leading carbon credit management firm to offset his carbon footprint. This collaboration marks di Grassi as the first Formula E driver to invest in carbon credits to tackle his emissions.

Di Grassi Shifts Gears to Carbon Offsets

The rapid growth of motorsports has raised environmental concerns, such as high carbon emissions. Initially limited, the industry’s sustainable practices now focus on reducing emissions, conserving energy, and using renewable resources to address climate change and promote greener racing.

Formula E shows how a complex, global motorsport industry should race toward achieving net zero emissions. The organization’s champ di Grassi took the first ride to sustainable racing.

Lucas di Grassi, known for his activism in mobility technology, has become a leading figure in advocating for environmental responsibility within the racing industry. He has publicly distanced himself from industries that do not prioritize sustainability. He’s the first driver to offset all his CO2 emissions from traveling globally starting with his first Formula E race in China.

Di Grassi has created a Rubicon Carbon Tonne (RCT) portfolio, a diversified and actively managed collection of carbon credits. This portfolio includes various carbon removal, nature-based avoidance, and industrial avoidance projects. The RCTs are designed to reduce risk and provide price certainty for buyers, enhancing their options for carbon offsetting.

Remarking on his collaboration with Rubicon, di Grassi said:

“In line with the values and objectives of Formula E, I drive an electric car and have adapted my lifestyle. But still, credible carbon avoidance and removal is the only way to do the sport we love and be responsible for our environment at the same time. I would be delighted if many other athletes, not only in Formula E, would consider the same path.”

Zero-Emission Race: Formula E’s Sustainability Revolution

Their collaboration illustrates how sports partnerships can drive positive environmental change and raise awareness about sustainability. Tom Montag, CEO of Rubicon Carbon, expressed his enthusiasm for the partnership, stating:

“We are excited to support Lucas and Formula E, who share our values in building a low-carbon future.”

Partnering with personalities like di Grassi is part of Rubicon’s broader strategy to invest in carbon projects worldwide. Recent initiatives include a large-scale ecosystem restoration project in Panama in collaboration with Ponterra, Microsoft, and Carbon Streaming. It’s a 250,000-acre restoration project in South Africa led by Imperative, and a partnership with YvY Capital to scale up carbon investments in Brazil.

Rubicon Carbon’s commitment to sustainability and innovation is reflected in its efforts to create impactful environmental solutions. By partnering with influential figures like Lucas di Grassi, Rubicon aims to inspire broader adoption of carbon offsetting practices within the sports industry and beyond.

Leading the Charge in Net Zero Carbon Racing

With seven days to go before the 2024 Hankook London E-Prix starts, this milestone highlights, once again, the environmental commitment of Formula E.

Motorsport’s carbon footprint primarily comes from transporting teams and vehicles globally and the emissions from fans traveling to races. Formula E tackles this by logically scheduling races worldwide, reducing unnecessary travel.

In the 2022-23 season, Formula E implemented the ABB Ability OPTIMAX system to monitor race-specific energy usage, enhancing efficiency. Despite these efforts, freight still represents ¾ of the sport’s carbon footprint.

The championship offsets between 35,000 and 40,000 tons of CO2 equivalent annually, aiming to cut its carbon footprint by 45% by 2030 from a 2018 baseline. Impressively, it has already achieved a 25% reduction.

Working with partners like DHL, Formula E explores sustainable aviation fuels and integrates sustainability across its supply chain. Initiatives include recycling tires and using recycled materials for vehicle chassis. Ultimately, the sports organization’s mission is to showcase how motor racing can thrive without emissions.

Formula E stands as the first sport with a certified net zero carbon footprint since its inception. The organization manages its carbon footprint through a 3-step process as : Measure, Reduce, and Offset.

Measure

Formula E meticulously measures its carbon emissions across the entire championship. Since its inaugural season, the organization has partnered with carbon footprint experts to conduct a Lifecycle Assessment model. This model evaluates all race operations and Formula E’s headquarters, allowing for annual monitoring and calculation of greenhouse gas emissions.

Source: Formula E website

The motor racing organization’s emissions are categorized into:

Scope 1: Direct emissions (1.3%)
Scope 2: Indirect emissions from energy use (0.7%)
Scope 3: Other indirect emissions, including travel, freight, and car production (98%)

Reduce

The world’s first all-electric FIA World Championship prioritizes reducing its carbon footprint through direct actions. In 2021, the motor racing set emission reduction targets validated by the Science Based Targets initiative (SBTi). The goals include a 60% reduction in Scope 1 and Scope 2 emissions and a 27.5% reduction in Scope 3 emissions by 2030, from a 2019 baseline. These targets aim to limit temperature rise to 1.5°C.

Source: Formula E website Notes: S5 refers to 2019 baseline, while S6-S9 refer to yearly emissions reduction until 2023.

Key emissions reduction initiatives include collaborating with logistics providers to use biofuels for road and sea freight, addressing the largest source of emissions in the championship.

Offset

To address unavoidable emissions, Formula E invests in renewable energy projects in race markets. In Season 6, these investments offset all emissions since the sport’s inception, making them the first motorsport to achieve net zero carbon status.

Formula E offset an estimated 33,800 tCO2e for Season 8 by purchasing and retiring 33,800 Certified Emission Reductions from two projects in Mexico.

In Season 9, the electric motorsport advanced its commitment by aligning with PAS 2060, the international specification for demonstrating carbon neutrality, becoming the first global sports organization to do so.

Formula E’s pioneering efforts in measuring, reducing, and offsetting carbon emissions exemplify how even high-impact sports can lead to sustainability. By achieving and maintaining net zero carbon status, Formula E sets a benchmark for other industries to follow in the quest for a greener future.

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Saskatchewan Achieves Legal Win Over Canada’s Federal Carbon Tax

July 10, 2024/in Uncategorized /by

In breaking news, the Saskatchewan government announced its successful court injunction to stop the Canada Revenue Agency from collecting the federal carbon tax in the province. This came as a joy for the Saskatchewan residents, amid all the tax burden they were carrying these years.

Court Halts Federal Collection Amidst Heated Constitutional Dispute

Releases from Global News stated that Bronwyn Eyre, the Satkatchewan provincial justice minister, and attorney general declared just a day before that,

“The court ruled in our favor, blocking the federal government from unconstitutionally garnishing money, pending the full hearing and determination of the continuation of the injunction by the Federal Court.”

She further argued that garnishing a provincial bank account violates Section 126 of Canada’s constitution. The issue is pressed for a full court hearing. Dustin Duncan, the minister of Saskatchewan’s Crown Corporations said that the application was successful. He said,

“The court has ruled in our favor and has blocked the federal government from – in our view – unconstitutionally garnishing money from the province of Saskatchewan. The injunction will be in effect pending a full hearing.”

He expressed hope that they would be in court this week to argue the merits of the successive steps. He was also confident of winning.

In defense, Minister of National Revenue Marie-Claude Bibeau said that the Canada Revenue Agency is actively collecting taxes as required by law. She emphasized their strong commitment to following the law. Bibeau pointed out that Saskatchewan did not comply, even though the Supreme Court of Canada said the carbon tax was okay. She affirmed that their goal is to treat everyone fairly and equally and to encourage environmental responsibility across Canada.

However, the legal tussle ended with Saskatchewan winning the battle against the federal carbon tax. Following this, the provincial government announced its successful court injunction to stop the Canada Revenue Agency (CRA) from collecting the federal carbon tax within the province.

In April, the CRA announced plans to audit Saskatchewan for not paying the carbon levies. Prime Minister Justin Trudeau defended the exemption for home heating oil users, citing its higher cost compared to natural gas. He wished Premier Moe “good luck” for this stance on CRA. Trudeau has further ruled out extending similar exemptions to other fuel users.

Saskatchewan Faced Increased Energy Costs in 2023

Last year, came heavy on Saskatchewan residents and businesses. They saw increases in their power and energy bills, as well as at the gas pumps. In 2022, the federal government approved Saskatchewan’s output-based performance standards (OBPS) for industrial emitters. This saved the industry an estimated $3.7 billion in federal carbon taxes by 2030 compared to federal carbon pricing.

As reported by top media agencies, the federal carbon tax also increased from $50 to $65 per tonne, with plans to reach $170 per tonne by 2030. In April 2023 the federal fuel charge raised gasoline costs to $0.14/litre. This carbon pricing system raised their bills.

SaskPower president & CEO Rupen Pandya remarked in a news release on December 9, 2023,

“We are striving to achieve these goals while keeping rates as low as possible while complying with a federal regulatory framework that requires us to collect additional carbon tax revenue.”

Thus, we can see that all the turmoil began a year back… It escalated when Scott Moe, premier of Saskatchewan opposed the federal decision to exempt home heating oil from the carbon tax in Atlantic Canada. He downrightly called it unfair. He demanded a similar exemption for natural gas in Saskatchewan, but Ottawa refused. That time Bronwyn Eyre also warned that the federal government has threatened to remove these rebates, impose fines, or even press charges against Saskatchewan officials. Consequently, residents continued to receive carbon rebate checks.

Significantly, the independent rate review panel in Saskatchewan suggested that the provincial government should postpone planned increases in rates for 2023-2024 and 2024-2025. They recommended keeping SaskEnergy’s 31% increase in gas prices from August and an 8% rise in delivery fees for the year. The provincial government is currently reviewing the panel’s report carefully. The carbon tax scenario, however, transformed this year and for the betterment of the Canadian province.

source: Government of Saskatchewan (www.saskatchewan.ca)

Saskatchewan Families Enjoy Relief from Carbon Tax in 2024

Starting January 1, 2024, SaskEnergy and SaskPower removed the federal carbon tax from home heating. This decision can save ~98% of Saskatchewan families who were previously excluded from the federal exemption on home heating oil.

Dustin Duncan once again expressed himself by saying,

“We ensured fairness by removing the federal carbon tax on natural gas and electric heat, similar to what the federal government did for heating oil in Atlantic Canada,” said Crown Investments Corporation Minister. By extending this relief, we helped Saskatchewan families afford to heat their homes this winter.”

The removal of the carbon tax from SaskEnergy bills saved the average family about $400 in 2024. Heating accounted for ~60% of power consumption in winter for electric heat users. So SaskPower reduced the carbon tax rate on bills by 60%. This reduction lowered power bills by an average of $21 monthly for around 30,000 customers.

In January, customers still saw a federal carbon tax charge for natural gas or electricity used in December. However, bills for usage from January 1, 2024, onward showed the tax as both a charge and a reversal credit, effectively making it zero. This was a huge win for Saskatchewan, paving the way for carbon tax revocation.

MUST READ: Canada’s 2024 Budget: Accelerating Towards a Clean Economy and Net Zero Future

The post Saskatchewan Achieves Legal Win Over Canada’s Federal Carbon Tax appeared first on Carbon Credits.

U.S. DOE Aims to Expand Domestic Uranium Supply with US$2.7B RFP

July 10, 2024/in Uncategorized /by

The U.S. Department of Energy (DOE) has released a request for proposals (RFP) to buy low-enriched uranium (LEU) from U.S. sources. This move aims to boost domestic uranium enrichment capacity safely and responsibly. The RFP is backed by $2.7B from President Joe Biden’s Investing in America agenda, which was approved in May.

Breaking Free from Russian Influence in Nuclear Fuel With $2.72 Billion Injection

This year on May 13, President Biden signed a historic law, The Prohibiting Russian Uranium Imports Act to strengthen America’s energy and economic security. This law aims to reduce and eventually eliminate the country’s reliance on Russia for nuclear power.

It reestablished U.S. leadership in the nuclear sector, securing America’s energy future. With $2.72 billion in funding, it boosted new enrichment capacity in the U.S. and showed a commitment to long-term nuclear growth. This move would also promote a diverse market and ensure a reliable supply of commercial nuclear fuel.

Additionally, this law supported the country’s international goals. It banned imports of enriched uranium from Russia. Furthermore, last December, the U.S., Canada, France, Japan, and the UK pledged $4.2 billion to expand enrichment and conversion capacity.

source: EIA

US Energy Secretary Jennifer Granholm noted,

“DOE is helping jumpstart uranium enrichment capacity here in the United States, which is critical to strengthening our national security and growing our domestic nuclear industry,”

Ali Zaidi, National climate advisor and assistant to the president, highlighted the significance of transitioning from fossil fuel. He remarked,

“Under President Biden’s leadership, we have spurred an unprecedented expansion in clean energy production, which is creating good-paying union jobs and putting us on a path to greater energy security.”

Moving on, contracts from this initiative will last up to 10 years, with proposals due by August 26, 2024.

MUST READ: US Targets 200 GW Nuclear Expansion to Meet Soaring Energy Demand

The Rise of Advanced Nuclear Reactors in the U.S.

These actions align with the DOE’s Pathways to Advanced Nuclear Commercial Liftoff report which wants to advance technologies for net-zero emissions by 2050. Additionally, the DOE’s Advanced Reactor Demonstration Program (ARDP) supports nuclear demonstration and risk reduction projects.

ARDP will accelerate advanced reactor demonstrations through cost-shared partnerships with U.S. industry. The Office of Clean Energy Demonstrations officially stated,

“It supports design, licensing, construction, and operation of two advanced reactor technologies, the TerraPower Natrium and the X-energy Xe-100 reactors. This funding builds on the initial $160 million from DOE’s Office of Nuclear Energy, awarded in 2020.”

These innovative nuclear technologies are designed to offer flexible electricity output and provide process heat for various industrial applications, including desalination and hydrogen production.

Advanced nuclear reactors can power homes and businesses sustainably. They have almost zero GHG, can efficiently use fuel, and are safe. The innovative designs can significantly increase the safety and performance of the existing reactors. Advancing these latest nuclear technologies will expand access to clean energy and open new market opportunities. It will also help preserve essential infrastructure and maintain vital supply chain capabilities.

source: EIA

FURTHER READING: Paladin Energy Offers C$1.14 B to Canada’s Fission Uranium. What does it mean for Uranium Mining?

Biden’s $500M Investment to Transform Nuclear Energy

From a report published by DOE, we discovered that President Biden’s Inflation Reduction Act allocates up to $500 million for high-assay low-enriched uranium (HALEU)—an important material needed to develop and deploy advanced reactors. Simply put, this contract allows uranium conversion into usable fuel forms for advanced reactors. HALEU enhances reactor performance with longer-life cores and better fuel utilization.

Nuclear power is America’s largest clean energy source and this step will enable meeting emissions targets and the US’s pledge to triple global nuclear power by 2050. DOE is expanding the HALEU supply chain for advanced reactors, including recycling spent fuel from government research reactors. Current U.S. reactors use uranium fuel enriched up to 5% with uranium-235. However, most advanced reactors need HALEU, enriched between 5% to 20%, to achieve smaller, versatile designs with high safety and efficiency.

According to DOE, U.S. domestic nuclear capacity has the potential to scale from ~100 GW in 2023 to ~300 GW by 2050—driven by the deployment of advanced nuclear technologies.

Image: New nuclear build-out scenarios and implications for industrial base capacity requirements.

source: DOE

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Comprehensive Biochar Carbon Removal Guide Revealed

July 9, 2024/in Uncategorized /by

Hamerkop and the International Biochar Initiative (IBI) have unveiled a comprehensive guide titled “A Manual for Biochar Carbon Removal,” aimed at biochar producers, investors, and stakeholders. This manual compares certification standards, provides practical project design guidance, and details associated costs. Thus, it facilitates a clearer understanding of biochar carbon removal and certification processes.

Hamerkop, an advisory firm specializing in climate finance, carbon offsetting, and energy access, partnered with IBI to create this manual. It serves as an essential roadmap, offering insights into the certification of biochar carbon removal credits and aiding participants in navigating the complexities of biochar certification and various standards available in the market.

How Capable is Biochar in Sequestering Carbon?

Biochar, a carbon-rich material produced from organic matter through pyrolysis, has garnered significant attention for its carbon sequestration potential. Unlike natural decomposition, which releases greenhouse gases (GHGs), transforming biomass into biochar locks carbon into a stable form.

As such, it prevents carbon release and allows it to be stored for centuries. This property makes biochar a potent tool in combating climate change.

Source: Carbonfuture

The manual introduces biochar and its role in the voluntary carbon market, where biochar projects can generate carbon removal credits. These credits can be sold to companies seeking to offset their carbon emissions, thus providing a financial incentive for biochar production.

Certification plays a crucial role in ensuring the credibility and effectiveness of biochar carbon removal efforts, which the manual underscores.

A significant section of the manual is dedicated to comparing existing biochar methodologies and standards, including:

Puro.earth,
Verified Carbon Standard (VCS),
Carbon Standards International (CSI), Riverse, and
Climate Action Reserve (CAR).

By evaluating these standards, the guide helps biochar producers and investors choose the most appropriate approach for their specific projects.

RELEVANT NEWS: Microsoft to Purchase 95,000 Biochar Carbon Removal Credits from The Next 150

Comparing Biochar Standards

The manual details the criteria and requirements of each standard, such as eligible feedstocks, production technologies, and end-use applications. For instance, Puro.earth mandates rigorous audits and detailed records of carbon removal activities, while Verra’s VCS ensures biochar projects are additional and not part of business-as-usual operations. CSI, on the other hand, offers methodologies tailored for both large-scale and small-scale biochar production.

In addition to providing an overview of certification standards, the manual offers practical guidance on designing biochar projects. It covers considerations such as project scale, biomass feedstock selection, production technologies, and end-use applications, assisting project developers in creating robust and effective biochar carbon removal initiatives.

The manual also highlights the variability of biochar properties based on feedstock and production parameters. Different feedstocks can yield biochar with varying carbon content, nutrient availability, and physical properties.

The guide discusses how these variations impact the carbon sequestration potential and other benefits of biochar, such as soil improvement and water retention.

More notably, a cost comparison of the various certification pathways is included to help stakeholders budget for their biochar projects. The guide details fees associated with each standard, including registration, audit, and issuance costs, providing a comprehensive understanding of the financial implications of biochar certification.

The infographics below, first shared by Olivier Levallois in LinkedIn, details the cost comparison per biochar standard.

By offering a calibrated analysis of different carbon accounting methods and providing clear, practical guidance, the manual aims to simplify the process for biochar producers and investors. This, in turn, promotes the growth of the biochar industry as a viable solution for reducing greenhouse gas emissions and mitigating climate change.

Biochar’s Rapid Expansion and Projections

The guide’s release comes at a crucial time as the world seeks effective solutions to mitigate climate change. Biochar’s ability to sequester carbon and improve soil health makes it a promising option.

Biochar has emerged as a prominent technology for durable carbon dioxide removal (CDR). It has the potential to remove up to 6% of global emissions annually.

In 2023, biochar carbon removal accounted for over 90% of delivered carbon credits, according to CDR.fyi. Currently, the biochar industry produces at least 350,000 metric tonnes annually and is on a steep growth trajectory. By 2040, the industry aims to deliver a gigaton of biochar carbon removal.

Source: cdr.fyi report

This rapid expansion is driven by strong industry optimism and significant financial projections. Revenues are expected to skyrocket from $600 million in 2023 to nearly $3.3 billion by 2025. This growth reflects the increasing recognition of biochar’s role in combating climate change and its value in the carbon credit market.

The industry’s optimistic outlook and robust growth trajectory highlight biochar’s potential as a key player in global carbon removal efforts.

The collaboration between Hamerkop and the International Biochar Initiative underscores the importance of stakeholder engagement and industry best practices in advancing biochar as a sustainable carbon removal strategy.

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Google Ditches Carbon Offsets, Here’s Its New Net Zero Focus

July 9, 2024/in Uncategorized /by

Google has stopped buying cheap carbon offsets that previously supported its carbon neutrality claim. The company, facing increased emissions due to artificial intelligence and data centers’ massive power use, now aims for net zero carbon by 2030.

Since 2007, the tech giant claimed carbon neutrality by purchasing offsets to match emissions from its operations. However, their latest report states:

“Starting in 2023, we’re no longer maintaining operational carbon neutrality.”

The shift marks a move towards more substantial emission reductions and advanced carbon removal solutions.

Google’s Approach to 2030 Net Zero Goal

In 2021, Google set an ambitious target to achieve net zero emissions across all operations and value chains by 2030. This includes reducing 50% of Scope 1, Scope 2, and Scope 3 emissions from a 2019 baseline, and investing in nature-based and technology-based carbon removal solutions to neutralize the rest.

The Science Based Targets initiative (SBTi) will validate Google’s absolute emissions reduction target.

Google’s net zero goal aligns with the IPCC’s definition and will adapt as global standards evolve, aiming to balance anthropogenic emissions with removals while maximizing positive planetary impact.

Achieving net zero emissions involves navigating significant uncertainties, including the environmental impact of AI and the clean energy transition. The Big Tech anticipates an initial rise in total greenhouse gas emissions before reductions align with the net zero goal.

In 2023, Google’s GHG emissions were 14.3 million tCO2e, a 13% year-over-year increase and 48% higher than in 2019, driven in part by a 37% rise in Scope 2 (market-based) emissions.

Chart from Bloomberg

The rise was also mainly due to increased data center energy consumption and supply chain emissions. Integrating AI into products poses further challenges, as the energy demands and emissions associated with AI are expected to grow. Below is Google’s data center carbon-free energy (CFE) map.

Google CFE Map

Google CFE percentage in every grid region in which we have data center operations, including third-party-operated facilities

Despite the GHG emissions increase, the overall growth rate of emissions slowed compared to previous years. Key emissions trends are:

Emissions reductions:

All Scope 1, 2 (market-based), and 3 absolute emissions across operations and value chain increased in 2023.
This includes emissions from data centers, office operations, supply chains, and consumer hardware devices.

Residual emissions:

2023 marked the initiation of the tech company’s carbon removal strategy.
Google is in the early stages of establishing impactful partnerships and have begun contracting for carbon removal credits.

Google’s Carbon Credits Strategy

Google aims to neutralize its residual emissions with high-quality carbon credits by 2030. Starting in 2023, the search engine firm shifted its strategy from maintaining operational carbon neutrality to accelerating various carbon solutions and partnerships.

As seen in the chart below from Bloomberg, Google’s carbon offsets plummeted to zero in 2023, from 3 million tons of carbon credits.

Chart from Bloomberg

The goal now is to play a significant role in advancing both nature-based and technology-based carbon removal solutions to mitigate climate change.

To support the advancement of carbon removals, Google addresses the key challenges these solutions face. Technology-based solutions, for instance, currently lack scale and are often expensive, operating mostly as small pilots. To tackle this, Google pledged $200 million in 2022 to Frontier, an advance market commitment aimed at accelerating carbon removal technologies by guaranteeing future demand.

In 2023, Google completed its first carbon credit offtake deals through Frontier, including agreements with Charm Industrial, CarbonCapture, and Lithos Carbon.

Another challenge is the reluctance of corporations to participate in the nascent carbon removal market. Google believes governments and companies must play complementary roles in demonstrating and scaling promising carbon removal approaches.

In March 2024, Google pledged to match the U.S. Department of Energy’s Carbon Dioxide Removal Purchase program dollar for dollar. Google plans to contract at least $35 million in carbon removal credits over the next 12 months.

Advancing Carbon Removals

Google is committed to working with partners to identify and scale promising carbon removal solutions, hoping other companies will join the effort.

From Google environmental report

In addition to these partnerships, Google.org provided a $1 million grant in 2023 to the Integrity Council on Voluntary Carbon Markets (ICVCM) to support high-integrity solutions. This grant brought Google.org’s total contributions to strengthening carbon markets to over $7 million. This fund supports organizations like The Gold Standard, Rocky Mountain Institute, the Voluntary Carbon Market Initiative, and Climate Action Data Trust.

Beyond purchases and partnerships, Google drives advancements in research and technology. In 2023, Google introduced the Google Carbon Removal Research Awards, providing over $3 million in funding to universities and academic research institutions.

These funds support scientific studies on carbon removals, including the effects of ocean alkalinity enhancement on coastal ecosystems and the potential of enhanced weathering projects in forests.

By the end of 2023, Google signed three carbon credit offtake deals, purchasing around 62,500 tCO2e of removal credits, contracted for delivery by 2030. Google recognizes this as just the beginning and is committed to accelerating its carbon removal efforts in the years to come, continually evolving its approach to counterbalance its residual emissions.

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