Diaries of a carbon dummy – Notes from Lisbon

I have recently restarted attending conferences.?

This time the events are not about mining, a sector I have been reporting on for most of my journalistic career. They are about carbon, something I got more curious about recently. The interest comes from the desire to learn about an instrument with the potential to help tame the quickly unraveling existential threat represented by climate change. ?

This time I am not reporting for a big international news organization but representing Carbonwise , a recently launched educational platform set up together with a group of excellent individuals, including, as the head of content, the celebrated journalist Alessandro Vitelli , one of the top writers in the carbon space.??

Our aim is simple: offering independent education via appealing and easily accessible learning tools to those who want to learn about the carbon markets easily and effectively.?

Hence, it makes sense for me to approach these conferences as the carbon dummy I still am, trying to understand the big-picture evolution of the sector and its meaning for a potential participant.??

Argus Media kindly granted me a press pass to attend their Carbon Markets and Regulation conference in Lisbon and while Alessandro is not here to help me makes sense of every speech or conversation, I am listing some personal takeaways from the panels I attended (I might have missed a couple here and there, oops) and conversations I had with speakers and delegates.?

Carbon dummies of this world: this is for you.?

Carbon geeks, friends, be kind!?

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1.????COMPLIANCE MARKETS GATHER MOMENTUM?

Carbon markets are broadly divided into Compliance Markets and Voluntary markets (go to https://carbonwise.co/what-kind-of-carbon-markets-are-there/ for a fuller explanation of the difference!). After various blips, the EU compliance market appears steady and effective with robust prices for allowances and a track record of verified CO2 reductions. The EU system is in fact being used as an example for other governments, such as several states in the US, which have set up or are in the process of setting up their own national compliance carbon markets, a development broadly seen as positive for the environment although challenging for the industries affected that will need to quickly learn and adapt.?

2.????DECARBONISATION PANIC?

With compliance markets tightening the screws on some of the biggest carbon emitters, companies are seriously starting to focus on (and seriously worrying about!) finding a path to decarbonisation. I was pleased to meet a country head of sustainability for a large heavy industry multinational, with extensive engineering and operational knowledge, who was really looking at the issue from a technical perspective. He stressed that the only way for industries to find technical solutions at the speed required is to get together as a unit and in collaboration with the state to pool resources, research and development work.?

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3.????CARBON TRADE WAR?

As the EU prepares to adopt the so-called Carbon Border Adjustment Mechanism (CBAM) to make sure that the local industries which are subject to its carbon scheme remain competitive against imports from countries that do not impose similar measures, concerns are rising about a tit-for-tat response that this might trigger which might end up in trade restrictions in both directions. Many in the developing world understandably feel like they have a right to raise themselves out of poverty, like developed nations did centuries ago and feel it’s unfair for them to have to deal with a problem created in the first place by developed nations and that sadly affects the poorest to a larger extent. ?

Check this explainer about Climate Justice written by my colleagues for Carbonwise: https://carbonwise.co/who-is-responsible-for-climate-change/

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4.????HOPES FOR THE VOLUNTARY CARBON MARKET?

Cold winds have been blowing on the Voluntary Carbon Markets (VCM) in recent months, due to some press reports earlier this year (mostly in British paper the Guardian) claiming that the market is not doing what it’s supposed to be (reduce CO2), or at least nowhere near well enough. The exuberance that seemed to transport the VCM until last year is no longer there. Some large corporations have decided to withdraw from the market, burnt by the reputational damage caused by those reports. Some cautious optimism, however, is starting to emerge about integrity initiatives which might boost confidence in the worthiness of the sector. A representative from Citigroup told the audience she saw the weakness as temporary and that the bank itself was considering investing in carbon credits. This follows a recent announcement of rival JP Morgan about their intention to invest some $200 million+ on carbon removal credits. In this video you can find an explainer about the difference between carbon dioxide reductions and removals: https://carbonwise.co/what-are-carbon-offsets/

Also offering some support to the Voluntary Carbon Markets, was a carbon credit quality expert, who told the audience that insetting: the practice of implementing projects to reduce carbon emissions within a company’s own supply chain, was as challenging as offsetting https://carbonwise.co/carbon-offsets/.?

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5.????GUTSY ENCOUNTERS?

Argus had the brilliant idea to invite the journalist behind the most damaging reports against the VCM. Many within the sector believe that while some criticism is fair and valuable in a young and far from perfect sector, the Guardian piece was unbalanced. It has certainly been at least partially responsible for some large corporations withdrawing altogether from the sector.?The journalist in question, ?Patrick Greenfield, from the Guardian, was gutsy to show up, present and answer questions in a room full of people who were still fuming because of the damage his piece had caused. In a way, it was a much-needed confrontation to reset the conversation.

Greenfield presented just before scientist, Ed Mitchard ,?a respected scientist and Co-Founder of Space Intelligence, a company that provides satellite-based data to verify claims made by carbon project developers.

Mitchard was disputing the claims made in the article, on the basis that the studies the articles relied on, were faulty, according to the scientist.?

A very heated and interesting debate followed which saw both sides defending their views and finding passionately.??

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If like me, you are interested in learning more and keeping up to date with the carbon markets, head to carbonwise.co and sign up to our free newsletter. We'll send you our fresh content and invitations to educational and networking events (drinks are coming soon!!).

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And finally if you have any comments, feedback or constructive criticism, you can type them below or DM me on [email protected]?

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