UK Considers £300M Climate Bailout of British Steel

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The UK government is considering a plan to channel a £300 million ($372 million) climate package to help British Steel reduce its carbon emissions and save it from collapsing. 

Once a giant UK steel manufacturer, British Steel has been hit hard in recent years. Three years ago, the Chinese Jingye Group bought the steelmaker, making it the 3rd owner in four years. 

A final decision has not been made to date and is set to be announced in the coming days.

Saving UK British Steel

The investment deal will help the Chinese-owned steelmaker to become more eco-friendly by transitioning from blast furnaces to electric arc furnaces. The company’s site is in Scunthorpe, northern England.  

The government aid will also help protect jobs at the Chinese-owned steelmaker, employing about 4,000 people directly. 

The Department for Business, Energy, and Industrial Strategy said in a statement:

“The government recognizes the vital role that steel plays within the UK economy, supporting local jobs and economic growth and is committed to securing a sustainable and competitive future for the UK steel sector…”

Negotiations about the deal are ongoing so the business secretary can’t comment yet about it. But the official considers “the success of the steel sector a priority and continues to work closely with industry to achieve this.” 

British Steel has been seeking urgent financial support after it was heavily affected by soaring energy and carbon prices. UK public officials have been urging the Chancellor to come into rescue. 

They’re saying that the fall of the steelmaker will also impact the government. It can lead to alarming decommissioning liabilities and may undermine steel production in the UK. 

The decision comes after the UK steel industry’s struggles were revealed. Another steelmaker, Liberty Steel, decided to cut its production in Britain and stop operations in some sites. All that’s due to the high energy costs threatening lay-offs. 

Add to that the decrease in demand last year over the fear of recession taking on the region. Consumption from major customers such as construction companies and manufacturers also fell. 

And so the need for intervention from the government. 

Shifting Away from Coal to Electric

But there are some strings attached to the British Steel package deal. 

One is to protect jobs at the company. Another condition is that Jingye Group has to invest at least £1 billion in British Steel by the start of the next decade. 

But the general goal is to help the company reduce its carbon emissions by shifting away from coal.

The traditional way of producing steel using coal represents about 70% of the world’s steel production. This produces about 2 tons of carbon for every ton of steel produced. 

Electric arc furnaces (EAFs) produce the remaining 30% of the steel. EAFs emit lower levels of carbon than blast furnaces as they can run on renewable power. They are best used on recycled steel. 

Report shows the need to act now to bring the steel industry to net zero emissions. And according to the analysis, the biggest factor for the industry to be successful in its climate goals is to switch to EAFs.

Another option is producing steel using green pig iron. It’s iron ore that’s processed using low emission technologies and inputs such as biomass called biochar.

Using biochar for green pig iron eliminates the need for sintering and coking. The technology is also 10% – 15% less cost-intensive than traditional blast furnace systems.

But these alternatives call for about over one trillion investment opportunities in the industry. And the UK steel industry must shift away from coal and embrace low carbon alternatives to stay competitive. 

The post UK Considers £300M Climate Bailout of British Steel appeared first on Carbon Credits.

JBS “Green Bonds” and GHG Emissions Under Investigation

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Brazilian meat giant JBS is under investigation by a watchdog group that questions the company’s GHG emissions disclosure and the integrity of its “green bonds”.

The world’s biggest meat company, JBS, was founded in 1953 in Western Brazil. It expanded into Argentina, to the U.S. and beyond.

It has made plenty of acquisitions, too, including the beef business of Smithfield Foods, pork business of Cargill, and most of Pilgrim’s Pride chicken production. 

The food-processing firm has sold ~$3 billion worth of green bonds tied to its sustainability goals in 2021. It said that should it fail to achieve its GHG emissions targets, it will pay bondholders a “premium or step up amount”. 

But according to an activist group, Mighty Earth, JBS is already missing out on meeting its climate goals. 

JBS Green Bonds Issue

The group said that the meat giant contributed to or ignored deforestation done by its suppliers, and filed a complaint about it with the Securities and Exchange Commission (SEC). 

Mighty Earth calls for the agency to impose appropriate penalties and injunctions on JBS. the organization’s CEO and founder Glenn Hurowitz remarked:

“We see JBS as one of the three linchpin companies for changing the whole meat industry… It has by far the highest emissions of any company in agriculture.” 

The group noted that JBS methane emissions are far more than the total sum of four large countries – Germany, France, Canada, and New Zealand. And so, they’re taking on the company over whether its “green” bonds deserve to be called as such.

JBS disagrees with the group’s accusations, saying that it will channel $7 billion to sustainability efforts. For instance, it aims to adopt solar power for all of its Swift & Company stores. It also works with European health and nutrition company DSM to cut its cattle methane emissions. 

Moreover, the food giant is also planning to invest another $1 billion over the next decade to slash its emissions intensity by 30%. 

ESG Disclosure: Scope 3 Emissions

Specifically, JBS said the firm seeks to reduce its Scope 3 emissions. This refers to the indirect emissions from sources that an entity doesn’t own or control, e.g., suppliers. 

The company stated in a filing:  

“While we acknowledge the importance of measuring and ultimately reducing scope 3 emissions, a widely-accepted method for measuring scope 3 emissions does not currently exist for our industry.”

Investors are becoming more concerned about the environmental impact of the firms they invest in. Thus, many demand more transparency and disclosure. 

The complaint against JBS comes as the SEC will be revealing its new rules on GHG emissions disclosures. Climate activist groups believe that this will improve transparency in disclosure if businesses report them.  

The SEC had dealt with this concern in some cases. For example, the agency prompted Goldman Sachs Asset Management to pay the penalty amounting to $4 million last November. It’s a charge for misrepresenting its mutual funds and ESG investment accounts. 

Still, the regulator has to deal with how entities measure emissions coming from sources they don’t control. The bulk of JBS’ emissions (90%) comes from its supply chain or Scope 3. 

The company doesn’t argue against corporations’ role to mitigate climate change. In fact, it pledges to reach net zero emissions by 2040. 

In a framework it published for bond investors, JBS acknowledges that climate change “poses significant risks to our business, our producer partners, customers, and consumers.”

JBS GHG Emissions Disclosure

Regardless, Mighty Earth still seeks more disclosure. The group claimed that JBS is not disclosing correctly the total number of animal slaughter it has had since 2017. That figure is a significant part of the firm’s total GHG emissions as a meat processor.  

According to a study, JBS annual GHG emissions jumped 51% more in 2021 with 421 million metric tonnes, up from 280 million in 2016.

That’s a larger footprint than all of Italy and almost as large as that of the UK.

The food company, however, responded that it hasn’t misled its investors. That’s why its green bonds are not tied to Scope 3, only to Scope 1 and 2 emissions. 

JBS spokesperson said the bonds were not for “funding its entire decarbonization process”. Rather, they were “clearly designed and structured” to address the facilities under the firm’s control.

The company also stated that it will eliminate illegal Amazon deforestation from its supply chain by 2025. But it will not completely stop deforestation globally across its supply chains until 2035.

Behind that pledges are a series of investigations into JBS operations. 

In November last year, the meat processor claimed it was a victim of fraud in buying thousands of cattle from illegal farms in the Amazon.

Before that, the firm was the subject of various financing and bribery investigations. And for the past five years, it has paid millions for violating the Foreign Corrupt Practices Act and settling price-fixing cases. 

Mighty Earth thinks that JBS has the freedom in disclosing its GHG emissions, as to what and to whom. 

The group also said that the meat giant is considering getting into capital markets in the U.S. for a public offering. However, without addressing the dispute over its GHG emissions disclosure, it might be hard for JBS to achieve that, says Mighty Earth.

The post JBS “Green Bonds” and GHG Emissions Under Investigation appeared first on Carbon Credits.

From Plants to Plastics and Carbon Credits

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Plastic pollution has become one of the most pressing environmental concerns but scientists discovered a new alternative – PET-like recyclable plastics made from plants.

A lot of studies are shedding light on the impact of plastics on human health and marine ecosystems. But discussions around plastics’ impact on climate change have been scarce so far. 

The recent COP27 high level event changes that, bringing more awareness to plastic pollution and its contribution to global warming.

A 2050 net zero emissions scenario requires plastic alternatives that are biodegradable, affordable, scalable, and have lower energy use and carbon footprint. 

Researchers have created a plastic from biomass with PET-like properties and meets the criteria as an eco-friendly alternative to the existing plastics. 

Plastics and Their Carbon Footprint

Plastics are made from fossil fuel and produce greenhouse gases throughout their lifecycle. They are also projected to represent 20% of oil consumption and 15% of the global annual carbon budget by 2050. 

Single-use plastics, in particular, have a high carbon footprint and loss of energy resources as they’re discarded after only a short, one-time use.

Unfortunately, only 9% of plastic has ever been recycled. And according to the International Union for Conservation of Nature (IUCN), at least 14 million tons of plastic go to the ocean every year. Without action, plastic in the oceans could triple by 2040.

Thus, new materials made from other sources than oil are emerging to address emissions across segments in the plastics industry. Bioplastics or biopolymers are from natural, biological sources. Both alternatives are meeting the demand for plastic substitutes.

But one critical factor that’s often overlooked when it comes to plastic alternatives is their carbon footprint. And so, scientists and companies around the world are finding ways how to address this. 

Carbon capture and utilization (CCU) companies are developing technologies to make plastics from carbon emissions.

For instance, the US-based company LanzaTech is using microbes to convert captured carbon into polymer precursors like ethanol. This is part of their ESG strategy to make business operations become sustainable.

Meanwhile, some scientists are working on degradable or recyclable polymers made from non-edible plant material called “lignocellulosic biomass”. However, the research surrounding this natural plastic source is complex. 

Plastics Made From Plants

But teams of scientists from Switzerland and Austria, led by Jeremy Luterbacher at Federal Institute of Technology Lausanne or EPFL and the University of Natural Resources and Life Sciences in Vienna believe they offer an ideal solution.

They have created a new PET-like recyclable plastics that can be easily made from the non-edible parts of plants. This plastic alternative offers a promising tough and heat-resistant plastic ideal for food packaging. 

Here’s a quick overview about this new discovery.

Jeremy Luterbacher noted:

“We essentially just ‘cook’ wood or other non-edible plant material, such as agricultural wastes, in inexpensive chemicals to produce the plastic precursor in one step… By keeping the sugar structure intact within the molecular structure of the plastic, the chemistry is much simpler than current alternatives.”

Such a technique is after Luterbacher’s and his colleagues’ discovery in a previous study in 2016. The team discovered that adding an aldehyde, an organic compound, stabilized certain parts of plant material and prevented their destruction.

The scientists use a different aldehyde – glyoxylic acid instead of formaldehyde. This chemical allows the sugar molecules from biomass waste to act as plastic building blocks. 

Using that technique, the team was able to convert about 25% of the weight of plant waste (95% of purified sugar) into plastic. 

The new plastic material can have various uses, the researchers said. It works for packaging, making textiles, and creating electronics and medicinal items. 

In fact, the team has made some of them already as shown in the picture below. E.g. packaging films (H), fibers for clothing and other textiles (E), and filaments for 3D-printing (G, J).  

Luterbacher says that the plastic has very exciting properties, making it great for food packaging. He also added that:

“And what makes the plastic unique is the presence of the intact sugar structure. This makes it incredibly easy to make because you don’t have to modify what nature gives you, and simple to degrade because it can go back to a molecule that is already abundant in nature.”

If businesses opted to use the plastics from plants for packaging or other purposes, they may enjoy a potential revenue stream from carbon credits. They can earn the corresponding credits from the amount of carbon saved from not using fossil fuel. 

The post From Plants to Plastics and Carbon Credits appeared first on Carbon Credits.

Do Deforestation Projects Really Reduce Carbon?

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An investigation claimed that over 90% of its forest carbon credits likely don’t represent real emission reductions, but Verra said that this is incorrect because the studies miscalculate the impact of its REDD+ projects. 

Verra is the world’s leading carbon standard for carbon credits that support global climate action. To date, it has issued over 1 billion carbon credits since 2009.

The credits enabled billions of dollars invested into urgent climate action, sustainable development, and the protection and restoration of ecosystems, Verra stated. 

Findings on Verra’s REDD+ Projects

An analysis of some forest projects, also called REDD+, that Verra verifies says that the carbon credits those projects generate are “largely worthless” and are “phantom credits”.

The 9-month investigation was done by the Guardian, the German weekly Die Zeit, and SourceMaterial, a non-profit investigative journalism organization. 

Their findings are based on an analysis of scientific studies of Verra’s rainforest schemes. These studies used satellite images to check the results of the REDD+ projects under investigation.

REDD+ means “reducing emissions from deforestation and forest degradation, plus the conservation, sustainable management of forests and enhancement of forest carbon stocks in developing countries”.

Example of a Verra REDD+ Project

Guardian graphic. Source: High-Resolution Global Maps of 21st-Century Forest Cover Change by Hansen et al. 2013. Referenced area sourced from project documents

A team of journalists that performed the investigation concluded these key findings:

No climate benefit:

According to two studies, only a handful of Verra’s rainforest projects showed evidence of deforestation reductions. Further analysis also shows that 94% of the carbon credits bring no benefit to the climate. 

Overstatement of forest threats:

A study by the University of Cambridge in 2022 revealed that the threat to forests was overstated by about 400% on average for Verra REDD+ projects. 

Carbon credits buyers:

Big corporations are the major buyers of carbon offset credits approved by Verra for climate and environmental benefits. They include Shell, BHP, EasyJet, Pearl Jam, Salesforce, Gucci, and Disney among many others.

Human rights issues:

At least one of the projects involves a serious concern with human rights issues. Residents in a project site (in Peru) said that they were forced to leave their homes that were cut down by park authorities. 

The studies that journalists based their analysis on used different methods and time periods. They also looked at various ranges of Verra REDD+ projects.

The researchers noted that their studies have limitations and that no modelling approach is ever perfect. Still, the data spoke of broad agreement on the lack of effectiveness of the projects compared with the Verra-approved predictions, the analysts said. 

Verra strongly disputed the findings, saying the methods the studies use cannot capture the projects’ real impact on the ground. This is where the difference in calculating the carbon credits Verra approves and the reductions the scientists estimate lies. 

Verra’s Response: Incorrect Conclusions

Verra worked closely with the publication to explain why their findings are not true. The carbon standard responded that it is:

“…disappointed to see the publication of an article in the Guardian, developed with Die Zeit and SourceMaterial, incorrectly claiming that REDD+ projects are consistently and substantively over-issuing carbon credits.”

Verra further said that the claims in the article are based on studies using “synthetic controls” that don’t account for project-specific factors that cause deforestation. Thus, they greatly miscalculated the impact of Verra’s REDD+ projects.

The carbon credits verifier develops and improves its methodologies through rigorous consultations with academics and experts.

This is to make sure that project baselines used to calculate carbon credits are robust. Only then that they can serve as a credible benchmark against which to assess the impact of the projects.

Verra certifies projects that avoid, reduce, or remove emissions measured in tonnes of CO2 or its equivalent (CO2e). 

The Claims are Not True – Verra

Verra welcomes scrutiny of methodologies and contributions from other experts through public consultations. 

Though the studies provide data that contribute to the broader work on optimizing methodologies for rainforest projects, they have limited utility for assessing the impact of REDD+ projects, Verra stated. That’s because, again, they don’t take into account site-specific drivers of deforestation. 

In particular, the studies have incorrect findings as they rely on synthetic controls that don’t accurately represent the pre-project conditions in the area. The authors themselves acknowledge this.

Synthetic controls compare a project to a control scenario based on a set of variables that impact deforestation. On the other hand, Verra’s approach for REDD+ projects compares them to real areas. 

The verifier is also using synthetic controls for certain project types, i.e. Improved Forest Management in North America. But this approach is not suitable for REDD+ projects due to the difficulty in finding points that match inside and outside the project area.

Verra also noted that their REDD+ projects are not randomly located. There are local factors at play to know that a specific area is at acute risk of deforestation. And that’s crucial in deciding which project area to select. 

Verra REDD+ methodologies are designed to address the variability between the project area and surrounding areas, whereas the synthetic controls used in studies do not effectively do this.

Therefore, the studies calculated emission reductions different from the number of carbon credits that Verra issued to the projects.

The post Do Deforestation Projects Really Reduce Carbon? appeared first on Carbon Credits.

Global Green and DevvStream Partner to Launch Inaugural U.S. Carbon Program to Advance Technological Solutions to Climate Change

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DevvStream Holdings Inc. (“DevvStream” or the “Company”) (NEO:DESG), a leading carbon credit investment firm specializing in technology solutions, and Global Green, the American affiliate of Green Cross International (GCI), a global non-governmental organization founded by President Mikhail Gorbachev in 1993, are pleased to announce the launch of a U.S. Carbon Program (the “Program”).

The Program is designed to introduce advanced emissions-reducing technologies to Global Green’s extensive network of local and federal government organizations, Fortune 100 companies, academic institutions, and private foundations, while providing funding for sustainability initiatives, programs and projects through the use of carbon offset credits.

Carbon market investments have become a vital component of forward-thinking climate plans for both the public and private sector.

The global voluntary carbon market was valued at ~US $2B, in 2021 and is expected to grow 50x by 2030, while the compliance market grew from $305B in 2020 to $806B in 2021.

Carbon credits created via nature-based solutions (e.g., tree planting, agricultural projects, forestry protection) can only provide up to 20% of carbon emission reductions necessary to meet the world’s goals, while the other 80% will need to come from technology-based solutions (e.g., carbon removal, artificial carbon sequestration, and the replacement of current inefficient technologies).

As such, the Program relies exclusively on the generation of technology-based carbon credits, leveraging DevvStream’s expertise in compliance and voluntary markets, its advanced blockchain-based digital asset platform, and its curated ecosystem of technology partners.

Sunny Trinh, CEO of DevvStream stated:

“Federal and local governments, organizations in the private sector, and educational institutions can now leverage the financial power of global carbon markets as they work with Global Green to achieve their broader sustainability goals,”

“Our partnership with Global Green broadens our reach, while providing our affiliate network with new deployment opportunities for their world-changing technologies.”

CEO of Global Green, William Bridge stated:

“As the CEO of Global Green and the hopes for a brighter and greener future, I am thrilled to announce our partnership with DevvStream—a leading carbon credit investment firm specializing in technology solutions,”

“With the climate crisis at its breaking point and the need for a crucial and profound impact to change the direction in which it’s heading, partnering with DevvStream, who provides upfront capital for organizations such as ours in exchange for carbon credit rights, this couldn’t be more exciting. As a non-profit organization approaching our 30-year anniversary, Global Green are honored to be partnering with a groundbreaking organization like DevvStream, and we look forward to our future collaboration.”

Global Green is the American affiliate of Green Cross International (GCI), an international non- governmental organization founded by President Gorbachev in 1993 to foster a global value shift toward a sustainable and secure future. Green Cross International operates in over 30 countries and enjoys consultative status with the United Nations Economic and Social Council, and United Nations Educational, Scientific and Cultural Organization. GCI is an NGO, holding observer status with the United Nations Framework Convention on Climate Change and the Conference of the Parties to the UN Convention to Combat Desertification. It also cooperates directly with the UNEP/OCHA Environmental Emergencies Section, UN-HABITAT and other international organizations.

For nearly 30 years, Global Green has served as a recognized national leader in advancing smart solutions to climate change that improve lives and protect the planet. Programmatically, Global Green works to create green cities, neighborhoods, affordable housing, and schools to protect environmental health, improve livability, create sustainable communities, and support the planet’s natural systems. In service of its mission, Global Green has partnered with over 50 organizations including local and federal governments, Fortune 100 companies, academic institutions, international groups and private foundations. The Program will be an integral component of Global Green’s suite of offerings to its partners.

About Global Green

Global Green is the American affiliate of Green Cross International (GCI), an international non- governmental organization founded by President Gorbachev in 1993.

For nearly 30 years, Global Green has served as a recognized national leader in advancing smart solutions to climate change that improve lives and protect the planet, with the mission to foster a global value shift toward a sustainable and secure future.

Programmatically, Global Green works to create green cities, neighborhoods, affordable housing, and schools to protect environmental health, improve livability, create sustainable communities, and support the planet’s natural systems.

In service of its mission, Global Green has partnered with over 50 organizations including local and federal governments, Fortune 100 companies, academic institutions, international groups and private foundations.

About DevvStream

DevvStream is a technology-based ESG company that advances the development and monetization of environmental assets, with an initial focus on carbon markets.

We work with governments and corporations worldwide to achieve their sustainability goals through the implementation of curated green technology projects that generate renewable energy, improve energy efficiencies, eliminate or reduce emissions, and sequester carbon directly from the air—creating carbon credits in the process.

This enables us to provide non-dilutive capital directly to our clients while empowering them with field-proven, technology-based solutions to improve their climate impact quickly and simply.

To address common issues such as greenwashing and double-counting, all environmental assets created through our projects are managed via a proprietary blockchain-based ESG software platform, designed explicitly to ensure transparency and auditability, with full data provenance, which significantly increases asset value.

DevvStream’s business model includes mutual collaboration and partnership with Devvio, a leading ESG-focused blockchain company, and United Cities North America, an affiliate of the United Nations with a focus on building sustainable and net-zero smart cities and communities.

Click here to Get DevvStream’s Latest Investor Deck

 

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

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

Additional disclosure: This communication serves the sole purpose of adding value to the research process and is for information only. Please do your own due diligence. Every investment in securities mentioned in publications of carboncredits.com involve risks which could lead to a total loss of the invested capital.

Please read our Full RISKS and DISCLOSURE here.

The post Global Green and DevvStream Partner to Launch Inaugural U.S. Carbon Program to Advance Technological Solutions to Climate Change appeared first on Carbon Credits.

Lenovo Unveils 2050 Net Zero Goal, Enters Carbon Credits Deal

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Lenovo has revealed its goal to reach net zero greenhouse gas (GHG) emissions by 2050, which the Science Based Targets initiative (SBTi) approves, and entered a carbon credits deal with K+N. 

With this commitment, Lenovo becomes the first PC and smartphone maker with an SBTi-approved net zero target. The tech firm is also one of only 139 companies in the world that has a climate goal validated by the Net Zero Standard. 

Lenovo’s emissions reduction measurements will contribute to a wider body of data to better understand and tackle climate change.

The SBTi Net Zero Standard

Lenovo Chairman Yuanqing Yang remarked:

“In the fight against climate change, we believe collaboration and accountability are the two critical elements needed for collective success. We remain dedicated to following climate science, standardizing our measurements, and seeking ongoing validation for our targets and progress.” 

Aligning net zero goals to the SBTi helps Lenovo to take a scientific, collaborative, and accountable means to cut emissions. Without doing so will make it hard to know when a net zero target is met. 

SBTi is the first international body to standardize net zero and what it means as it relates to limiting global warming to 1.5°C. This net zero standard is also dynamic and responsive to firms’ collective efforts to decarbonize. 

More importantly, SBTi holds companies accountable for their emissions reduction targets. 

More than 4,000 companies worldwide are in the process of aligning their emissions reduction goals to SBTi’s methodology and validation processes. 

CEO of the SBTi Luiz Amaral noted that the world needs rapid and deep emissions cuts to meet global net zero targets to avoid the most damaging effects of climate change. He further said:

“Lenovo’s net zero targets match the urgency of the climate crisis and set a clear example that their peers must follow.” 

How Lenovo Will Hit Its 2050 Net Zero Goal

Lenovo commits to reaching net zero emissions across its value chain by 2050. Its long-term target is to cut absolute GHG emissions across all three scopes – 1, 2, and 3 – by 90% by 2050 from a 2019 base year. 

Hitting such an ambitious decarbonization goal requires the tech company to achieve the following reduction goals.

SBTi-Validated Near-Term Targets

Reduce scope 1 and scope 2 GHG emissions by 50% by 2030, compared to 2019 levels
Reduce emissions from the use of sold products by 35% on average for comparable products by 2030
Cut scope 3 emissions from purchased goods and services by 66.5% per million US$ gross profit by 2030
Cut scope 3 emissions from upstream transportation and distribution by 25% per tonne-km of transported product by 2030

The key strategies that Lenovo will adopt to reduce its GHG emissions are:

Slashing the environmental impact of its products
Applying innovation to increase the sustainability of its manufacturing
Reducing emissions across its operations and value chain

These plans are outlined in Lenovo’s Journey to Net-Zero video series. It shows how the company’s experts are modifying business processes to hit net zero targets. 

In addition to those emission reduction strategies, Lenovo is also working with other firms to further cut its carbon footprint. Its recent carbon credits collaboration with Kuehne+Nagel (K+N) perfectly shows this. 

Lenovo and K+N Carbon Credits Deal

Lenovo works with Kuehne+Nagel to develop a green logistics service that allows its customers to buy carbon credits that fund the use of Sustainable Aviation Fuel (SAF).

SAF is a fuel from sustainable inputs that reduces carbon emissions.

Via a purchase add-on service, customers can buy credits to cut the footprint of shipping the IT equipment and devices they purchase. They can then use those credits to fund the use of SAF that K+N provides.

There’s a specific amount of liters of SAF assigned to a purchased device. That figure equals the amount of reduction that the customer can claim under Scope 3.1. – emissions for purchased goods and services. 

If this service is chosen, Kuehne+Nagel will issue the carbon credit or certificate to Lenovo and its customers. This certificate indicates the amount of SAF liters per purchased device for any logistics company.

Through K+N’s SAF concept, Lenovo finds a way to address carbon emissions across supply chains, which is in line with its SBTi targets. This further allows Lenovo customers to avoid emissions in product shipment regardless of the lane or airline. 

This forged carbon credit deal with K+N enables Lenovo to pursue its net zero commitment – by “delivering sustainable products and solutions”, the head of global logistics at Lenovo, Gareth Davies said.

Lenovo is an early adopter of the science-based emissions reduction approach. It has received SBTi approval for its near-term 2030 goals in 2020. This has allowed the firm to road-test the first-of-its-kind Net Zero Standard. 

The post Lenovo Unveils 2050 Net Zero Goal, Enters Carbon Credits Deal appeared first on Carbon Credits.

DevvStream Files Provisional Patents to Improve Efficiencies in Carbon Credit Generation

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DevvStream Holdings Inc. (“DevvStream” or the “Company”) (NEO:DESG), a leading carbon credit investment firm specializing in technology solutions, today announced the filing of provisional patent applications surrounding its innovative programmatic approach to green project management and carbon credit generation.

These initial filings establish concrete definitions for, and stake boundaries around, the Company’s exclusive processes and methodologies.

The provisional patents are primarily focused on the establishment of a proprietary umbrella approach to program implementation across the scope of the Company’s operations.

This umbrella approach will allow the Company to aggregate multiple green technology projects together under a single designated program, resulting in several anticipated efficiency improvements.

Implementation costs are expected to be reduced, current barriers to participation are expected to be eliminated, and the process for generating carbon credits is expected to accelerate.

Sunny Trinh, CEO of DevvStream stated:

“The current rate of greenhouse gas emissions underscores the importance of creating carbon credit programs that are robust and far-reaching, yet nimble and efficiently operated,” 

“By combining relevant green technology projects under the auspices of a common program, we can, for example, plug and seal a greater number of leaky wellbores more quickly under our methane abatement programs, including oil wells that might otherwise fail to qualify due to size or location. We anticipate that our proprietary approach will broaden our client reach, and by extension, broaden our overall environmental impact as a company.”

Click here to Get DevvStream’s Latest Investor Deck

 

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

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

Additional disclosure: This communication serves the sole purpose of adding value to the research process and is for information only. Please do your own due diligence. Every investment in securities mentioned in publications of carboncredits.com involve risks which could lead to a total loss of the invested capital.

Please read our Full RISKS and DISCLOSURE here.

The post DevvStream Files Provisional Patents to Improve Efficiencies in Carbon Credit Generation appeared first on Carbon Credits.

DevvStream (DESG) Goes Public

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Don’t be misled by the low carbon prices on our dashboard over the last few months…

Carbon has drawn a LOT of capital over the last 18 months.

Recently one of the largest carbon exchanges – Xpansiv – announced a major investment from Blackstone Group. To the tune of $400 million. They also raised an additional $125M with participation from Bank of America and Goldman Sachs.

What Xpansiv does is closely watched by a tight-knit industry group. Because the majority of voluntary carbon market credits go through their platform.

They see what’s moving, how and at what price. 

Which is why a lot of companies want to team up with them and get on their rolodex, fast.

So, when the Executive Chairman of Xpansiv (still a private company) becomes a shareholder and Director of a small, private carbon company…

You want to pay attention!

DevvStream (DESG:NEO) is NOW LIVE

DevvStream (DESG: NEO) is one of the best ways to capitalize on two of the hottest sectors of the moment…

Blockchain Technology and Carbon.

If these sound like two completely different things, don’t worry. 

One’s a global market estimated to be worth $5.92 billion already…
And the other is already over $820B in 2021 and forecasted to be worth $1.9 trillion by 2040.

Combine them and you have something that could be very interesting.

People are taking notice of the carbon markets, including big-time investors like Google, HSBC and Meta.

The company we’re talking about, DevvStream, runs on a solid business model that has delivered 10x returns in other sectors, such as precious metals mining…

DevvStream (DESG:NEO) has an incredible business model that follows in the footsteps of the early days of many successful precious metal royalty and streaming companies. 

These companies grew to an 8, 9, and 10-figure market cap over the years.

We have been following the story for over a year now, and when we met with the company in early January and couldn’t believe the progress they had made since our last update. 

The company achieved revenue in the 3rd quarter of 2022
They have 9 signed LOIs & Termsheets and 3 contracts already with 4 more in the works.
It intends to retain 90-100% of the carbon credits generated by DevvStream investments. 
Target paybacks of 2 years for each investment project with a 10+ year stream

The IRR numbers they’ve published are truly eye-popping for some of their projects. Take a look at their near-term pipeline…

DevvStream Tech-Based Projects

DESG is not your typical nature play or decarbonization stock.

They’re attracting partners in the massive technology and energy sectors.

Project Profile: LED Retrofit

DevvStream has an opportunity to replace old and inefficient 100W light bulbs with 7W LED bulbs in Sub-Sahara Africa.

It costs $900,000 for 100k bulbs, and they’re eyeing a project term of 10 years. All told this could deliver 30,000 carbon credits yearly for Devvstream, per container. With multiple countries in Africa wanting to participate, there is a big demand for these LED bulbs.

At the prices the company believes it can sell, they forecast an IR of 60-90% on this deal.

Project Profile: Plugging Abandoned and Orphaned Oil Wells in North America

It’s no secret that environmentalists hate oil wells. And legions of groups spend big money to stop them.

So DevvStream is going to help oil companies and environmentalists at the same time, by plugging abandoned oil wells.

There is an opportunity to eliminate methane leakage from abandoned oil wells. Methane, if you don’t know, is terrible for emissions.

Some estimates have it as 32x more potent at trapping heat than CO2 when it comes to gas in the atmosphere. This means that every ton of avoided methane can generate 32 carbon credits.

So, how many oil wells are in this shape, you ask? 

There are about 4 million abandoned and orphaned oil wells in the USA alone. And a further 370,000 in Canada.

But get this, 96% of leakage comes from about 10% of the wells. The top 10% could generate 2,000 credits per year or more.

DevvStream has invested US$1.25M into a company with an advanced and patented nanopolymer sealant that is 10x more effective at plugging wells than current solutions. This investment gives DevvStream worldwide exclusivity and pays for the first 24 wells.

And this is no science project, three pilot wells have already been successfully plugged with this new technology. The company is also in talks with an oil and gas company to get access to approximately 800 abandoned oil wells.

All told, this project could bring in 125,000 carbon credits per year just from the first initial set of wells. And the first credits could come in 2023.

But Wait, There’s More…

This is only 2 of the main projects DevvStream has running.

One of their emissions reduction projects involves improving road construction technologies and methods. Sounds archaic. 

But guess what, road construction and maintenance is something that every city needs, and DevvStream is already talking to several cities.

As a result, DevvStream estimates the credits generated to be up to 5 million carbon credits every year… for 20 years.

And this is an inherent advantage of most of DevvStream’s technology-based projects. Once proven, they can be replicated over and over again.

DevvStream’s pipeline of projects is spread around the globe, reducing geopolitical risk and regulations from any 1 area. Much like a standard investment portfolio in different sectors.

This is a high-risk, high-reward, high-margin business model ready to leverage and scale with the incredible growth trajectory of the voluntary and compliance carbon market.

DevvStream is now publicly trading – and we imagine things will start happening quickly in 2023. 

We’re following the story, and we’ll bring you all the important developments.

Click here to Get their Investor Deck

 

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

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Temasek Funds Biotech Firm Living Carbon for GMO Super Trees

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Temasek, Singapore’s sovereign wealth fund, along with Toyota, led the $21 million Series A funding round for climate biotech company Living Carbon that seeks to improve the ability of trees to absorb carbon.

Living Carbon is a public benefit company aiming to balance the earth’s carbon cycle using plants, particularly photosynthesis-enhanced trees. It engineers super trees that grow much faster and sequesters more CO2 than regular trees.

Founded in 2019, the climate tech company said its first product, a hybrid poplar tree, can capture up to 27% more carbon. Maddie Hall, CEO and Co-Founder of Living Carbon said: 

“We’re excited to close our Series A and continue to make progress on large scale carbon removal using plant biotechnology…Photosynthesis enhancement increases biomass rather than yield so is better suited to carbon markets, where success is measured by how much carbon is locked away…”

Living Carbon $21M Series A Round

The San Francisco-based firm has raised $21M in a Series A funding round led by Temasek and backed by largest automaker Toyota. The round also has participation from Lowercarbon Capital, Felicis Ventures, and other strategic angels. This makes the total funding raised to $36 million. 

The biotech firm said it will use the money to grow its team and expand its work on bio-engineered climate solutions. It will also spend the funds to produce up to 5 million super trees saplings and fund research of new products. And that’s despite criticism over possible unintended consequences of genetically tweaking trees.

Non-profit campaigners like “The Campaign to Stop Genetically Modified Trees” oppose the idea. They said in a report that doing so may have an impact with “unpredictable, uncontrollable and irreversible nature”. Tree pollen and seeds cannot be contained.

But earlier this year, Living Carbon released a paper showing the huge potential of biotechnology in helping stabilize the climate. 

Living Carbon Biotech: Photosynthesis Enhancement 

The carbon sucking abilities of trees are critical to the world’s efforts to limit global warming. But the rate of deforestation continues to increase, hitting record high in the Amazon last year.

There are many ways to enhance carbon capture in plants. These include increasing resistance to disease and drought, salt tolerance, decomposition resistance, and photosynthesis enhancement.

While most efforts focus on protecting forests or regrowing them, Living Carbon is tweaking the genetic code of trees so that they grow quicker while locking away more CO2. 

Photosynthesis-Enhanced Sapling

Left: hybrid poplar seedling with photosynthesis enhancement trait. Right: control hybrid poplar seedling. Source: Living Carbon

As shown in the image above, a photosynthesis-enhanced seedling (left) is taller than its controlled counterpart (right). 

The firm’s initial focus is two-fold:

Improve carbon capture in trees via more efficient photosynthesis
Improve carbon storage through decay-resistant wood, slowing the release of carbon through decomposition

Boosting Carbon Capture in Engineered Super Trees

The biotech firm’s research shows that enhancing photosynthesis can boost biomass accumulation in trees by 53% more than control plants. 

Biomass accumulation is a strong indicator of carbon assimilation, with about half of biomass being stored carbon. 

As shown below, event A (hybrid poplar in green bar) has significantly higher biomass production in all plant tissue types, at both fresh weight and dry weight levels. 

Biomass Production in Hybrid Poplar Vs. Controlled Plants

The study also revealed, in a world first, the potential to capture about 27% more carbon.

More biomass and faster growth means more carbon capture.

Living Carbon’s biotechnology is an example of how engineering can work together with nature’s ability to capture and store carbon. The company’s use of biotech in trees shows how this can be a scalable and viable solution to the climate crisis.

The biotech firm’s photosynthesis-enhanced trees offer opportunities for nature-based carbon removal. By planting these trees and locking away more carbon, landowners can generate carbon credits that they can sell to entities seeking to offset their CO2 footprint.

Lisa Coca, Climate Fund Partner at Toyota Ventures, commented: 

“The voluntary carbon credit market is on track to exceed $50 billion by 2030… Living Carbon’s synthetic biology platform has the potential to fill the gap between supply and demand by leveraging the powerful combination of proven nature-based solutions as a carbon sink and genetic engineering to deliver high-quality carbon credits to the market.”

Living Carbon is ramping up production of its biotech hybrid trees. It’s on track to produce 4-5 million seedlings throughout the U.S. in 2023-2024. The seedlings will be available for companies to buy to reduce their emissions.

The firm is partnering with landowners to develop carbon projects in Pennsylvania and Georgia. With a focus on the U.S. market first, they aim to double annual acreage. 

Living Carbon will plant 60,000 seedlings in February and has sold out the carbon credits for them for 2023. But they’re also doing pre-sales for the next two years. 

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