The Top 4 Important Highlights at COP28

December 7, 2023/in Uncategorized /by

As this year’s United Nations climate summit, COP28, continues to deliberate the most pressing climate change concerns, we’re sharing the top updates impacting the future of climate finance. Here are the top four highlights that stand out.

Oil and Gas Charter Aims 2050 Zero Methane

Saudi Arabia’s Aramco and the UAE’s ADNOC, along with 29 other national oil companies, signed a non-binding agreement to target zero methane emissions and end routine flaring by 2030.

Overall, 50 oil and gas companies, which represents 40% of global production, committed to decarbonize their operations by 2050.

While Aramco and ADNOC have announced carbon reduction objectives, these targets don’t include emissions from customer fuel use. Sultan Al Jaber, ADNOC’s CEO and CO28 President, emphasized the need for more action, despite many national oil companies setting net zero emissions 2050 targets.

This initiative, called the Oil and Gas Decarbonization Charter, saw companies like PetroChina, Brazil’s Petrobras, TotalEnergies of France, ExxonMobil of the US, and BP and Shell from Britain signing on. However, unlike COP28 decisions, these commitments are voluntary.

Prepared ahead of COP28, these pledges aim to expedite the energy industry’s decarbonization. Yet, a non-profit representative noted that voluntary commitments from the industry may not be enough to address climate change adequately. What is more crucial is having government policies in place to drive swift and equitable transition away from fossil fuels.

Canada Aims to Slash Methane Emissions by 75%

Canada has shared a new plan to cut methane pollution from its oil and gas industry by at least 75%. The potent gas contributed about 13% of Canada’s total emissions in 2021.

The country’s Environment Minister made this announcement on the sidelines of COP28.

Canada ranks among the top oil producers globally, with most methane emissions coming from oil and gas, agriculture, and waste.

Two years ago, the nation promised to create a plan to significantly lower methane emissions from oil and gas by 2030, aligning with the Global Methane Pledge.

The new draft involves stricter rules for Canada’s oil and gas sector, following global suggestions. It aims to stop routine venting and flaring, which emit methane, and introduce better leak detection methods.

The federal government estimates that these new regulations will reduce emissions by 217 million metric tonnes of CO2e from 2027 to 2040. The government also plans to invest $30 million in a Methane Centre of Excellence.

The proposed regulations also include third-party inspections and safety exemptions. However, Alberta and Saskatchewan, provinces rich in oil and gas, criticized the plan, calling it too costly and challenging. They argue that the federal government is intruding on provincial control.

The draft regulations will roll out in 2027, but opposition from the provinces may lead to further discussions and revisions.

Bhutan is The First National Registry Under CAD Trust

The Kingdom of Bhutan has become the inaugural national registry to achieve full integration with the Climate Action Data Trust (CAD Trust) Metadata Layer, marking a significant milestone announced at COP28.

This development positions Bhutan as a leader in regional climate action and aligns with the Paris Agreement’s Article 6 objectives.

Launched in December 2022, CAD Trust is an initiative led by the World Bank, the International Emissions Trading Association (IETA), and the Government of Singapore. It operates as a decentralized blockchain-based platform, aiming to promote transparent carbon market accounting, in accordance with the Paris Agreement.

Bhutan, known for its vast forests occupying over 72% of its land, holds a pivotal role as a ‘carbon bank’. The country contributes to global biodiversity and carbon sequestration.

As the world’s first carbon-negative country, Bhutan’s integration into CAD Trust underscores its commitment to climate mitigation and proactive measures.

This integration ensures Bhutan’s climate mitigation efforts adhere to Article 6 guidelines by leveraging innovative digital infrastructure, including blockchain technology. This is to safeguard the accuracy of carbon credit data and prevent duplication, a critical principle of Article 6.

The development marks the beginning of an expanding network for CAD Trust. The platform will connect with other national and independent carbon market standards over the coming weeks and months.

Tanzania’s Major Carbon Credit Deal

Tanzania has signed a significant carbon credit deal at COP28 covering 6 national parks across 1.8 million hectares. Parks included are Burigi-Chato, Katavi Plains, Ugalla River, Mkomazi, Gombe Stream, and Mahale Mountains.

The agreement involves Tanzania’s national park agency, Tanapa, and a local company, Carbon Tanzania. The country boasts 48 million hectares of reserved forests, which offers significant opportunities for carbon trading.

In a move coinciding with COP28, the deal aims to trade carbon credits while also preserving and managing the national parks, safeguarding their natural ecosystems and wildlife. This move positions the country as a key player in Africa’s carbon credit market.

Mohammed Enterprises Tanzania Limited, led by businessman Mohammed Dewji, will provide funding for the project. This deal follows an earlier preliminary agreement encompassing 8.1 million hectares in Tanzania, also directed towards carbon credit initiatives. That area represents about 8% of the East African nation’s total land mass.

However, these deals have faced criticism for their potential impact on local lands and communities, drawing concern about neocolonialism. While developers assert that their projects follow stringent regulations and offer community benefits, critics question the agreements’ true impact.

Despite the criticism, these agreements could see vast land areas dedicated for carbon credit projects across Africa once finalized.

As COP28 unfolds, pivotal strides in carbon credit market and climate finance are apparent, spanning from oil and gas industry pledges to national initiatives and global registry integration. These developments emphasize the imperative role of collaborative efforts and policy implementations in tackling climate change.

The post The Top 4 Important Highlights at COP28 appeared first on Carbon Credits.

Alcove’s Shopify Integration Streamlines Carbon Credit Sales

December 6, 2023/in Uncategorized /by

Alcove, a New York-based carbon credit management company, launches a new app for Shopify. This app helps people who create projects to reduce or avoid carbon emissions. They can use the app to manage and sell the credits they earn from these projects.

Alcove has over 50 million tons of CO2e inventory on its platform. Its application for Shopify unlocks fully-integrated and sales capabilities to scale carbon credits.

Alcove’s mission is to bridge the carbon market’s most difficult data gaps. It brings powerful carbon specificity and guardrails to build trust, transparency, and speed for stakeholders across the value chain.

Carbon Credit Sales Made Simple

The integration makes it easier for buyers to purchase carbon removals. It connects Alcove’s checked inventory with a sales function. This way, buyers can trust where the credits come from and easily buy them like any other online purchase.

Developers working on projects often find it hard to keep track of their carbon credits and sell them. But now, with Alcove and Shopify working together, it’s simpler.

Alcove’s platform helps developers manage their credits better. They can forecast, allocate, and deliver credits more easily.

Plus, they get detailed info about these credits, which is then organized and shown on the platform. This helps to keep track of when credits were made and bought.

Thanks to the Shopify integration, Alcove users can sell their credits more easily. They don’t need to rely on a separate marketplace. They can set up their own online store and reach different kinds of buyers, making it easier to earn money from their credits.

One of the founders and CEOs of Alcove, Mars Gaza, highlights the importance of this development in carbon management, saying:

“With the release of the Alcove application for Shopify, project developers using the Alcove inventory management platform are able to seamlessly integrate the full capabilities of Shopify to manage, promote, and sell their credits directly to new buyer segments.”

Streamlining Carbon Management

Through the Alcove platform, important tasks for managing carbon credits become automated for top project developers. This includes accurately predicting and assigning carbon credits, fulfilling delivery promises, integrating data from various sources like sensors and meters, and automating inventory alignment throughout the sales process.

Alcove designed this integration to help project developers using their carbon-focused system to make the most of Shopify’s commerce platform.

The leading ecommerce company has been supporting carbon removal companies with tens of millions of investment through its Sustainability Fund. It’s one of the largest carbon removal credits purchasers to date, particularly prioritizing startups offering new carbon removal approaches.

Within three years of the Fund’s establishment, Shopify has generated interest in carbon removal where there wasn’t any previously. More buyers are now interested in this market.

Additionally, carbon removal companies have expanded their growth with financial support from Shopify. They’ve significantly increased their ability to remove carbon, up to 80x more, and expanded their customer base by 40x.

Shopify’s latest collaboration with Alcove cements its commitment to using carbon credits for scalable climate actions.

The company will assist Alcove users in several ways, including:

Organizing commercial processes specifically for carbon-related activities.
Simplifying the buying experience for carbon removal.
Creating personalized online shops and finding new buyers, whether they are big companies or small businesses, to sell more carbon credits and make income from different sources.
Maintaining control over buyers without having to share money and information through third-party marketplaces.
Making transactions smoother by handling payments automatically through Shopify.

Alcove’s new Shopify app revolutionizes carbon credit management, providing project developers with an all-in-one platform to sell and manage their carbon credits effortlessly. This integration not only simplifies sales but also ensures transparency and trust in the carbon credit marketplace.

The post Alcove’s Shopify Integration Streamlines Carbon Credit Sales appeared first on Carbon Credits.

Has the Energy Transition Failed and is it Over?

December 5, 2023/in Uncategorized /by

Many fail to realize this is not the first energy transition.

Although the media have made it appear as if it’s the first energy transition, it’s not.

For example, the nuclear energy industry development which started in WW2 was a major energy transition. In today’s dollars, half a trillion dollars went into the research and development of nuclear reactors along with uranium mines and fabrication plants that would feed the operating nuclear reactors.

In fact, one of the most fascinating stories of collusion, corruption and cartels happened as America was developing its first energy transition. Amazingly, it almost “destroyed” the nuclear industry.

So, before you think the current Energy Transition has failed (which it is not over and will happen) let’s explain the drama that almost took down the first major Energy Transition in America.

Have you ever heard of the Yellow Cartel?

The Yellow Cartel

Everyone knows about the oil cartel called OPEC. But did you know that in the 1970s, a uranium cartel was conspired by one of the largest mining companies in the world and the Canadian government?

From 1955 through 1970 hundreds of billions of dollars were being committed by the US, France, Sweden, Japan and West Germany to build nuclear power plants. The Yellow Cartel started in 1971 with the London based mining giant, Rio Tinto approaching the Canadian government concerning the formation of a cartel for controlling uranium market pricing.

The first official meeting occurred in February 1972, in Paris, and the International Uranium Cartel was created.

Eventually, 29 producing companies would become members of the International Uranium Cartel, which was nicknamed the ‘Yellow Cartel” for the color of yellowcake that the cartel was colluding to price fix.

Rio Tinto, Uranerz (the large German uranium producer in the 70s), the Canadian Government and ultimately a total 29 uranium producers made up the Uranium Cartel.

The Uranium Cartel was successful in increasing the price of uranium almost 10-fold in a few short years by deploying illegal tactics such as price fixing schemes.

Later, the Canadian government would form two uranium entities which would lead to the creation of Cameco, a top 5 uranium producer worldwide.

There were two real catalysts that caused the formation of the International Uranium Cartel. But why did Rio Tinto pitch this plan that almost would turn the energy world upside down and risk America’s energy security and the first major energy transition?

The first catalyst was the move by the US government to place an embargo on all foreign uranium in 1964 to protect its own uranium mines.

At that time, the United States consumed about 70% of the global uranium production (for both its military and energy needs) and with that demand for uranium now gone outside the USA, the price of uranium crashed to $5 per pound in 1970.

But because the price of uranium was so high during the 1950s and first half of the 1960s, significant amounts of risk capital was spent on exploration for new uranium deposits globally. As a result of all this new uranium exploration was major uranium discoveries were made in places like Niger and Australia.

By the late 1960s significant uranium deposits would be discovered in Australia such as Jabiluka 1 & 2.

Eventually the massive discovery of Olympic Dam which would become one of the largest polymetallic mines (including uranium) in the world. Olympic Dam would soon replace the depleting uranium from the Rum Jungle Mine in Australia which was producing uranium since 1954 and was shut down for good in 1971.

Because of and other events such as those mentioned above, by 1971, there was over 220 Million pounds of global uranium production and only 55 Million pounds of uranium global demand. The uranium market was oversupplied by 400%.

Because of both the US embargo on foreign supplies of uranium and an oversupply of uranium production to demand by 400%, the price of uranium was hovering around $5/pound in 1971.

But because of the price fixing tactics of the Uranium Cartel, the price of uranium surged to $40/pound.

The move in uranium prices brought down the world’s largest nuclear reactor builder in the world, Westinghouse Electric Corp. on September 8, 1975.

Westinghouse was able to become the world’s largest developer and installer of nuclear reactors because it had the best track record, nuclear technology and most importantly it promised a long-term supply of uranium feed to power the Westinghouse PWR reactors. A dream trifecta for large utilities and government entities alike.

To put things in perspective, half of the world’s current operating nuclear power plants are using the basis of Westinghouse’s PWR reactor technology. Between 1960 and 1970, Westinghouse was able to secure US government backed utility contracts (and same in Sweeden) worth tens of billions of dollars because Westinghouse committed to supply 65 million pounds to the American and Swedish nuclear reactors with a fixed price contract.

But things quickly turned very bad for Westinghouse. The utilities, citizens and the American Government. Because the price of uranium increased 10X (1000%) from when Westinghouse signed those fixed price utility contracts, on September 8th, 1975 Westinghouse announced that it would not honor the 65 million pounds of uranium it committed to the American and Swedish utilities.

It was revealed in legal documents that the American consumer ended up paying billions of dollars in additional electricity costs due to the Uranium Cartels actions. In fact, New York state alone paid over $1Billion in electricity prices shortly after the Yellow Cartel activities.

On October 15, 1976, Westinghouse took matters into its own hands. It filed for conspiracy, in violation of United States anti-trust laws against the 29 producing uranium companies that made up the International Uranium Cartel estimating damages between $4-6 Billion.

Uranium continued to soar after 1976, surpassing $100 per pound throughout the late seventies.

Around that time, people called for the end of the energy transition citing the negative impact caused by the Uranium Cartel. This was just one of many attacks survived by the uranium industry. In fact, the nuclear sector not only survived the Uranium Cartel fiasco, but Chernobyl, Fukushima and countless other project and sector setbacks over the years.

Right now, we are in the greatest energy transition in human history. Tens of trillions of dollars will be spent worldwide on energy transition and decarbonization. Nuclear is a big part of the solution.

In fact, without uranium, there is no clean, long term base load nuclear power. Which is why we are currently in one of the greatest uranium bull markets of all time.

There are three uranium giants in global uranium production. The largest global producer came out of the fall of the Soviet Union, Kazatomprom. The third largest global uranium producer, as described above, was the result of the Canadian Government merging two state owned enterprises and created Cameco.

But do you know who the second largest producer of uranium globally is?

And the major moves this company is making after almost blowing itself up?

In an upcoming feature article, we will bring to the forefront the under the radar moves that the second largest producer of uranium is doing and how investors can benefit.

The post Has the Energy Transition Failed and is it Over? appeared first on Carbon Credits.

Global Consortium Backs Early Coal Retirement With Carbon Credits

December 5, 2023/in Uncategorized /by

The Coal to Clean Credit Initiative (CCCI), with help from The Rockefeller Foundation, teams up with ACEN Corporation to look into a pilot project in the Philippines, it revealed at the COP28 climate summit in Dubai. This plan aims to use credits earned from reducing carbon emissions to shut down a coal-powered plant.

COP28, happening until December 12, is the largest conference to find solutions to shift the world away from fossil fuels. The consortium wants to replace the carbon-intensive plant with renewable energy while also helping out people who might be struggling. It is the first of its kind, aiming to move away from coal plants following the Paris Agreement.

CCCI and ACEN are working with the Monetary Authority of Singapore (MAS) to move this plan forward.

From Coal to Clean: A Paradigm Shift

If the world keeps relying too much on coal, these plants will release a massive amount of carbon emissions. In particular, current and planned coal-fired power plants will emit 273 billion tons of carbon dioxide over their lifetimes, according to the Rockefeller Foundation’s President, Dr. Rajiv J. Shah.

Annual Emission Reduction in Unabated Coal-Fired Generation

Source: International Energy Agency

As per the International Energy Agency’s Net Zero Emissions by 2050 scenario shown below, the world needs about 9% annual reduction in unabated coal-fired generation between 2022 and 2030.

Achieving such massive feat requires encouraging plant owners and communities to retire coal plants. And the CCCI agreement would be a way to do it in the Philippines.

The project is focused on the South Luzon Thermal Energy Corporation (SLTEC) coal plant. It could be the first coal plant in the world to use carbon credits to shut down early.

While there are financial methods to support closing coal plants and switching to clean energy, it’s tough to use these methods in developing countries. The partners are checking if they can retire this plant early and change it to cleaner energy sources by 2030. That’s 10 years earlier than its originally planned retirement.

CCCI started in June 2023 with the aim to reward moving away from coal and shifting to clean energy in developing countries. They will incentivize such transition through ‘coal-to-clean’ credits, also called ‘transition credits’.

Accelerating Energy Transition with Carbon Credits

In a similar direction, the Asian Development Bank (ADB) announced that it had tentatively agreed to shut down an Indonesian power plant much earlier than scheduled through its Energy Transition Mechanism (ETM).

The CCCI plans to work with programs like the ETM to accelerate the closure of power plants in the Philippines by using the credits. Vikram Widge, formerly in charge of carbon finance at the World Bank and involved in this initiative, shared this information.

A preliminary method for verifying these coal-to-clean credits has been put forward for public consultation. Verra, the leading global carbon standard, will approve the methodology.

The method allows organizations to create customized projects shifting from coal to clean energy. These projects focus on what local communities need and then offer transition credits to buyers worldwide.

After public consultation, which runs until January 16, 2024, CCCI’s method is likely to be completed. Once finalized, it’s expected to enable one of the initial transactions involving transition credits in the global carbon markets.

Entities can use these carbon credits voluntarily to mitigate their emissions or for meeting certain regulations. This initiative would assist in putting into action Article 6 of the Paris Agreement. It supports countries’ efforts to control global warming and keep the temperature rise within 1.5 degrees Celsius.

Global Collaboration for Climate Resilience

Authorities are aiming for stricter evaluation of carbon credits, as many environmental groups have criticized them for enabling the ongoing use of fossil fuels instead of decreasing emissions.

During COP28, numerous representatives suggested that establishing a global carbon price could be a part of the solution. Businesses argue that this could offer clarity for planning, but creating such a price has been challenging for many years.

Highlighting their innovative collaboration, Eric Francia, President & CEO of ACEN Corporation remarked during the announcement:

“Today’s development marks a critical contribution to accelerating a global energy transition. Without a rapid and proactively managed transition away from coal-fired power, the world will not meet its climate goals; the urgency of solving this problem cannot be understated.”

ACEN Corporation operates around 4,500 megawatts (MW) of energy in the Philippines, Australia, Vietnam, Indonesia, and India. Its renewable energy contribution is one of the highest in the region.

The CCCI news aligns with the Energy Transition Accelerator (ETA) set to launch in April. The ETA, created by the Rockefeller Foundation and other organizations, shares a similar goal of speeding up the move away from coal. Days ago, the philanthropic organization announced a target to bring its $6 billion endowment to net zero emissions by 2050.

The ETA plans to achieve the clean transition by using what they claim are top-quality carbon credits. Their initial estimates suggest this approach could generate over $200 billion in transition finance by 2035.

CCCI is teaming up with the COP28 Presidency to attract more interest from governments and get power companies in developing countries more involved. This effort aims to make the use of ‘transition credits’ a reality in transitioning the world towards cleaner and sustainable energy.

The post Global Consortium Backs Early Coal Retirement With Carbon Credits appeared first on Carbon Credits.

Voluntary Carbon Credit Buyers Willing to Pay More For Quality

December 4, 2023/in Uncategorized /by

The recently released “State of the Voluntary Carbon Markets 2023” report by Ecosystem Marketplace (EM) reveals a significant trend shift within the VCM. It identifies a concentration of demand toward high-integrity and high-quality voluntary carbon credits, despite their higher price, that offer co-benefits beyond mitigating greenhouse gas emissions.

Analysis of transaction data indicates a substantial 82% surge in average carbon credit prices from 2021 to 2022, accompanied by a decline in overall transaction volumes. These findings imply a market consolidation among smaller yet dedicated purchasers willing to pay more for credits of superior quality.

Notably, there’s a high demand for nature-based credits that hold certifications for co-benefits and align with Sustainable Development Goals (SDGs).

Here are the key points to particularly note from EM’s research.

5 Key Takeaways From the Report:

Prices are at their peak, volume is down

The average prices of voluntary carbon credits have reached their highest point in 15 years, while the overall trade volumes have declined from the peak seen in 2021. Even though the volume of voluntary carbon credits traded fell by 51%, the average price per credit surged significantly by 82%. It jumped from $4.04 per ton in 2021 to $7.37 in 2022, which hasn’t been seen since 2008.

Chart from EM Report
Chart from EM Report

Despite the drop in trade volume and value, this price increase allowed the VCM to remain relatively stable in 2022. In fact, despite dropping ~$0.40/ton, average prices to date in 2023 are still higher than in 15 years.

Nature-based credits take the biggest market share

Nature-based solutions (NBS) were a primary contributor to the high market value, constituting nearly half of the market share – 46%. NBS credit prices were more than doubled in 2021 and 2022. EM is also seeing more premium for these credits in preliminary 2023 VCM data.

The average price of credits from nature-based projects, including forestry, land-use, and agriculture projects, witnessed an increase of 75% and 14%, respectively, from 2021 to 2022.

REDD+ projects dominate the NBS credits, but also include other projects in the Agriculture and Forestry and Land Use categories. These include Sustainable Agriculture Land Management Afforestation/Reforestation/Revegetation (ARR), Agroforestry, Improved Forest Management (IFM), and Blue Carbon (mangroves, seagrasses).

Agriculture project credits, also called agricultural carbon credits, also experienced a substantial surge in volume, rising by 283%.

Credits with co-benefits are pricier

Credits associated with robust environmental and social co-benefits, extending beyond carbon, commanded a significant price premium. Projects with at least one co-benefit certification had a 78% price premium compared to those lacking such certification.

According to experts surveyed by Ecosystem Marketplace, these certifications are becoming increasingly necessary for buyers actively looking for these projects. Moreover, projects aligned with the UN SDGs demonstrated a considerable price premium, 86% higher than projects not linked to SDGs. This indicates a strong buyer preference for credits that contribute more to societal and environmental well-being.

Buyers prefer newer credits

Newer carbon credits are commanding a higher price, suggesting that voluntary buyers are inclined towards recent vintages featuring more robust methodologies. EM reporters also suggested that these buyers prefer credits closely aligning with their current emissions years.

In 2022, there was a 57% premium for credits with a more recent vintage, reflecting recent emissions reduction activities, compared to a 38% recency premium observed in 2021. This comparison used a historical 5-year rolling cutoff date from the transaction year.

CORSIA-eligible credits surge

Credits eligible under CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) experienced a significant surge in market value, marked by a 126% increase in price. The notable growth of CORSIA in the VCM in 2022 indicates an expanding relationship between compliance markets and the VCM. This is crucial for market participants due to several factors:

The quality criteria outlined by CORSIA have been adopted by the Voluntary Carbon Markets Integrity Initiative (VCMI) until the Integrity Council’s core carbon principles are fully established.
CORSIA will enter its inaugural compliance phase in 2024.
Countries are beginning to implement Paris Agreement’s Article 6, further emphasizing the relevance of CORSIA in broader carbon markets.

A Shift Towards Integrity and Quality

The latest report by Ecosystem Marketplace delves into self-reported transaction data from >160 participants in their annual market survey. These contributors represent credits sourced from 1,530 projects across over 130 project types traded globally.

Typically, respondents encompass project developers, investors, and intermediaries. Moreover, data regarding project registrations, credit issuances, and retirements were collated from project registries, adding depth to the comprehensive analysis presented in the report.

Stephen Donofrio, Managing Director of Ecosystem Marketplace, highlighted the pivotal moment witnessed in the VCM, noting that:

“While the data do not show the same type of growth by volume present in previous reports, our market analysis shows a critical, increased shift in market behavior towards integrity and quality.”

Donofrio further emphasized the evolving sophistication of credit buyers, underscoring their eagerness to understand the actual impact of their investments.

EM’s full report is available for download here.

The post Voluntary Carbon Credit Buyers Willing to Pay More For Quality appeared first on Carbon Credits.

UAE’s $30B Climate Fund: A Boon or Concern for COP28 Dialogue?

December 1, 2023/in Uncategorized /by

The United Arab Emirates (UAE) is gearing up to launch a substantial climate-related investment fund, $30 billion, in collaboration with BlackRock, TPG, and Brookfield.

This initiative coincides with the UAE‘s efforts to strengthen its position as host of the United Nations Climate Summit COP28.

UAE’s Strategic Climate Investment Fund

Overseeing the fund is Lunate Capital, a new Abu Dhabi-based asset manager, backed by $50 billion in assets.

Earlier this year, Lunate began operations under the guidance of UAE national security adviser Sheikh Tahnoon bin Zayed al-Nahyan. He is the brother of the Gulf state’s ruler, Sheikh Mohammed bin Zayed al-Nahyan. Chimera Investment, along with its senior management, owns Lunate.

Executives of Abu Dhabi Growth Fund and Abu Dhabi wealth fund ADQ will be the managing partners of Lunate Capital.

At least $5 billion of the fund’s investment is slated for Global South countries, reflecting the oil major’s intentions to allocate a significant portion of resources to these regions. Leveraging its significant oil and gas reserves, estimated at $2.5 trillion, UAE could direct substantial funds toward climate-related initiatives.

Sultan al-Jaber, the president of COP28, has consistently emphasized the importance of climate finance during the summit in Dubai. Up to 180 heads of state or government and tens of thousands of delegates are attending the summit over the next two weeks.

Financial Times’ analysis showed that the Arab nation was associated with about $100 billion in green energy investments this year.

However, the UAE’s selection as COP28 host raised scrutiny due to concerns about its role in overseeing global climate negotiations. After all, it’s the world’s largest oil and gas producer.

Climate Finance Landscape and COP28 Imperatives

Each year since the creation of the COP, member countries meet to discuss matters related to climate change. The COP’s 21st session created the Paris Agreement, a global consensus to collectively achieve critical climate goals.

One such goal is to limit global temperature rise by reducing greenhouse gas emissions and achieve net zero by 2050. To meet this goal, the world needs about $125 trillion in climate investments by 2050, according to 2021 UN research.

Similarly, the International Energy Agency, noted that around $4.5 trillion is needed every year to be invested in clean energy by the early 2030s.

In January, BloombergNEF reported that investment in clean energy transition increased by 31% in 2022, at $1.1 trillion.

There has also been a movement to reform multilateral development banks’ financing focus, such as the World Bank and IMF. They have to pump more funds to climate-related investments.

Over a week ago, the World Bank decided to certify forest carbon credits and climate finance to boost carbon markets.

Meanwhile, there’s also a rising plea for private investors to work with public finance to support green projects. This is especially important in developing countries that lack enough funds to transition their energy systems to greener power sources.

Plus, there is a shortfall in cash to make the world’s economies adapt to rising global temperatures.

A climate finance expert remarked that the $30B investment is a serious figure that will make the UAE a center of climate finance.

‘Loss and Damage’ Fund: A COP28 Milestone

The first days of COP28 witnessed a pivotal moment with the establishment of a critical ‘loss and damage’ fund to assist vulnerable nations in handling climate-related disasters. COP28 President Sultan Ahmed al-Jaber lauded this as a positive step forward for the summit.

The creation of this fund prompted contributions from various nations, with the UAE leading with a commitment of $100 million. Subsequent pledges followed from Britain, the United States, Japan, Germany, and the European Union.

A longstanding request from developing countries, the fund marks a good start for further negotiations during the two-week summit.

A think tank representative emphasized the importance of this breakthrough, highlighting that isolating the ‘loss and damage’ fund in negotiations could pave the way for more genuine agreements.

As COP28 unfolds in Dubai, the UAE’s $30 billion climate investment initiative alongside the establishment of a ‘loss and damage’ fund signifies both progress and scrutiny.

While investments in climate action are lauded, the nation’s role as a major oil and gas producer sparks apprehensions. The climate summit’s early momentum via these initiatives presents a platform for crucial negotiations, setting the tone for meaningful compromises in the weeks ahead.

The post UAE’s $30B Climate Fund: A Boon or Concern for COP28 Dialogue? appeared first on Carbon Credits.

Nasdaq Reveals Revolutionary Tech for Carbon Credits to Propel Carbon Markets

December 1, 2023/in Uncategorized /by

Nasdaq has introduced a groundbreaking technology aimed at securely digitizing the issuance, settlement, and safekeeping of carbon credits. This innovative offering will be made available to market infrastructures, registry platforms, and other global service providers.

The primary objective of this service is to foster the growth and institutionalization of global carbon markets.

Currently, the carbon credit market operates with bilateral trading and significant reliance on manual processes, limiting its scalability as the market progresses. This rigidity, combined with a lack of standardization in credit data, has hindered substantial capital inflows into the market.

Nasdaq’s Cutting-Edge Carbon Credit Digitization Technology

Executive Vice President at Nasdaq, Roland Chai, highlighted the need for flexibility, standardization, and connectivity in carbon markets. He further noted that:

“Bringing institutional grade technology to underpin the market will drive ever-greater liquidity across carbon marketplaces and open the possibility of greater interoperability between registries in the future.”

Nasdaq’s new technology will allow market operators and registries to create standardized digital credits and distribute them with full auditability throughout the transaction lifecycle.

RELATED: The Carbon Credit Lifecycle

Nasdaq has also developed a carbon taxonomy framework that can readily incorporate new types of credit as the market expands. There will also be comprehensive APIs that will allow participants to seamlessly interact across the market.

Together, this will help establish a standardized, trusted ecosystem capable of attracting high-quality liquidity from a variety of investors.

Using smart contract technology, the service enables secure creation, processing, and management of rights linked to the underlying asset. By automating asset servicing and settlement procedures, the technology promises increased efficiency and transparency throughout the trade lifecycle.

Digitization and automation will ensure a comprehensive audit trail of credit ownership and retirement.

The issuance, settlement, and custody capabilities are adaptable to integrate with existing financial system architectures or operate as an independent platform. As such, it allows flexibility to connect with traditional payment networks and bilateral settlement options.

This enables infrastructure providers to continue serving conventional markets while tapping into growth prospects in carbon markets without paying for the substantial costs associated with major changes.

Additionally, Nasdaq offers infrastructure optionality that enables the technology to be deployed on either a centralized database or using private blockchain technology.

Partnership for Carbon Removal Excellence

Alongside the service launch, Nasdaq has unveiled a collaboration with Puro.earth, a prominent standards and registry platform specializing in engineered carbon removal.

Their partnership aims to register CO2 Removal Certificates (CORCs) and monitor the issuance, retirement, and transfer of these assets. The ultimate goal is to prevent duplication of carbon removal projects, ensuring complete traceability and transparency.

The game-changing technology will help propel the growth of voluntary carbon markets through a suite of APIs and standardized contracts.

Standardizing carbon credit contracts is crucial. This is particularly critical at this time when questions arise regarding the real climate impacts of projects generating these credits.

As per Antti Vihavainen, CEO of Puro.earth, accurate management of carbon credit lifecycle is critical in establishing trust. With Nasdaq’s new technology, their carbon crediting infrastructure will be modernized.

It was in February last year when Puro.earth launched Puro Registry in Nasdaq, a public registry dedicated to CORCs.

The new system will be accessible through the Puro Connect API, catering to carbon marketplaces and exchanges. It will also align CORCs with Article 6 of the Paris Agreement.

Puro.earth’s Puro Standard represents the first carbon removal standard tailored for engineered carbon removals within the VCM. It also includes top-tier carbon removal methodologies in line with the Intergovernmental Panel on Climate Change (IPCC) definition for carbon removal.

Certified carbon removals suppliers are verified by an independent third-party. Companies seeking to offset their carbon emissions can buy the CORCs directly from suppliers or through a third-party marketplace.

Nasdaq’s cutting-edge technology aims to transform carbon markets by offering digitized issuance, settlement, and custody for carbon credits.

The technology’s integration with Puro Connect API and adherence to IPCC guidelines sets a new standard for carbon removal within VCM. Nasdaq’s innovation paves the way for a dynamic, trusted ecosystem attracting diversified investors while modernizing the carbon crediting infrastructure for market growth.

The post Nasdaq Reveals Revolutionary Tech for Carbon Credits to Propel Carbon Markets appeared first on Carbon Credits.

Uranium Royalty Corp. Publishes First-Ever Sustainability Report

November 30, 2023/in Uncategorized /by

Uranium Royalty Corp. (URC) stands out as the sole uranium-focused royalty and streaming company listed on the NASDAQ, offering investors exposure to uranium commodity prices. URC‘s portfolio includes strategic acquisitions in uranium interests like royalties, streams, debt, equity in uranium companies, and physical uranium trading.

The company, trading as (NASDAQ: UROY, TSX: URC), recently released its inaugural 2023 Sustainability Report. It outlines URC’s sustainability approach, performance, and future goals, including the following highlights:

Strengthening due diligence processes, with 100% of deals reviewed using an enhanced sustainability approach.
Enhancing corporate risk management practices.
Approving Sustainability, Anti-Corruption, and Corporate Disclosure Policies, emphasizing sustainability commitment and robust governance.
Achieving 33% diversity in both female and ethnically diverse representation in executive management.
Contributing approximately $48,000 to local community programs.

Scott Melbye, URC’s CEO, expressed pride in presenting the report, emphasizing their position as the sole uranium royalty company.

URC has a growing portfolio of 20 interests across 18 uranium projects in key jurisdictions. By applying a successful royalty and streaming model to the uranium sector, URC offers vital capital to uranium mining companies, supporting a cleaner future through carbon-free nuclear energy.

Melbye stressed URC’s role in promoting sustainability and innovation in mining. The company diligently selects operators sharing values of responsible environmental stewardship and robust community support, striving to foster long-term relationships based on these principles.

Uranium For A Net Zero World

According to the World Nuclear Association, tripling of nuclear generation is what the world needs to achieve carbon reduction goals and meet growing global energy demand.

For the International Energy Agency, the nuclear industry has to double in size over the next 2 decades to meet net zero emissions targets. And according to McKinsey’s forecast, nuclear power generation needed in 2050 is massive.

Currently, there are only 400+ nuclear reactors in operation worldwide. But 90 nuclear reactors are on order or planned globally, with 300+ more in the proposal stage.

And as nations strive to reduce carbon emissions, nuclear power presents a viable option for a large-scale energy source. Emerging economies in Asia are investing heavily in nuclear power. China and India, in particular, are considering nuclear energy for powering up energy grids, pumping up demand for uranium.

Nuclear energy will play a major role in the global energy mix as the world moves towards net zero. And Uranium Royalty Corp is at the forefront in revolutionizing how business is done in the uranium sector. It is the only business leveraging innovative deals involving uranium.

URC’s strategic approach aims to support cleaner, carbon-free nuclear energy while fostering long-term relationships based on sustainability principles. As the world looks toward nuclear power for achieving net zero goals, URC is ready to lead the charge in using uranium for a sustainable future.

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

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 Uranium Royalty Corp. Publishes First-Ever Sustainability Report appeared first on Carbon Credits.

VCMI Unveils New Rules for Net Zero Using High-Integrity Carbon Credits

November 29, 2023/in Uncategorized /by

The Voluntary Carbon Markets Integrity Initiative (VCMI) has introduced additional guidance for its Claims Code of Practice, allowing firms to make claims about their use of high-quality carbon credits.

The new guidance encompasses a Monitoring, Reporting, and Assurance (MRA) Framework, an identity mark for asserting ‘Carbon Integrity’ Claims. It’s also an initial version of an added claim, labeled ‘Scope 3 Flexibility.’

Commending VCMI’s new guidance, U.S. Special Presidential Envoy for Climate, John Kerry, stated:

“By creating sound guardrails for the use of high-quality carbon credits, the new VCMI guidance will provide strong assurance that this finance will help deliver the greater climate action we so urgently need.”

Using the new framework and the ‘Carbon Integrity’ Claims branding, companies can now make Silver, Gold, or Platinum Claims, following the original Claims Code published in June.

It empowers companies to declare their use of high-quality carbon credits, channeling financial support toward initiatives that counteract climate change. It also showcases their efforts in surpassing science-based emissions reductions.

Fast-tracking Net Zero with High-Integrity Carbon Credits

Voluntary carbon markets (VCMs), when used properly, can increase financial resources directed toward low- and middle-income economies. They can significantly aid in achieving the Paris Agreement’s goal of limiting global warming to 1.5°C above pre-industrial levels.

Estimates suggest that if companies begin investing in VCMs as part of their net zero strategies today, over $50 billion could be unlocked by 2030. This exponential growth in VCM demand is illustrated below, going beyond 900 metric tons of carbon dioxide.

Evidence indicates that companies engaging in these markets tend to be more ambitious and undergo faster decarbonization compared to those that do not.

As per Ecosystem Marketplace analysis, buyers in VCMs are 1.8x more likely than non-buyers to continually reduce their footprint.

But there’s a big catch to achieve that: voluntary carbon markets must work with integrity.

That means carbon credits must genuinely represent verified reductions and removals of emissions, complying with robust environmental and social standards. Companies should use these credits in addition to—rather than as a substitute for—decarbonization efforts in their transitions to net zero.

Claims associated with these credits must be credible and reliable. Adhering to the VCMI Claims Code, which includes the newly provided guidance, ensures the assurance of these principles.

VCMI’s Executive Director, Mark Kenber, noted the relevance and timing of the release of this new guidance. He said that as COP28 approaches, discussions about VCMs will regain prominence and that “it is important that what is discussed is the promotion of credible, and believable, climate action”.

With the new guidelines for credible claims, companies can credibly use carbon credits and be confident in doing so.

The Scope 3 Flexibility Claim

Moreover, the VCMI has launched the beta version of a new claim – the Scope 3 Flexibility Claim. It’s a practical step to hasten corporate climate action. It permits companies to use carbon credits while scaling their internal decarbonization investments and initiatives.

Once completed in 2024, this claim allows companies to be accountable for their Scope 3 emissions while moving toward their net zero goals by using high-quality carbon credits. Stringent measures are in place to ensure the integrity of this claim and prevent its misuse.

Scope 3 refers to the indirect emissions from the company’s value chain.

According to MSCI Carbon Markets, about $19 billion could be mobilized if companies used the credits to fill the emissions gap between their scope 3 reductions targets and current emissions.

VCMI has established guardrails to further promote integrity in the new claim and prevent greenwashing, including:

Making the First VCMI Claims

The launch of the ‘Carbon Integrity’ brand and the MRA Framework is a significant milestone, enabling companies to initiate their first VCMI claims.

The ‘Carbon Integrity’ Claims is a distinct brand for such claims with a tagline “accelerating global net zero”. They signify that corporations are actively propelling the achievement of that goal.

The brand showcases a unique mark used across the Carbon Integrity Claims, with variations denoting the type of Claim—Silver, Gold, or Platinum.

The newly released guidelines aim to assist companies in effectively communicating their attainment of Carbon Integrity Claims.

On the other hand, the new MRA Framework serves as a mechanism for companies to substantiate their claims. Under this framework, companies provide details satisfying the Claims Code’s Foundational Criteria, setting the standard for optimal corporate climate action.

Additionally, companies must disclose essential information concerning the carbon credits used to support their claims. This information will then undergo independent verification by a third party, reinforcing the credibility of the Carbon Integrity Claims.

Consequently, the MRA Framework forms the foundation of authority that upholds the authenticity and credibility of Carbon Integrity Claims within the VCMI framework.

The VCMI Claims Code of Practice serves as a rulebook outlining how companies can ethically use carbon credits within credible, science-aligned pathways toward achieving net zero decarbonization. By establishing this guidance, VCMI aims to cultivate trust and bolster confidence in how companies participate in voluntary carbon credit markets.

The post VCMI Unveils New Rules for Net Zero Using High-Integrity Carbon Credits appeared first on Carbon Credits.