Global Climate News

dClimate's newsletter summarizes news on carbon markets, climate risk management, and climate data. MSCI reported $1.4B in retired carbon credits in 2024. Insurance is seen as key to restoring credibility in carbon markets. Arbol uses AI-driven parametric insurance to address climate-induced coverage gaps. California requires insurers to offer coverage in wildfire zones. A new high-resolution dataset for global grasslands has been released. The WMO operationalized WIS 2.0, a global information system for Earth data.

The European Union proposed a European Green Bond Standard (EuGBS) to increase the convergence of green bonds internationally. The ECB recommended that the EuGBS should become mandatory for newly issued green bonds within 3-5 years to enhance market functioning and strengthen the green credibility of the EU green bond market. The EuGBS requires supervision of external reviews by ESMA and taxonomy alignment of use of proceeds. The global supply of green bonds in 2021 nearly doubled compared to 2020.

Global companies are increasingly incorporating Scope 3 emissions into decarbonisation strategies. According to the Net Zero Tracker, nearly 70% of the global economy is now covered by net-zero pledges. The SBTi’s net-zero corporate standard requires inclusion of Scope 3 emissions in long-term targets. CDP data shows supply chain emissions are approximately 11.4 times higher than operational emissions.

\"India and the Middle East-based sentra.world, a sustainability integration company, has partnered with over 30 steel companies to help them decarbonize. They offer digital solutions for CO2 emissions measurement, reporting aligned with standards like CBAM and ISO, and net-zero target achievement. They also facilitate carbon credit monetization and ESG metric management.\"

Taiwan's Environmental Protection Administration (EPA) has announced plans to expand greenhouse gas emission monitoring and registration to approximately 500 more companies, including those in service, transport, medical, and manufacturing sectors. The EPA aims to improve emission data accuracy for future emission reduction strategies. This expansion will not require additional fees or external consultants; the EPA will provide support through a new online platform and training.

The 2024 carbon dioxide removal (CDR) market grew 2.4 times larger than in 2023, with annual purchases increasing by 7.5 million tonnes of CO2. Biomass-based CDR dominated (82% of purchases), while Direct Air Capture declined to 11%. Two BECCS providers, Stockholm Exergi and Ørsted, captured over 70% of offtakes. Scandinavia and North America led in subsidizing CDR, with Sweden and Denmark committing $5 billion in public funding. Despite Biomass-CDR’s dominance in volume, DAC received the largest share of private investment.

\"Nordea has published a two-part article on addressing supply chain emissions. The article discusses methods for taking ownership of emissions from the value chain (scope 3 emissions), including engagement with supply chain companies and integration of emissions considerations into broader business strategies. The firm highlights the importance of collaboration and flexibility in engaging with suppliers to reduce emissions.\"

The article discusses the urgent need for businesses to transition from traditional, spend-based greenhouse gas (GHG) emissions models to more precise, product-specific measurements using primary data. It highlights the inadequacy of current methods in accurately tracking Scope 3 emissions, especially for companies in apparel and consumer goods where over 90% of emissions originate from Scope 3 sources. The UNFCCC's report emphasizes the insufficient global emission reduction pledges. The shift to primary data is presented as crucial for accurate emissions tracking, driving real reductions, and meeting regulatory requirements and investor expectations.

The US Department of Agriculture (USDA) announced the appointment of 36 members to the Greenhouse Gas Technical Assistance Provider and Third-Party Verifier Program Advisory Council. The council will advise the Secretary of Agriculture on methods used in voluntary environmental credit markets and ways to reduce barriers to entry. At least fifty-one percent of the council must be active farmers, ranchers, or private forest landowners.

British Columbia implemented the Low Carbon Fuel Standard (LCFS) on January 1, 2024, replacing the Greenhouse Gas Reduction Act. The LCFS incentivizes low-carbon fuels based on greenhouse gas reduction, driving innovation and reducing emissions. New regulations include requirements for renewable jet fuel and ground support equipment, along with updated penalty provisions and a volumetric exclusion for electricity.

The research reviewed the nascent economic literature on the governance of carbon dioxide removal (CDR) and discussed policy design and institutions. It assessed CDR's role in climate policy portfolios and highlighted cost-saving technological progress that could make CDR a game changer. The research also addressed challenges in CDR governance, such as non-permanence of carbon storage and default risks.

Chile has received $5.1 million from the World Bank’s Forest Carbon Partnership Facility (FCPF) for reducing 1.03 million tons of carbon emissions from deforestation and forest degradation. This is the first payment under Chile’s Emission Reductions Payment Agreement (ERPA) with FCPF, which provides up to $26 million for reducing 5.2 million tons of emissions. The program spans six regions and helps restore ecosystems while supporting communities to build climate resilience. The program also benefits from over $60 million from the Green Climate Fund.

Brazil-based InPlanet and Isometric announced the world’s first delivery of verified Enhanced Rock Weathering (ERW) carbon removal credits. The credits, corresponding to InPlanet’s Serra da Mantiqueira project in São Paulo, were verified by Isometric and delivered to Adyen, facilitated by ClimeFi. This milestone introduces a new, high-quality, permanent carbon removal credit format to the voluntary carbon market.

\"The Financial Markets Standards Board (FMSB) in the UK has published a consultation on its statement of good practice for the governance of sustainability-linked products (SLPs). SLPs are financial products whose characteristics vary depending on whether users meet sustainability or ESG objectives. The statement aims to improve SLP quality, boost market confidence, mitigate greenwashing, and develop a more robust SLP market. It applies to service providers and users in wholesale financial markets and complements existing asset-class guidance.\"

\"A proposal for a single Global Cap-and-Trade Scheme to reduce global CO2 emissions has been put forward. The scheme would regulate upstream fossil fuel entities, aiming for steadily decreasing global emission limits and a global carbon-neutral economy. It proposes a fully auctioning upstream-type regulatory scheme with a single market of international allowance, generating potentially a trillion-dollar auctioning proceeds stream for financing SDGs.\"

Canadian agri-tech company Hempalta acquired full ownership of the Hemp Carbon Standard (HCS) for $63,544 (CAD90,000). HCS, a digital carbon platform, certifies carbon capture through regenerative agriculture and other methods, sequestering 15,325 tonnes of CO2 in 2023 and aiming for 50,000 tonnes in 2024. The acquisition enhances Hempalta’s capacity to deliver carbon credits derived from industrial hemp farming and scale its sustainability programs globally.

Bloomberg L.P. and Viridios Group completed a strategic transaction. Ownership of Viridios AI’s carbon credit data and analytics was transferred to Bloomberg. Several Viridios AI team members joined Bloomberg.

US-based Morgan Stanley has disclosed its activities in the California voluntary carbon market, including its commitment to carbon-neutral operations (achieved in 2022 and 2023) and net-zero financed emissions by 2050. The company also detailed its use of VCOs from various registries (Verra, Gold Standard, Climate Action Reserve, American Carbon Registry) for carbon neutrality and provided links to relevant project information.

Switzerland-based Climeworks has shared its 2024 milestones including the inauguration of Mammoth (world's largest Direct Air Capture plant), Project Cypress development in Louisiana, launch of Climeworks Solutions portfolio offering, certification under Puro Standard, and unveiling of Generation 3 technology. The company's Project Cypress, awarded USD 50 million by U.S. DOE, aims to capture 1 million tons of CO₂ annually when complete. The new Generation 3 technology promises to reduce carbon removal costs by up to 50% compared to current costs.

The European Securities and Markets Authority (ESMA) has published a feedback statement on the selection criteria for consolidated tape providers (CTP). One of the five criteria is resilience, cyber-risk, and energy consumption. ESMA will launch selection procedures for bonds CTP on January 3, 2025, and for equity CTP in June 2025.