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NGO warns on carbon removals focus

  • Market: Emissions
  • 13/12/22

Non-governmental organisation (NGO) Carbon Market Watch (CMW) has warned against the increased focus on carbon removals in climate policy, as the subject ramps up in the legislative agenda of both the EU and the UN, and is likely to be a key issue at Cop 28 in November 2023.

The European Commission last month published its proposal for a carbon removal certification framework to act as a future EU-wide voluntary framework to certify carbon dioxide removals (CDR).

CMW slammed the EU proposals for including non-permanent storage CDR and for omitting any clear view on what role carbon removals could "legitimately" play in EU climate policy, according to CMW policy expert Fabiola de Simone.

CMW executive director Sabine Frank warned against the high profile given to carbon removals at the recent Cop 27 conference in Sharm El-Sheikh, Egypt, last month, where she said "UN-backed carbon removal pioneers" made "unrealistic" proposals for carbon removals focusing almost exclusively on non-permanent, land-based methods.

Cop 27, dubbed "Loss and Damage Cop", might well have been called "Removals Cop" given the levels of activity on the topic, advisors Paul Zakkour of consultancy Carbon Counts and Eve Tamme of climate policy advisory Climate Principles wrote in a recent assessment of the summit.

Carbon removals also indirectly figured in a draft version of one of Cop's cover decisions, which called for "developed countries to attain net-negative carbon emissions by 2030".

And the complicating aspects of removals — the risks pertaining to leakage, monitoring and reversals — contributed to the collapse of negotiations at Cop 27 on Article 6.4 of the Paris climate agreement, the future basis for a UN-regulated global carbon market and essentially a successor to the Kyoto Protocol's clean development mechanism.

As work on Article 6.4 continues under the Article 6.4 supervisory board, with the final decisions expected to be taken at Cop 28, carbon removals will remain a constant issue.

The UN Global Stocktake process, which concludes next year, will further keep the spotlight on removals, Zakkour and Tamme say. Additionally, the UN work programme on urgently scaling up mitigation, which runs in parallel with the Global Stocktake programme, could provide an opportunity to open up a dialogue on the role of carbon removal in pre-2030 mitigation.

The focus on removals is likely to increase given the expectation of another round of updated nationally determined contributions (NDCs) to the Paris deal next year, and as the focus of NDCs and the stocktake itself move beyond 2030, Zakkour and Tamme say.

They argue that the UAE, as the incoming Cop 28 presidency, is bound to have a "deep interest" in carbon capture and storage and is likely to offer these technologies a stronger platform.

Research by Harry Smith of the University of East Anglia and others, published in scientific journal Communications Earth & Environment, finds that countries appear to be struggling to integrate CDR into the scenarios they have modelled in their long-term national climate strategies. Countries will largely look at using forests and soils to reach net zero, according to the study.

And countries face two major challenges, according to the study — "the limitations of forests to act as substantial or long-term stable carbon sinks, and the limited national geological storage capacity for engineered CDR".

In the case of limited domestic geological storage capacity, countries in their strategies should focus more on engineered CDR, or on the potential of international carbon credit trading under Article 6 of the Paris climate agreement, the authors suggest.


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07/11/25

Australia’s Amplitude Energy to exit Climate Active

Australia’s Amplitude Energy to exit Climate Active

Sydney, 7 November (Argus) — Australian independent Amplitude Energy will withdraw from the federal government-backed Climate Active certification program from 30 June 2026, the latest participant to exit as firms await clarity on proposed reforms. The company is seeking Climate Active's carbon neutrality certification for the financial year ending 30 June 2025, after which it will report under Australia's new mandatory climate reporting rules that came into force this year, Amplitude said on 6 November. Under the new framework companies must disclose the expected effects of climate-related risks and plans to manage these risks. The company remains committed to avoid and minimise direct emissions and voluntarily surrender certified carbon credits to offset 100pc of its residual scope 1 and 2 emissions, Amplitude said. It had not responded to queries from Argus about the use of Australian Carbon Credit Units (ACCUs) at the time of writing. The firm reported total emissions of 124,478t CO2 equivalent (CO2e) in the financial year ending 30 June 2024. It surrendered 118,254 verified carbon units (VCUs) from the Verra registry and 6,224 ACCUs for that year. The ACCU share of 5pc in total surrenders was down from 6pc in 2022-23, 30pc in 2021-22 and 100pc in both 2020-21 and 2019-20 (see table) . Amplitude is yet to release its public disclosure statement for Climate Active for the 2024-25 period with the breakdown of surrendered carbon credits, but it recently mentioned in its sustainability report that total emissions fell to 103,656t CO2e. The firm is targeting a 40pc reduction of greenhouse gas (GHG) emissions from flaring by June 2030 from 2023 levels and achieved a 59pc reduction in 2025. It does not have any facilities under the compliance market's safeguard mechanism as none of its plants emit more than 100,000 t/yr of scope 1 emissions. The Australian government is considering the future of its Climate Active program and how it coexists with other climate legislations. Some of the key decisions on the future of the program include whether to change the existing list of eligible international units or set a minimum percentage use of ACCUs. Apart from ACCUs and VCUs, organisations can also use certified emissions reductions (CERs), removal units (RMUs), and verified emissions reductions (VERs) from Gold Standard. ACCUs made up only around 6pc of all cancellations over the history of the program. Several companies exited the scheme in recent months on the back of negative academic and media coverage and increasing climate litigation risks . The number of certified brands under Climate Active is currently at 492, down from almost 590 at the end of 2024. Meanwhile, the number of brands that stopped using the certification increased to 296 from around 180 over the same period. By Susannah Cornford and Juan Weik Amplitude's carbon credit surrenders under Climate Active unit Financial year ACCUs VCUs ACCU share % FY 2023-24 6,224 118,254 5 FY 2022-23 6,398 94,121 6 FY 2021-22 7,684 17,930 30 FY 2020-21 4,352 0 100 FY 2019-20 10,488 0 100 source: Climate Active Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Cop: Norway, Indonesia, France pledge $4.5bn to TFFF


06/11/25
News
06/11/25

Cop: Norway, Indonesia, France pledge $4.5bn to TFFF

Belem, 6 November (Argus) — Several countries have endorsed Brazil's Tropical Forests Forever Facility (TFFF), with Norway, Indonesia and France pledging a combined $4.5bn, Brazilian government officials said today. TFFF, a global fund to preserve global tropical forests , aims to help pay developing countries $4/hectare (ha) for preserved tropical forests. The goal is to raise around $125bn for the fund, to protect and conserve roughly 1bn ha of tropical forests globally. Brazil officially launched the fund on Thursday in Belem, on the first day of a world leaders' summit ahead of the UN Cop 30 climate talks, which start on 10 November. Norway pledged up to 30bn Norwegian kroner ($2.94bn) over 10 years. Indonesia earmarked $1bn, while France pledged around €500mn ($577.4mn), Brazilian finance minister Fernando Haddad said at the leaders' summit, without outlining the timeframe for those two countries' pledges. Colombia also pledged $250mn, the Global Strategic Communications Council said. Brazil pledged $1bn to the fund in September. "The main problem in international climate work these days is that there are not too many bold ideas," Andreas Bjelland Eriksen, Norway's climate and environment minister, told reporters. But he commended TFFF for being the opposite. "At the point where we are now, reducing deforestation of tropical forests will not be enough," he said. "We need to create incentives for keeping the remaining tropical forests for all the time we have ahead of us. Thus, I can say very clearly that Norway has liked TFFF's idea and model from the outset". He called on more nations to make pledges and outlined some of Norway's conditions for the funding. Norway will not be responsible for more than 20pc of the fund's total amount, and the fund must mobilise at least NKr100bn by the end of 2026. Haddad previously said that he expected TFFF to reach $10bn before Brazil transfers the Cop presidency in November next year. But he is much more confident now that TFFF will achieve that goal, he added. In total, 53 countries endorsed TFFF, with Portugal and the Netherlands making smaller contributions to cover the fund's operational costs, the undersecretary for economic affairs of Brazil's finance ministry Joao Paulo de Resende told reporters on the summit's sidelines. Portugal donated €1mn, and the Netherlands donated $5mn. "The backing from almost 50 countries is encouraging and marks an important start for the TFFF, reflecting growing recognition of the need for collective action to protect and restore tropical forests," the interim executive director of non-profit World Resources Institute Brazil Mirela Sandrini said. "However, the pool of those that have actually committed funding so far remains limited", she added. Brazil expects other countries to make pledges in the future, Haddad said. Germany will make an announcement on the amount of its pledge tomorrow, he added. The UK, on the other hand, has said it will not make a financial pledge at this time, although it is endorsing the fund and will contribute to spreading its word to both the public and private sectors, Haddad said. Prince William of Wales, who spoke on behalf of the UK at the world leaders' summit, called the TFFF a "visionary step" in the fight against climate change. TFFF will be "one of the key, concrete outcomes" of Cop 30, Brazilian president Luiz Inacio da Lula said during TFFF's official launch today. By Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Cop: Brazil calls for fossil fuel phase-out roadmap


06/11/25
News
06/11/25

Cop: Brazil calls for fossil fuel phase-out roadmap

Belem, 6 November (Argus) — Brazilian president Luiz Inacio Lula da Silva today called world leaders to draw roadmaps to "overcome dependence on fossil fuels" and reverse deforestation, during a global summit ahead of the UN Cop 30 climate talks. Lula said during his opening speech at the summit in Belem today that he is "convinced" that countries can come up with these roadmaps "despite our difficulties and contradictions". The Cop 30 talks will officially start on 10 November. Now is the time to "face reality and decide" whether the world "will have the courage and determination necessary" to accelerate the energy transition and the fight against climate change, he added. Lula said that to do so, the world must overcome the "disconnect between diplomatic circles and the real world", calling on countries, companies and individual people to put the fight against climate change at the centre of their decisions. Lula asked leaders to address the "disconnect between the geopolitical context and the climate emergency," saying that "extremist forces fabricate falsehoods [about climate change] to gain electoral advantage" and that armed conflicts take resources that should instead head towards tackling global warming. Lula called for global leaders to mobilise the resources necessary to achieve the transition away from fossil fuels and reverse deforestation. Finance — public and private — will remain a key focus at Cop 30, after some developing countries disputed a new $300bn/yr finance goal agreed last year in Baku. The Baku to Belem roadmap released yesterday charted a path towards delivering climate finance flows of $1.3 trillion/yr by 2035 for developing nations. A range of taxes, including on aviation or maritime transport, luxury goods, financial transactions and corporate and wealth taxes, could help finance that climate action, according to the roadmap. Walk the walk Some observers commended Lula for mentioning the phase-out of fossil fuels, but warned that Brazil must also walk the walk when it comes to its crude exploration targets. "Lula spoke powerfully about justice and cooperation in a divided world, highlighting the need to get rid of fossil fuels and accelerate the energy transition," Andreas Sieber, associate director at environmental NGO 350.org said. "But he cannot be both a champion of climate justice and one of the world's biggest oil expanders". Brazil produces around 4mn b/d of crude, making it one of the 10 largest producers globally. The country has plans to expand that to 5.3mn b/d by 2030, according to its energy research bureau Epe, hinging on new exploratory frontiers such as the southern Pelotas basin and the environmentally-sensitive equatorial margin. Environmental watchdog Ibama recently granted state-controlled Petrobras a license to drill a well in the latter . The granting of the license contradicts Lula's speech, according to Marcio Astrini, the executive secretary of climate umbrella group Observatorio do Clima. "What we hope, now, that the license is already a reality, is that the the [Brazilian] government will fulfill its promises of putting the proposal [to phase out fossil fuels] on the table [at Cop 30]", he added. Lula's legacy and Cop 30's credibility will hinge on whether he can actually get the phase out of fossil fuels to the negotiation tables "and follow up on his laudable ambition to accelerate the energy transition in Belem", Sieber said. By Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Australia’s Greencollar launches EP ACCU carbon fund


06/11/25
News
06/11/25

Australia’s Greencollar launches EP ACCU carbon fund

Sydney, 6 November (Argus) — Australian environmental market investor GreenCollar has launched a fund looking to raise A$100mn ($64.9mn) to develop Australian Carbon Credit Unit (ACCU) projects under the Environmental Plantings (EP) method. The funds should be committed by the end of the first quarter of 2026, and the first ACCU projects could be registered just after closing the raise, the company told Argus today. Investors will be entitled to distribution of ACCUs generated by the fund, opting for receiving profits either in carbon units or cash, GreenCollar said. The EP fund is the latest in a series of investments announced over the past year. UK-based investment firm Cibus Capital is looking to raise A$70mn-100mn by the end of 2025 and as much as A$300mn by the end of 2026, which would finance projects that could generate up to an estimated 11.25mn ACCUs over 30 years. Australian state-owned green investment fund Clean Energy Finance (CEFC) recently launched a A$250mn platform also dedicated to EP ACCU projects , which secured a long-term offtake with mining company Rio Tinto for part of the credits issued. These announcements follow a move in 2024 by the Silva Carbon Origination Fund , which is backed by mining companies Rio Tinto and BHP, and airline Qantas. Under the EP carbon crediting methodology, which was updated in 2024 , ACCUs are issued to projects based on carbon sequestered in trees as they grow. Carbon developers need to establish a permanent forest by planting a mix of native species. The resulting carbon credits are regarded as having among the highest integrity across the scheme, commanding a significant premium to ACCUs coming from methods such as human-induced regeneration (HIR), avoided deforestation (AD) and landfill gas. EP ACCUs trade sporadically and in low volumes but have been fetching prices around mid-A$50s/t CO2e in recent months, compared with A$38.15-38.65/t CO2e across generic ACCUs. "While the EP method is not yet at the scale of other methods, EP is anticipated to be a core pillar of ACCU project growth in coming years," GreenCollar said. The company claims to be the largest nature-based ACCU developer, with a market share of over 40pc. Canada's Ontario Teachers' Pension Plan owns a majority stake in the company. There are two existing EP projects registered under GreenCollar's subsidiary Terra Carbon, according to the Clean Energy Regulator (CER) — Buddha in the Bush Ceduna Sanctuary and Brinkley Station Revegetation Project. Both projects were registered in South Australia in 2024, with 25-year permanence period, according to CER register data. By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Australia backs Vopak’s CO2 import project


06/11/25
News
06/11/25

Australia backs Vopak’s CO2 import project

Sydney, 6 November (Argus) — Australia's Northern Territory (NT) government has backed Dutch infrastructure developer Royal Vopak's proposed 5mn t/yr Middle Arm liquid CO2 import facility in Darwin through a not-to-deal commitment. NT's government will not partner with other liquid CO2 import terminal developers under its commitment. The pledge gives Vopak the certainty it needs to accelerate work on the project, which is set to open in the 2030s, the government said in a statement on 6 November. Vopak signed an initial agreement with NT to develop the terminal in August 2024. It will take CO2 from industrial plants and other countries, supporting carbon capture and storage (CCS) projects. The company already operates in Australia. It runs petroleum import terminals in Darwin and Sydney, which also accept biodiesel, ethanol, vegetable oil, and bitumen shipments. Vopak's common user CO2 facility could support Japanese producer Inpex. Inpex plans to inject captured CO2 from Japan into its developing 10mn t/yr Bonaparte CCS project in NT from 2030. Australia's federal government passed laws to permit CO2 imports for CCS in 2023. It also gave Inpex's development major project status in July, which will help to streamline approvals. By Avinash Govind Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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