ESG (Environmental, Social, & Governance) cock-ups

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Jul 26, 2024

Station’s EV charger not working​

In the article “Shell Singapore moves to help fuel profitable energy transition” (July 19), it was reported that half of Shell’s 57 petrol stations in Singapore now offer electric vehicle (EV) charging points.
But in Tampines, where I live, the charging point has had an “under maintenance” sign for the longest time.
When I asked about this, the answer was that it “is currently under an internal review”.

Jeffrey Lim

 

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Not so easy to implement.

10-cent beverage container return deposit to be rolled out in April 2026 after a year’s delay​

Applied to all plastic bottles and metal cans ranging from 150ml to 3 litres, the scheme will run for seven years, from April 1, 2026 to March 31, 2033. PHOTO: ST FILE
Natalie Tan

Jul 31, 2024

SINGAPORE – Consumers will have to pay a refundable 10-cent deposit for bottled and canned drinks from April 1, 2026, a year later than originally announced.
The request for the delay was made by beverage producers, who required more time to adjust to the changes, said the National Environment Agency (NEA) in an update on July 31.
The beverage container return scheme was first announced in September 2022. Under the scheme, consumers will pay an extra 10 cents for bottled and canned drinks but will receive a full refund of the deposit when they return the empty beverage containers at designated return points.
Applied to all plastic bottles and metal cans ranging from 150ml to 3 litres, the scheme will run for seven years, from April 1, 2026 to March 31, 2033, in line with the licensing validity period.
More than 1,000 return points will be located at supermarkets and other communal areas to increase convenience and facilitate a higher rate of return to boost recycling.
NEA aims to reach its target return rate of 80 per cent from 2029, the third year of the scheme. This means that out of an estimated one billion beverage containers released into the market annually, around 800 million will be returned for recycling.
“We hope that it will also help to foster a culture of recycling among the public, divert these actually very valuable recyclable materials away from the incineration plant and our landfills,” said Dr Amy Khor, Senior Minister of State for Sustainability and the Environment, during a fireside chat at the Singapore Institute of Directors’ inaugural Climate Governance Singapore Forum on July 31.

Beverage Container Return Scheme Ltd (BCRS Ltd), a not-for-profit company formed by a consortium of beverage producers comprising Coca-Cola Singapore Beverages, F&N Foods and Pokka, will oversee the process.
BCRS Ltd, which received its licence to operate from NEA on July 29, will be involved in collecting, sorting and recycling beverage containers, setting up return points, and ensuring that stakeholder fees are fair and transparent. It will also provide the start-up capital to initiate the scheme’s operations, and maintain sufficient reserves to cover its operations.
At least two BCRS Ltd board members will be appointed to represent the interest of smaller beverage producers, as required by law. BCRS Ltd will act on behalf of all participating beverage producers in Singapore.
The launch was delayed to provide beverage producers and retailers more time to design and run the scheme smoothly. The consortium also took more time than anticipated to submit their proposal, contributing to the delay.
While the scheme will take effect on April 1, 2026, there will be a transition period until June 30, 2026, to allow the beverage and retail industry to clear older stocks, which are ineligible for refunds.
By July 1, 2026, all beverage containers must be labelled with the deposit mark and carry a 10-cent deposit.
To raise awareness of the scheme, NEA and BCRS Ltd will organise outreach programmes and launch a website with information about return point locations and educational events.
“Our climate action efforts include promoting low-carbon solutions, reducing our waste generation through initiatives such as the disposable carrier bag charge,” Dr Khor, who is also Senior Minister of State for Transport, wrote in a Facebook post on July 31.
“Every effort counts when it comes to climate action. So let’s do our part to continue building a clean and sustainable home for generations to come.”

 

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Forum: Laws shouldn’t be flouted while practising religion​

Aug 07, 2024

As the Chinese seventh month starts, so too does the haze return. Not from across the sea but from the nearest oil drum and open wire enclosure with hell notes burning.
While there is a need to respect others’ religions, the practice of these religions should not be at the expense of flouting national laws like those against littering.
The Alliance for Action on Norms for Joss Paper Burning also advises worshippers to not toss or scatter joss paper, and ensure that they clear up their offerings after prayers. Yet many times, the aftermath of a joss paper-burning session can be seen in unburnt and semi-burnt joss papers strewn across grass verges and pavements, clogging drains and canals. Pieces of ash fly into homes. Food offerings are left out overnight, attracting rats and other pests.
What actions can be taken against such irresponsible worshippers?

Adam Reutens-Tan

 

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So Fairprice admits that the move to remove free plastic bags for the sake of the environment has led to more thefts from the supermarket.
Thefts is also a cost to society: the paying customers are subsidising the thieves.
Which is the bigger cost: thefts or environmental degration due to the use of plastic bags.

Forum: Let supermarket customers use own bags to hold items before payment​

Aug 06, 2024

FairPrice recently implemented a new policy that lets shoppers use their personal shopping bags and trolleys only after they have paid for their groceries at the cashier. The aim of this move appears to be to prevent theft.
Ever since plastic bag charges were imposed at all major supermarkets, many shoppers have been using their own reusable bags and trolleys to hold groceries before they head to the cashier.
For instance, I bulk-buy heavy items such as dairy products and rice, and using a personal trolley was often the most convenient way to hold my purchases before payment.
FairPrice’s new policy means that shoppers will now have to use the supermarket’s green baskets or metal trolleys, while lugging their personal bags or trolleys as they shop.
Many neighbourhood FairPrice outlets have narrow aisles which make handling more than one trolley challenging and unsafe for shoppers.
My mother, who is in her 70s, has to resort to kicking the green basket along the floor because she has no strength to carry the heavy basket once it is filled with groceries. At the same time, she has to pull her own empty shopping trolley along. If she uses the supermarket’s trolley, there isn’t much space to put her personal trolley inside too.
She was advised by a FairPrice staff member to buy its house-brand metal trolley costing around $47. I presume that a metal trolley like this lets staff see clearly that shoppers are not hiding any item during payment, unlike when they use their own bags.

FairPrice should prioritise its customers’ safety and convenience and make it easier for them to shop using their own reusable bags and trolleys while doing their bit for the environment.

Albert Foo

Forum: Policy on personal trolleys to prevent misunderstanding over unpaid items taken out of stores​

Aug 09, 2024, 05:01 AM


We thank Mr Albert Foo for his letter “Let supermarket customers use own bags and trolleys to hold items before payment” (Aug 6) regarding our policy on personal trolleys and reusable bags.
Over the last few years, we have noticed more customers using personal trolleys and reusable bags in our stores. This is in line with national policies and we are heartened that more of our customers are adopting more sustainable ways of shopping.
Our personal trolley and reusable bag policy was implemented to prevent any misunderstanding on unpaid merchandise being taken out of the store.
At FairPrice Group, accessibility is a key consideration in our stores. Selected FairPrice supermarkets, particularly those frequented by seniors, are designed with features like call buttons, magnifying glasses, larger signage, wheelchair-friendly carts and convenient rest areas.
We care about the shopping experience of all our customers, especially seniors and those who may require extra help. Our staff are always on hand to help and we encourage anyone needing a hand to approach them.
We remain committed to regularly reviewing our in-store policies, and always seeking ways to improve and enhance the shopping experience for our customers.

Trevor Ng
Head of Channels (Supermarkets)
FairPrice Group

 

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South Korea sees panic selling of used EVs​

Automakers are now rolling out aggressive promotions to counter growing consumer reluctance to buy EVs. PHOTO: AFP

Aug 18, 2024

SEOUL - A mass sell-off of electric vehicles (EVs) has begun in South Korea, following a fire involving a Mercedes-Benz EV in Incheon that destroyed more than 140 cars and sparked proposals to restrict EV access to underground carparks.
Since the fire on Aug 1, the market has been flooded with used EVs. K Car, South Korea’s second-largest used-car trading platform, reported an increase of 184 per cent in used-EV listings in the first week of August compared with the final week of July.
The Mercedes-Benz EQE series, which includes the standard EQE 300, the EQE 350+ – the exact model involved in the fire – along with its high-performance AMG counterpart and the EQE sport utility vehicle, has been especially hard hit by the market’s reaction. Following the incident, more than 100 EQE models have appeared on SK Encar, South Korea’s top used-car trading platform, pushing the total number of EQE vehicles for sale to 115 as at Aug 16.
As a result, prices for these luxury EVs have taken a nosedive. Prior to the fire, used EQE models typically sold for 60 million won (S$58,500) to 70 million won. Now, some certified pre-owned 2023 EQE 300 models are listed for as low as 59 million won, a significant drop from their original selling price of 92 million won.
The fallout from the Incheon fire is exacerbating an already tough year for EV makers in South Korea. Automakers are now rolling out aggressive promotions to counter growing consumer reluctance to buy EVs.
Hyundai Motors recently started offering significant discounts to entice buyers back into the EV market. These include up to five million won off the Kona Electric and a 10 per cent discount on the popular Ioniq 5. Meanwhile, Genesis, Hyundai’s luxury brand, is offering up to 5 per cent off all models, including the GV70 Electrified.
Importers are also feeling the pressure and are slashing prices to stay competitive. BMW is offering discounts of more than 12 per cent on its flagship electric models, the i7 and iX, while Audi has gone even further, offering nearly 30 per cent off its e-tron models, including the high-performance RS versions.

Despite these deals, consumers are not rushing back to the EV market.
According to car dealers in South Korea, some buyers who had already placed orders for new EVs are now cancelling them. Adding to the anxiety is talk of new regulations that could make owning an EV more cumbersome, like restricting their use in underground carparks due to fire risks.
The current crisis in South Korea’s used EV market is a snapshot of broader challenges facing the industry. According to data from the Ministry of Land, Infrastructure, and Transport and automobile market tracker Carisyou, the country sold 1.625 million EVs in 2023, down 1.1 per cent from the previous year.
The decline has persisted into 2024, with EV registrations from January to July falling by 13.4 per cent year on year. THE KOREA HERALD/ ASIA NEWS NETWORK

 

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EV charging a bigger-than-expected problem​

The most viable future for public fast charging: a loss-leader that tempts shoppers to buy things on which a profit can be made.​

David Fickling

Governments have vastly underestimated the work they need to do to get fast charging off the ground, says the writer. PHOTO: REUTERS

Sep 11, 2024

When’s the last time you visited a petrol station that sold nothing but petrol? If the answer is “never”, you’ve hit on one of the key problems for the rollout of battery vehicles.
There’s been a run of bad news for a promised rapid transition to electric cars in rich democracies. Volvo Cars had proposed one of the most aggressive shifts to a full-battery fleet by 2030. Last week it said would instead reduce conventional vehicles to less than 10 per cent of the mix, and would include in the remaining 90 per cent plug-in hybrid vehicles, or PHEVs, which have both batteries and petrol-burning engines. Just hours later, ChargePoint Holdings, operator of the largest US charging network, said it would cut jobs by 15 per cent, its third such reduction in the past year.
Many of these issues can be traced back to charging. It’s no coincidence that China, with 70 per cent of the world’s public car plugs, is where 60 per cent of the world’s electric vehicles were sold in 2023.
The success of PHEVs relative to other EVs is an indicator of a burgeoning market of consumers keen for electrified transport but not yet convinced they can survive without a petrol backup. To solve that problem, we need to fix the broken business model of public charging.
That will be easier said than done. Since the dawn of the automobile, selling just fuel has been a cursed business.
Commodities are usually priced competitively, so margins are thin – but overheads are fat, because it’s not cheap building and running a chemicals storage depot on prime real estate. For decades these operations were more commonly known as a “service station” than a “petrol station” because early cars were so unreliable that owners made their money as mechanics rather than retailers.
Convenience stores and diners were gradually added to the revenue mix, but it was always precarious, supported by oil companies for the greater good of mass automobile adoption.

The basic facts haven’t changed much. Alimentation Couche-Tard, the Canadian chain currently weighing a bid for 7-Eleven operator Seven & i Holdings, gets three-quarters of its sales from fuel but less than half its profits: the margins in convenience retail are about three times higher.
Switch to electric, and the problems mount. DC fast chargers – the ones that can power up an EV in an hour or less, and the only practical alternative for a service-station model of electric refuelling – are an order of magnitude more costly and complex than the domestic or workplace chargers that trickle out electrons over the course of a day or night.
Some of the fast ones carry so much charge that they need cooling systems in their cables to stop the wires from overheating. Most will also require trenches to be dug, transformers to be installed, and costly surveys to be completed.
In California, a DC fast charger comes in at US$1,999 (S$2,600) per kilowatt, before government rebates that reduce the cost by about two-thirds. On that basis, the full price for a 350-kilowatt station that can recharge a car at petrol-pump speeds is close to US$700,000. That immense capital expenditure must be paid off in a market where you’re not just competing with rival retailers, but also against workplace and home chargers whose electricity is far cheaper.
This suggests that governments have vastly underestimated the work they need to do to get fast charging off the ground – which is a precondition of hitting their targets on electrifying their vehicle fleets.
One study last year estimated that rolling out the 500,000 stations promised under the US Inflation Reduction Act would cost US$74 billion with DC chargers, about 10 times the funding allocated in the law. Another study, in August, found that an operator in El Paso, Texas, would lose money unless it added a convenience store partner, and perhaps had public funding too.
None of the listed charging networks is profitable at this stage, BloombergNEF analyst Ryan Fisher wrote in April, while operators are in a ferment of experimentation as they try to find a model that will work.

The good news is that none of this is rocket science. Indeed, the trail has already been blazed by the existing fuel retail industry, and government rebates already being offered are a recognition of the challenges ahead.
Retailers, keen to target cashed-up EV owners and seeing an opportunity to grab market share from petrol stations, have been active participants; Carrefour is in the process of setting up 5,000 stations and Walmart wants 10,000 by 2030.
That’s likely to be the most viable future for fast charging – as a loss-leader that tempts shoppers to buy things on which a profit can be made. That doesn’t sound a very tempting proposition, but it’s the principle on which the US$4.2 trillion oil and gas industry was built. The world has solved the problem of fuel retail in the past. It will solve it again in the future. BLOOMBERG

• David Fickling is a Bloomberg Opinion columnist covering climate change and energy.

 

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The ESG advocates go after the use of plastic straws but are doing nothing when it comes to use of plastic in supermarkets.

Forum: Cut amount of single-use plastic in supermarkets​

Sep 11, 2024

It has been more than a year since supermarkets in Singapore, mandated by the authorities, started charging consumers for plastic bags.
This caused a major shift in consumer behaviour, as reported in the article “Over 90% of customers bring own bags after mandatory 5-cent charge for plastic bags: NEA survey” (Aug 30).
Is it perhaps time for businesses to go a step further?
In particular, is it time for supermarkets and other retailers to consider reducing the amount of single-use plastic used to package fresh items?
Many fruits and vegetables are packed in plastic punnets, bags or shrink-wrap – the plastics can’t be reused and have to be thrown away.
Wouldn’t it be more environmentally friendly for supermarkets and other retailers to consider selling fruits and vegetables loose?
One could argue that consumers would still be using plastic bags to hold the fruits and vegetables, but those bags can be reused.

Perhaps a deeper study could be done on reducing the amount of plastics that retailers such as supermarkets use.
They should turn to alternatives as part of Singapore’s continuing efforts to be sustainable.

Benny Lai Zhao Wei

 

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Forum: Condo’s EV chargers affected due to poor cellular connectivity​

Sep 27, 2024

I am writing as a council member of a private condominium to highlight a challenge we face in supporting Singapore’s Green Plan 2030, particularly in encouraging the adoption of electric vehicles (EVs).
In 2023, our management corporation strata title (MCST) passed a resolution to install EV chargers in the estate, to facilitate our residents’ transition to EVs.
We are grateful for the Land Transport Authority’s EV Common Charger Grant, which helped co-fund the installation, which will contribute to the national target of 20,000 EV charging points in non-landed residential properties by 2030.
The EV chargers we have selected are smart chargers, requiring residents to use a mobile phone and an app to operate them and make payments. This system, however, depends on reliable cellular coverage in the basement carpark, where the chargers will be located.
Unfortunately, our basement carpark has poor cellular connectivity. After contacting the Infocomm Media Development Authority (IMDA) for guidance on improving the situation, we were advised to reach out to the mobile network operators as they are responsible for network planning and infrastructure.
Despite many attempts to engage the operators, we have not received a response in over a week. Furthermore, our requests to IMDA to help escalate the issue have also gone unanswered.
The lack of cellular connectivity seriously impedes our EV charging efforts, especially since the contract with the EV charging provider has already been signed. Without reliable mobile service, the chargers will not function, defeating the purpose of their installation.

If the Government is committed to pushing for the widespread installation of EV chargers in private condominiums, why are MCSTs left to fend for themselves when it comes to ensuring the necessary infrastructure, like cellular coverage, is in place? There seems to be a significant gap between policy promotion and practical implementation.
I urge the relevant authorities to work more closely with MCSTs to address these challenges and ensure that the push for EV adoption is fully supported.

Lian Chin Chiang

 

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Forum: Prioritise regular collection of recyclable waste​

Sep 30, 2024

Having recycling bins for different types of waste is a commendable initiative that should be extended to more residential areas across Singapore (Different recycling bins a great move; extend use, Sept 26).
These bins support our nation’s efforts to reduce waste and increase the recycling rate by making it easier for residents to sort their recyclables.
However, while this is a great move, I would like to highlight that this approach should also be accompanied by regular collection schedules.
Bloobins are often seen overflowing due to irregular collection. These overflowing bins discourage proper recycling and lead to residents using them as dumping areas, causing recyclables to be contaminated and undermining the overall effort.
Having different bins for different types of recyclables is a step in the right direction, but without a reliable collection schedule, even these could fall into the same pattern of neglect as seen with some bloobins.

Gabriel Chia

 

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Carbon offset pioneer charged in New York over US$100m fraud scheme​

Oct 03, 2024

NEW YORK – A pioneer in developing carbon offsets was accused by federal prosecutors of faking emissions-reduction data as part of a scheme to obtain millions of carbon credits and secure more than US$100 million (S$129.5 million) in investment.
Former C-Quest Capital chief executive Kenneth Newcombe, who stepped down as CEO in February, was indicted on Oct 2 in New York on wire fraud and commodities fraud charges.
He faces up to 20 years in prison if convicted on the most serious charges.
C-Quest develops emission-reduction projects to earn carbon credits that can then be sold to companies or other entities that wish to offset their own emissions. Newcombe, a one-time Goldman Sachs Group managing director and World Bank official, founded C-Quest in 2008.
The charges are a blow to the carbon offset development industry, in which Newcombe and C-Quest were leading players. The investors Newcombe allegedly deceived were not identified by prosecutors, but C-Quest lists on its website Macquarie Group and Temasek Holdings’ GenZero as among its backers.
A spokesman for Newcombe, 77, denied the allegations in a statement and also said the former executive was dying of cancer.
“He is confident that if he lives to see a jury hear this case, that jury will reject these false charges and return his good name to him,” the spokesman said.

Prosecutors claim Newcombe and other C-Quest employees manipulated data to make it seem that certain of the firm’s projects were more successful than they actually were.
Many of its projects involved providing cooking stoves in African and Asian countries that were touted as lowering emissions. Newcombe allegedly sought aggressive growth in these projects but also covered up data showing they reduced emissions by a lower amount than anticipated.
Tridip Goswami, C-Quest’s former head of carbon and sustainability accounting, was charged along with Newcombe. Goswami is in India and could not immediately be reached for comment.
Prosecutors said another executive, former chief operating officer Jason Steele, has pleaded guilty and agreed to cooperate with the government.
The Commodity Futures Trading Commission separately sued Newcombe earlier on Oct 2.
C-Quest said in July that it had reported Newcombe to law enforcement for alleged wrongdoing in obtaining millions of carbon credits. Verra, the leading issuer of carbon credits, said at the time it was suspending C-Quest projects and reviewing the matter.
Prosecutors said on Oct 3 they declined to charge C-Quest itself because the company self-reported the alleged wrongdoing and cooperated. BLOOMBERG

 

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Temasek-owned GenZero to review carbon credit investment after fraud charges​

GenZero said in a statement that they are assessing the implications on the integrity and impact of the current outcomes on the carbon credit programme. PHOTO: GENZERO.CO

David Fogarty
Climate Change Editor

Oct 04, 2024

SINGAPORE – Temasek-owned investment firm GenZero said it is reviewing its involvement in a South-east Asian carbon credit programme after US federal prosecutors filed fraud charges against a senior figure behind the company running the programme.
Former C-Quest Capital (CQC) chief executive officer Kenneth Newcombe, who stepped down from the role in February, was indicted on Oct 2 in New York on wire fraud and securities and commodities fraud charges.
Under Newcombe, the US-based CQC ramped up its programme from 2021 to roll out more efficient cookstoves to local communities, mainly in Africa and Asia. The stoves are said to burn less fuel and produce less pollution. Carbon credits can be claimed for each tonne of carbon dioxide (CO2) emission avoided.
Newcombe and some of his ex-colleagues were charged over fraudulently exaggerating the amount of emissions avoided and duping investors in a case that risks further damaging the already tarnished image of the global voluntary carbon market.
Among the others facing charges are Tridip Goswami, former head of CQC’s carbon and sustainability accounting team, and Jason Steele, the company’s former chief operating officer.
The 77-year-old Newcombe, a pioneer of the carbon credit market, denies any wrongdoing, Bloomberg reported, quoting a statement from him.
GenZero said in a statement to The Straits Times on Oct 3: “As a partner in C-Quest Capital’s South-east Asia Clean Cookstove Programme, we are assessing the implications on the integrity and impact of the current outcomes on the programme.

“We take allegations of wrongdoing by our programme partners seriously, particularly when those actions impact the credibility of carbon markets.”
In a deal announced in 2022, GenZero and Pavilion Energy – until recently a wholly owned subsidiary of Temasek – invested US$14 million (S$18.3 million) in the South-east Asia cookstove programme.
Pavilion Energy told ST on Oct 4 it has fully exited the CQC project and has no further comment.

In a statement, the US Attorney’s Office for the Southern District of New York accused Newcombe and his co-defendants at CQC of fraudulently obtaining carbon credits worth tens of millions of dollars, and fraudulently securing more than US$100 million in investment. The charges are related to misdeeds allegedly committed between 2021 and 2023.
The statement said the defendants “manipulated data to make it appear as if certain cookstove projects were far more successful in reducing carbon emissions than was actually the case”.
The statement cited internal e-mails showing that there was a coordinated attempt to inflate the emission reductions of several projects or claim reductions from cookstoves that did not exist.
As a result, investors were misled, along with the carbon credit standards body Verra. Verra is the main non-profit organisation that vets and verifies voluntary carbon credit projects and issues carbon credits for those projects.

Because of the allegedly false information from CQC, Verra was “tricked” into giving CQC carbon credits for emission reductions that, according to Verra’s methodology for calculating such reductions, had not in fact been achieved, the US Attorney’s Office statement said.
In a June 26 statement, CQC said it had uncovered the suspected fraud and voluntarily notified the US authorities. The company has not been charged.
On the same day as CQC’s statement, Verra said it had immediately suspended 27 CQC projects, most of them cookstove projects, and launched a review of the projects.
The regional cookstove programme involved projects in Cambodia, Laos, Thailand and Vietnam. In a blog posting announcing the funding agreement with GenZero and Pavilion Energy at the time, CQC said: “The investment will initially fund the deployment of clean cookstoves to 650,000 rural households... with the opportunity to further scale to one million households.”
All four projects were fully verified and registered under Verra.
CQC said in June that it was “voluntarily facilitating the cancellation of any over-issued credits from its inventory in Verra” and “adopting new measurement, reporting and verification processes, crediting methodologies, and policies to ensure its future activities meet the highest ethical standards”.
A Verra spokesman told ST the review into the 27 suspect CQC projects was ongoing.
The spokesman said that if they find there has been an excess issuance of credits, CQC is then responsible for compensating for that excess. And one way to resolve this is to cancel the excess credits, meaning they are removed from Verra’s registry.
The global voluntary carbon market has been hit by a series of investigations and media reports alleging some carbon credit projects, including investments such as tree plantations or to protect threatened areas of rainforest, have been issued with too many credits.
There have also been allegations that some projects were not truly “additional”.
Carbon credits are meant to compensate investors for projects that would not otherwise have happened without the revenue from credit sales.
For instance, a project could be protecting a patch of rainforest that was in danger of being cleared for mining or agriculture. But in some cases, the carbon projects would have gone ahead anyway, meaning they were not “additional”.

Yet, many carbon credit projects are good for the climate and local communities, experts say.
And for an industry that is already working on tougher standards, stronger rules and quick responses to any instances of alleged fraud are positive signs.
Ms Donna Lee, co-founder of carbon credit project ratings firm Calyx Global, told ST the case involving Newcombe and his associates was a rarity in the voluntary carbon market, which was worth about US$2 billion in 2023.
“We believe the vast majority (of cookstove projects) are not engaging in the fraudulent activity,” she said.
“Many cookstove projects are engaging in legitimate mitigation activities that benefit the atmosphere, as well as the health of women and children. The methodologies for measuring that impact need to be updated to avoid over-claiming, but we should not confuse this issue with falsifying information,” she said.
GenZero, which is focused on accelerating global decarbonisation, including carbon credit project investments, said: “Stronger governance, enhanced transparency and clearer guard rails will drive progress and greater confidence in the integrity of the voluntary carbon market.”
ST has contacted CQC for comment.

 

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Carbon credit standards body defends policies after former director charged with fraud

New chief executive of Verra says code of conduct and conflict of interest rules are robust enough

The new chief executive of the world’s largest carbon credit registry Verra has defended its policies on conflicts of interest, after a former board member and client was charged in the US over fraud involving credits that it had certified.

US federal prosecutors in New York accused former Goldman Sachs and Verra director Kenneth Newcombe earlier this month of faking data to obtain some of the $100mn invested in C-Quest Capital, a carbon credit developer backed by Macquarie and Shell.

Verra issued 148mn carbon credits in 2023, more than twice as many as the next largest registry, the Swiss-based Gold Standard, making it the largest verification body in an unregulated market worth about $1bn a year.

Mandy Rambharos, who became chief executive of the Washington, DC-based non-profit organisation in August, told the Financial Times that allowing Newcombe to sit on the registry’s board while his company also developed carbon projects that it paid Verra to accredit was “not inappropriate”.

Rambharos previously spent 14 years at South African state utility Eskom, where she represented South Africa in international talks on carbon market negotiations and helped broker an $8bn public-private financing package meant to help the country shift from coal power.

She took on the role at Verra more than a year after its previous chief executive resigned. This followed reports, which it disputed, that the organisation had endorsed methodologies that exaggerated how much carbon dioxide was saved when forests were protected.

Newcombe was a long-standing board member of Verra, serving from 2007 till the end of 2023. This included the period when the registry gave its stamp of approval to credits issued by 26 of his projects, based on inflated data he had allegedly submitted to Verra between 2021 and 2023, in exchange for a per-credit fee. CQC’s projects overestimated the emissions saved from funding the switch to cleaner cooking fuels in developing countries and issued millions more credits than it should have, the company said.

The registry has since cancelled more than 5mn credits. Verra said in June that it had reviewed its board “governance policies, processes and procedures, including its code of conduct and conflict of interest policy”.

The registry asks board members to disclose conflicts of interest and will in certain cases ask them to recuse themselves or leave the board, Rambharos said. Board membership “doesn’t give you any advantage . . . you still have to follow the rules”.

But banning project developer clients from joining the board would be “like saying you shouldn’t have a tech person on your board because you’re trying to digitise your processes right now”, she said. “The policy hasn’t changed.”

Newcombe could face up to 20 years in prison if found guilty of offences including wire fraud and securities fraud, according to the charges unsealed by the US attorney for the Southern District of New York on October 2. It did not prosecute the CQC Impact Investors holding company after it voluntarily disclosed the misconduct and co-operated fully.

The Commodity Futures Trading Commission filed a fraud complaint against Newcombe and fined CQC Impact Investors on the same day, in what it said was its first enforcement action for fraud in the voluntary carbon credit market. It did so shortly after finalising the first federal guidelines for unregulated carbon offsets.

CQC declined to comment.

Newcombe has denied the allegations. When he “and many others at C-Quest learned of flaws in the company’s survey methodology”, he had advocated prompt disclosure to Verra, a spokesperson said.

A person close to Shell said that it would not use or trade any CQC credits it held until it received assurances about their integrity. Macquarie declined to comment on its investments in the group.

A proposal for guardrails for a global carbon trading system is expected to be put forward at the UN climate summit in Baku next month in an attempt to boost the credibility of the instruments that are meant to represent a ton of CO₂ cut or saved.

Rambharos said about the purchase of carbon credits by companies: “It’s not just the wild, wild west, there’s a lot of rigour.”

 

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COP29 CEO caught facilitating oil & gas deals with fake energy firm, in return for sponsorship​

The COP29 team also waived certain climate and sustainability requirements if the firm sponsored the summit.

Natalie Ong

November 09, 2024, 06:38 PM​

The Chief Executive Officer of the Conference of Parties (COP29), Elnur Soltanov, has been found to facilitating discussions on potential fossil fuel deals, reported BBC.
Soltanov, who is also the head of the State Oil Company of the Azerbaijan Republic (Socar), had been in talks to advance oil and gas deals.
The news comes just days before the 29th annual United Nations climate summit, which is set to run from Nov. 11 to 22 in Baku, Azerbaijan.

How it was uncovered​

Soltanov, who is also Azerbaijan's Deputy Minister of Energy, was secretly filmed in an online meeting discussing oil and gas deals with a Hong Kong oil and gas investment firm, reported BBC.
As it turns out, the Hong Kong firm is a fictitious one, and comprised undercover representatives from non-profit, Global Witness.
The representative posing as the head of the fictitious Hong Kong firm approached Soltanov, proposing the idea of investing in Socar, as well as sponsoring the COP29 summit.
An online meeting was thereafter arranged.
Soltanov's position was that COP29 was a platform for a "just, orderly and equitable" transition away from hydrocarbons, and that anyone, including oil and gas companies, could "come with solutions" as Azerbaijan doors are "open".
However, Soltanov was also recorded stating that he was open to discussions about deals, including those on oil and gas, BBC wrote.
"There are a lot of joint ventures that could be established," he was reported saying on record.


In addition to the video call, BBC reported seeing email threads between the COP29 team and the fake investors.
In a particular thread, the COP29 team was exploring a US$600,000 (S$792,094) sponsorship deal with the fake company.
Soltanov also said he would introduce the firm and "create a contact" with Socar to "start discussions", reported The Guardian.
The COP29 team also waived certain climate and sustainability requirements if the firm sponsored the summit.

"Betrayal" of COP process​

A former head of the UN body involved in climate talks shared with BBC that Soltanov's actions were a "betrayal" of the COP proceedings, and deemed "completely unacceptable" in light of climate agreements.
The United Nations Framework Convention on Climate Change (UNFCCC), the body that oversees COP, has a code of ethics that states that officials should not use their roles to "seek private gain".
Officials are also expected to act "without self-interest".
One of the primary purposes of COP is to advance the key Paris Agreement aim of limiting global warming to 1.5°C above pre-industrial levels before 2025.
A spokesperson for Global Witness said, as reported by The Guardian: “The UNFCCC urgently needs to act to clean up the COP climate talks, starting by banning the fossil fuel industry from sponsoring them, and kicking their lobbyists out for good."
Both Azerbaijan's COP29 delegation and Socar have not published an official statement, nor responded to BBC's queries.

Oil and gas central to Azerbaijan's economy​

Oil and gas accounts for approximately half of Azerbaijan's economy, and more than 90 per cent of its exports, reported BBC.
According to the International Energy Agency (IEA), Azerbaijan is a major producer of crude oil and natural gas, exporting 26.6 metric tonnes and 22.6 billion cubic metes in 2022 respectively.
Majority of its oil is exported to Italy, Turkey, Israel, India and Greece, noted The Observatory of Economic Complexity (OEC).
Top image from GlobeSec Forum 2024/Website and the Institute for Development and Diplomacy/Website