CP Daily Highlights: Insights on EU Climate Policies, Carbon Market Dynamics, and Global Sustainability Initiatives for February 27, 2025

CP Daily: Thursday, February 27, 2025

TOP STORY

ANALYSIS: Experts say new EU climate proposals will have limited immediate impact on carbon market
The European Union’s latest climate policies are unlikely to significantly influence the bloc’s carbon market in the short term, though long-term uncertainties persist, analysts informed Carbon Pulse.

INTERNATIONAL FEATURE: USAID funding freeze hampers U.S. efforts in international carbon markets
A sudden freeze on funding from USAID has jeopardized years of U.S. initiatives aimed at integrating countries into carbon markets and credit trading, according to sources familiar with the agency’s operations.

BRIEFING: CCS investment “sputtering” when it needs to accelerate, conference attendees report
Global investment in carbon capture and storage (CCS) is “sputtering” just when it needs to be ramping up, delegates at a major industry conference in London heard on Wednesday.

EMEA
– EU’s corporate reporting Omnibus bill faces strong opposition in Parliament
A proposal from the European Commission to delay climate reporting and due diligence requirements for companies in Europe is encountering resistance in Parliament, where centrist and left-leaning lawmakers caution against attempts to undermine the Green Deal.

• EU energy chief announces transparency crackdown on gas markets
  The European Commission is intensifying scrutiny of wholesale gas markets as part of a renewed push for transparency, threatening “possible sanctions” against market manipulators, which could also affect carbon prices in the EU’s Emissions Trading System (ETS).

• Euro Markets: Technical bounce triggers 10% spike in natural gas, bolstering carbon recovery
  European carbon prices strengthened on Thursday, following a technical rebound in natural gas prices after both markets had declined for three consecutive days, as analysts described the gas market as oversold. Participants also noted increased hedging of March EUA options.

• Germany to miss 2045 net zero target, despite energy transition progress – report
  Germany is projected to cover nearly half of its energy needs with electricity by 2050, but emissions reductions are expected to fall short of the country’s 2045 net zero objective, according to a report released Thursday.

• Drax warns over BECCS investment in the UK
  Energy company Drax Global stated Thursday that it may retract investment in its flagship bioenergy with carbon capture and storage (BECCS) plant in the UK.

• EU agency calls for urgent action on methane emissions
  The European Environment Agency (EEA) has indicated that more action is required to control and reduce methane emissions throughout Europe and globally, in a briefing published Thursday.

• Study reveals three-quarters of UK companies plan to offset residual emissions
  A survey of 300 UK-based senior executives revealed that 73% of organizations intend to offset their hard-to-abate emissions using carbon credits, with over 90% confident in their ability to meet net zero targets.

AMERICAS
– Cuba to utilize Article 6 finance for conditional NDC targets
Cuba’s third Nationally Determined Contribution (NDC) specifies the intention to use cooperative approaches under Article 6 to secure climate finance, aiding in the achievement of conditional Paris Agreement goals.

• Frontier buyers commit $30.6 million to electrochemical DAC deal
  Frontier has facilitated offtake agreements valued at $30.6 million for an electrochemical direct air capture (DAC) developer, aiming to remove 47,000 tonnes of CO2 from 2027 to 2030, the buyers coalition announced Thursday.

• WCI Markets: ETS extension optimism boosts CCAs; WCA program tweaks spur rally
  Optimism surrounding discussions to extend cap-and-trade initiatives beyond 2030 has elevated California Carbon Allowance (CCA) prices following a mid-week auction result below $30, while Washington Carbon Allowances (WCAs) reversed higher as lawmakers considered program modifications.

• California policy should integrate CCUS, CDR into ETS – buyers
  Carbon buyers and investors have emphasized that California’s policy should incorporate carbon capture, utilization, and storage (CCUS) and CO2 removal (CDR) into the state’s ETS to mitigate risks and accelerate the deployment of emerging technologies.

• Apple faces class action lawsuit over “ineffective and redundant” carbon offsets
  Tech giant Apple is threatened with a class action lawsuit in the U.S. over allegations of misleading consumers by marketing its smartwatch as carbon neutral via “ineffective and redundant” offsets.

• Canada’s CDR procurement plan needs greater ambition and flexibility, stakeholders caution
  The Canadian government’s new pilot program for procuring CO2 removal (CDR) services has drawn mixed reactions from industry stakeholders, who argue that the initiative requires increased ambition and flexibility to establish the country as a leader in the sector.

• Canadian nonprofit announces C$3 million funding call for CDR projects
  A nonprofit organization in British Columbia has launched a call for proposals to access C$3 million ($2 million) in funding for developing early-stage carbon dioxide removal (CDR) initiatives.

• U.S. tech billionaire family foundation grants $5 million to NbS projects in Pacific Northwest
  The family foundation of a U.S. tech billionaire announced $5 million in grants to support nature-based solutions (NbS) throughout the Pacific Northwest, with the goal of accelerating climate change mitigation via ecosystem restoration and carbon capture.

ASIA PACIFIC
– INTERVIEW: Southeast Asia-focused biochar developer secures funding for expansion in Cambodia
A Singapore-based offset project developer has obtained new funding to expand its biochar business in Southeast Asia, initially focusing on Cambodia, its founder shared with Carbon Pulse.

• Australian carbon accounting firm to offer credits through its software
  An Australian carbon accounting firm announced Thursday that it will provide a project developer’s carbon credits on its platform, marking what the companies called a “first of its kind” partnership in Australia.

• South Korean steelmaker faces lawsuit over blast furnace extension plans
  A civil lawsuit has been filed demanding that POSCO, a major South Korean steel producer and carbon emitter, cease relining an aging blast furnace in the Gwangyang region.

• Philippines launches blue carbon initiative
  This week, the Philippines rolled out an action plan to enhance the production of high-quality blue carbon from mangroves and seagrasses, aiming to establish a national roadmap for leveraging marine resources to achieve climate objectives.

VOLUNTARY
– INTERVIEW: Oil-rich tree resolves food vs fuel debate, produces carbon credits, claims startup**
A startup, backed by a U.S. oil major and a global industrial partner, asserts that the pongamia tree, native to subtropical regions, can provide feedstock for both sustainable aviation fuel and protein, thereby resolving the food versus fuel land debate while generating carbon credits.

• Millions of CORSIA-eligible cookstove credits expected by Q3, according to developer
  Cookstove carbon credits from a large clean cooking program in Africa are expected to be verified and available for CORSIA Phase 1 by the end of the third quarter of this year, as stated by the head of the project developer.

• Billions of tonnes of profitable CO2 storage potential found in mining waste, company claims
  A recently published white paper by a startup in the carbon mineralization industry suggests that utilizing existing mine waste could generate a market worth tens of billions of dollars.

• Verra introduces new rice methodology to replace CDM protocol
  Carbon standard Verra has released a new methodology applicable to projects implementing improved water and crop management practices in flooded rice systems.

• Carbon removal standard updates verification with more frequent audits and cost measures
  A carbon removal (CDR) registry and certification standard has introduced a new verification model alongside cost-saving measures, including adjustments to its auditing and digital monitoring, reporting, and verification (dMRV) processes.

• Bloomberg and General Index expand voluntary carbon market partnership, adding over 200 credit price assessments
  Bloomberg and benchmark provider General Index (GX) have announced an expansion of their strategic collaboration to enhance access to voluntary carbon market (VCM) price data on the Bloomberg Terminal.

BIODIVERSITY (FREE TO READ)
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FEATURE: Stakeholders criticize EU omnibus proposals for nature reporting
A proposed two-year delay and the exclusion of smaller businesses from the Corporate Sustainability Reporting Directive (CSRD) have drawn strong opposition from stakeholders, who argue these changes undermine market signals necessary to address the biodiversity crisis.

• Scottish government unveils plan to bolster nature financing
  The Scottish government has published a plan detailing actions to drive financing toward biodiversity protection across the country, including the development of an Ecosystem Restoration Code to scale up market-based investment.

• Goldman Sachs Asset Management launches biodiversity bond fund
  On Thursday, Goldman Sachs Asset Management announced the launch of a global biodiversity bond fund in response to rising investor interest in nature.

• UK tech companies announce AI-driven biodiversity risk partnership
  A research center focused on AI, established by a subsidiary of one of Japan’s largest insurers, has partnered with a nature data company to develop a biodiversity risk product.

EVENTS
– Carbon Forward Asia – Mar. 4-5, Singapore
Join us for our third annual Asian conference in Singapore, where experts will discuss ASEAN markets, regional opportunities, and developments in carbon pricing over two engaging days. Register now.

• EVision 2025 – Mar. 5-6, Brussels
  Explore how electric vehicles can contribute to a net zero energy system at EVision 2025. Register to discover the benefits to the power sector and cost savings for consumers.

• North American Carbon World (NACW) – Mar. 25-27, Los Angeles
  NACW 2025 will address pressing climate policy and carbon market issues, providing networking opportunities for climate professionals. Join us for insightful discussions and connections in the low-carbon landscape.

• European Climate Summit – Apr. 1-3, Lisbon
  Join IETA for the European Climate Summit, where we will discuss the evolving geopolitical landscape and the next stage of carbon market development. Engage with policymakers, business leaders, and climate market pioneers at this in-person event.

BITE-SIZED UPDATES FROM AROUND THE WORLD

INTERNATIONAL
– India should secure protective provisions in EU free trade agreement
According to the Global Trade Research Initiative (GTRI), India should advocate for protections in its free trade agreement with the EU to safeguard its industries from the EU’s upcoming Carbon Border Adjustment Mechanism (CBAM).

EMEA
– EEX releases 2025 sales calendar for Germany’s national Emissions Trading System
The sales of certificates for 2025 will occur twice weekly, from June 3 to Dec. 4, at a price of €55 each. Companies must surrender these certificates by September 30.

• Iberdrola announces strategic shift away from new renewable projects in the U.S.
  Iberdrola will not initiate any renewable projects in the U.S. this year, opting instead to focus on building and upgrading power grids. The company has secured agreements for its ongoing renewable projects.

• BP’s CEO aims to double market value to $200 billion
  BP plans to pivot back to its core oil and gas business after cutting annual spending on renewables by 70%, acknowledging that the energy transition is slower than anticipated.

• UK government supports Gatwick Airport’s second runway expansion
  The UK government has backed the expansion of Gatwick Airport’s second runway, contingent upon the implementation of noise reduction measures.

• UK ETS Authority publishes new guidance documents
  The UK ETS Authority has released updated guidance to assist operators and verifiers in complying with the ETS scheme.

ASIA PACIFIC
– Silva Capital deploys A$64 million in environmental planting projects
Silva Capital’s ACCU Fund has allocated A$64 million to environmental projects, while Qantas has committed A$100 million from its climate fund.

• Air New Zealand launches NZ$1 million initiative for nature restoration projects
  The airline’s Every Corner Project aims to support sustainability financing and community access to restoration projects.

• Singapore’s CRISP and Kumi Analytics partner on blue carbon methodologies
  The collaboration focuses on leveraging satellite data to monitor blue carbon ecosystems.

• Modec secures contract for offshore carbon capture and storage project
  The contract with Samsung marks the first deployment of Modec’s CycloneCC technology.

• PCX Solutions partners with Tuv Sud for Plastic Pollution Reduction Standard
  The partnership aims to quantify the impact of projects under the PPRS and enhance transparency in plastic waste management.

• Philippine senator calls for stronger marine biodiversity conservation
  Senator Loren Legarda has urged for enhanced commitments to protect marine biodiversity ahead of the UN Ocean Conference.

AMERICAS
– Colorado develops landfill methane reduction rule
The Colorado Department of Public Health and Environment is working on a proposed rule to reduce methane pollution from landfills, with a public comment period now concluded.

• US Chamber of Commerce seeks to block California’s climate disclosure laws
  The trade group filed a motion arguing that California’s SB 253 and SB 261 violate the First Amendment and federal supremacy.

• Texas appeals EPA’s decision on State Implementation Plan
  Texas and several business groups have petitioned for a review of the EPA’s rejection of a revision to its State Implementation Plan regarding emissions during maintenance activities.

• South Dakota House passes CO2 pipeline restriction bills
  Two bills aimed at restricting CO2 pipeline construction have advanced, reflecting concerns over pipeline development in the state.

• Planetary Technologies removes 1,000 tCO2 using ocean alkalinity enhancement
  The Canadian firm is undergoing verification to determine eligibility for carbon credits under ICROA-certified standards.

VOLUNTARY
– Verra opens consultation on grid-connected energy storage methodology
The draft methodology aims to quantify GHG emission reductions from grid-connected energy storage systems and is open for public consultation until April 11, 2025.

• Methanox secures investment for methane emission reductions from ships
  The partnership aims to develop catalytic converters to minimize unburned methane emissions from natural gas-powered vessels.

• Study shows natural CO2 sequestration declining
  Research indicates that natural CO2 sequestration by trees and soil has peaked and is now declining, necessitating reductions in emissions to offset losses.

• Youth plaintiffs’ climate case against Virginia officials blocked
  The Virginia Supreme Court rejected an appeal from youth plaintiffs attempting to revive their climate lawsuit against state officials.

For more information and updates, visit Carbon Pulse.