Carbon Removal News - December 6
Biochar credits purchase; Fraud prevention in the VCM; Carbon Credit prices in Australia; New Zealand ETS auction; Rothschild partners with DAC company; Aramco's CCS hub
In this newsletter
Biochar credits purchase
Fraud prevention in the VCM
Carbon Credit Prices in Australia
News from Governments
More news & reading
Biochar Credits Purchase
Tokyo-based NextGen CDR has signed a multi-year carbon dioxide removal (CDR) purchase agreement with Bolivia-based Exomad Green, the world's largest biochar producer. NextGen aims to deliver certified CDRs at an average price of $200/tonne. The deal is supported by independent digital Monitoring, Reporting, and Verification through Carbonfuture MRV+.
Finland-based steelmaker Outokumpu has announced a EUR 40 million investment to build a biocarbon production plant in Sassnitz, Germany, with an annual production capacity of 15,000 tonnes using waste wood as raw material. The plant, scheduled for commissioning in H1 2026, will provide feedstock material for biocoke to Outokumpu's pelletizing plant in Tornio, Finland. Biocoke is used as a reducing agent in making ferrochrome. Replacing coke with biocoke, would significantly reduce Outokumpu’s direct emissions.
(Outokumpu reports 2023 emissions at 1.52 kg COâ‚‚e per kg of stainless steel.)
Fraud prevention in the VCM
In October, the US Commodity Futures Trading Commission (CFTC) initiated its first-ever enforcement actions in voluntary carbon credit markets. The commission
filed a complaint against a Washington, D.C.-based carbon credit project developer who
engaged in a fraudulent scheme that involved reporting false and misleading information to at least one carbon credit registry and third-party reviewers, among others. The complaint alleges (the individual) did so in order to present a misleading impression of the quality of the project developer’s emissions-reduction projects to obtain carbon credits far beyond what the company was entitled to receive, and which the carbon credit project developer could and did sell to others.
also issued charges and a penalty of $1 million against another developer who
fraudulently reported false, misleading, and inaccurate information in connection with the verification and issuance of carbon credits, which resulted in the issuances of millions more carbon offset credits than [the company] was entitled to receive
Carbon Credit Prices in Australia
The Australia Carbon Credit Unit (ACCU) market has reached its highest price levels since March 2022, with Generic, No AD, and HIR spots all trading above $40 in November 2024, reports CORE Markets.
The market saw a 25% increase in trading volume from October, with nearly 4.5 million ACCUs exchanged.
Australia's Clean Energy Regulator (CER) has reported ACCU issuance of 2.43 million units in November 2024, a 117% increase from October. LMS Energy received the largest batch of 550,000 ACCUs across 23 projects.
Carbon Market Institute (CMI) in its annual business climate survey reveals that 65% of Australian businesses expect Australian Carbon Credit Unit (ACCU) prices to reach above $90 by 2035, compared to current levels of about $40.50.
News from Governments
New Zealand has conducted its latest Emissions Trading Scheme (NZ ETS) auction resulting in a partial clearance of 4 million units. The government had previously announced reduction in available auction units from 45 million to 21 million for 2025-2029 period, demonstrating commitment to strengthen the ETS market as the primary emissions reduction tool.
The government of France is holding a public consultation on the French Strategy for Energy and Climate. This combines three key policies -
the National Low-Carbon Strategy (SNBC),
Multi-annual Energy Programming (PPE),
and National Climate Change Adaptation Plan (PNACC).
The strategy aims to achieve carbon neutrality by 2050 and aligns with the EU's enhanced climate ambitions under the 'Fit for 55' package, while focusing on better coordination between national climate and energy objectives and territorial planning.
South Africa's National Treasury has published a discussion paper on "Phase two of the carbon tax" along with other papers for public comment until December 13, 2024. This indicates potential developments in the country's carbon taxation framework.
The UK Maritime and Coastguard Agency (MCA) has launched a consultation for new Merchant Shipping Regulations 2025, which includes provisions for alternative fuel sources and propulsion types to support shipping industry decarbonization. The regulations will cover vessels below and above 24 metres in length used for commercial sport or pleasure activities, with the consultation running from December 4 to February 25.
Corporate purchases and partnerships
Rothschild & Co has signed a long-term carbon credit purchase agreement with New Zealand-based direct air capture company Capture6. Capture6 uses wastewater brine to capture CO2 from the atmosphere while producing fresh water for local communities, working in partnership with water treatment facilities.
Saudi Arabia’s Aramco has signed a shareholders' agreement with Linde and SLB to develop one of the world's largest Carbon Capture and Storage (CCS) hubs in Jubail, with Aramco taking a 60% equity stake and partners each holding 20%. The first phase of the project, expected to be completed by 2027, will have the capacity to capture and store up to 9 million metric tons of CO2 annually from three Aramco gas plants and other industrial sources, supporting the Kingdom's 2060 net-zero target.
US-based Indigo Ag has agreed to provide Catona Climate exclusive access to 250,000 credits from its regenerative agriculture soil carbon project. The project, which has enrolled over 7 million acres of row crops and issued nearly 300,000 credits through the Climate Action Reserve, represents the largest broad-acre regenerative agriculture soil organic carbon project in the United States and has received a BBB rating from BeZero.
Denmark-based Agreena has partnered with Mars, Incorporated to support regenerative agriculture transition in Hungary through financial incentives for farmers. The partnership will cover up to 5,500 hectares of wheat crops between 2024-2026, with Agreena providing guaranteed payments for greenhouse gas emissions reduction and removals, while project partner Biospheres will offer advice on regenerative practices.
Kenya-based direct air capture company Octavia Carbon has announced a partnership with Thallo, a carbon credits marketplace.
ClimeWorks is launching a new product combining nature-based and tech-based solutions for carbon removal. That’s all we know!
More News
EU-based carbon removal advocacy group Carbon Gap has called for the establishment of a Carbon Dioxide Removal (CDR) compliance mechanism in the European Union by 2030. The organization has proposed key design principles for integrating CDRs into the EU Emissions Trading System (ETS), including
maintaining the cap on emissions,
ensuring higher prices for CDR units,
and introducing additional mechanisms to subsidize CDR costs.
Carbon Gap has also supported the establishment of a Carbon Clearing House to act as a market intermediary for procuring and supplying diverse CDR portfolios.
Verra has released clarifications applicable to procedural documents across all its programs including Climate, Community & Biodiversity Standards (CCBS) Program, Jurisdictional and Nested REDD+ (JNR) Framework, Plastic Waste Reduction Program, Sustainable Development Verified Impact Standard (SD VISta) Program, and Verified Carbon Standard (VCS) Program. The clarifications streamline the project review process and implement a risk-based approach where document review prior to validation/verification is only conducted for high-risk projects.
Verra has launched a public consultation on a new draft Methodology for Alternative Low-Carbon Fuels for Shipping under its Verified Carbon Standard (VCS) Program. The consultation will run from November 18 through December 18, 2024, and covers the use of alternative fuels like hydrogen, green ammonia, e-LNG, e-LPG, e-diesel, and e-methanol in shipping activities.
The Carbon Market Institute (CMI) has released a study examining carbon farming impacts across six council areas in South-west Queensland (SWQ), where 17% of registered vegetation projects are located and one in three properties derive income from carbon farming. The study revealed growing landholder support with 100% of participating farmers showing optimism about financial prospects, compared to 81% of non-carbon farmers, while only 7% of respondents opposed carbon farming practices. Link to Report
The Science Based Targets initiative (SBTi) has launched applications for chemical companies to pilot test its Draft Chemicals Sector Target-Setting Criteria and Tool. The initiative aims to drive decarbonization in one of the world's most significant emitting sectors, with applications open until January 10, 2025.
Further Reading
UN Report - Nature Based Solutions for Peace: Emerging Practice and Options for Policymakers
Carbon Trust blog on EU’s Carbon Border Adjustment Mechanism (CBAM) for steel, iron and aluminium importers & exporters.
ASEAN has partnered with Abatable and Equatorise to release a report on carbon market opportunities in the region. The report highlights potential cumulative revenue of $3tn by 2050 through carbon markets and projects emissions reduction of 1.1 gigatonnes of CO2, while offering six policy considerations for ASEAN policymakers.
Peat Hub Ireland - Key policy actions for the sustainable management of Ireland’s peatlands
A new titanium-based single atom catalyst on nickel hydroxide shows 30x better performance in converting CO2 to CO compared to traditional catalysts. RSC Chemical Science
WBSCD - Unlocking Business Opportunities with ICVCM-approved REDD+
