HEREâ€™S THE DEAL
JetBlueâ€™s recently released sustainability report reveals that the company purchased about 500,000 tCO2e (they report it as â€œ1.1 billion poundsâ€) in 2015, offsetting its emissions for the â€œEarth monthâ€ of April. The purchases flowed through carbon offset supplier Carbonfund.org and supported seven projects, including the Amazon Tropical Rainforest Conservation Project in Acre, Brazil. In addition to JetBlueâ€™s direct offset purchases, the company offers its customers the option to offset emissions from their flights, and flyers have signed up to offset a total of 665,000 tCO2e to date, according to JetBlue. In other 2015 developments, the airline opened a 24,000-square-foot airport farm in JFKâ€™s terminal 5, where they grew 2,000 pounds of blue potatoes.
- Read the report (and check out its cartoons!)
To good health
California-based healthcare company Kaiser Permanente announced its intention to become a â€œcarbon net positiveâ€ company by 2025. It plans to buy renewable energy certificates and carbon offsets in greater quantities than its annual emissions, which it anticipates will be about 580,000 tCO2e annually by 2017. (In 2012, Kaiser set a goal of reducing its greenhouse gas emissions 30% by 2020, and theyâ€™re expecting to meet that goal ahead of schedule.) Kaiserâ€™s announcement cites climate changeâ€™s impacts on public health, including increases in injuries and death from extreme weather events and heat, the spread of infectious diseases and mosquito-borne illnesses, and worsening asthma conditions.
- Read the press release
Houston-headquartered infrastructure company Kinder Morgan Inc. recently received a regulatory license for a $5.4 billion expansion to its Trans Mountain pipeline, running from Alberta to Burnaby, Canada. But the National Energy Boardâ€™s approval of the project came with 157 conditions, including a requirement that the company completely offset the greenhouse gas emissions associated with construction. As for the 890,000 barrels of oil per day that could run through the pipeline â€“ those emissions are another story. First Nations including the Tsawwassen plan to fight it, and Kinder Morgan needs a final green light from the federal government, which is expected to make a decision before the end of the year.
- Read more from Business Vancouver
When the smoke cleared in Cuyamaca Rancho State Park in California after the 2003 Cedar Fire, almost every tree across 25,000 acres had been killed. The devastation was so complete that a few years later there was still almost no regrowth. So the Park came up with a plan, and to date theyâ€™ve raised at least $8 million through carbon finance to plant one million seedlings in areas of Cuyamaca where forests previously grew. Investing partners include American Forests and ConocoPhillips, Coca-Cola Bottling Company, Poseidon Water, Stater Bros Markets, and Odwalla. The Park has replanted over 1,400 acres so far, and now itâ€™s a waiting game: the project is expecting to issue its first offsets under the Climate Action Reserve within the next few years.
- Read more from Ecosystem Marketplace
A few for you, a few for me
Japanâ€™s Joint Crediting Mechanism (JCM) launched in 2013 with the idea of bilaterally cooperating on emissions reductions technologies. Now, three years later, the JCMâ€™s first project has issued tonnes: just 40 of them, from a project in Indonesia that installs more efficient freezers in food factories. Twenty-seven of those tonnes will go to the Japanese government and four will go to Mayekawa Manufacturing Co, the Tokyo-based company that provided the technology. The remaining nine tonnes will stay with Indonesia, five with the government and four to PT Adib Global Food Supplies, which installed the freezers. The tiny issuance is more symbolic than anything else, but sets a precedent for how the JCM might split offsets between Japan and a host country.
- Read more from Carbon Pulse
Acronym soup heating up
Moods were positive as climate negotiators met in Bonn this month to start ironing out the details of the Paris Agreement. â€œNo Earth-shattering decisions are expected to come out of Bonn; this is primarily an agenda-setting meeting,â€ writes Gus Silva-Chavez of Forest Trends. In a recent blog post, Silva-Chavez explains some of the key negotiating channels to watch: Market-based mechanisms will be negotiated under the SBSTA (Subsidiary Body for Scientific and Technological Advice), while modalities and procedures for keeping track of countriesâ€™ climate commitments will be negotiated under the SBI (Subsidiary Body for Implementation). A new negotiating track, APA (Ad Hoc Working Group on the Paris Agreement) will deal with transparency, compliance, and the â€œglobal stocktakeâ€ of countriesâ€™ plans.
- Read more from Ecosystem Marketplace
At a meeting of the UNâ€™s International Civil Aviation Organization (ICAO) this month, rifts emerged around the draft proposal for a market-based mechanism for airline emissions. The U.S. is pushing for offsetting obligations to be differentiated based on airlinesâ€™ individual growth rate rather than the industry average â€“ a move that would put more onus on emerging economies. Meanwhile, China submitted a paper that suggested countries enter into the market on a â€œnationally-determinedâ€ basis to avoid undue burden on developing countries. â€œNow we will see negotiating lines begin to harden. People have been pretty careful until now,â€ Annie Petsonk, a lawyer with the Environmental Defense Fund, told Carbon Pulse. ICAOâ€™s full assembly is scheduled to vote on the market-based mechanism in October.
- Read more from Carbon Pulse
Keep this secret safe
On July 1, the â€œsafeguard mechanismâ€ under Australiaâ€™s Emissions Reductions Fund (ERF) will kick in, requiring about 140 large businesses with emissions of more than 100,000 tCO2e annually to â€œkeep emissions within baseline levels.â€ Though no one seems to be talking about it much, the safeguard mechanism is pretty much a â€œsecretâ€ Emissions Trading System (ETS) writes Alan Kohler, editor of the Australian Business Review. Though the official ETS was repealed in 2014, this new mechanism bears close resemblance: Covered entities that exceed their historical 2009-2014 emissions in any given year will need to buy Australian Carbon Credit Units (ACCUs). The mechanism is coming into place after the governmentâ€™s ERF has spent AU$1.73 billion on ACCUs, leaving AU$816 million left in its pot.
- Read more from The Guardian
Unexpected founding fathers
In â€œHot CO2mmodity,â€ a six-part ClimateWire series, E&E reporter John Fialka (also the publicationâ€™s first editor) explores the personalities behind what he calls â€œAmericaâ€™s most complex exportâ€: carbon markets. The series introduces readers to John Dales, the Canadian economics professor who in 1968 wrote a slim book that (accidentally) launched the concept of cap-and-trade. It takes them to the jungles of Acre, Brazil, where rubber tapper Chico Mendes was assassinated in 1988, spurring a movement to join economic development with forest protection. It describes the early days of the Environmental Defense Fundâ€™s involvement in China, when Dan Dudek took the first of what would become more than 150 trips to help the country build its carbon market. In short, it is worth reading.
- Read the series in ClimateWire
Four out of five respondents to a survey of International Emissions Trading Association (IETA) members conducted by PwC said they expect carbon markets to expand as a result of the Paris Agreement. This was an increase from three out of five respondents that expected expansion last year. Market participants expect carbon prices to range between 6 euros and 15 euros per tonne through 2020 â€“ far less than the 40 euros per tonne that respondents said is needed to adequately curb climate change. The survey also covered voluntary carbon markets and REDD+, with participants expressing concern as to whether REDD+ can generate compliance offsets.
- Read the report