Ammonia: Carbon-Free Fuel for the Shipping Industry

Jennifer L
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Ammonia: Carbon-Free Fuel for the Shipping Industry

Converting ammonia into hydrogen is an emission-free fuel to help decarbonize the heavy-duty and shipping transportation industry.

The transportation industry is the biggest polluter in the U.S. In 2020, it accounted for the largest share at 27% of all the country’s GHG emissions according to the US Environmental Protection Agency.

Due to the significant amount of transportation emissions, actions are taken to reduce the sector’s pollution. This includes the notoriously dirty shipping industry.

The recently introduced Clean Shipping Act of 2022 aims to rid of emissions in ports in 2030 as the soonest. The law also restricts anchoring of ships in U.S. ports that don’t follow the zero emissions guidelines.

Ammonia Is Key to Hydrogen Rollout

As per the International Maritime Organization (IMO), ships with 5,000 gross tonnage and above are responsible for 85% of net GHG emissions from the shipping industry.

The industry currently emits about 1 billion tons of carbon annually. But with increased regulation, carbon offsets, and innovative technology, carbon emissions can be reduced.

IMO’s goal is to decrease that by 50% by 2050, and will implement a long-term strategy by 2023.

Given the size and weight of those ships, battery technology is not possible to use in them. Thus, hydrogen has become the leading alternative technology to power the massive vessels.

And to support the rollout of hydrogen, ammonia is a critical element.

  • Ammonia naturally doesn’t contain any carbon molecules. So it has a great potential to be a zero emission fuel. Plus, it can carry hydrogen effectively to a fuel cell.

Hydrogen, in itself, has some challenges when it comes to storage and transportation. This is where ammonia becomes helpful in aiding the deployment of hydrogen.

Why ammonia?

  1. There’s already existing infrastructure for ammonia as it has been used in agriculture for long years as input. There’s a pipeline for ammonia production and storage, making it a potential renewable fuel.
  2. Also, ammonia is a liquid which makes it easy to store. This reduces the cost and space requirements for its storage in comparison with hydrogen and LNG.
  3. Lastly, ammonia even has a high volumetric energy density. It means the storage vessels can be light, fast, and travel long distances.

With all these qualities of ammonia, it’s suitable for decarbonizing the shipping industry. After all, there has been an agreement that the sector has to shift to new fuels and propulsion technologies to reach global emission goals. And ammonia is one option for that.

Based on the infographic below, zero carbon fuels will hit a 5% fuel mix by 2030. That means the industry has about 8 years remaining to achieve 60GW of electrolyzers to produce about 30 million tons of ammonia.

ammonia as maritime fuel

Meanwhile, it’s the size and operational profile of a ship that determines the applicability of carbon-free technologies.

For instance, the most vital performance metric for huge sea vessels like cargo ships is often the energy density requirements for fuels and motor systems. But for small and medium-sized ships like ferries, such factors are less strict.

Ammonia & Hydrogen for Clean Shipping

The clean hydrogen community expects that government financing programs will promote the technology and infrastructure in the U.S.

There are some major initiatives in place to advance the policy environment and drive the ambitious hydrogen agenda.

Take for example the case of putting up regional “Hydrogen Hubs”. These efforts make it easier for advancing clean hydrogen technology. These hubs can positively impact the country’s climate policy environment.

More collaboration, funding, and technology demonstrations can help push this fuel alternative for a clean shipping industry.

Ammonia is currently gaining traction as a solution for carrying hydrogen and decarbonizing shipping. In this case, it makes sense to include ammonia technology solutions in those efforts.

Ultimately, there must be a full transition away from fossil fuels to tackle global warming. And the shipping sector must do its part to cut down its emissions.

Clean hydrogen technology alongside ammonia may offer a suitable solution.

How The First Carbon Negative Nation of Bhutan Did It

Jennifer L
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How The First Carbon Negative Nation of Bhutan Did It

As the world’s richest and largest emitting countries are struggling to reduce emissions, Bhutan became the first carbon negative nation.

Fog-enshrouded temples nestled in mountainous terrains make Bhutan attractive to tourists.

But this tiny Asian nation in the Himalayas has an added bonus. It’s the first to achieve carbon negativity through its vast forests.

  • In fact, forests cover about 75% of the small nation’s land area.

Bhutan enshrined in its constitution a commitment to protect 60% of its territory as forest land.

This is key to its carbon neutrality as its forests sequester about 9 million tons of carbon each year while the country generates only 2 million tons in 2020.

What Does Carbon Negative Mean?

To be carbon negative means an entity’s actual emissions are outweighed by the footprint it offsets. Bhutan is the first country to achieve carbon negativity.

Not only is the small kingdom a net sink for carbon; it also offsets its emissions by exporting renewable energy. It exports a lot of hydroelectric energy to its neighbor India.

As mentioned, its vast forestland absorbs far way more carbon (9 million tons) than the country emits (2 million tons).

Beyond abating carbon via sequestration and renewables, Bhutan is also preserving biodiversity.

The country allows wildlife to travel between different preserved areas of nature.

GNH: Happiness over Money?

Other countries are having hard times to reduce emissions, even the richest ones.

So, many are wondering how did the small nation with less than 1 million population manage to become carbon negative.

The answer lies in a concept which Bhutan is famous for – GNH or Gross National Happiness. It’s one of the major governing principles of the country that prioritizes happiness over GDP.

  • It recognizes the importance of economic growth. But it also asserts that it must not undermine the nation’s pristine environment.

Thus, the country’s growth strategies are then suited to maximize happiness rather than GDP.

Bhutan’s GNH index has two important parts:

  1. sustainable socio-economic development
  2. environmental conservation

Bhutan’s happiness-based philosophy is a key factor in driving its green policies.

In official documents relating to climate change, the government places strong emphasis on the rights of future generations to environmental safety and the enjoyment of natural resources.

This approach makes intergenerational climate justice a key enabler in affecting climate action.

In summary, here are the ways how Bhutan became a carbon negative nation:

  • It bans log exports
  • Preserves 60% of the country’s total land area under forest cover for all time
  • Uses free hydroelectric power from its bountiful rivers rather than fossil fuels
  • Rural farmers are given free electricity

Add to this, Bhutan has also secured long-term funding for its projects with “Bhutan for Life”. It’s a fund developed in partnership with the World Wildlife Fund in 2017 to finance the nation’s sustainability and conservation efforts.

Besides preserving protected areas, the project also finances R&D in renewable energy. It will also encourage more sustainable living in local communities.

Such efforts reduce the country’s negative impact on the environment while allowing it to capture more carbon than it emits.

Yet, it’s important to note that Bhutan is a small, non-industrialized nation. This could mean that its approach to curb emissions may not be suitable for larger countries like the U.S.

Still, its accomplishments do show what’s possible when environmental sustainability is at the center of the political agenda.

What does the Bhutan experience tell us?

Bhutan achieved what all participating countries of the Paris Agreement hope to achieve by 2050.

The fact that it reached net zero status and continues to draft bigger plans to remain so is something to which all countries may aspire.

The constitution and the culture of Bhutan go together to make net zero a reality. It protects its major carbon sink: the forests.

  • While the exact Bhutanese model for reducing emissions may be hard to apply to larger industrialized countries, the principle of prioritizing environmental sustainability as part of promoting happiness may be a good start.

But there’s no guarantee that other nations can catch up in time to prevent Bhutan from suffering from the adverse effects of climate change.

As the former Bhutanese prime minister Tshering Tobgay once said,

“After all, we’re here to dream together, to work together, to fight climate change together, to protect our planet together… Because the reality is we are in it together.”

Bhutan may be the first carbon negative nation but many others could also follow.

Google’s Eco-Friendly Routing Comes to Europe

Jennifer L
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Google’s Eco-Friendly Routing Comes to Europe

Google expanded its eco-friendly routing on its Google Maps to 40 countries across Europe.

With Google Map’s eco-friendly routing, drivers can choose a route that’s optimized for lower fuel consumption by showing the most fuel-efficient routes. This helps users save money on fuel and cut carbon emissions, too.

The ability to reduce emissions is a great concern among the EU states. That’s because road transportation is the largest source of emissions throughout Europe.

The internet giant’s eco-friendly routing roll out appears to be a timely intervention.

Google’s Eco-friendly Route Feature

In addition to showing the fastest route, Google Maps can now also display the one that’s most fuel efficient across European nations. These include France, Ireland, Poland, Spain, and the UK, while it was introduced in Germany last month.

Users can see the eco-friendly route marked with a leaf label.

The feature was originally launched in the US and Canada last year. It’s part of what Google calls its sustainability initiatives.

The company claimed that after rolling-out eco-friendly routes in the U.S. and Canada, it has saved carbon emissions equivalent to 100,000 cars. That equals to removing over half a million metric tonnes of emissions.

This is exactly the reason behind Google’s eco-friendly routing feature. It will highlight routes that use less energy if they have a similar ETA to other alternate routes.

As shown in the image, the user can choose among the driving options to prefer fuel-efficient routes.

google eco-friendly route feature

How to select eco-friendly routes

The user can easily make that choice with only a few taps. Here’s the quick steps to follow:

  1. Tap on profile on Google Maps
  2. Go to Settings > Navigation Settings
  3. Scroll down to route options
  4. Tap and select “Prefer fuel-efficient routes” to turn on eco-friendly routing

What’s even more powerful is that users are given various options based on what type of fuel their cars run on.

For instance, diesel engines are usually more efficient at higher speeds than petrol or gas. While hybrid and electric vehicles perform better in stop-and-go traffic.

This is why Google will allow drivers to use its eco-friendly routing across Europe, Canada, and the US in the coming weeks based on their engine type.

  • Petrol or gas
  • Diesel
  • Hybrid
  • Electric vehicle (EV)

Doing so will give them the best route and most accurate fuel efficiency estimates.

According to the tech giant, this technology is possible with insights from the U.S. Department of Energy’s National Renewable Energy Laboratory (NREL) and data from the European Environment Agency.

The company also stated that:

“By pairing this information with Google Maps driving trends, we were able to develop advanced machine learning models trained on the most popular engine types in a given region.”

Google is going green

In recent years, Google has been encouraging people to consider more eco-friendly navigation options with new features in Google Maps.

For example, the company first introduced EV charging station information to its app in 2018.

Two years later, Google Flights also allowed flyers to compare CO2 emissions and overall price. The firm also rolled out features for bike navigation with details like the amount of road traffic along the route.

Here’s a list of how Google Maps can help users make sustainable choices.

EV charging station: this feature allows users to see charging stations nearby with helpful information like types of ports and charging speeds. It’s even possible to know if there’s an available charger in a station to save waiting time.

Cycling route: Google Maps also provides cycling route information such as car traffic, steep hills, and even stairs on the route. The app further gives detail on bike and scooter shares in 500+ cities across Europe.

Directions for pedestrians: Google Maps offers turn-by-turn directions for pedestrians. It also has a Live View option that displays arrows and directions overlaid on the map. Pedestrians can also preview their walking route with the Street view feature.

Public transport navigation: In Directions on the app, there’s a transit icon that gives directions to destinations by bus, train, subway, and even ferry. The feature also provides details such as how crowded the ride will be. Plus, wheelchair-accessible routes are available.

All these features are a part of Google’s commitment to empowering 1 billion people through its products by the end of the year.

UK Pension Schemes Under Pressure for Climate Impact Reporting

Jennifer L
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UK Pension Schemes Under Pressure for Climate Impact Reporting

The mid-sized and smaller pension schemes in the UK are under tighter rules as new reporting regulations are requiring more detailed information.

The UK has been one of the fastest countries to adopt the Taskforce on Climate-related Financial Disclosure (TCFD) reporting requirements into law. This covers corporates, regulated financial institutions, and pension schemes.

Large pension schemes in the country have to report climate risks in line with TCFD guidance since last October. This is also part of the Occupational Pension Schemes Regulations 2021.

According to a law firm associate, the trend goes towards demanding more and more detailed information. He also added that:

“The aim is clearly a good one. That said, the regulations are detailed and it is going to be quite an uphill battle for smaller schemes to comply. There will be a challenge to find the time and resources.”

The requirements stem from the 2017 recommendations of the Financial Stability Board (FSB), which was a forum set up in the wake of the 2008 global financial crisis.

Pension Schemes as Responsible Stewards

Schemes in the UK have to disclose four measures in their accounting which include:

  1. the total carbon emissions of all the scheme’s assets;
  2. a measure of the intensity of such emissions per unit of currency;
  3. a measure of the trustees’ own choices in relation to climate factors; and
  4. a measure of the extent to which the scheme’s investments align with the aim of the Paris Agreement to limit global warming to 1.5°C.

The last measure has become compulsory only recently. This obliges trustees of the schemes with the Paris goals as their 3rd measure to find a new one.

Speaking on the recent change in reporting for pension schemes, the Department for Work and Pensions (DWP) Secretary noted that it’s to support trustees in their climate disclosures.

And so more work is necessary to refine methodologies and ensure consistent and robust reporting. This is vital to also ensure that schemes act as responsible stewards on behalf of millions of UK pension savers.

Commenting on this, Director of Policy and Advocacy at the Pensions and Lifetime Savings Association, Nigel Peaple said:

“As we enter the next phase of scheme reporting, it is important that the largest companies and asset managers meet institutional investors’ expectations… by enhancing their climate impact disclosure, as well as fully implementing their regulatory responsibilities within the TCFD regime.”

Getting enough information

Preparing TCFD reports started with larger pension funds last year. But it includes mid-sized operators this year, too, from £5 billion in assets under management to £1 billion.

This would be challenging for smaller pension schemes in the UK. One challenge is the ability of trustees to get relevant information from asset managers.

This may not be the case with listed equities and corporate credits. But it might be for emerging markets and private asset classes where confidentiality is a concern.

For instance, Hymans Robertson, a pensions and financial services consultancy firm stated that private market managers are failing to provide their clients with the information they need to manage climate risks.

The firm’s analysis revealed the industry-wide concerns about the incomplete disclosure of climate data.

Hymans also stated that the reporting of carbon emissions data is not yet commonplace. It said that:

“Managers of property and infrastructure funds are better prepared with just under half – (44%) for property and 48% for infrastructure – providing data on carbon emissions… In contrast, private equity and private debt managers were able to report significantly less information on climate issues – no private debt managers in the survey provided carbon emissions data.”

In line with this, the DWP remarked that it will review the existing thresholds for pension schemes’ climate-related reporting.

Taking into account (or ignoring) the risk

Reporting in line with the TCFD framework measures financial risk linked to climate change. But this is not the only concern for UK pension schemes.

Asset managers must also take into account stewardship and engagement. This means looking at ways how the financial sector can help in the race to net zero.

Some experts in this matter said that some schemes will find it impossible to meet the new TCFD reporting requirements.

While operators may see it as a once-a-year exercise, there’ll be more requirements on what the trustees need to do.

  • A worst-case scenario would be some firms will refuse to give trustees the TCFD information. And this will place their portfolio under question.

If such happens, any scheme that ignores climate change reporting also turns a blind eye to a major risk to pension savings. Most importantly, they’re missing out on vital investment opportunities.

Pension schemes in other countries have been diligent enough in disclosing their climate change data.

Allocating capital more efficiently

Regulators across the entire UK investment chain are committed to disclose climate information. And the government is making plans to reach its target of net zero carbon emissions by 2050.

This means that resilient pension schemes protecting savings from climate risk are within reach. But to achieve this, pension trustees should focus on their three major duties:

  1. Exercise of investment powers for their proper purpose;
  2. Take into account material financial factors (including transition and physical risks); and
  3. Act according to the “prudent person” principle.

The prudent person principles means:

“Trustee investment powers must be exercised with the ‘care, skill and diligence’ that ‘a prudent person would exercise when dealing with investments for someone else for whom they feel morally bound to provide.”

Performing those duties will allow for a more efficient allocation of capital. Better yet, firms and investors alike will understand the financial implications of transitioning to a lower-carbon economy.

Finally, the International Sustainability Standards Board (ISSB) also has new climate reporting standards. Adoption of these standards will further place more pressure on climate reporting by pension schemes.

But the UK government has committed to promptly implementing the ISSB standards. The goal is to help pension scheme savers in their investment decisions.

Salesforce Launches First-of-a-Kind Carbon Credit Marketplace

Jennifer L
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Salesforce Launches First-of-a-Kind Carbon Credit Marketplace

The first step to achieving net zero is to reduce carbon emissions. In response to this, Salesforce will launch a first-of-its-kind carbon credit solution called the Net Zero Marketplace.

San Francisco-based Salesforce is a cloud-based tech company that provides customer relationship management (CRM) services to businesses of all sizes worldwide.

The global leader in CRM introduced its carbon credit marketplace. It’s a trusted platform that makes the process of buying carbon credits easy and transparent.

Such a solution will allow organizations to buy high-quality carbon credits from ecopreneurs to ramp up the race to net zero.

The market platform will also provide everyone with access to project pricing and 3rd-party ratings.

Many carbon credit providers join Salesforce as inaugural partners, including:

  • Climate Impact Partners,
  • Cloverly,
  • Lune,
  • Pachama,
  • Respira International, and
  • 3rd-party rating companies Calyx Global and Sylvera.

Boosting the Race to Net Zero

The global voluntary carbon market (VCM) is poised to grow up to $50B by 2030. This is driven by corporations’ pledges to hit their net zero targets.

Still, organizations may not know how to create a carbon credit portfolio. Some don’t even know where to begin as buying carbon credits can be complex. But they want to trust that the projects producing the credits have a positive impact.

Add to this the fact that providers of carbon credits don’t always have the tools needed to bring the credits to the market.

Enter Salesforce Net Zero Marketplace.

Salesforce carbon credit marketplace is built on the firm’s Commerce Cloud tech. It connects buyers and ecopreneurs.

  • Ecopreneurs are environmentally-focused entrepreneurs who lead and drive climate action worldwide. They offer a catalog of 3rd-party rated carbon credits and a seamless ecommerce experience for buying them.

Net Zero Marketplace also features a climate action hub where anyone can learn and engage in the climate issues that matter to them.

Entities that seek to achieve long-term emission reductions can supplement their efforts with carbon credits. This is where Salesforce comes in.

Chief Impact Officer, Suzanne DiBianca, said:

“Net Zero Marketplace brings together Salesforce’s values, technology, and commitment to ecopreneurs to create a trusted market so organizations can transparently source carbon credits and accelerate climate action.”

Emission Reductions and Carbon Credits

Carbon dioxide has the same impact on the climate no matter the place and the source.

Polluters can buy carbon credits to help offset their direct emissions. Credits are from projects that avoid, reduce, or remove CO2 from the air.

Examples of carbon credit projects are forest conservation, tree planting, wind farms, solar cookstoves, or better farming methods.

While the first step to reaching net zero is to reduce emissions, that alone is not enough. Climate experts believe that this time of climate emergency calls for trying all options possible.

And carbon credits are one of them that can help incentivize more emissions reductions. They place a price on carbon, which makes an impact now while other efforts are ongoing.

Carbon projects undergo a series of verifications by global standards. If a project meets those standards, carbon credits can then be issued and sold in the market.

Salesforce carbon credit marketplace for transparency

Validating and verifying the quality of a carbon credit may take some time; the process can also be challenging.

Salesforce carbon credit marketplace tries to fix these concerns by aggregating and publishing 3rd-party ratings for projects. And that’s even possible without the need for a paywall.

The transparency of this marketplace helps organizations decide which carbon credits are most suitable for them. The partners identified earlier aid Salesforce to bring the said transparency to its platform.

For instance, Sylvera provides expert ratings to vet projects that deliver real climate benefits. And though carbon projects are very useful in fighting climate change, reliable data is vital to reveal their full potential.

With Sylvera’s ratings, Net Zero Marketplace users can discover projects that bring real climate benefits. The platform also offers carbon credit purchases to any entity, along with education and resources needed.

Any entity can access it and buy carbon credits through it. They will also be able to see project descriptions, UN Sustainable Development Goals, and 3rd-party ratings.

Buyers will also be updated on project progress, boosting reinvestment.

During the launch, Salesforce carbon credit marketplace will offer over 60 projects across Africa, Australia, Europe, Latin America, and the U.S.

Salesforce carbon credit pathways

There are two main reasons why Salesforce goes on its carbon credit journey. It sees carbon credits as a way to:

  1. finance nature-based solutions and new technologies needed today, and
  2. set an internal price on carbon to further support its emissions reduction efforts

The tech company bought its first carbon credits in 2017 as part of its climate action strategy.

Last year, it achieved net zero residual emissions across its full value chain and reached 100% renewable energy for its global operations.

Also, Salesforce launched its $100 million Climate Justice and Ecosystem Restoration Fund.

The firm will invest another $100 million in Carbon Dioxide Removal (CDR) projects by 2030. And it does this as a member of the First Movers Coalition, alongside Alphabet and Microsoft.

It will continue to reduce emissions while investing in carbon credits to offset the emissions it can’t yet reduce.

Buying carbon credit via Salesforce Net Zero Marketplace in the US starts in October this year.

The platform will expand to more markets in 2023.

Public Transportation Pricing Schemes Can Cut Emissions

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Public Transportation Pricing Schemes Can Cut Emissions

Governments are considering public transportation pricing schemes to help with the rising costs of energy and the burden of inflation. Germany tested the low-priced transit tickets that cost only €9 and also cut carbon emissions by 1.8 million tonnes.

Germany has been offering riders very low monthly ticket prices. This applies to all local trains, metros, trams, and buses for 3 months.

The pricing scheme is an effort to promote the use of public transport and ease the burden of high energy costs.

According to a public-transport organisation in Germany, VDV, the scheme was successful.

  • 52+ million people have bought the €9 tickets, which reduced car use and cut carbon emissions by 1.8 million tonnes.

Oliver Wolff, VDV’s CEO said that:

“The 9-euro ticket not only relieved citizens financially but also had a clearly positive effect on the climate.”

Notable Impacts of Low-cost Public Transportation

The discounted ticket is a huge price reduction because monthly tickets for local transport in Berlin costs €107.

Among the new buyers of monthly tickets since June, more than half said the cheaper price was the key incentive for their decision.

The country’s national rail authority, Deutsche Bahn, reported that it has sold 26 million of the low-cost tickets alone. And over the summer months, they saw a 10% increase in public transport passengers.

As such, they called the 9-euro ticket experiment a total success.

The decision to subsidize the tickets comes as Germany continues to see high inflation, which hit around 8% last month.

Months before this scheme, the ridership was on a slight downward trend.

Researchers at the University of Potsdam noted that air pollution levels go down by up to 7% as a result of the low-cost ticket.

They said that their findings may have significant implications on policy and health. Their results show that subsidizing public transportation may be a viable way to lower air pollution, particularly in cities.

That can contribute to the UN’s sustainability goal of creating more resilient, safer, and healthier urban areas.

Sustainable Road Transport and Pricing

The results of the experiment reflect the World Economic Forum’s recent report on Sustainable Road Transport and Pricing.

The paper advocated for affordable public transport to boost “adoption and reduce the financial burden for current users.”

WEF’s report argued that road pricing systems should be designed to account for the economic, environmental, and societal impacts of public road transportation. Incorporating these impacts in individual choices means considering the following:

WEF public transport pricing

In the U.S., emissions from transportation account for about 27% of the country’s total emissions, making it the largest contributor.

In the EU, transport footprint has jumped by 33% since 1990 while other sectors have cut down emissions.

As shown in the chart below, light-duty vehicles (passenger cars and vans) are the greatest contributor to EU transport GHG emissions.

EU transport emissions

The carbon footprint from heavy-duty vehicles (trucks and buses) is #2, followed by marine and aviation.

Transport remains a key challenge to achieving the EU’s climate targets. In fact, an analysis shows that transport alone can emit more than the bloc’s total share of the Paris Agreement’s 1.5°C carbon budget.

And that’s even under an ambitious decarbonization policy scenario.

As EU member states are looking for ways to curb transport emissions, the public transportation pricing scheme in Germany may offer one solution.

But this 9-euro ticket scheme expired at the end of August. Still, many advocates are pushing for an extension. Wolf remarked that:

“All responsible actors should therefore now decide quickly on the continuation and further development of such an offer… If we take the traffic turnaround and climate change seriously, then we have to act now.”

As noted by the EU lawmakers, 15% of the bloc’s total emissions come from road transport. And so cutting these emissions is vital if the region has to reach its climate goals.

U.S. Banking Regulator Hires First “Climate Cop”

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U.S. Banking Regulator Hires First “Climate Cop”

The U.S. Office of the Comptroller of the Currency (OCC) hired its first “climate cop” or chief climate risk officer, Dr. Yue (Nina) Chen to manage climate-related financial risks.

OCC is the federal agency overseeing the largest banks in the U.S.

The banking regulator reinforced its commitment to confront risks associated with climate change by appointing Chen.

OCC believes that climate-related financial risks can affect the safety and soundness of banks through physical and transition risks. This may also impact various sectors of the economy as well as access to financial services.

And so, hiring an officer to police the matter is critical to minimize the said risks.

Climate Change and the Banking Sector

Global warming and extreme weather events put more pressure on banks in figuring out how much money to lend to firms. And pricing those loans becomes even more difficult.

Proponents of climate-driven financial oversight say that a catastrophic weather event causing bigger losses to banks is a big issue. It can threaten the stability of the financial system.

The idea to integrate climate-related risks into financial regulation was from Democratic lawmakers. They have been warning others about the dangers of climate change to markets.

In fact, President Joe Biden assembled a team of climate experts inside the White House. And OCC is one of those agencies involved in this matter.

The Climate Cop

OCC is the chief regulator of about 70% of the assets in the U.S. commercial banking system.

The agency’s role is to ensure that national banks and federal savings associations know their climate-related financial risks. And that they create risk management frameworks to measure, track, and control those risks.

The Acting Comptroller Michael Hsu said that the agency will take a two-pronged approach to act on climate change:

  1. engaging and learning from others
  2. supporting the development and adoption of effective climate risk management practices at banks

Thus, OCC designated one of its bank supervisors last year to serve as a climate risk officer to urge banks to consider climate risks in their operations.

Dr. Chen’s role is an expansion of that and is crucial in delivering OCC’s functions.

As a climate cop, Chen will oversee the OCC’s new Office of Climate Risk. She will also lead the agency’s climate risk efforts related to supervision, policy, and engagement.

Dr. Chen will focus on developing a new system to assess climate-driven risks to banks. It’s important to figure out how to monitor and manage them.

She will directly report to Hsu. He foretold this move in his speech on the issue.

Hsu said that the appointment of a new climate risk officer will speed up “our internal function into a full-fledged office reporting directly to me”.

He also noted that regulators are starting to consider how testing banks for readiness for climate-related threats could look in the future. He added that:

“With regards to scenario analyses for larger banks, a strong emphasis on diversity of approaches needs to be maintained… With climate-related risks, I believe we are much more exposed to failures of imagination — not asking enough ‘what if?’ questions — than we are to failures of stringency or consistency.”

Dr. Chen’s Background

Dr. Yue Chen has a doctorate in chemical engineering from the Massachusetts Institute of Technology.

She had worked at Goldman Sachs in the Wall Street giant’s asset management business. She was then employed at the Royal Bank of Canada.

OCC’s climate cop is not Chen’s first role as a regulator. She was the executive deputy superintendent in the climate division of New York State’s banking department.

There she “was responsible for integrating climate-related financial risks into supervision of regulated entities,” as per OCC’s statement.

Dr. Chen was also the vice chair of the climate risk steering group at the International Association of Insurance Supervisors.

Under her leadership, the OCC will continue to focus on championing climate risk management frameworks for the federal banking system.

DeepMarkit to Co-Host Climate Week Blockchain Summit with Flowcarbon in New York City

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DeepMarkit to Co-Host Climate Week Blockchain Summit with Flowcarbon in New York City

DeepMarkit announced that it is sponsoring and will co-host the Climate Week Blockchain Summit on September 20th.

The event is organized by Flowcarbon and dClimate to occur during Climate Week New York City 2022, the biggest climate event in the world taking place from September 19-25 in NYC.

Climate Week 2022 partners and sponsors include the Climate Group, Estee Lauder Companies, The Climate Pledge, Johnson and Johnson, Google, FedEx, and many more.

Members of the DeepMarkit team will also attend the North America Climate Summit (NACS) organized by the International Emissions Trading Association (IETA) in partnership with International Carbon Action Partnership (ICAP).

The CW Blockchain Summit is a one-day event to be held at Project Farmhouse, a sustainable event center that embodies eco-conscious living.

The event features exclusive leadership panels, keynote speakers, a happy hour event and a dinner.

Meanwhile, the NACS will occur at the Westin New York at Times Square from September 20-22nd. It’s a forum to understand the world’s net zero landscape and clean growth opportunities through interactive sessions and workshops.

There will also be an IETA members nightcap reception happening.

The DeepMarkit team expects to benefit from the event by strengthening existing relationships and sourcing new business development opportunities.

Plastic Credits are Coming – ClimeCo and Enaleia Ink Deal

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Plastic Credits are Coming – ClimeCo and Enaleia Ink Deal

ClimeCo has partnered with Enaleia to tackle plastic pollution in Kenya via a plastic collection project producing plastic credits under Verra.

ClimeCo is a global sustainability company advancing the low-carbon future with market-based solutions. It’s a leading firm in the management and development of environmental commodities.

Enaleia is a non-profit social enterprise addressing two problems for the marine environment – overfishing and plastic pollution. It works with coastal communities and teaches them practices that preserve fish populations while removing piles of plastic from the seas.

ClimeCo’s additional funding will support Enaleia’s newest plastic project in Kenya. This deal between the two companies will produce plastic credits under Verra’s Plastic Program.

ClimeCo, Enaleia, and Plastic Credits

For ClimeCo’s director of Plastic Program, Chris Parker, a plastic credit is:

“… an environmental commodity that represents the collection or recycling of one tonne of plastic material, which companies use in their ESG, CSR, and sustainability programs… Our approach is to create a system solution to the ocean plastic challenge.”

According to a study, humans produced about 460 million tons of plastics in 2019. This rate will grow even more despite the increasing use of plastic recycling technologies.

Some firms are recycling carbon dioxide to make plastics like polymers and earn credits out of it. In fact, ~ 250,000 metric tons of CO2 are being used as a raw material in polymer manufacturing each year.

This forms part of their ESG strategy to make operations become sustainable.

In the case of Enaleia and ClimeCo, plastic credits will be from collecting plastic wastes in vital fishing areas in Kenya.

  • With ClimeCo’s funding and the sale of the credits, Enaleia can collect 1,000-3,000 tonnes of plastic a year.

Enaleia works with ClimeCo and the Kwale Recycling Center in Kenya to collect and integrate plastic into the circular economy.

Other professional experts in sustainable development are also taking part in the project.

Plastic Project in Kenya

The Kenya plastic project supports 350+ fishers in Kwale County by empowering them to collect plastic wastes in land and ocean. These include abandoned nets, gear, and marine litter.

  • Around 20% of ocean plastic is fishing gear.

The number of fishermen will increase to 800 from the coastal communities in the following months.

The collected waste will then go to Kwale Recycling Center. It’s a local collection and recycling company that processes plastics into useful materials and products.

Plastic wastes are recyclable into various consumer goods like clothes, shoes, packaging, bags, rugs, bottles, and more.

The Plastic Credit Model

As per Lefteris Arapakis, Enaleia’s Co-Founder and Director:

“Through the plastic credit model, we can set up large-scale plastic cleanup projects that can create a real impact on our oceans… by empowering the fishing communities at this scale, we can not only clean up significant amounts of plastic but also prevent further ocean plastic pollution…”

Enaleia’s project incentivizes the fishing community to use more sustainable fishing practices. For instance, fishers can reduce overfishing by limiting their activities while collecting plastic.

The project also provides a supplemental income to a community seeing some of the highest poverty rates in Kenya.

Here’s how plastic credit creation works.

plastic credit creation

Under Verra’s Plastic Program, projects that collect plastic from the environment may be issued Waste Collection Credits (WCCs). Whereas projects that recycle plastic may be issued Waste Recycling Credits (WRCs).

Together, these credits are known as Plastic Credits. They’re confirmed via the project validation and verification process.

  • Each plastic credit represents one tonne of plastic waste that would otherwise have not been collected or recycled.

The end user can buy and retire plastic credits to offset their plastic waste footprint. All plastic credit issuance and retirement records are available on the Verra Registry.

The ClimeCo and Enaleia project will generate plastic credits called WCCs.

Patch Secures $55 Million to Boost Carbon Credit Platform

Jennifer L
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Patch Secures $55 Million to Boost Carbon Credit Platform

Climate tech firm Patch secured $55 million to scale their business to meet the growing demand for climate action through voluntary carbon markets.

U.S.-based Energize Ventures led the Series B financing round with Singaporean sovereign wealth fund GIC as its new investor. Existing investors that joined include Coatue Management, Version One Ventures, and Andreessen Horowitz.

The fund will be for hiring more staff, expanding into new markets and developing Patch technology.

This latest round brings the company to a total of $80 million in funding to date.

Patch Platform: Bridging Climate & Technology

Climate scientists agreed that reaching global climate goals will need carbon removal to scale 1 million times its current capacity by mid-century.

  • Removing carbon from the atmosphere is key to fighting climate change. And many businesses are looking to help fund this climate action as part of offsetting their emissions.

This is where Patch comes in, playing a crucial role in bridging climate and technology. Its platform has the ability to embed climate action into each product and service via its API.

The software allows users to build carbon removal directly into their digital products and services to deliver an automated carbon neutralizing experience.

This is ideal for e-commerce and deliveries, as well as for travel and financial service products.

It’s important to get as many firms as possible to take action to reverse climate change. But many are struggling to integrate this into their businesses.

Remarking on this, Patch CEO and co-founder Brennan Spellacy said that:

“At Patch, we are changing that. Our infrastructure lowers the barrier to entry for both businesses and climate project developers looking to enter the carbon market which, in turn, could help unlock 20% of the climate change solution the world so desperately needs…”

With Patch’s platform, businesses of any size and budget can buy carbon credits to tackle their emissions.

The infrastructure transforms a traditionally complex and opaque system for buying carbon credits.

Patch gives entities seeking climate solutions the infrastructure they need to grow and scale their businesses. Its platform also helps facilitate impactful transactions on the VCM.

  • The market is seen to grow to $50 billion in 2030 and $100 billion by 2050.

For Tyler Lancaster of Energize Ventures who’s joining Patch board of directors, this growth makes “it one of the largest and most paramount markets of our time.”

But today’s carbon credit infrastructure is so fragmented and lacks standardization. This makes it difficult and complex to tap into, according to Lancaster. He added that:

“Patch’s platform provides a much-needed digital backbone that simplifies the transaction complexity of the carbon management ecosystem for both buyers and suppliers… It also increases transparency, and enables the carbon market to scale to meet global climate goals.”

The image below shows a snapshot of Patch carbon credit platform.

Patch API platform

100+ Corporate Customers

For a year, Patch grew its customers 5x more to over 100 companies across all industries. They span from e-commerce to financial services.

Some of the firms that integrate climate action into their business using Patch platform include:

Afterpay: the buy now pay later group

The group said that Patch platform enables thousands of its customers to understand and take action to offset the emissions of their purchases.

European investor EQT

EQT leveraged Patch to place itself at the forefront of climate innovation. It’s using the platform to neutralize its emissions through bold investments in frontier technologies.

Shop Apotheke Europe

One of Europe’s leading e-pharmacies is also using Patch to buy credits to neutralize the firm’s emissions for the first half of 2022. This is part of the company’s robust decoupling strategies.

Restaurant company Just Salad

The food company recently integrated Patch right into its mobile app. This offers customers the ability to neutralize their order’s carbon footprint in an easy swipe.

Patch API checkout

Patch itself has grown its team very fast by 400% to over 60 employees worldwide in the last year. The tech company had opened a European headquarters in London.

The firm has been attracting top talent from leading tech companies like Shopify, Stripe, and Plaid.

Its latest funding round includes new investors such as B Capital Group, AENU, Blue Impact, Andrew Robb, Frank Slootman, GIC, and MCJ Collective.

The $55 million will put the company on track to deliver a massive climate impact worldwide.

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