Carbon registry Verra halts 27 CQC cookstove projects

Market: Emissions
27/06/24

The world's largest carbon crediting registry Verra has suspended 27 projects run by project developer C-Quest Capital (CQC) after "allegations" of over-issuance of millions of credits.

Washington-based CQC has voluntarily reported to the US authorities and Verra wrongdoing by its former chief executive officer, Kenneth Newcombe, which have resulted in the over-issuance of millions of carbon credits from clean cookstove carbon projects hosted by the registry.

Following CQC's announcement, Verra has started the suspension process for 27 implicated projects pending outcome of internal review. "Given C-Quest's voluntary submission of the findings [...] we hope to finalise this review as quickly as possible," said a Verra spokeswoman.

It is still not clear which projects have been suspended among the 34 CQC-run projects currently registered under Verra's VMR0006 methodology — energy efficiency and fuel switch measures in thermal applications. Of these, 22 are located in Africa and the rest in Asia.

The wrongdoing were uncovered by a review conducted by a "global law firm" and commissioned in early 2024 by a "special committee of non-executive directors of CQC's Board of Directors", according to the statement from the project developer. Newcombe, who is also a former Verra board member, was replaced in February by CQC's current chief executive office Jules Kortenhorst.

As part of its remedial measures, CQC has adopted an improved Monitoring Reporting and Verification (MRV) process, reduced the number of deployed cookstoves in its fleet by 175,000 — reflecting the number of cookstoves it believes are no longer in use — and plans to adopt a "more robust carbon crediting methodology and work with registries and the Integrity Council for the Voluntary Carbon Market (ICVCM) to secure a Core Carbon Principles (CCP) label".

The ICVCM, a multi-stakeholder initiative within the voluntary carbon market, has approved the first carbon credit methodologies for its integrity CCP label at the start of the month. The initiative has issued a statement in response to CQC's announcement where it expresses its disappointment but also recognises the efforts of the project developer's new leadership. The ICVCM is currently assessing the VMR0006 methodology used by C-Quest Capital.

By Nicola De Sanctis

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21/11/24

Cop: EU, four countries commit to 1.5°C climate plans

Baku, 21 November (Argus) — The EU, Canada, Mexico, Norway and Switzerland have committed to submit new national climate plans setting out "steep emission cuts", that are consistent with the global 1.5°C temperature increase limit sought by the Paris Agreement. The EU and four countries made the pledge at the UN Cop 29 climate summit in Baku, Azerbaijan today, and called on other nations to follow suit — particularly major economies. Countries are due to submit new climate plans — known as nationally determined contributions (NDCs) — covering 2035 goals to the UN climate body the UNFCCC by early next year. The EU, Canada, Mexico, Norway and Switzerland have not yet submitted their plans, but they will be aligned with a 1.5°C pathway, EU climate commissioner Wopke Hoekstra said today. The Paris climate agreement seeks to limit the global rise in temperature to "well below" 2°C and preferably to 1.5°C. Canada's NDC is being considered by the country's cabinet and will be submitted by the 10 February deadline, Canadian ambassador for climate change Catherine Stewart said today. Switzerland's new NDC will also be submitted by the deadline, the country's representative confirmed. Pamana's special representative for climate change Juan Carlos Monterrey Gomez also joined the press conference today. Panama, which is designated as carbon negative, submitted an updated NDC in June. It is planning to submit a nature pledge, Monterrey Gomez said. "It is time to streamline processes to get to real action", he added. The UK also backed the pledge. The UK announced an ambitious emissions reduction target last week. The UAE — which hosted Cop 28 last year — released a new NDC just ahead of Cop 29, while Brazil, host of next year's Cop 30, released its new NDC on 13 November during the summit. Thailand yesterday at Cop 29 communicated a new emissions reduction target . Indonesia last week said that it intends to submit its updated NDC ahead of the February deadline, with a plan placing a ceiling on emissions and covering all greenhouse gases as well as including the oil and gas sector. Colombia also indicated that its new climate plan will seek to address fossil fuels, but it will submit its NDC by June next year . By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Cop: EU says finance draft text not acceptable

21/11/24

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21/11/24

Cop: EU says finance draft text not acceptable

Baku, 21 November (Argus) — The latest draft of the text on climate financing presented at the UN Cop 29 climate summit is not ambitious enough on mitigation — reducing emissions — and "clearly unacceptable," EU energy commissioner Wopke Hoekstra said today. Parties must agree at Cop 29, in Baku, Azerbaijan, on a new collective quantified goal (NCQG) — a new climate finance target — building on the $100bn/yr that developed countries agreed to deliver to developing countries over 2020-25. The text is the main outcome for the summit. "What we had on our agenda was not just to restate the [Cop 28] consensus but actually to enhance that and to operationalise that," but the text goes in the opposite direction, Hoekstra said. Parties to last year's Cop 28 summit in Dubai made an historic pledge to "transition away" from all fossil fuels. The EU has warned against any backsliding on this pledge . "We cannot accept the view that the previous Cop did not happen," Hoekstra said. A draft text on the mitigation work programme — a process that focuses on emissions reduction — was released by the Cop 29 presidency in the early hours of this morning. It does not mention phasing out or reducing fossil fuels in energy systems, or reference the agreement reached on the latter point at Cop 28 last year. Hoekstra indicated today's text does not provide enough clarity to allow the EU to put a concrete number on the amount of climate finance that should be available. The bloc has insisted the final number for climate financing can come only when other elements, including the structure and contributor base, are settled. But recipient country groups such as the G77 and Like-Minded Developing Countries (LMDC) groups have expressed impatience at the lack of a concrete number. Minor bright spots in the numerous draft texts released overnight include those on Article 6, which governs international carbon credits, Hoekstra said. But the commissioner is "sure there is not a single ambitious country who thinks this is nearly good enough." By Rhys Talbot Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Cop: Talks on Article 6 near final agreement

21/11/24

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21/11/24

Cop: Talks on Article 6 near final agreement

Washington, 21 November (Argus) — Negotiators at the UN Cop 29 climate summit in Baku, Azerbaijan, appear close to a final agreement on the details of an international carbon market under the Paris Agreement. The ministers leading the final discussions on 21 November released updated texts for Article 6.2 and Article 6.4 of the accord that attempt to bridge the gap on remaining issues. It is not yet clear if these are the final texts, but any work left may only involve some "small tweaks", International Emissions Trading Association (Ieta) international policy director Andrea Bonzanni said. Those two sections of the Paris Agreement govern how countries can use carbon credits to meet their greenhouse gas (GHG) emissions-reduction pledges, known as nationally determined contributions (NDCs). Article 6 aims to help set rules on global carbon trade. EU energy commissioner Wopke Hoekstra called Article 6 one area of the talks "where at least the text is a bit encouraging." "We've always been pleading for more progress on Article 6," he said. "We've stressed the tremendous importance of transparency, predictability, credibility of these items." On the key issue of the Article 6 credit registry, the text reflects the idea of a "dual layer" approach that Singapore environment minister Grace Fu suggested on 20 November . The text calls for the creation of a registry to issue and trade credits that would be run by the UN and would be separate from the Article 6 registry, which would only serve an accounting function. "It looks like they managed to make both sides happy," Bonzanni said. The text also says that the inclusion of any emissions credits — known as internationally transferable mitigation outcome (Itmo) units — in the UN registry does not represent any sort of validation of their environmental integrity, in response to concerns raised by the US and others. "There was a concern that if the Itmos are in a UN registry, they may be seen as automatically having legitimacy or UN endorsement," Bonzanni said. The US should be happy with that language, he added. But the EU got only some of what it has sought over the past year. Most notably, the latest text does not include a definition of a "cooperative approach," essentially what it means for countries to buy and sell emissions units under Article 6. An earlier draft of the text included a definition, but there were concerns that it "could have restrained the markets significantly" and created confusion around certain requirements for when countries authorise Itmos, Bonzanni said. "I believe the presidency did a good job by making tough calls." Ieta is not happy with everything in the text, but at the same time "there is nothing harmful" to trading in it, Bonzanni said. By Michael Ball Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Cop: New climate finance draft does not bridge divide

21/11/24

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21/11/24

Cop: New climate finance draft does not bridge divide

Baku, 21 November (Argus) — The UN Cop 29 presidency has released a new draft text on the key issue of climate finance, but entrenched positions remain with no agreement on an amount, and no explicit reference to reducing fossil fuels in energy systems. The outcome of the finance discussions are inextricably linked to progress on mitigation, or cutting emissions. Developing countries have long said they cannot decarbonise or implement an energy transition without adequate finance. Developed countries are calling for substantially stronger global action on emissions reduction. Countries are working at Cop 29 to decide the next stage of a climate finance goal. Developed countries agreed to deliver $100bn/yr in climate finance to developing nations over 2020-25. The draft, released in the early hours today, streamlines previous iterations. But countries' views on details such as the amount beyond 2025 are set out in separate 'options', illustrating a lack of common ground. The text does not overtly reference phasing out or reducing fossil fuels, although it does call on the fossil fuel industry to align itself with the Paris Agreement and for phasing out inefficient fossil fuel subsidies. It is unclear if there was wide agreement on these points. Countries agreed at Cop 28 last year to "transition away" from fossil fuels. The first option, which roughly covers developing country views, sets out a climate finance goal of upwards of $1 trillion over 2025-35, broken down into provision and mobilisation. The provision element — which developed countries would be called on to provide — is in the billions of dollars, from a $100bn/yr floor, and should be grant or grant-equivalent, according to the draft. Mobilised finance, which could be private finance or even from carbon markets, would make up the rest — although no specific figures are in this part of the draft text. The second option, broadly covering developed countries' position, focuses on the Paris climate agreement that seeks to limit the global rise in temperature to 1.5°C above pre-industrial levels. This option sets a floor of $100bn/yr by 2035 for "collectively mobilising" finance "from a wide range of sources". It outlines a goal of $1 trillion or more for "global finance in climate action… from all sources of finance". The contributor base has long been a point of contention. UN climate body the UNFCCC delineated developed and developing countries in 1992, and the former group has consistently argued that economic circumstances have since changed, requesting a wider contributor base for climate finance. But positions on this appear not to have changed. The first option "invites developing country parties willing to contribute" to do so voluntarily, but says this will not be counted in the official finance goal. The second option notes that developed countries take the lead, but contributions from "countries with the economic capacity to contribute" will be counted. "This is not a text that aims to bridge", non-profit WRI director of international climate action David Waskow said today. He sees "a lot of work to be done". Cop 29 is scheduled to finish on 22 November, but many participants said it is likely to overrun. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Cop: Developing nations deplore finance 'radio silence'

20/11/24

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20/11/24

Cop: Developing nations deplore finance 'radio silence'

Baku, 20 November (Argus) — With just a few hours to go before a draft text on a new climate finance goal for developing countries is due at the UN Cop 29 climate summit, there is still "radio silence" from developed nations and an absence of plans, said Adonia Ayebare, chair of the group of 77 (G77) and China negotiating group. Parties must agree at Cop 29, in Baku, Azerbaijan, on a new collective quantified goal (NCQG) — a new climate finance target — building on the current $100bn/yr that developed countries agreed to deliver to developing countries over 2020-25. There is a strong hope that the forthcoming text will clearly define financial commitments detailing the amount, quality and mechanism for delivery, Ayebare said. A perfect text does not exist, he said, adding that developing countries have already put forth a figure that reflects their needs. They are broadly calling , for 1.3 trillion/yr while developed countries have not indicated an amount. "We need a figure for the headline of the text [in trillions], the rest will follow." The EU today insisted that the precise number for the goal will depend on agreement on other issues, including progress on mitigation and financing structure. In response to a question about uncorroborated rumours that developed countries may be considering a figure of $200bn/yr, Bolivia's negotiator Diego Pacheco said: "Is this a joke?" Developed country representatives have so far refuted this figure , or that they have settled on an amount. The "super red line" for the Like-Minded Developing Countries (LMDC) group is to not reinterpret or rewrite the Paris Agreement, said Pacheco, representing the group. The NCQG should be grounded in the mandate of the Paris accord, which states finance should flow from developed to developing countries. "Negotiations don't need to reopen the Paris agreement, but we can look at another area [such as] voluntary contributions for example, but that comes after the headline [figure], Ayebare said. Pacheco also talked about developed countries' attempts on mitigation, for example, to "move from the facilitative nature of the Paris Agreement to a prescriptive, intrusive mitigation… cherry-picking some elements of the [global stocktake]," he added. The EU and other developing nations are pushing for language on transitioning away from all fossil fuels that was included in the outcome of Cop 28 in Dubai last year to be included in this year's outcomes. By Prethika Nair and Rhys Talbot Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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