Ralph Torrie

California, Québec and Washington to begin linkage agreement discussions Imagine a carbon market that spans borders, connecting some of the most powerful economies in North America—California, Québec, and Washington. Together, these regions boast a combined GDP of over $5 trillion USD, a massive economic engine that rivals global superpowers. California, with its formidable $3.9 trillion economy, stands as the fifth largest in the world. Québec, with its USD 325 billion and Washington’s USD 830 billion, round out a triad of innovation and economic clout. By linking their carbon markets, these regions will create one of the largest carbon pricing systems globally. This partnership unites the existing Western Climate Initiative between California and Québec. It has already funneled over $9 billion into clean energy investments, with Washington's emerging cap-and-invest market generating over $1 billion in its first year alone. Linking these systems will foster deeper cuts to greenhouse gas emissions while stabilizing carbon prices across all three regions. This joint initiative could directly affect the lives of more than 68 million people across these three regions and indirectly affect more than 300 Million lives in North America. With an interconnected market, businesses will face lower compliance costs, encouraging more significant investment in zero-carbon technologies and driving innovation. Consumers will benefit from the larger, more stable marketplace as businesses can more predictably plan for a decarbonized future. As California, Québec, and Washington finalize their linkage agreements by 2025, the world will watch as these climate pioneers blaze a trail, proving that international cooperation on carbon markets can spur real economic growth and environmental resilience. Together, they will create a scalable, market-based climate solutions model that can inspire other governments to follow their lead. #WashingtonStateDepartmentofEcology https://lnkd.in/eess8u7y

7

What is happening in the voluntary carbon market? 1. ⬆Increasing Confidence: The The Integrity Council for the Voluntary Carbon Market (ICVCM) has approved CAR, ACR, Verra, and Gold Standard as Core Carbon Principles-eligible carbon crediting programs. This has further instilled confidence among buyers in the “Big Four” registries. 2. ⬆Increasing Demand: The Science Based Targets initiative has approved the use of carbon offsets for companies to address their Scope 3 emissions to meet net zero claims. This creates a pathway for SBTi aligned companies to meet net zero goals via increased purchasing of offsets. Additionally, the U.S. Securities and Exchange Commission Ruling on Climate-Related disclosure sets a strong precedent for carbon accounting and disclosure. As companies are required to disclose material Scope 1 and 2 emissions, they will likely become more active in offsetting those emissions. After all, if your dirty laundry is out in the open, aren’t you more likely to clean it up and take it down? 3. ⬇ Reduction in Supply & ✈️Flight to Quality: MSCI Carbon Markets released an analysis showing that increased integrity standards have the potential to reduce purchasing volume of ‘low quality’ offsets by 50-80%. We are already seeing a reallocation of purchasing power from low quality credits that have oversaturated the market to high quality removals and nature based solutions (Notably, seeing Stripe recently sourced removals for $382 per ton by my math). If Core Carbon Principles is the impetus for buyers to get off the sidelines and invest in CCP approved credits, that is a lot of purchasing power unlocked for a relatively small volume of credits. Remember your Econ 101 days, ‘Demand-Pull Inflation’ is a condition in which too many dollars are chasing too few goods! 📈

38

#INC4 #PlasticTreaty Recommended read by Planet Tracker on INC4 in Ottawa 👇 Five main considerations:  1.   Are upstream petrochemical producers in scope?  2.   Will hazardous chemicals be called out? 3.   Will there be product restrictions? 4.   Who will finance the transition?  5.   Will the final treaty text be mandatory or voluntary? https://lnkd.in/eiuHXb5z

1

A smart climate move is to voluntarily disclose your organization's carbon footprint - after passing a third-party GHG verification by an accredited body. #climateaction #GSSChallenge #smartclimatemoves

2

Two more important drivers for CDR in Canada right now: 🇨🇦 Canadian-based project developers: CO280 and Deep Sky are innovators in this space. 💸 Tax Incentives: The Government of Canada's Bill C-59 offers a 60% tax credit for direct air capture (DAC) capital expenditures (this is from the air, not point source carbon capture). -- In addition to what Timothy Bushman, Carbon Removal Canada and Carbon Gap share in their post, here are a few of my thoughts. 🇨🇦 Canadian-based developers like CO280 and Deep Sky draw significant attention to the potential for CDR here. While not necessarily the highest concentration of novel suppliers (although we do have some - shoutout to Arca and Planetary), Canada is ideal for commercial-scale projects. 🤔 Project developers like CO280 and Deep Sky are increasing carbon dioxide removal (CDR) awareness in and for Canada. We need to ensure that Canadian corporations and institutions accesses the credits generated here, too. 🌟 Canada's tax incentive could attract projects from global DAC leaders like Heirloom, further boosting Canada’s position in this space. -- #ClimateTechCanada #CDR #CarbonDioxideRemoval #ClimatePolicy #BillC59 #CDRPolicy

15

Time To Ditch The Just Transition: While CDN has a carbon tax & uses its carbon tax revenues to fund the made in China "Just Transition" to wind/solar/EVs/heatpumps that don't work at -40 in Canada, the US has no carbon tax, and in 2023 became the world's largest exporter of oil and gas in the world. And while the CDN PM tells its allies there is no business case for LNG in Canada, the US in 2024 has become the largest supplier of LNG to Europe! Climate change is a global issue to be solved, not a national political opportunity. If Canada really wants to help the world reduce its emissions, CDN should export inexpensive SK uranium, ON CANDU & AB/BC LNG!

12

The CCP labels are coming!! Here’s a quick explainer on the The Integrity Council for the Voluntary Carbon Market (ICVCM) process, criteria and what we’re doing to help build an effective, scaled and just carbon market that works for the planet and for people.

76

2 Comments

Today, the US Federal departments and offices have issued the statement and associated principles on voluntary carbon markets (VCMs) which is based on the belief the meaningful role #VCMs can and should play in facilitating GHG emissions reductions and removals, and eventually acting as a critical tool in the climate action toolkit to limit the global warming to 1.5 °C.  The statement further reinforces that with right incentives and guardrails in place, VCMs holds potential to become a significant channel for mobilizing much needed private capital in support of the energy transition.  Such developments paves the way for high-functioning VCMs that creates meaningful economic opportunities for carbon project investors, and connect buyers to high-quality, cost-effective emissions reductions and removals credits, ensuring that one credit truly represents one tonne of carbon dioxide (or its equivalent) reduced or removed from the atmosphere, beyond what would have otherwise occurred. Read more at https://lnkd.in/guRsSvrZ At #GEVernova, achieving #decarbonization along with electrification is more than our mission. It’s a mindset that drives every aspect of our functionality.   #GEVernovaCarbonManagement services, plays a critical role in achieving our decarbonization mission and create solutions for our customers to help unlock GHG emission mitigation to meet #netzero targets and #sustainabilitygoals. We provide assessments and tools beneficial in navigating the complexities of #energytransition pathways to arrive at the most optimised actionable outcome.  Find out more about our #GEVernovaCarbonManagement services at https://lnkd.in/gvfWN2KD  

37

2 Comments

Here we go! GHG Protocol update process to formally kick off this fall.

12

Excellent news on clarity of #climate taxonomy, #climatedisclosures, and #carbonrebates. Thanks for sharing Nancy Foran, FCPA, FCMA, C.Dir.. Looking forward to reading the full information.

2

I cannot think of a better way to celebrate #EarthDay than being on the ground in Ottawa as the Global UN Plastics Treaty enters its 4th negotiation session, representing +200 businesses and financial institutions calling for global rules that help us reduce, reuse, and redesign. Global rules that scale solutions, spark innovation, and mobilise investment. We need to urgently adopt global rules to end plastic pollution. During this fourth round of negotiations #INC4, starting next week, we would like to see the focus placed on: > Prioritising discussions on provisions related to restrictions and phase-outs, reuse policies, product design requirements, extended producer responsibility, and waste management. These critical elements have the greatest potential to deliver positive change as urgently as we need it. > Building on lessons from voluntary efforts to shape globally binding rules that can scale available solutions to tackle plastic pollution globally, create transparency, and level the playing field for industry. > Agreeing on a “start-and-strengthen" approach, which focuses initially on the plastic applications and sectors where there is already alignment, such as packaging, to make the most of the limited time left for negotiations. Find out more about Business For A Plastics Treaty: https://lnkd.in/dapqnXKU To learn more about what Mars is doing to redesign our packaging as well as our advocacy efforts towards the Global Treaty, check out my S&P Global Sustainable1 conversation with Lindsey Hall (thanks Esther Whieldon): https://lnkd.in/gaCBCTMJ #PlasticsTreaty #Biz4PlasticsTreaty #TomorrowStartsToday

128

5 Comments

The Canadian Green Winter Is Coming There has been much talk within sustainability circles in Canada around Bill C-59 (https://lnkd.in/gA9d5sKe), and its stringent anti-greenwashing provisions, which includes fines up to 3% of worldwide revenues. Energy companies in Canada were swift in pulling back on their environmental communications (https://lnkd.in/gXUdnS35). However, the sector most impacted is not the energy sector, but rather the financial sector. The communication intensity of the Canadian financial on topics such as net zero and carbon neutral is more than three times that of the energy sector (chart below). One has to wonder if the term “financial sector” is actually appropriate when talking about a Canadian banking sector were merely 6 banks control 93% of all banking assets in the country (https://lnkd.in/gypnxaS3 ), but this is a topic for another time. It is worth noting that Canadian banks are among the largest funders of oil, gas and coal globally, with a fossil fuels to clean energy investment ratio of 3.9 to 1 (https://lnkd.in/gEHCagBS). And yet, these banks are some of the most prolific generators of net zero and climate neutral rhetoric in the country. According to the attached chart, a Canadian financial institution references positive climate terms in over 160 documents on average (compared to 45 for the average company in the TSX). In this context, the greenwashing bill is very welcome. Having said that, without clarity as to how green claims are to be substantiated (the bill lacks details on that front), sustainability communications by Canadian companies will diminish a great deal. Even companies undertaking genuine initiatives to manage their environmental impacts will likely pull back on communicating their green credentials until they have clarity as to how to do so without exposing themselves to legal liability. I believe Canadian sustainability advisors and consultants will experience a material decline in demand for their services in the coming months and so until clarity is achieved on the above, or until sustainability disclosure becomes mandatory. Long term this is a win for consumers, for climate and for our country, but short term, many sustainability professionals are likely to struggle.

42

15 Comments

Useful background piece on the divergent array of climate policies we may soon be discussing in a 36 to 50 day election period, well at least in snappy soundbite form. #politics Students are taught to refer to this as « instrument choice ».

14

26 Comments

Pretty big news yesterday announced by Chrystia Freeland at the #priinperson conference: 1) A plan to deliver Made-in-Canada sustainable investment guidelines aka taxonomy; and, 2) Mandatory climate-related financial disclosures for large, federally incorporated private companies The goal is to increase foreign investment into Canada. I'm sifting through the details but here's some highlights on taxonomy : "At a high level, the Canadian taxonomy would define which economic activities are green or transition in line with SFAC recommendations, as follows: Green: low-or zero-emitting activities, such as green hydrogen, solar, and wind energy generation, or those that enable them, such as electricity transmission lines and hydrogen pipelines; and, Transition: decarbonizing emission-intensive activities that are critical for sectoral transformation and consistent with a net-zero, 1.5°C transition pathway, such as installing lower-emitting (electric) furnaces to produce steel. Green activities are expected to be those that: Do not have material scope 1 and 2 emissions; Have low or zero downstream scope 3 emissions; and, Sell into or benefit from markets that are expected to grow in the global net-zero transition. Transition activities are expected to be those that: Have material scope 1 and 2 emissions but make significant emission reductions; Have low or zero scope 3 emissions; and, Do not create carbon lock-in and path dependency. As well as activities that: Have material scope 3 emissions but significantly reduce their scope 1 and 2 emissions; Do not face immediate demand-side risk (i.e., market contraction); and, Have lifespans proportionate to when global demand for their products is expected to decline." More info: https://lnkd.in/gCNT9FF8 And https://lnkd.in/gdxWGZnQ

68

#Canada publishes Blue Economy Regulatory Roadmap to create healthier oceans. The Government of Canada has announced the publication of the Blue Economy Regulatory Roadmap, a strategic plan to enhance the country’s oceans. Announced by Diane Lebouthiller, Minister of Fisheries, Oceans and the Canadian Coast Guard, at the H2O conference in Halifax, the Blue Economy Regulatory Roadmap will support innovation and economic growth in Canada’s oceans. Following months of public consultation, the roadmap’s development was led by Fisheries and Oceans Canada (DFO) in partnership with Natural Resources Canada, Transport Canada, Innovation, Science and Economic Development Canada, and the National Research Council of Canada. The plan outlines strategic areas to accelerate the development of Canada’s ocean economy, a move that will generate vast environmental and economic benefits. Lebouthillier explained: “Our oceans hold immense potential to combat climate change and drive sustainable economic growth. “This Roadmap marks a significant stride towards eliminating barriers for businesses that rely on the ocean to grow in a sustainable way, which will deliver widespread benefits for all Canadians.” https://lnkd.in/eJQ_d74P #canada #oceans #blueeconomy #climatechange #sustainability

2

The social cost of greenhouse gases (SC-GHG) is a valid concept, but estimating it nearly always devolves into "substantively irrelevant superficial scientism." The SC-GHG requires too many politically-loaded value judgments at a foundational level for me to consider it scientific. A corollary is that any tax on GHGs will likewise be a politically fraught exercise based on value judgments. I see no way around that. https://lnkd.in/e-R4HSD6 What do you think?

25

42 Comments

As the #climate conundrum envelopes the #earth, we need to get out of the vicious cycle sooner rather than later. Please read on my latest article in #TheAsset.

7

1 Comment

Is it the beginning of the end for plastic pollution? The fourth session of the Intergovernmental Negotiating Committee to develop an international legally binding instrument on plastic pollution, including in the marine environment is happening in Ottawa, from today until the 29th. #plastic #pollution #sustainability #oceans #change https://lnkd.in/dETXHwBj

8