California voluntary offset bill stranded
A California bill targeting sellers of questionable or false voluntary offsets credits in the state has died after its author pulled it from a committee hearing on Monday, leaving no way to advance the bill in this session.
SB 1036, introduced by state senator Monique Limón (D), would have made it unlawful for anyone to issue, market, certify or sell voluntary carbon offsets, or maintain a registry, if they have knowledge that the credit-generating projects are not actually reducing or removing greenhouse (GHG) emissions as claimed.
The bill spent just over a month in limbo ahead of a Monday hearing before the state Assembly Natural Resources Committee, after passing out of the Senate by a 31-15 vote in May. But Limón withdrew the bill just before the hearing, which represented its final chance to meet Wednesday's deadline for advancing out of the policy committee.
Limón cited difficulties gaining support from market participants as the reason for withdrawing the bill, which would add claims around carbon offsets purchased from the voluntary market to the state code on false or misleading advertising.
"Despite the deep deficiencies within voluntary carbon markets, it became clear that market participants are unwilling to accept legally enforceable standards to address the magnitude of junk offsets being marketed and sold in California," she said.
This is Limón's second attempt to pass a bill regulating claims in the voluntary carbon offset sphere, following SB 390, which passed largely unopposed in the legislature last year before governor Gavin Newsom (D) vetoed the bill.
The governor rejected the bill on concerns that it might affect well-meaning sellers and verifiers, hurting the in-state and wider voluntary carbon markets.
While the predecessor bill smoothly moved through the legislature last session before the governor's veto, the same was not true for SB 1036, which faced opposition from environmental market participants and industry groups such as Anew Climate, Western States Petroleum Alliance (WSPA), the Securities Industry and Financial Markets Association (SIFMA) during this session. Critics of the bill said the requirements would be unworkable, discourage project development and investments and increase the role of the courts in reviewing the intricacies of GHG accounting.
It is unclear if Limón will again revive this specific approach to regulate the voluntary carbon offset market in the next legislative session. But the senator has no plans to stop, her office said, and she intends to decide early next year her next steps to address the voluntary carbon market.
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Washington advances carbon market linkage plans
Washington advances carbon market linkage plans
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Italy’s NECP eyes 11pc of power demand from nuclear
Italy’s NECP eyes 11pc of power demand from nuclear
London, 2 July (Argus) — Italy aims to generate at least 11pc of its power demand from nuclear energy by 2050 and could double that amount if necessary as part of efforts to meet its climate goals. In its new national energy and climate plan (NECP) sent to Brussels yesterday, Rome said its "conservative" scenario envisioned installing 8GW of nuclear power capacity using mainly small modular reactors but also fusion plants. Italy could build as much as 16GW of nuclear capacity depending on developments across the energy system, according to the document. The ‘with-nuclear' option would provide savings of around €17bn ($18.3bn) compared with not using it. It would also mean less gas consumption tied to carbon capture and storage (CCS) technology. Italy banned nuclear power in a referendum in 1987 after the Chernobyl disaster, but the current right-wing government of Giorgia Meloni has voiced its support for the technology. Last year it set up the national platform for sustainable nuclear power to map out a timeline for a possible return to nuclear power. In confirmation of targets set last year , Rome said it aimed to install a total of 131GW of renewable energy capacity by 2030, compared to 58GW in 2021, with a view to meeting 63pc of power demand and 39.4pc of total energy consumption. Most of the new capacity will be solar photovoltaic (PV), with 79GW expected to be installed driven by new subsidies and easier permitting. Wind capacity is expected to contribute 28GW, with offshore wind providing just 2.1GW. The plan envisages the development of contracts for difference (CfDs) through auctions for larger plants, as well as a framework to boost power-purchasing agreements (PPAs). Italy's NECP also maps out the development of electricity grids and cross-border interconnections. "The long-term risk is that the tight renewables penetration targets and the CfD mechanism established by the EU to deliver incentives could lead to a negative impact on spot prices, currently driven in Italy by the price of natural gas and carbon allowances," Italian broker Equita said. The current final revision of Italy's NECP comes after a cross-sector and public consultation. It was submitted to the European Commission for approval on 1 July, a day after the deadline required by EU law. By Steven Jewkes and Timothy Santonastaso Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Countries draft trade deal to address climate change
Countries draft trade deal to address climate change
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Reformed Australia safeguard scheme faces uncertainties
Reformed Australia safeguard scheme faces uncertainties
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