Carbon Removal News - December 5
EU ETS allowances for buildings, road transport, small industry; Tencent funds Carbon removal; Deep geothermal to decarbonize mining; Low-GWP refrigerants
In this newsletter
News from Governments
Tencent funds Carbon Removal & Capture, LDES
Carbon Capture & Industrial Decarbonization
Digital tools for Carbon projects
Biodiversity Credits, Nature Based Solutions
Overview of Carbon Capture Policy in the Americas
Research
Further Reading
Events
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News from Governments
The European Commission has adopted a Decision establishing the EU-wide quantity of allowances under the EU Emissions Trading System for buildings, road transport and small industry (ETS2) for 2027. The cap has been set at 1,036,288,784 allowances and includes the States of the European Economic Area and European Free Trade Association (EEA-EFTA States). The system implements a linear reduction trajectory until 2024 followed by an annual linear reduction factor of 5.1% for 2025-2027.
The Council of the European Union has adopted a new regulation on environmental, social and governance (ESG) rating activities to enhance consistency, transparency and comparability in the EU. The regulation requires ESG rating providers to be authorized by ESMA and comply with transparency requirements regarding methodology and information sources. Non-EU providers must obtain endorsement, recognition, or inclusion in the EU registry through an equivalence decision.
In the UK House of Lords, Lord Naseby has proposed amendments to the GB Energy Bill to expand the definition of clean energy to include CCUS and CCS-enabled hydrogen technologies. The amendments, supported by the CCSA (Carbon Capture & Storage Association) and Hydrogen UK, aim to unlock growth and investment in low-carbon technologies while aligning the Bill with the UK's net zero ambitions.
CCSA has also published the Accelerating a Europe-wide CO2 storage market report which shows that a Europe-wide CO2 market can reduce storage costs by 20%. The report, developed with Xodus Group, outlines key actions including establishing an EU-UK bilateral agreement and amending EU and UK Emission Trading Schemes to enable cross-border CO2 transport and storage.
Tencent funds Carbon Removal, CCUS, LDES
China’s Tencent has launched CarbonX Program 2.0, expanding its climate technology initiative globally with investments of tens of millions of dollars. The program focuses on four key areas:
Carbon Dioxide Removal with pilot projects in Kenya,
Long-Duration Energy Storage with 100-kilowatt pilot projects in Maldives,
CCUS for Steel Industry with pilots in Serbia,
CarbonXmade for integrating captured carbon into consumer products.
The program has partnered with major industry players including China Resources, Conch Cement, Sasol, Sinopec Carbon Industry Technology, and consumer brands like McDonald's China, PepsiCo, and Unilever. Applications are open through May 2025, with final selection of winning teams to be completed by February 2026.
Carbon Capture & Industrial Decarbonisation
US-based Quaise Energy and Nevada Gold Mines (NGM) will develop a commercial pilot for deep geothermal energy to decarbonize NGM's TS Power Plant. This will be first commercial pilot for retrofitting a fossil fuel power plant with geothermal heat, supporting NGM's target of 30% GHG emissions reduction by 2030.
MIT spinout Electrified Thermal Solutions has developed electrically conductive firebricks that can store and discharge heat up to 3,272 degrees Fahrenheit for industrial applications. The company has received $40 million from the Department of Energy to scale the technology. Their standard system is capable of collecting and releasing about 5 megawatts of energy and storing about 25 megawatt-hours. The startup is currently building a megawatt-scale commercial version expected to be operational in seven months.
US-based direct air capture company Heirloom has raised $150 million in Series B funding, co-led by Future Positive and Lowercarbon Capital.
UK-based Carbon Clean has partnered with Aramco and Samsung E&A to demonstrate its novel CycloneCC carbon capture technology at an Aramco facility. The technology features a 50% smaller footprint and can save upto 50% in installation cost compared to conventional systems, while maintaining performance even at low CO2 concentrations of around 4%. SAMSUNG E&A will handle the engineering, procurement and construction of the plant.
Norway-based Equinor ASA has launched its first Hydrogen Open Season, calling for registration of interest in low carbon hydrogen from the H2M Eemshaven project in the Netherlands, running from December 2024 to January 2025. The project, a collaboration with Linde, will produce low-carbon hydrogen through natural gas reformation with CO2 capture and storage, requiring minimum annual offtake of 50 MW from interested parties.
(December 2) Norway-based SLB Capturi has completed construction of the world's first industrial-scale carbon capture plant at Heidelberg Materials' cement facility in Brevik, Norway. The plant is designed to capture up to 400,000 metric tons of CO2 annually and is part of The Longship CCS project, Europe's first complete value chain for the capture, transport, and storage of industrial CO2 emissions. Operations are expected to begin in 2025.
Germany-based Carbo-FORCE has launched its innovative Carbo-CAP-TEC pyrolysis technology for CO2 sequestration and biochar production. The technology heats biomass in the absence of oxygen at temperatures up to 900°C. This reduces the formation of contaminants like polycyclic aromatic hydrocarbons (PAHs), giving high-quality biochar. The process can produce biochar with a throughput of 25% from a variety of dry materials and also allows excess heat to be harvested for industrial use.
(November 20) Spain’s Cemex has launched its first industrial-scale hydrogen deployment at its Rugby cement plant in the UK. The project uses HiiROC's Thermal Plasma Electrolysis (TPE) technology that requires just one-fifth of the electrical energy used in water electrolysis and captures carbon as a solid byproduct.
Japan’s MHI Thermal Systems, a Mitubishi Heavy Industries group company, has received the Minister of the Environment Award for Climate Action 2024 for developing its JHT-Y/JHT-YI series of large-capacity centrifugal chillers. The new chillers, launched in June 2022, use HFO-1234yf refrigerant with extremely low environmental impact (Global Warming Potential below 1) and offer capacities ranging from 300 to 5,400 refrigeration tons (RT). The refrigerant is also used in car air-conditioners and vending machines.
Saudi Arabia's King Abdullah Petroleum Studies and Research Center (KAPSARC) and Switzerland-based Climeworks have signed a Memorandum of Understanding (MoU) to explore and advance Direct Air Capture (DAC) technologies in Saudi Arabia. The partnership will assess new DAC systems deployment focusing on natural resources availability and subsurface COâ‚‚ storage while supporting local workforce development and aligning with the Kingdom's Circular Carbon Economy framework.
Digital tools for Carbon projects
UK-based BeZero Carbon has launched Project Fundamentals, a new platform feature providing standardized, digitized technical data on carbon projects. The platform gives subscribers access to over 100,000 individual data points collected from thousands of registry documents across various carbon project types including Forestry, Cookstoves, and Renewable Energy sectors.
US-based Planet Labs PBC has signed a multi-year, seven-figure deal with Laconic to provide AI-powered forest carbon monitoring data through its satellite-derived Forest Carbon products. The partnership combines Planet's 3-meter and 30-meter resolution Forest Carbon Monitoring products with Laconic's SADAR Natural Capital Monetization platform to enable governments and investors to make informed decisions on carbon trading and monetizing natural carbon assets.
MapBiomas was officially launched in July 2015 to conduct annual mapping of land cover and use in Brazil. The initiative emerged from a technical cooperation with Google using the Google Earth Engine platform, and has been monitoring surface water and fire scars with data dating back to 1985. It has also been tracking deforestation events since January 2019 through MapBiomas Alerta.
Biodiversity Credits, Nature Based Solutions
Australia-based Tasman Environmental Markets (TEM) and Wilderlands have launched an Extended Impact product that combines carbon offsets with biodiversity protection. Since launching in September, 15 organizations have invested in the solution, protecting over 70,000 square metres of threatened Australian biodiversity housing 730 native species. The product combines Wilderlands’ Biological Diversity Units (BDU) in South Australia, Victoria or New South Wales with certified carbon credits from projects like the April Salumei Rainforest Community Conservation Project in Papua New Guinea.
Germany-based goodcarbon has launched its Nature Analytics Framework to enhance the credibility and effectiveness of voluntary carbon market projects. The framework evaluates projects across 160 criteria points spanning climate impact, biodiversity, and community benefits, with continuous monitoring and annual reassessments to ensure project quality and transparency. The company implements a four-step assessment process incorporating satellite monitoring and on-ground verification to evaluate project impact, risk, and integrity.
(November 18) The IUCN UK Peatland Programme has released Version 2.1 of the Peatland Code, which aims to align with international accreditation requirements from The Integrity Council for the Voluntary Carbon Market (ICVCM) and ICROA. The updated version enhances guidance for project proponents and maintains high integrity standards for peatland restoration projects. OF&G and Soil Association serve as approved validation and verification bodies. The Peatland Code requires projects to meet specific eligibility criteria including minimum peat depths, specific peatland types (blanket, raised bog or fen), and a 30-year minimum contract commitment. Projects must undergo validation, restoration, and regular verification processes to ensure delivery of expected greenhouse gas benefits.
Overview of Carbon Capture Policy in the Americas
Highlights from CCS Policy in the Americas by Global CCS Institute
The United States - the 2022 Inflation Reduction Act (IRA) which increased 45Q tax credits for CCS projects; the 2021 Infrastructure Investment and Jobs Act (BIL) provides grants, loans, and guarantees for CCS infrastructure.
The US Environmental Protection Agency (EPA) has granted Class VI primacy to North Dakota, Wyoming, and Louisiana, allowing these states to manage their Underground Injection Control programs locally. Texas, Arizona, and West Virginia are currently in the application process.
Canada has implemented multiple federal programs to support CCS including the CCUS Investment Tax Credit, GHG Offset Credit System Regulations, Clean Fuel Regulations, and the Canada Growth Fund.
Brazil has passed Bill 1425/2022 establishing a comprehensive legal and regulatory framework for CCS and the Fuels of the Future Bill 528/2020 which introduced obligations for operators of geological storage sites.
Read the full CCS Policy, Legal and Regulatory Review (November 2024)
Research
MIT chemical engineers have developed a new catalyst that can convert methane gas into useful polymers at room temperature and atmospheric pressure.
A Millimeter-Scale Change in Leaf Litter Placement Within Soil-Water Interfaces Alters Carbon Dioxide and Methane Emission on EarthArXiv
Green-Oriented Transition of the Manufacturing in the Digital Economy: A System Dynamics Perspective on EarthArXiv
Further Reading
McKinsey blog on recent global developments in industrial decarbonisation
PACT has published a whitepaper providing guidance on rebaselining greenhouse gas emissions inventories due to methodological changes.
A new blog from Opna highlights the importance of carbon removal strategies for asset managers in addressing financed emissions.
cfp energy’s blog on Article 6 of the Paris Agreement
CarbonMarketWatch video on role of carbon removals in the EU climate framework
Climeworks and Bain & Company have published a joint analysis on the carbon removal market outlining three case studies from telecommunications, consumer goods, and automation sectors that have developed carbon removal portfolio strategies extending to 2035-2040.
Events
UK-based Carbon Trust is organizing the Energy Transition Acceleration Forum 2025, bringing together senior stakeholders from across the energy spectrum including policymakers, investors, industry leaders, and innovators. The event, scheduled for February 5, 2025, at The British Library in London, features speakers from major organizations including Google, British International Investment, World Bank, HSBC, and various government departments to discuss pathways to accelerate the global energy transition.
US-based Natural Resources Defense Council (NRDC) and NRDC India have announced an upcoming Climate Conversation series with climate policy experts planned for December 2024. The series will cover diverse subjects related to climate policy.
An inFUSE Accelerator carbon market workshop was held on October 24, 2024, in Jakarta, focusing on Free, Prior, and Informed Consent (FPIC) practices in carbon projects. The workshop featured Sarfina Adani, Neyen's Consultant, and Erlinda Ekaputri, Executive Director of Wildlife Works Indonesia, who discussed the importance of integrity in carbon projects and the implementation of FPIC practices to protect indigenous peoples' rights.
