Introducing CDR Policy View and the new VCM Compliance Retirements View

Authors: Micaela Passetti & Fundi Maphanga

In this edition, we start with a roundup of this week’s key policy updates, ensuring you stay informed on the latest developments. We then provide some exciting new dashboards: our CDR Policy view, which draws on new additions to the database, as well as a new Credit Retirements for Compliance Purposes view.?

• Singapore: The Singapore Economic Development Board (EDB) and IETA launch the Singapore Carbon Market Alliance (SCMA) , to support investors in accessing high-integrity carbon credits.?This follows from news of an emerging “Emission Factors Registry (SEFR). The registry is expected to be ready at the end of the year, and is being developed by a private sector consortium led by the Singapore Business Federation (SBF).
• South Africa - President Cyril Ramaphosa signs South Africa’s landmark Climate Change Bill. In February, the Treasury proposed increasing the national carbon tax rate from 190 ZAR ($10.05) to 640 ZAR ($33.86) should the Climate Bill come to pass.? The Bill imposes emissions caps on major polluters, and gives the environment ministry power to allocate a carbon budget to large greenhouse has emitting companies. Allocations have yet to be set, and exceeding the limit is not unlawful at the moment. Higher carbon tax liabilities are expected.
• Malaysia - Bursa Carbon Exchange Auctions First Malaysian Nature-Based carbon credits. Malaysian Nature-based Carbon Credits Plus (MNC+) successfully clear at RM50 ($ ) per Contract, the first from the Kuamut Rainforest Conservation Project.Malaysia has also discussed bilateral agreements with countries in the region to establish itself as a CCUS hub by 2030, with the CCUS bill expected to be concluded next year. A stronger CCUS policy could likely attract more investments, supporting a smooth energy transition as planned in NETR.
• Indonesia - has finalised the regulation for the implementation of CCS , which is currently awaiting President Joko Widodo's approval. This milestone follows the establishment of the Indonesia Carbon Capture and Storage Center and the launching of Indonesia’s first carbon exchange IDXCarbon in 2023. These developments provide strong market signals to invest in Indonesia's carbon market.
• South Korea - has circulated a proposal that would let CO2 removed through CCUS be deducted from company emissions accounts under the nation's emissions trading scheme. This move could significantly enhance South Korean ETS and its progress towards meeting the country’s climate goals, while creating opportunities for investment in carbon capture technologies.
• Brazil - continues its efforts to build a framework to promote CCUS . These critical developments to enable CCUS and BECCS projects would pave the way for cutting emissions and creating investment opportunities.

NEWS: Exciting New Views from AlliedOffsets

1. CDR Policy View

Our new CDR policy view allows users to locate domestic and national CDR policies, broken down by focus area: Research, Development and Innovation (RD&I), Funding (direct or procurement for CDR projects), Laws and Regulations and Incentives (tax credits and investment grants).

This view debuts by showing the total number of CDR related policies across the European (EU), and North American (NA) regions.?

• EU: 18 CDR Policies, including the EU Carbon Removal and Carbon Farming (CRCF) and Green Claims Directive (GCD), European Sustainability Reporting Standards (ESRS) and legislation implementing the EU Innovation Fund.?

• North America: 158 CDR Policies (146 from the United States, and 12 from Canada), including The Inflation Reduction Act, The SCALE Act and the Infrastructure Investment and Jobs Act from the United States, as well as Canada’s Removal Procurement Strategy ($135M to expand the scope of its Low-Carbon Fuel Procurement Program) and the Canada Growth Fund.?

Users can navigate CDR policy pages, as well as our other pages related to CDR suppliers, buyers, marketplaces, patents and prices.??

2. Credit retirements for compliance purposes

Our Credit Retirements for Compliance Purposes view allows users to track Voluntary Carbon Market (VCM) credits retired or cancelled for compliance purposes on a weekly basis and align their strategies with regulatory demands. Compliance purposes include retiring or cancelling credits for California Air Resource Board scheme, Colombian carbon tax, Querétaro carbon tax, Section 13 of the South African Carbon Tax Act, among others.?

The Credit Retirements for Compliance Purposes view includes:

• The total VCM credits retired for compliance use, which ascends to 181,231,148.?
• The weekly retirements per compliance purposes and project country. Colombia has the highest number of projects issuing credits for retirement so far.?

• Users can also navigate compliance retirements by registry, as well as credit and project level information of weekly retirements including sum of retirements, and estimated transaction values.?

Get in touch to learn more about our new policy views!