Restoring carbon offsets’ battered reputation

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Hello readers,

“Carbon offsets” have become a contentious buzzword in recent years. Advocates consider them an effective mechanism that encourages businesses to counteract their emissions.

Meanwhile, critics see carbon offsetting as another fraudulent scheme that doesn’t actually make much difference to the state of our planet.

This week’s issue talks about a new initiative that aims to restore people’s faith in carbon offsetting.

Enjoy reading!

THE BIG STORY

Last to start, but first on road: New Singapore e-bike maker heats up EV race
Joel CY Chang, a serial entrepreneur behind electric-vehicle (EV) startups Scorpio Electric and Ion Mobility, is again making a splash in the Southeast Asian market. This time he returns as the co-founder and group CEO of e-motorcycle maker Charged Asia, which has an interesting subscription-led business model.

DEEP READS

Global initiative launched to rate corporate carbon offset claims
Carbon offsets started as a simple idea: Project developers undertake some kind of activity to reduce carbon emissions or remove them from the atmosphere.

But the reality is almost always more complicated.

In the past few years, carbon offset schemes have earned a bad rep. Critics said that offset projects too often fail to deliver their promised emission reductions. Others claimed that the whole idea is a fraud, merely a “license to pollute” with no real positive effect on the state of the planet.

In an attempt to restore the credibility of carbon offset programs, independent oversight body Integrity Council for Voluntary Carbon Markets (ICVCM) recently released new guidelines for buying and selling carbon credits.

The guidelines recommend businesses to disclose their emissions every year to show they are successfully meeting the Paris Agreement goals.

Companies are also encouraged to only use carbon credits to contribute to climate mitigation, and not to “cancel out” their emissions.

The council has opened applications for carbon-crediting programs – like Verra and The Gold Standard – to receive special labels indicating their compliance with the new criteria.

TRENDING NEWS

You can also check out Tech in Asia’s coverage of Asia’s greentech scene here.

1️⃣ Exxon buys pipeline operator, making big bet on carbon
ExxonMobil is acquiring Denbury in an all-stock deal valued at US$4.9 billion. Denbury, which owns and operates the largest US carbon pipeline network, will be folded into ExxonMobil’s existing low-carbon solutions business.

Why it matters:
Denbury is one of the companies that have benefited from the US’ recent climate bill, which promotes carbon capture technology and provides tax credits to incentivize its widespread adoption.

Image credit: Unsplash

2️⃣ Study: Climate change boosted July’s heat for 81% of world’s population
Human-caused climate change is responsible for the abnormally high temperatures that 80% of the world felt in July, a new report finds.

Why it matters:
The analysis shows human activities have been contributing to the unprecedented high temperatures observed all over the world this year.

3️⃣ Amazon sees decline in carbon emissions for the first time
The retail giant reduced its carbon emissions for the first time since it started disclosing the figure four years ago. According to its recent annual sustainability report, the company’s activities emitted the equivalent of 71.27 million metric tons of carbon dioxide in 2022, down 0.4% from the year prior.

Why it matters:
Amazon has been criticized for being slow in changing its business practices, The Seattle Times reported. Some activists raised doubts about the accuracy of Amazon’s emission calculations, while others questioned its commitment to achieving net zero.

Image credit: Unsplash

4️⃣ Chinese maker of 1,000 kilometer EV battery plans IPO by 2025
Beijing WeLion New Energy Technology, a China-based maker of long-range EV batteries, plans for a public listing by 2025. The company supplies the semi-solid state cell with a 1,000 km range to Chinese EV company Nio.

Why it matters:
Solid-state batteries are seen as a potential game changer for the industry because not only are they safer than the widely used lithium-ion batteries, they also give a major boost to capacity and performance.

5️⃣ Wildfires are set to double Canada’s climate emissions this year
Greenhouse gases released from Canada’s 2023 wildfires are estimated to be at least 2x the combined emissions from all other sectors of the country’s economy. These fires have released roughly 1,420 million metric tons of carbon-dioxide equivalent so far, an early estimate shows.

Why it matters:
Climate change is changing the way wildfires behave, making them more unpredictable and harder to extinguish.

STARTUP WATCH

1️⃣ This startup that makes it easier to design solar projects just raised $100 million
The Lithuania-based provider of solar design software has secured US$100 million from Highland Europe, Elephant VC, and Energize Ventures. PVcase will use the new funding to grow its services, aiming to create an end-to-end platform that will serve the full life cycle of a solar project.

Image credit: Unsplash

2️⃣ Amazon- and Microsoft-backed CarbonCure raises $80m
The Canadian startup has bagged more than US$80 million in a new equity round from Blue Earth Capital, Samsung Ventures, Breakthrough Energy Ventures, Microsoft Climate Innovation Fund, Amazon’s Climate Pledge Fund, Taronga Ventures, 2150, and BH3.

The fresh money will go toward bolstering CarbonCure’s carbon removal technology and increasing its supply of high-quality carbon credits.

3️⃣ Sylvera banks $57m to put carbon offsetting on a path to net zero
Based in London, the climate intelligence startup has closed a US$57 million series B round led by Balderton Capital, with participation from existing investors such as Index Ventures, Insight Partners, Salesforce Ventures, Speedinvest, Seedcamp and LocalGlobe. New investors including Fidelity International Strategic Ventures also joined the round.

4️⃣ Everon attracts $39m thanks to hot VC demand for EV charging
Seoul-based Everon, which provides charging infrastructure for EVs, has netted US$39 million in series B funding from Korea Development Bank, Industrial Bank of Korea, DSC Investment, L&S Venture Capital, and K2 Investment Partners.

5️⃣ With $37m seed round, Maka Motors begins EV pilot on Indonesia’s streets
Maka Motors is an e-motorcycle manufacturer from Jakarta. It has scored a US$38 million seed round, one of Southeast Asia’s biggest seed investments. Investors participating in the round include AC Ventures, East Ventures, and SV Investment.

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