Jets, Glitz, and Carbon Hits: 1,000 Private Jets to Fly to Super Bowl

Jennifer L
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Jets, Glitz, and Carbon Hits: 1,000 Private Jets to Fly to Super Bowl

The influx of about 1,000 private jets into Las Vegas for the upcoming Super Bowl between the San Francisco 49ers and the Kansas City Chiefs raises concerns from both economic and environmental standpoints. So, the Super Bowl LVIII may become a super planet-warming football game. 

Fueling the Economy, Heating the Planet

The surge in air traffic may boost the local economy due to increased spending in Sin City. However, it also significantly contributes to carbon emissions and energy consumption.

Benjamin Leffel, an assistant professor of public policy sustainability at the University of Nevada, Las Vegas, highlighted the environmental impact of the Super Bowl. He said that:

“The emissions levels of a mega-event like this from air traffic, and the energy use is at least double in a day than it would be on average.”

The presence of private jets at the big game is not something new. The event typically attracts high-profile individuals from various sectors. But this year’s attendance is expected to surpass the previous years’.

Last year, for instance, around 562 private planes flew into airports near Glendale, Arizona, where the Super Bowl was held. Also, 752 private jets arrived in Los Angeles for the 2022 event.

private jets leaving Arizona after Super Bowl 2023
Private jets leaving Arizona after Super Bowl Source: Tom Fornelli@Twitter.com

This year’s Super Bowl is projected to draw around 450,000 visitors, with a significant option opting for private air travel. This trend mirrors the influx of private jets seen during the Las Vegas Grand Prix in November, where 927 business jets landed in the city’s airports. 

Authorities from the Clark County Department of Aviation anticipate a similar level of air traffic for the upcoming Super Bowl. And Taylor Swift is one of those flyers to support her boyfriend Kansas City Chiefs player, Travis Kelce.

How Bad Are Private Jets for the Atmosphere?

The environmental impact of private jets is significantly greater than that of commercial flights. They’re one of the most polluting modes of transport per passenger kilometer. 

carbon emissions per vehicle type
Source: Beatriz Barros & Richard Wilk (2021). The outsized carbon footprints of the super-rich, Sustainability: Science, Practice and Policy. Graphics by BuzzFeed News.

According to the NGO Transport and Environment, private jets releases 5-14x more emissions per passenger than commercial flights. Compared to trains, that would be a staggering 50x more.

A recent report by Greenpeace revealed that private jets emitted a total of 5.3 million tonnes of CO2 over the last 3 years. The number of flights will increase from nearly 119,000 in 2020 to 573,000 in 2022. 

This level of CO2 emissions is equivalent to or even greater than the annual emissions of entire countries like Uganda.

According to the Federal Aviation Administration (FAA), 1 out of every 6 flights they handle are flown by private jets. Moreover, carbon pollution has jumped by over 23% as private jet flyers have increased by about a fifth since COVID-19. 

Putting that into context, in popular travel routes like between Washington DC and New York City, a private plane emits an estimated 7,913 pounds of CO2 per passenger on this route, whereas commercial planes emit only 174 pounds of emissions. In comparison, traveling by train emits just 7 pounds of CO2 per passenger, while bus travel emits 88 pounds. 

That figure means flying private is responsible for about 45x as many emissions as flying commercially on the same route. And that’s over 1,100x the emissions of traveling by train. 

The sharp increase in private jet emissions underscores the urgent need to address the environmental impact of luxury air travel. As efforts to combat climate change intensify, there is growing pressure to regulate and reduce emissions from luxurious private travels. 

The Environmental Toll of Private Jets at Super Bowl 

The increase in air traffic, particularly from private jets, for events like the Grand Prix and the upcoming Super Bowl in Las Vegas has sparked concern among some local residents. They have expressed unease about the noticeable impact of the additional planes on the city’s atmosphere.

Las Vegas has long been associated with extravagance and luxury, catering to high-rollers in various forms of entertainment. With the influx of private jets for events like the Super Bowl, the city now also attracts high-flyers, adding to its reputation as a destination for the elite. 

As the Super Bowl LVIII approaches, the influx of private jets into Las Vegas raises both economic prospects and environmental concerns on emissions. While the event promises to fuel the local economy, the surge in air traffic adds significant carbon emissions, highlighting the need for sustainable alternatives in luxury travel.

Carbon Credit Insurance Market to Hit $1B in 2030, $30B by 2050

Jennifer L
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Carbon Credit Insurance Market to Hit $1B in 2030, $30B by 2050

Insurance has a crucial role to play in supporting carbon markets as the world continues its journey to net zero. A report estimates that by 2030, insurance premiums could reach ~$1 billion and $10-$30 billion by 2050.  

The report is a collaboration between Oxbow Partners and Kita, titled “Are carbon credits the next billion-dollar insurance market?”

Premiums with a Purpose: The Role of Carbon Credit Insurance

The study emphasizes the crucial role of insurance in supporting the carbon market amid global efforts to combat climate change. It also provides a comprehensive overview of the carbon market’s potential, offering valuable insights for industry experts. 

According to the report, insurance can provide 4 key benefits to the carbon credit market: 

  • A balance between traditional risk management practices and innovation – enabling improved access to finance to scale carbon projects. 
  • A stamp of confidence – risk management and regulatory expertise, honed over decades, can bring confidence to the market and its participants. 
  • Detailed assessment of carbon project risk – highlighting areas of concern across the market and project types, where wider risk management improvements are required. 
  • Encourage market participants to take risks – insurers take on responsibility when things go wrong, giving market actors the freedom to take risks which are necessary to release capital and scale carbon projects and their associated benefits. 

Below are the risks identified in the report, which the insurance market could mitigate.

risks associated with carbon projectsIndustry leaders, including prominent brokers and insurers such as Aon, Howden, Marsh, AXA XL, CFC, Chaucer, and Fidelis, are optimistic about the market’s prospects, viewing its expansion as inevitable. These industry giants think that the carbon credit insurance explosive growth isn’t a matter of “not if” but “when”.

Miqdaad Versi, Head of the Sustainability Practice at Oxbow Partners, expressed optimism about the market’s potential. He particularly highlighted its importance in facilitating green initiatives while generating profits. While James Kench, Head of Insurance at Kita, added that: 

“The insurance market is on the front line for climate risk and is uniquely placed to help business and society navigate through increasingly uncertain times. This report is a call to action for the insurance industry to embrace a vast new carbon risk pool with purpose.”

The Billion-Dollar Horizon

The report forecasts the total addressable market for carbon credit insurance to reach about $1 billion in annual Gross Written Premium (GWP) by 2030, with a projected increase to $10-30 billion GWP by 2050. 

carbon credit insurance marketHowever, this estimate may underestimate the market’s full-scale potential. The calculations focus solely on the voluntary carbon market (VCM), excluding the compliance market. 

In 2023, the global Compliance Carbon Markets were valued at over $800 billion. These markets are closely linked to policy shifts and geopolitical tensions, leading to fluctuations in their size and growth trajectory depending on external factors and the prevailing environment.

In 2022, the VCM was valued at $2 billion. However, Abatable, a carbon intelligence and procurement platform, estimated that in the same year, deals worth $10 billion were executed. This implies that investment into the market was about 5x the value of the carbon credits issued.

According to a Barclays Special Report, the VCM could grow to $250 billion by 2030. Various organizations have made predictions of VCM growth in 2030, with estimates ranging from $10 billion to $250 billion. The complexity, rapid evolution, and convergence of the markets make size predictions challenging. 

However, even the lowest forecasts anticipate the market to grow 5x. Long-term predictions are optimistic, with some expecting the market to exceed a trillion dollars by 2050.

Currently, the VCM predominantly covers credits sold by carbon dioxide removal (CDR) projects. 

McKinsey estimates that based on expected delivery of announced projects, the CDR market could reach $40-$80 billion by 2030. As the CDR industry scales up, which overlaps with the VCM, it’s likely to further stimulate market growth. 

VCM and compliance market size comparison

So, if the VCM and compliance carbon markets converge as expected, it would lead to a substantial market expansion. 

Addressing Risks in the Carbon Market

The GWP opportunity covers a broad spectrum of insurance needs within the carbon market sector. This includes specialized insurance for carbon credits as well as traditional insurance lines necessary for carbon projects and businesses operating in this sector. For instance, construction, property, casualty, financial lines, and marine insurance, among others. 

While the report’s long-term prospects for the insurance industry are optimistic, their approach in estimating the potential market opportunity was conservative. 

The authors also discounted the potential impact of regulatory mandates requiring insurance and the merging of both markets. Their estimation was also based on the projected annual carbon credit market, rather than the additional investment required to produce these credits themselves. Factoring in the latter could potentially result in a multiple of 3-5x if applied on top.

Indeed, the rapidly evolving carbon markets present a complex landscape, characterized by unique risks and significant challenges. However, the presence of insurance within these markets is paramount for their exponential growth. 

The introduction of insurance mechanisms can effectively address risks, enhance confidence among investors, and consequently stimulate increased investment. This, in turn, will enable the markets to scale at the necessary rate to align with global emission reduction targets and effectively combat climate change.

Beyond Touchdowns and Trophies: Unveiling the Carbon Footprint of Superbowl LVIII

Jennifer L
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Beyond Touchdowns and Trophies: Unveiling the Carbon Footprint of Superbowl LVIII

The substantial carbon footprint associated with the Super Bowl, one of the most-watched sporting events in the U.S., is not primarily linked to travel or the show’s energy use. Interestingly, it’s largely attributed to the significant environmental impact of the Super Bowl advertising frenzy. 

The ads, which last in online promotions before and after the event, raise concerns among environmentally conscious consumers and investors. Unsurprisingly, climate experts emphasize the need to address the massive environmental impact of America’s most-loved and most-viewed sporting event. 

Big-Time Sporting Events and Their Giant Environmental Impact

The sport of football or soccer is highly entertaining. But what most fans or spectators don’t know is that the global football industry is responsible for emitting over 30 million tons of carbon dioxide annually. That’s almost equal to Denmark’s annual emissions.

Millions of Americans regularly tune into football games, especially major events like the upcoming Super Bowl LVIII, with last year’s viewership exceeding 99 million. The immense audience underscores the need for organizations to assess the environmental impact of these sporting events. 

Major sports leagues, like the NFL and NBA, can have a big influence over viewers. They can play a crucial role in promoting sustainability.

Large-scale sporting events often involve unforeseen environmental consequences. The construction of new infrastructure, sanitation upgrades, increased energy demands, and waste management challenges contribute to the overall impact on the environment. 

Watch parties hosted by viewers further add up to waste generation and travel emissions on a national level. 

According to an estimate, major sports leagues, including the NFL, NBA, NHL, and MLB, generate about 35,000 tons of CO2 annually, which covers fans’ emissions only. Think about the waste by the teams playing during the events. 

More notably, A-listers and celebrity fans of the big game also contribute significantly to its CO2 footprint by flying through their private jets. Popstar Taylor Swift is one great example, who has been the subject of intense scrutiny for her sky-high flight emissions.  

Additionally, the energy consumption to power stadiums, resource-intensive field maintenance, and the sale of food, beverage, and merchandise at games contribute significantly to the environmental impact of beloved sporting events in the United States.

And that even doesn’t include the biggest source of the Super Bowl’s carbon footprint – buzzy digital advertisements.

Super Bowl Ads Carbon Footprint

When advertisers calculate the expense of Super Bowl advertising, the immediate focus is often on the $7 million fee for a 30-second slot. However, what might be significantly overlooked is the environmental cost of the ads. 

Super Bowl Average Ad Cost, 2002-2021 (in million USD)

super bowl advertising cost

In 2021, Super Bowl advertising produced as much carbon dioxide as 100,000 Americans or around 2 million tonnes of CO2. This calculation is based on data from iSpot.tv, indicating that 56 advertisers and their 67 spots resulted in over 6.3 billion TV ad impressions, 26 million online views, and 64 billion social impressions. 

Some sources further noted that in the lead-up to the Super Bowl, there were a total of about 4 billion digital ad impressions. To put that in perspective, 1 million ad impressions is equal to 1 metric ton of CO2 or its equivalent. Using that data, the 4 billion ad impressions generated 4,000 metric tons of CO2e. 

ad impression equivalent emission

In 2022, the top 15 ads alone generated nearly 470 million views, illustrating the substantial long-tail effect. Last year, the Super Bowl event garnered over 115 million viewers, recording over 3 million increase compared to the previous year. 

With all that said, the Super Bowl has been doing its best to make the sporting event “green” and sustainable. 

NFL Leading the Way to Sustainability

In 2022, the NFL, the Los Angeles Super Bowl LVI Host Committee, and Verizon collaborated on greening efforts for Super Bowl LVI. They aimed to enhance air quality, establish community gardens, bolster food security, and restore a California kelp forest. 

Last year, Super Bowl LVII, featuring the Eagles and Chiefs in Arizona, was one of the NFL’s most sustainable efforts yet. The football league has one of the greatest commitments to make the Super Bowl more sustainable. 

The league created the program NFL Green to address the environmental impact of their major sporting events. The initiative leads community projects that restore ecosystems and habitats. These include activities such as tree planting, wildlife habitat restoration, and reforestation projects to plant thousands of trees.

In addition to ecosystem restoration, green energy plays a significant role in NFL Green’s efforts. Annually, the NFL procures Renewable Energy Certificates (RECs) matching the total energy consumption at its events. This strategy enables the NFL to offset the energy usage and greenhouse gas emissions associated with its major sporting events.

The NFL, in partnership with Arizonans, aims to achieve 92% waste diversion at the 2023 Super Bowl. Waste management has been a key focus, including recycling, composting, and minimizing landfill disposal.

Super Bowl and the Role of Carbon Credits 

Earlier this year, the Union of European Football Associations (UEFA), the football governing body in Europe, established a climate fund to address the sport’s massive carbon footprint. The $7.6 million fund will address the UEFA EURO 2024 kicking off in Munich on June 14.

The American Super Bowl LVIII committees and the NFL Green implemented the “Green Initiative” at the Las Vegas Indian Center. The initiative aims to plant trees and create green spaces and seedling restoration projects. Highlighting the impact of these efforts, Susan Groh from NFL Green said:

“The Super Bowl is here and gone, but when we are able to implement these greening projects throughout the community, it leaves a lasting legacy and just an impact that lasts for years to come.”

Apart from implementing sustainable practices to reduce its substantial waste and greening projects, the Super Bowl stakeholders are also using carbon credits to offset a portion of their emissions. For instance, Entergy and the Super Bowl XLVII Host Committee purchased carbon offsets to address flight emissions.

The credits are from various offset projects including a landfill gas collection in Texas, a forest conservation initiative in California, and an effort to capture methane from livestock manure in Michigan. The offsets have been certified to deliver the promised carbon reductions by the Climate Action Reserve. NFL is also doing the same when Houston Texans bought carbon credits to offset their air travel emissions.

Each credit bought represents a tonne of carbon emission reduction from specific offset projects, which can be nature-based or technological.

While the Super Bowl shines with sportsmanship and spectacle, its environmental toll is a wake-up call. From celeb jets to advertisement carbon emissions, sustainability is key. NFL’s strides show promise, but climate action must score big.

Trust Can Bring Carbon Credit Price to $238/Ton by 2050

Jennifer L
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Trust Can Bring Carbon Credit Price to $238/Ton by 2050

The voluntary carbon market (VCM) faced significant challenges in 2023, leading to ongoing scrutiny and reputational issues. The year 2024 would be pivotal for the market’s future, with confidence in carbon credits playing a decisive role. 

BloombergNEF’s (BNEF) Long-Term Carbon Offsets Outlook 2024 report suggests that restoring trust could drive companies to purchase billions of carbon credits annually. This could potentially elevate prices to $238 per ton and bring market value at over $1.1 trillion annually by 2050. 

However, failure to restore confidence could lead to the demise of the broader market.

Make or Break: Charting the Course for Carbon Credits

According to BNEF, demand is the crucial variable determining the fate of the voluntary carbon market. Despite setting a new annual demand record in 2023, the increase was only marginal compared to previous years.

In fact, that record indicates a market heavily oversupplied by nearly 50%. 

Many companies have shown elastic demand and abandoned offsets due to fear of criticism and rising carbon prices. If this elastic demand persists as prices rise, annual purchases could reach 1 billion offsets by 2030. Further down the road, demand could stabilize at 2.5 billion by 2050.

carbon offset demand outlookKyle Harrison, Head of Sustainability Research at BNEF, emphasized the importance of trust in the market. He noted that governments and investors are eager to monetize emission reductions through carbon credits. However, he highlighted that:

“But if buyers can’t trust the quality of the credits they’re buying and risk greenwashing accusations, then the market will never reach its potential. Credits will never be more than discretionary spend in this case.”

Recent initiatives like the Integrity Council on Voluntary Carbon Markets and guidance from regulators such as the US Commodities Futures Trading Commission are currently focused on bolstering trust in carbon credits. 

Their success could establish carbon credits as a critical component of corporate decarbonization strategies, irrespective of their prices. This creates an inelastic demand. 

This scenario could lead to companies purchasing 1.4 billion credits annually by 2030 and 5.9 billion by 2050.

BNEF Scenarios for Carbon Offset Valuation

Alternatively, the success of these initiatives could position carbon credits as a viable substitute for other forms of abatement. The key driver? Cost. 

This least-cost decarbonization approach might stimulate the purchase of up to 1.6 billion credits in 2030 and 5.1 billion in 2050.

The BNEF report outlines 3 scenarios for future carbon offset prices. This price outlook is based on the market structure and demand dynamics. 

BNEF three carbon offset pricing scenarios

In the ‘High-quality scenario’, integrity issues are resolved and demand is inelastic. Under this scenario, prices start low at $20/ton in 2030 but rise rapidly to $238/ton by 2050. It could potentially lead to a market value of $1.1 trillion annually.

In the ‘Voluntary market scenario’, integrity issues persist and demand is elastic. Thus, prices remain low at $13/ton in 2030 and reach only $14/ton by 2050. This scenario could fuel criticism of carbon credits as a “right to pollute,” with the market peaking at a value of $34 billion annually in 2050.

In the ‘Removal scenario’, companies focus on purchasing carbon removals and credits that are interchangeable with other forms of abatement. Carbon offset prices soar to $146/ton in 2030 and $172/ton in 2050. This last scenario results in a market value exceeding $884 billion annually by 2050. 

The removal scenario is the least-cost scenario. It highlights the importance of addressing integrity issues in the VCM and maintaining strong demand.

Where the Fate of the VCM Hangs

However, the lack of progress at COP28 on Article 6 underscores the significance of the VCM, with the private sector working to position carbon credits as a complement to other decarbonization or carbon emission reduction measures. The success of these efforts could determine whether the private sector achieves its net zero targets. 

Last year, the Voluntary Carbon Markets Integrity Initiative (VCMI) introduced additional guidance for its Claims Code of Practice. It helps companies in making claims about their use of high-quality carbon credits in their net zero strategies. 

Recently, the ICVCM announced its plan to assess 100+ active carbon credit methodologies for adherence to the high-integrity Core Carbon Principles (CCPs). 

These developments are critical in shaping the voluntary carbon market landscape, particularly in addressing integrity, quality, and trust issues. 

BNEF provides updates on its historical carbon offset supply and demand data every month and its long-term outlook every year.

The fate of the voluntary carbon market hangs in the balance, with trust and demand serving as linchpins for its future. As initiatives strive to bolster integrity and quality, the market faces a critical juncture that will determine its viability in the journey towards Net Zero.

Microsoft Buys Carbon Removal Credits from Grassroots Carbon

Jennifer L
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Microsoft Buys Carbon Removal Credits from Grassroots Carbon

Microsoft has entered into an agreement with Grassroots Carbon, a leading provider of high-quality carbon removal credits, to purchase soil carbon drawdown credits. This marks Microsoft’s first investment in carbon credits generated from regeneratively managed grasslands. 

The credits represent additional carbon sequestration over a 30-year period and support regenerative ranching practices. 

Grassroots Carbon offers nature-based soil carbon removal solutions to entities wanting to  reduce their carbon emissions. The company also provides ranchers an easy, transparent way of rewarding their regenerative practices through carbon credits.

Digging Deeper: The Role of Grasslands in Carbon Sequestration

Grasslands play a crucial role in combating climate change by serving as effective carbon storage reservoirs. They surpass other ecosystems primarily due to the unique rooting characteristics of their vegetation. Adapted to frequent fire and grazing, these systems have evolved with deep root systems essential for their carbon storage. 

Grasslands carbon sequestration
Source: Yongfei Bai et al, Grassland soil carbon sequestration: Current understanding, challenges, and solutions, Science (2022). DOI: 10.1126/science.abo2380

Remarkably, grasslands and shrubland carbon stocks constitute 34% of the total carbon in the U.S. Great Plains region. 

The extensive root systems of native grassland species can reach the depths of up to 15 feet. Estimates further suggest that 60% of soil carbon sequestration in grasslands is happening between 1 to 3 feet. 

Surprisingly, the majority of the biomass of these native species is located below ground. About 90% of the carbon that grasslands store is in their soil and roots.

The significance of deep root systems extends to the deposition of carbon into deeper soil layers, a critical factor as the rate of carbon sequestration tends to increase with soil depth. 

Global studies also suggest that up to 7.3 billion tons of carbon dioxide equivalents (CO2e) per annum could be captured with grassland diversity restoration initiatives. Plus, another 699 million tons of CO2e per year can be sequestered in pasture through improved grazing management.

Unearthing Grassroots Carbon’s Impact

Brad Tipper, CEO of Grassroots Carbon, expressed excitement about Microsoft’s inclusion of soil credits in their carbon removal strategy. He emphasized the importance of soil carbon storage as a crucial element of the climate solution. 

Improved soil health not only contributes to carbon reduction but also provides benefits such as enhanced water storage, erosion prevention, and improved grasslands ecology.

The investment in carbon credits directly supports ranchers implementing regenerative land management practices. Most of the profit from credit revenues will go to these land managers. 

Currently, 40% of U.S. grasslands are for livestock grazing, with the potential to sequester over 500 million tons of carbon dioxide annually. However, 95% of these grasslands are under conventional management which depletes soil carbon. 

This is where Grassroots Carbon comes in to change that. The company aims to facilitate the transition to regenerative practices by offering opportunities for land managers to earn income from carbon storage. 

The project uses rigorous measurement, reporting, and verification (MRV) processes. It is employing PastureMap software to incentivize ranchers’ transition to rotational grazing. 

Microsoft sees this collaboration as part of its carbon removal strategy, contributing to the advancement of the soil carbon market through MRV innovations and the generation of large datasets of soil carbon and ecological data.

Brad Tipper highlighted the importance of the deal which impact goes beyond carbon. 

“Soil carbon storage is an essential part of the climate solution, and our regenerative ranchers are trusted partners in that solution… Microsoft not only made a choice to reduce atmospheric carbon levels, but to do so with impacts far beyond just carbon.”

However, the parties didn’t disclose how much the credit costs and how many credits Microsoft would buy.

Still, their groundbreaking collaboration signals a shift towards prioritizing soil carbon storage in climate strategies. By supporting regenerative ranching practices, this partnership not only reduces carbon emissions but also fosters ecosystem health and resilience.

Why Lithium Prices are Plunging and What to Expect

Jennifer L
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Why Lithium Prices are Plunging and What to Expect

Many investors are puzzled by the plunging lithium stock prices, especially considering the anticipated long-term demand. Let’s look into why this is the case and what is the market outlook for 2024/25.

The Steep Decline in Lithium Prices

The current decline in lithium prices can be primarily attributed to the slowing growth of electric vehicle sales in China. This is coupled with the broader slowdown in the Chinese economy. 

lithium carbonate stock price trend 2023-2024 Trading Economics
Source: Trading Economics

As demand remains sluggish at previous pricing levels and supply surpasses demand, prices have inevitably fallen.

Lithium carbonate prices have experienced a significant decline in China. They dropped from a record high of $81,360 per tonne in November 2022 to $20,782 per tonne in the current month. This marks the lowest level in two years, reflecting a 67% decrease year-on-year. 

In response to the plummeting prices, Chinese refining companies are taking measures such as cutting production or suspending operations.

The sharp decline in lithium carbonate prices represents a nearly 75% correction. Market analysts attributed this to a series of negative catalysts that have suppressed lithium prices.

What Makes Lithium Price Volatile?

It’s essential to recognize that lithium stock prices have historically been volatile in the short term due to various factors. 

Lithium is a specialized commodity produced in limited quantities, making supply disruptions a significant factor in price fluctuations. Moreover, changes in consumer trends, particularly in consumer electronics and EVs, can swiftly impact demand and supply. 

The lithium market is also influenced by geopolitical conditions and regulations, which can alter demand dynamics. Also, advancements in technology have introduced new extraction techniques, affecting total supply and prices.

There is also potential for increased involvement from major oil and gas companies. This is evidenced by recent statements from CEOs of Exxon and Chevron expressing interest in the lithium industry. 

Additionally, a large private energy company Lowry is advising is exploring investments in lithium assets to support the global energy transition.

Although China has historically dominated lithium supply from Australia, the rise of Western converters is expected to redirect more Australian supply to Europe and North America. This shift may challenge China’s market dominance as the Western supply chain expands.

Point in case is Canada positioning itself to contribute to meeting the North American lithium requirements. This is where a junior Canadian lithium company, Li-FT Power (LIFT: LIFFF), comes into play.

The company focuses on consolidating and advancing hard rock lithium pegmatite projects in Canada, especially in known lithium districts. Li-FT Power is committed to advancing the exploration and development of high-quality lithium assets in the country. 

Powered by Lithium: The Electrifying Role of EVs

Strategic investments to secure future lithium supply are on the rise. Major automakers and lithium producers are already committing over $1 billion in 2023 alone. 

For instance, GM invested $650 million in Lithium Americas, while Albemarle allocated $110 million to lithium developer Patriot Battery Metals. This trend is expected to continue as companies seek to safeguard their access to raw materials for batteries.

The EV market is still in its early stages, with significant room for growth. As EV penetration increases globally, demand for lithium will outstrip supply, especially as EVs become mainstream. 

global lithium carbonate equivalent demand 2017-2027

Since batteries constitute a significant portion of EV expenses, this presents an opportunity for EV manufacturers to either increase profits per vehicle sold or, more likely, reduce prices to remain competitive as rivals do the same. Lower prices tend to attract more buyers, leading to increased demand for lithium. 

Consequently, as the current oversupply diminishes, the price of lithium is likely to rebound. This cycle of falling prices leading to increased demand, followed by a reduction in supply, underscores the cyclical nature of the lithium market. 

Short-Term Challenges and Long-Term Outlook 

Despite short-term volatility, the long-term forecast for lithium remains positive. Lithium is crucial for decarbonization efforts, especially in the EV sector. 

The global demand can surpass 2.4 million metric tons of lithium carbonate by 2030, doubling the 2025 forecast. BloombergNEF projects nearly a 5x increase in global lithium demand by the end of the decade, driven by rising battery demand for electric vehicles.

In the short-term, Goldman Sachs maintains a pessimistic outlook for lithium prices in 2024. The brokerage firm projects further declines compared to current levels. 

The broker anticipates this downward pressure in lithium prices this year due to oversupply. 

Initially predicting a return to market deficit in 2024, analysts now suggest a longer timeline, with the lithium market potentially bottoming out in 2025. Thus, Goldman Sachs maintains a bearish view on the market, adjusting their 12-month targets downward for China Lithium Carbonate and CME Asia CIF Lithium Hydroxide.

Known for its accurate forecasts, Goldman Sachs estimates the following prices for 2024:

  • Lithium carbonate: $13,377 per tonne
  • Lithium hydroxide: $14,263 per tonne
  • Spodumene 6%: $1,250 per tonne

As per S&P Global estimation, lithium prices will start to stabilize beginning in 2025 as surplus narrows down. From there, prices would start to rise up again as seen below.

lithium prices outlook by S&P Global

Amid current market challenges, the commitment to global net zero emissions by 2050 is expected to drive continued demand for lithium. More notably, long-term prospects remain strong fueled by growing EV adoption and global decarbonization efforts.

Disclosure: Owners, members, directors, and employees of carboncredits.com have/may have stock or option positions in any of the companies mentioned: LIFFF.

Carboncredits.com receives compensation for this publication and has a business relationship with any company whose stock(s) is/are mentioned in this article.

Additional disclosure: This communication serves the sole purpose of adding value to the research process and is for information only. Please do your own due diligence. Every investment in securities mentioned in publications of carboncredits.com involves risks that could lead to a total loss of the invested capital.

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Carbon Footprint Controversy For Taylor Swift Ahead of Super Bowl LVIII.

Jennifer L
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Carbon Footprint Controversy For Taylor Swift Ahead of Super Bowl LVIII.

As the countdown to Super Bowl LVIII begins, Taylor Swift finds herself soaring not only in the charts but also in environmental debates. In recent weeks, scrutiny has intensified on American singer-songwriter’s footprint from her private jet travels.

An estimation shows that the popstar’s flight to the event, where her love interest Kansas City Chiefs tight end Travis Kelce would be playing, will pollute 14x the average American household emissions in one year.  

Swift’s sky-high carbon emissions from her private jets brewed interest at Chiefs games with her frequent travels. The pop culture icon joins a list of celebrities facing criticisms for private jet travel amid growing concerns about planet-warming carbon emissions. 

Taylor Swift’s Super Bowl Travel Footprint

The hitmaker, who broke chart records with her Eras Tour grossing over $1 billion, becomes even more popular because of her $40M-private jet’s emissions. This kind of transport is known to be the most polluting, creating a major challenge in global decarbonization efforts. 

Compared to other transportation modes, private jet emits 2 metric tons per hour per person. A U.S. domestic commercial flight releases just 0.04 metric tons of CO2.

carbon emissions per vehicle type
Source: Beatriz Barros & Richard Wilk (2021). The outsized carbon footprints of the super-rich, Sustainability: Science, Practice and Policy. Graphics by BuzzFeed News.

Swift is the world’s most carbon polluting celebrity in 2022, per digital sustainability consultancy study. Their results show that Swift had flown 170 times since January that year, equivalent to 22,923 minutes in the air. 

If the popstar attends the Super Bowl in Las Vegas, she would be coming from Tokyo where she’s on tour. That would mean flying over 19,400 miles in under 2 weeks via her private jet to support Travis Kelce. The Chiefs player is America’s most Googled NFL player in the run up to the big game.

The flights are estimated to emit more than 200,000 pounds of CO2, according to Gregory Keoleian. He’s a co-director of the Center for Sustainable Systems at the University of Michigan. 

That’s roughly 14x the average annual emissions of an American household, per data from the U.S. Energy Information Administration.

The controversy underscores the broader issue of the environmental impact disparities between the wealthy and lower-income individuals. And Swift isn’t the only A-lister to be spotlighted for globe-trotting.

In another analysis by The Guardian, 200 rich people, including business tycoons and celebrities, emitted over 415,500 tons of carbon from making over 44,700 flights in 2023. In perspective, that’s equal to the average annual emissions of 40,000 British people.

Included in the study are famous businessmen like Elon Musk and music veterans like The Rolling Stones. 

Professional Sports and Carbon Offsets

Taylor Swift’s Super Bowl flight emissions is just a fraction of the event’s massive carbon footprint. Think about the competing teams’ own travel emissions and that of the spectators’. Then add in the emissions of hosting the event, including the arena’s energy use and the accommodations’ emissions. 

More remarkably, the carbon footprint of the digital ads linked to the Super Bowl is huge. The 10 most popular ads for the most-watched U.S. sporting event stands at 422 tons of CO2. That’s roughly equivalent to 2,800 flights from Philadelphia to Kansas City. Both cities were part of last year’s Super Bowl LVII. 

Other major events, including the Olympic Games and the U.N. climate summit, also face criticisms for their significant footprint. All air travel contributes to climate change, with private jets notably producing much higher emissions per person. They emit at least 10x more carbon per passenger compared to commercial planes. 

In an era where a substantial carbon footprint is viewed as a reputational concern for public figures, celebrities and high-profile figures have taken substantial steps to address their carbon emissions and communicate these efforts to the broader public.

Swift opted to use carbon offsets to compensate for her private jet’s huge carbon footprint. Prior to the singer’s move, the Houston Texans of the National Football League (NFL) had also bought carbon credits to offset their air travel’s emissions. 

Carbon offsets are designed to help individuals and companies address their carbon emissions by supporting carbon reduction or removal efforts. Examples include tree planting and the use of technologies that capture carbon from the atmosphere.

While the details of Taylor Swift’s air travel emissions to watch Travis Kelce play at the Super Bowl LVIII remain to be seen, it could bring the most anticipated sports event’s environmental impact under more scrutiny. The Super Bowl’s colossal carbon footprint underscores the urgent need for sustainable practices in the arena of sports and entertainment.

A-Gas and SusGlobal Lead the Way in Pioneer Carbon Credit Initiatives

Jennifer L
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A-Gas and SusGlobal Lead the Way in Pioneer Carbon Credit Initiatives

In a groundbreaking move towards environmental responsibility, A-Gas, a pioneer in refrigerant lifecycle management, has received approval for Ecology Offset Credits from the Washington State Department of Ecology, a key regulatory authority in the state’s carbon market compliance. Simultaneously, SusGlobal Energy Corp. is making waves with its composting offset project in Ontario, selling Verified Emission Reductions and Removals (VERRs). 

These initiatives underscore a commitment to sustainability and innovative solutions to combat climate change.

A-Gas (US) is a trading subsidiary of A-Gas International, the world’s biggest refrigerant recovery and reclamation company. It focuses on providing environmental solutions and lifecycle management services for ozone depleting substances and global warming agents.

Revolutionizing Refrigerant Recovery Through Carbon Credits

Utilizing their Rapid Recovery on-site refrigerant recovery service and Rapid Exchange on-demand cylinder swap service, along with collaboration with distributor partners, A-Gas collected refrigerant gasses from Washington State. 

The collected gasses were then treated in A-Gas’ proprietary PyroPlas® plasma arc destruction units. It is the only technology of its kind in the U.S. approved for carbon offset generation. 

A-Gas pyroplus plasma arc destruction units

PyroPlas® ensures the cleanest end-of-life treatment, achieving a remarkable 99.9999% efficiency in destroying Ozone Depleting Substances with minimal emissions. It also has no adverse environmental impacts.

The Department of Ecology has issued 109,180 Ecology Offset Credits to A-Gas. These credits can be used by covered entities in Washington to meet their emission reduction obligations under the state’s program.

American Carbon Standard (ACR) served as the Offset Project Registry, issuing serialized Registry Offset Credits for conversion into Ecology Offset Credits. The project adhered to the California Air Resources Board Compliance Offset Protocol for Ozone Depleting Substance Projects, adopted by the Washington Department of Ecology for generating the Registry Offset Credits.

Brooke Willard, Carbon Program Director for A-Gas, expressed pride in being among the first project developers for Ecology Offset Credits. A-Gas aims to manage refrigerant lifecycles effectively, contributing to environmental protection and enhancement. 

Willard further added that:

“With the issuance of these credits, A-Gas is providing Washington organizations with a transparent mechanism to build a more sustainable future.”

A-Gas ambitiously aims to reach net zero emissions by 2035. The company also has a goal of reducing its existing emissions by 50% by 2028.

Over in Canada, a composting offset project has generated carbon credits called Verified Emission Reductions and Removals (VERRs).

Turning Waste into Gold

SusGlobal Energy Corp., an environmental, agricultural and industrial biotechnology company, has sold 3,000 VERRs as part of the SusGlobal Belleville Composting Offset Project in Ontario. The company focuses on acquiring, developing, and monetizing a portfolio of proprietary technologies in the waste to energy and regenerative product applications globally.

This new sale brings the total number of carbon credits sold by the company to an impressive 42,302. Anew Climate, formerly known as Blue Source, developed the project.

A noteworthy achievement of the project is its contribution to the increased diversion of organic waste from landfills. This significantly helps in mitigating methane generation.

Methane, a potent greenhouse gas, is 28x more effective at trapping heat energy in the atmosphere than carbon dioxide. By diverting waste from landfills, the composting offset project addresses this environmental concern, benefitting both the community and the climate.

In 2021, Canada’s waste-sector methane emissions were 21 metric tons of CO2e or 0.96 metric tons of methane. It accounts for nearly 22% of the total methane emissions in the country in 2020, as seen below. 

methane emission sources Canada
Source: Library of Parliament

The demand from municipalities to divert organic waste from landfills remains strong. Composting facilities with sustainable management practices are crucial in this waste redistribution process. 

Ontario is planning to ban food and organic waste in conventional waste sites under the Environmental Protection Act. This regulation helps unlock opportunities for waste reduction and innovative resource recovery throughout the value chain. This change is advantageous for SusGlobal, enhancing its infrastructure, assets, licenses, and capacity to produce lower-carbon options at existing facilities.

Fueling Composting for Cleaner Environment 

SusGlobal Belleville operates as an aerobic composting facility, specializing in the processing of residential source-separated organic waste and industrial, commercial, and institutional organic waste into high-quality compost. 

The facility collaborates with local municipalities, including the City of Belleville, County of Northumberland, the Municipality of Port Hope, the Township of Cavan Monaghan, and Prince Edward County, for waste collection.

Verified Emission Reductions and Removals (VERRs) associated with the composting offset project are validated by an independent third party.

Marc Hazout, Executive Chairman, President, and CEO of SusGlobal Energy Corp., expressed appreciation of this sale, saying that: 

“We are pleased with the continued amounts that Anew has marketed and sold as part of our Company’s carbon credits monetization initiative, allowing us to generate additional revenues.”

The anticipated revenue from carbon credits would drive technological advancements, boosting the expansion of composting efforts not just at the SusGlobal Belleville facility but in other municipalities across North America. This underscores the company’s commitment to continuous innovation and environmental stewardship.

A-Gas secures Ecology Offset Credits from its refrigerant recovery and SusGlobal continues to thrive in carbon credit sales. Both companies show the transformative power of corporate responsibility in reducing carbon emissions and building a sustainable future.

ICVCM Sets the Bar High with 100 Carbon Credit Methodologies Under Assessment

Jennifer L
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ICVCM Sets the Bar High with 100 Carbon Credit Methodologies Under Assessment

The Integrity Council for the Voluntary Carbon Market (ICVCM) has achieved a new milestone, announcing its plan to assess over 100 active carbon credit methodologies for adherence to the high-integrity Core Carbon Principles (CCPs). 

The first decisions on these assessments are due by the end of March. 

An expert group, including members of the Integrity Council’s Governing Board, its Expert Panel, and external stakeholders, has categorized similar carbon credit methodologies into 36 different groups. The groups will undergo three types of assessments based on their complexity and issues.

It was in August last year when ICVCM released its long-awaited Assessment Framework.

Types of Assessments for Carbon Credit Categories

The Core Carbon Principles (CCPs), comprising 10 fundamental tenets for high-integrity carbon credits, are supported by detailed criteria outlined in the CCP rulebook. 

The issuance of high-integrity CCP-labeled credits could facilitate the flow of climate finance to Global South countries. This is essential in helping them achieve their national climate objectives. 

These credits will enable buyers to identify and support top-notch projects that effectively reduce and remove emissions. Projects range from initiatives to safeguard and restore forests to the expansion of challenging-to-commercialize innovative clean technologies.

The Categories Working Group (CWG) has sorted carbon credits categories into one of three types of assessment:

  1. Internal assessment: 

Categories covering 8% of carbon credits in the market will be assessed internally by the Integrity Council secretariat and members of its Expert Panel. This includes methodologies such as:

  • capturing methane from mines and landfill sites,
  • detecting and repairing leaks in gas systems,
  • destroying ozone-depleting chemicals, and
  • reducing emissions of sulfur hexafluoride.

  1. Multi-stakeholder assessment:

Categories covering 47% of carbon credits in the market will be assessed by Multi-Stakeholder Working Groups. These categories, including renewable energy, efficient cookstoves, improved forest management, and REDD+ (Reducing Emissions from Deforestation and Degradation in Developing Countries), raise complex issues in specific areas.

  1. Considered by the CWG to be very unlikely to meet the criteria: 

Categories covering 1% of carbon credits in the market, considered unlikely to meet CCP criteria, will be assessed once other evaluations are complete. These include new natural gas power, waste heat recovery, and industrial energy efficiency.

Major Programs Under Assessment

Programs have the discretion to exclude certain carbon credit methodologies from the assessment process. 

Verra, for instance, introduced its new REDD+ methodology for evaluation while omitting its prior REDD+ methodologies, constituting 27% of the market credits. The organization has put forth only the latest versions of methodologies for specific project types. They’re developing a pathway to facilitate projects transitioning to these updated versions.

Here’s the status of the major programs under assessment:

ICVCM program assessment status

An additional 6% of methodologies have either been excluded by other programs or represent older methodologies covering a limited number of credits in the market. Unallocated credits in the market would be due to various reasons. These include data inconsistencies, projects utilizing multiple methodologies, inactivity of some methodologies, and the pending categorization of certain small methodologies.

Carbon-crediting programs commanding a 98% market share have sought approval to use the CCP label. The secretariat is concurrently evaluating these programs alongside the assessment of categories. 

Approved programs meeting the criteria will be authorized to display the CCP label on both existing and new credits from approved categories.

Annette Nazareth, Integrity Council Chair, said: 

“The Core Carbon Principles establish a global benchmark for high integrity. We know buyers are eagerly awaiting CCP-labelled carbon credits. We are keen to ensure the labels reach the market as soon as possible while ensuring that we properly consider complex issues and make the right decisions.”

Marching Towards Integrity

The Integrity Council anticipates revealing the outcomes of its assessments by March. The organization has dedicated web pages on its site tracking the progress of all categories and programs undergoing assessment. 

The Governing Board’s decisions, along with rationale, will be made public, accompanied by transparent explanations for any negative determinations.

  • It’s important to note that not all methodologies within a specific category may receive approval.

In cases where remedial action is necessary before program or category approval, or if approval is unlikely, affected programs will be notified. They will have the right to submit their input and participate in a hearing before any final decisions are made.

The Integrity Council’s efforts to instill integrity in carbon credits align with the Voluntary Carbon Markets Integrity Initiative (VCMI). VCMI focuses on ensuring integrity in credit use with the following claims type. 

VCMI Carbon Integrity Claims type
VCMI Carbon integrity claims

The VCMI’s Claims Code of Practice provides guidance to companies on using credits to make credible claims regarding their progress towards net zero commitments, emphasizing the need to purchase credits meeting the CCP quality threshold.

More notably, governments and regulators are increasingly considering the ICVCM’s CCPs as an international standard for incorporation into their frameworks. In particular, the UK has expressed intent to endorse the CCPs and explore their integration into policies, regulations, and guidance. 

The Monetary Authority of Singapore is also actively exploring how to align its transition credits with the CCPs. In the US, the Commodity Futures Trading Commission has published draft guidance aligning carbon credit derivatives listings with the CCPs.

ICVCM reached a significant milestone geared to enhance the credibility of carbon credits, supporting climate finance in Global South countries and aiding buyers in identifying top-notch projects. The process involves internal and multi-stakeholder assessments, with approved programs displaying the coveted CCP label on their credits.

CarbonPool Raises $12M in Seed Funding From Climate-Focused Investors

Jennifer L
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CarbonPool Raises $12M in Seed Funding From Climate-Focused Investors

CarbonPool, a pioneering Carbon Credit Insurance Firm, positioning itself as the world’s first insurance company with a carbon credit balance sheet, has successfully concluded a $12 million funding round. 

The climate-focused startup is co-founded by former Allianz executives. The funding round is led by Heartcore Capital and Vorwerk Ventures, including support from HCS Capital, and Revent Ventures. 

The raise marks the largest European climate-focused seed funding round in over a year. Globally, it is the second-biggest seed funding in climate finance, highlighting significant interest for innovative approaches to carbon credits insurance.

The World’s First In-Kind Carbon Credit Insurance 

In an era where companies heavily rely on carbon credits to achieve their net zero targets, the turbulence in carbon credit markets has marked the importance of credit integrity, rigorous risk underwriting, and assurance of real environmental gains.

CarbonPool addresses the need for such assurances by offering in-kind insurance to mitigate risks related to reaching net zero commitments. The carbon credit insurer will acquire high-quality carbon credits, keeping them on its balance sheet for future payouts. 

This coverage extends to shortfalls, reversals, business interruptions, and natural disasters that might hamper the contracted carbon dioxide removals. It also applies to events that accidentally contribute to increased atmospheric CO2 levels such as wildfires.

CarbonPool carbon credit insurance coverage
Image from CarbonPool

The company’s interdisciplinary team, comprising insurance experts, climate scientists, weather modelers, geographers, and engineers, evaluates each risk to develop customized risk models. 

Premiums collected from clients, combined with CarbonPool’s capital, are strategically invested in high-quality carbon removal projects. This unique approach ensures that claims can be in-kind, enhancing the credibility and reliability of carbon credit commitments.

A report by AlliedOffsets, covering 2000 to 2023, indicates a modest 45% average success rate in the issuance of carbon credits. This poses a significant challenge for corporate buyers striving to achieve their climate objectives. 

Notably, current insurance offerings cover the assets underpinning carbon credits but don’t provide compensation for the credits’ real value. This is where CarbonPool’s in-kind insurance comes in to address the uncertainties and risks associated with carbon credit issuance.

Mitigating Climate Risks with CarbonPool’s Carbon Credit Assurance

Former regional CEO of Allianz Africa and Co-founder/CEO of CarbonPool, Coenraad Vrolijk, highlighted their unique approach to insurance, saying:

“CarbonPool’s in-kind payments make it unique among insurers in not only offering protection to holders of carbon credits in cases of natural disaster or technology breakdown but also in providing a guarantee that carbon credits live up to their promises, giving purchasers certainty and ensuring that they can meet their net zero goals.”

Christian Jepsen, a founding partner at Heartcore, emphasized the significant potential of insurance in the carbon trading space. He noted that while insurance typically constitutes 5-10% of mature markets’ revenue, it is just beginning to make an impact in carbon markets. 

Participants in the carbon markets, where revenues will increase 4x to $2 trillion by 2050, have little access to these insurances. And the CarbonPool team aims to fill in this gap. 

The insurer is actively progressing its insurance license application in Switzerland. Already engaging with clients, including corporations, institutional investors, and carbon removal developers, the company offers assessments and pre-underwriting agreements. 

Additionally, CarbonPool is in talks with government bodies such as the United Nations and the State of California. The company is contributing insights on how insurance can effectively address key challenges within the industry. 

Within the same tree but in a separate branch, climate focus startups are also attracting investors’ attention. 

The Growing Support for Innovative Climate Solutions

Per Crunchbase data, investors are funding better, lower-carbon ships and boats. Their analysis reveals that companies focusing on reducing the carbon footprint of ships and watercraft have raised a total of over $1 billion. 

The startups are using the funds to improve research and commercialization of electric motors, wind-powered ships, and other low-carbon ships. 

For instance, Pure Watercraft, a startup providing battery-electric propulsion systems for boats, raised over $200 million in total equity funding. A French Ocean Zero portfolio company, Ayro, focusing on decarbonizing cargo ships through wind propulsion has closed over $32 million. 

Climate tech startups and their backers continue to show that their carbon reduction innovations are here to stay. Despite the challenges ahead, they are driven by their visions to impact the industry and help in propelling the world towards net zero. 

Fighting alongside these nautical startups is CarbonPool. The company’s successful funding round positions it as a key player in the emerging space of climate-focused startups. Together, they show the increasing recognition and support for innovative solutions addressing climate challenges. 

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