TAX

The price of trading carbon markets continues to skyrocket

The value of traded global markets for carbon dioxide (CO2) permits grew by 164% to a record $851 billion in 2021 according to analysis by financial markets data provider Refinitiv, with higher volumes and skyrocketing prices underpinning the growth. The European Union’s Emissions Trading System (EU ETS) is the most established carbon market and is driving growth, with prices reaching over $90 a tonne by the end of 2021. The bloc accounted for 90% of global value at $728 million. Prices surged as traders expect the availability of carbon allowances to tighten if the bloc is to meet its climate targets. Soaring natural gas prices which propelled coal power generation also spurred demand for traded carbon credits. (Eco-Business)  

SUPPLY CHAIN

EU funds new blockchain supply chain tracking scheme

A coalition of five organisations has announced plans to develop a certification scheme for the metals and minerals used to make electric vehicle (EV) magnets and batteries, after securing EU funding. Blockchain solutions provider Circularise has announced it will embark on a three-year project to create a blockchain certification scheme called the Circular System for Assessing Rare Earth Sustainability (CSyARES). The system will enable data from rare earth supply chains to be recorded on a digital, tamper-proof ledger, enabling businesses to verify claims about tackling prevalent issues including pollution and human rights abuses. Co-developing the system with Circularise are the Rare Earth Industry Association – which provides expertise on sustainability standards; life-cycle assessment provider Miniviro; robotic solutions provider BEC GmbH and Danish water tech firm Grundfos. (edie)  

STRATEGY

Businesses failing to engage suppliers on emissions targets

New research from environmental impact disclosure platform CDP has found that only 3% of suppliers to large corporates have approved science-based emissions targets in place. The analysis also found that 56% of these suppliers have no climate targets at all. The research, based on more than 200 CDP supply chain corporate members, is based on requested data from 23,487 suppliers to disclose non-financial data. While the requests grew by 71% compared to 2020, with 11,400 responses, the research found that corporates are not adequately engaging with suppliers on climate targets. While the number of suppliers setting climate targets has grown by 5% annually, CDP found that only 38% of end-user businesses were engaging with suppliers on climate – dropping to 16% for water security discussion. (edie)  

DEFORESTATION

'Loophole' allows deforestation on soya farms in Amazon

An investigation by environmental NGO Greenpeace has found that vast swathes of land in the Amazon rainforest have been felled for cattle and maize on farms growing soya, undermining claims that the soya crop is deforestation-free. Using satellite data, Brazilian NGO Instituto Centro de Vida, Greenpeace’s Unearthed and the Bureau of Investigative Journalism found that over 1,000 square kilometres of Amazon rainforest has been felled to expand farms growing soya in Brazil in a 10-year period, despite a 2006 landmark soy moratorium banning the sale of soya grown on land deforested after 2008. However, investigators argue that as the moratorium only applies to soya, farmers have been able to market the crop as deforestation-free, while still clearing land for cattle, maize or other commodities. (The Guardian)  

RENEWABLE ENERGY

Government moves to accelerate renewables roll out

The UK government has announced it will accelerate auctions for low-cost renewable projects by shifting the timetable for clean power contract auctions to an annual process rather than every two years. Known as Contract for Difference (CfD), the auctions are the government’s primary method of supporting renewable energy, with the next round set to open in March 2023. The CfD provides clean power projects with a guaranteed price for the energy they generate, delivering long-term certainty for investors and results in reduced cost of capital for projects. The cost of offshore wind power has fallen by around 65% over the past decade, with costs expected to fall further when the results of the current auction round is announced later this year. (Business Green)*

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