Paris agreement carbon crediting mechanism advances
The development of the UN-regulated carbon market under Article 6.4 of the Paris climate agreement — now named the "Paris Agreement Crediting Mechanism" — is making some progress, with its supervisory body focusing not just on its tools and guidelines but also on addressing concerns raised by negotiators at the UN Cop 28 climate conference in Dubai last year.
Particularly strong concerns were raised at Cop 28 on the potential effect of carbon reduction activities on human rights and the environment. Supervisory body members stressed at their first post-Cop 28 meeting the fundamental importance of environmental safeguards for the new mechanism under its appeal and grievance procedure and sustainable development tool, both to be adopted at the next supervisory body meeting in the spring.
The meeting in Bonn, Germany, also saw the formal launch of the accreditation expert and methodological expert panels. The former will start accrediting auditors to verify and validate projects from April, while the latter will bring in further technical expertise for the development of standards, guidelines and tools for activities under the mechanism.
The body's proposals for methodologies and guidelines were thrown out at Cop 28, along with those on acceptable carbon removal activities under the mechanism. The body will continue to work on these issues, with final drafts expected to once again be put to the parties to the Paris deal at Cop 29 in Baku, Azerbaijan, in November.
The new mechanism is essentially a successor to the Kyoto protocol's clean development mechanism (CDM). About 1,300 requests to transition CDM activities to the new mechanism will need to be processed this year. The UN's climate arm and the supervisory body will also need to implement a registry infrastructure for Article 6.4 carbon credits, as well as conducting capacity building activities to assist countries in establishing institutional arrangements, reporting and baselines.
Capacity building in host countries is progressing, with the number of designated national authorities rising to 72 on 1 March from 64 on 2 November. The supervisory body decided at its meeting to establish a forum aimed at facilitating knowledge exchange and addressing shared challenges among authorities.
The body also pledged to recommend at Cop 29 that parties exempt Article 6.4 activities in least developed countries from the share of proceeds requirement — which transfers a portion of funds from the mechanism's credits to a climate adaptation fund — in a bid to encourage broader participation from these countries.
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ICVCM approves methodologies covering 27mn credits
ICVCM approves methodologies covering 27mn credits
London, 6 June (Argus) — The Integrity Council for the Voluntary Carbon Market (ICVCM) today announced that it has approved seven carbon crediting methodologies that together account for about 27mn credits. The multi-stakeholder initiative's Core Carbon Principles (CCP) label acts as a benchmark for project integrity in the VCM that can be attached to carbon credits issued under approved methodologies to assure buyers of their quality. The seven methodologies approved by the ICVCM today cover projects that capture landfill gas (LFG) and those that mitigate ozone-depleting substances (ODS) from discarded household equipment. Four LFG methodologies have been approved in total, two of which are used by carbon registries Verra and Gold Standard, with the third used by the American Carbon Registry and the fourth by the Climate Action Reserve. Three ODS methodologies have been approved, one of which is used by the American Carbon Registry, with the other two used by the Climate Action Reserve. The ICVCM is currently assessing another 27 carbon credit methodologies that cover about half of the global market. Several of these include more LFG methodologies that account for an estimated 76mn carbon credits and more ODS methodologies that cover roughly 4mn carbon credits. The group said it expects to approve several methodologies in the reduction of emissions from the deforestation and degradation (REDD+) and clean cookstoves sectors in the coming months. Verra said it has applied CCP labels to more than 10mn credits under its Verified Carbon Standard, all of which can be viewed on its public registry. The firm said project developers using ICVCM-approved methodologies can now request CCP labels if they have not already been approved. The ICVCM's announcement follows last week's endorsement of the VCM by the US government , which issued guidance for entities seeking to participate buy, sell and trade carbon credits. By Felix Todd Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Temperature likely to exceed 1.5°C limit by 2028: WMO
Temperature likely to exceed 1.5°C limit by 2028: WMO
London, 5 June (Argus) — There is an 80pc likelihood that the average global temperature across one of the next five years will breach the 1.5°C goal of the Paris climate agreement, the World Meteorological Organisation (WMO) said today. The Paris agreement seeks to limit global warming to "well below" 2°C above pre-industrial levels, and preferably to 1.5°C. Climate scientists use a time period of 1850-1900 as a pre-industrial baseline. But shorter-term warming, over a year or so, "does not equate to a permanent breach" of the Paris agreement goal, the WMO said. The chance of one of the next five years breaching the 1.5°C goal "has risen steadily since 2015, when such a chance was close to zero", the WMO said. It is also very likely that one of the next five years — 2024-28 — will be the hottest on record, with an 86pc chance of this happening, the organisation added. The warmest year on record was last year , at 1.45°C above pre-industrial levels. There is also a 47pc chance that the global temperature average over the entire period of 2024-28 will surpass the 1.5°C limit, the WMO said. The likelihood of this happening over 2023-27 was at 32pc. In a separate report today, EU earth-monitoring service Copernicus confirmed that last month was the warmest May on record globally. The average temperature for May was 1.52°C above pre-industrial levels, making it the 11th consecutive month at or higher than 1.5°C above that baseline, Copernicus said. The global average temperature for the past 12 months — June 2023-May 2024 — is the highest on record, at 1.63°C above the pre-industrial average, Copernicus data show. "The battle to limit temperature rise to 1.5°C will be won or lost in the 2020s," UN secretary-general Antonio Guterres said today, in a speech marking World Environment Day. "It's climate crunch time," he added. Guterres spoke ahead of the G7 summit, set for 13-15 June in southern Italy. The G7 countries are Italy — which holds the presidency this year — Canada, France, Germany, Japan, the UK and the US. The EU is a non-enumerated member. G7 finance ministers placed climate firmly on the agenda in a communique released after their meeting in late May. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Oman's Sohar port starts B20 biofuel bunker trials
Oman's Sohar port starts B20 biofuel bunker trials
Dubai, 4 June (Argus) — Oman's port of Sohar has received the first shipment of biofuel to begin its pilot trial in marine tug operations, according to state news agency ONA. The trial will use B20, which typically is a blend of 80pc diesel and 20pc used cooking methyl ester (Ucome), sourced locally. Biodiesel is viewed as a more environmentally friendly alternative to marine fuels, such as low- and high-sulphur fuel oils. The port will conduct the trials in collaboration with tugboat operator Svitzer, biofuel producer Wakud and Omani bunker provider Hormuz Marine. Oman has committed to reach net zero carbon emissions by 2050. "The use of biofuels will significantly contribute to reducing the level of harmful emissions," port chief executive Emile Hoogsteden said. "The project would set an example to be emulated in the region and beyond." Several companies have expressed interest in increasing usage of biofuels as pressure mounts on the shipping industry to reduce emissions. The UAE's port of Fujairah received its first biofuel bunker cargoes in December 2023. Oman has been taking steps to develop its conventional and alternative bunkering infrastructure in recent years in an effort to become a serious competitor to the region's main marine fuels hubs, like Fujairah. In April, TotalEnergies took a final investment decision (FID) for the integrated Marsa LNG bunkering project it is carrying out with state-owned OQ. The company said it wants the project to serve as the first LNG bunkering hub in the Mideast Gulf, "showcasing an available and competitive alternative marine fuel" to reduce shipping emissions. By Rithika Krishna Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
World Bank funds Yichang city transport decarbonisation
World Bank funds Yichang city transport decarbonisation
Singapore, 4 June (Argus) — The World Bank is providing a $250mn loan to support China's Yichang city's shift to an "environmentally cleaner" transportation system to cut greenhouse gas (GHG) emissions. The newly-approved Low Carbon Transition of Urban Mobility in Yichang (Hubei) programme will support the city to enforce cleaner vehicle emission standards and retire older, heavily polluting freight vehicles and buses, the World Bank said on 31 May. The programme will also help the city pilot participation of the transport sector in an emissions trading scheme. Programme financing is estimated at $1.114bn over five years, with the World Bank providing $250mn through an International Bank for Reconstruction and Development loan, and the rest from the Chinese government. The World Bank estimates the total project cost at $3.625bn. The programme is aligned with the World Bank's Country Partnership Framework for China for the 2020-25 fiscal years, particularly in promoting low-carbon transport and reducing air pollution, as well as aiding China in meeting its climate commitments. Yichang's emissions profile Non-governmental and non-profit think tank the Institute for Transportation and Development Policy (ITDP) has been supporting the World Bank in assessing Yichang's emissions profile since 2022. This includes evaluating the feasibility and cost-effectiveness of various decarbonisation policies applied in the context of the city, particularly as it relates to urban transport. China's transport sector is the fourth-largest GHG contributor, with the country being one of the top GHG producers globally, according to the ITDP. China accounted for 31pc of CO2 emissions in 2021, according to the World Bank. Yichang's primary emissions source is road transport, which accounted for over 80pc of the city's emissions over 2015-21. Private passenger vehicles were the largest contributor, with freight transport coming in second. Water-based cargo transport contributes nearly 10pc of the city's transport emissions, with railways and civil aviation contributing another 10pc together. Public transport electrification is already underway across Yichang, ITDP added, with the city achieving the transition of nearly 47pc of its public bus fleet and over 90pc of its dual-fuel taxi vehicles as of 2021. By Tng Yong Li Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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