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The first-ever exchange of carbon credits between countries under a new Paris Agreement mechanism is facing criticism over whether the offsets deliver the emission reductions claimed. 

Switzerland has bought from Thailand the first batch of carbon offsets under the mechanism, created through the rollout of electric buses in the Thai capital Bangkok as part of a bilateral partnership.

It is the first-ever completed transaction under article 6.2 of the Paris Agreement and the parties involved hailed it as a “beacon moment for climate action” and “a very important milestone”.

But an umbrella group for Swiss charities said the switch to electric buses “would have most certainly happened” without the offsets, raising questions over their integrity.

The Swiss government plans to use the credits towards achieving its emissions reduction goals under the Paris Agreement. If the quality concerns are correct, that means Switzerland would be given a licence to pollute without funding real climate action.

The controversy raises questions over the regulation of the offsets traded under the system. Currently, there is no centralised oversight of the credits and an EU attempt to introduce tighter controls at Cop28 failed.

Swiss-Thai cooperation

Switzerland is one of the most active proponents of bilateral credit trading under article 6. The December transaction is part of a wider agreement signed between Switzerland and Thailand in early 2023.

While the credits will ultimately be used in government plans, private operators are tasked with carrying out the project.

The project is coordinated by South Pole, a Swiss company that is one of the world’s leading sellers of carbon credits and has been mired in controversy over the last year.

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Energy Absolute, a Thai renewable energy company, is generating credits by converting thousands of petrol-fueled private buses in Bangkok to electric vehicles. Switzerland’s Klik Foundation, which represents fossil fuel importers in the country, is funding the programme through the purchase of credits.

Swiss law requires fuel importers to compensate for part of their carbon dioxide emissions. The Klik Foundation buys credits on the companies’ behalf and finally transfers them to the federal government, which will count them towards its emission reduction targets.

The Thai electric bus scheme is among dozens the Swiss group is looking to implement across the world.

Additionality doubts

The Thai project developers claim that, without the funding guaranteed by the sale of offsets, the switch to electric buses would have not been economically viable.

So the offsets will cut emissions beyond what would have happened anyway, they argue. This is known as ‘additionality’.

Alliance Sud disputes this, casting doubts over the integrity of the credits. In a research dossier, it claimed “additionality is at best non-transparent, and at worst, non-existent”.

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Alliance Sud said the economic justification for the project failed to take into account the long-term benefits of direct investment from the Energy Absolute group, which specialises in renewable energy and electric vehicle manufacturing.

An e-bus operated by Thai Smile Bus, the beneficiary of the offsetting scheme. Photo: Patiparn.Nice2002bkk

It found that the same transport operator targeted by the project had already been running electric buses in Bangkok well before the start of the offsetting scheme – as early as 2021, over a year before the start of the project.

In a statement, the Klik Foundation did not address the buses seen in 2021 but says “the first 120 buses” seen in 2022 were just a pilot programme.

“This project shows it is basically impossible to have a guarantee that these certificates can be a real substitute of domestic emission reductions which Switzerland should instead focus on,” Delia Berner, an international climate policy analyst at Alliance Sud, told Climate Home. “Switzerland is leading in a negative way”.

‘Pure speculation’

Mischa Classen, an independent carbon market consultant and former director of the Klik Foundation, disagrees with Alliance Sud’s analysis.

“From my knowledge, Thailand has no policy intervention that would support private bus operators to switch to electric, which is the main additionality argument in this project. There’s no economic reason for a private company to use [electric] buses that are more expensive than others”, he added.

A spokesperson for the Klik Foundation told Climate Home the Alliance Sud’s claims on additionality are “pure speculation”. “Energy Absolute needs the financial support through the purchase of credits to make the project feasible”, they said.

A spokesperson for the Swiss Federal Office of the Environment (FOEN) said that only offsets that generate additional emissions cuts would be approved, following checks with the environmental authority of the host country. “In the view of the FOEN, as well as the Thai authority, this is the case with the e-bus project in Bangkok”, it added.

Swiss government plans

Switzerland has been among the most active countries in signing preliminary agreements for the bilateral exchange of offsets. The government expects to achieve a third of its total emission reduction by 2030 through projects abroad.

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It is pushing ahead with the rollout of these deals despite a lack of certainty over the rules governing the mechanism.

Talks over article 6.2 of the Paris Agreement collapsed at Cop28 following a bitter dispute over integrity, with the European Union pushing for stricter rules and the USA wanting more flexibility. 

While negotiators will try again to strike a deal at Cop29 in November, countries can still go ahead with their agreements under an initial rulebook agreed in Glasgow.

Classen says Switzerland’s first transaction is adding to positive momentum for countries that are already seriously interested in Article 6.

“It is the final result of a long, hard process and it is not a decision you can just switch on or off. You need well-designed bilateral agreements setting minimum standards and a lot of political labour to establish carbon market regulations. The case of Thailand shows that it’s possible”, he added. 

The post First ever Paris Agreement offsets face integrity questions appeared first on Climate Home News.

First ever Paris Agreement offsets face integrity questions

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On the Farm, the Hidden Climate Cost of America’s Broken Health Care System

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American farmers are drowning in health insurance costs, while their German counterparts never worry about medical bills. The difference may help determine which country’s small farms are better prepared for a changing climate.

Samantha Kemnah looked out the foggy window of her home in New Berlin, New York, at the 150-acre dairy farm she and her husband, Chris, bought last year. This winter, an unprecedented cold front brought snowstorms and ice to the region.

On the Farm, the Hidden Climate Cost of the Broken U.S. Health Care System

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A Little-Used Maneuver Could Mean More Drilling and Mining in Southern Utah’s Redrock Country

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Two Utah Congress members have introduced a resolution that could end protections for Grand Staircase-Escalante National Monument. Conservation groups worry similar maneuvers on other federal lands will follow.

Lawmakers from Utah have commandeered an obscure law to unravel protections for the Grand Staircase-Escalante National Monument, potentially delivering on a Trump administration goal of undoing protections for public conservation lands across the country.

A Little-Used Maneuver Could Mean More Drilling and Mining in Southern Utah’s Redrock Country

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Heatwaves driving recent ‘surge’ in compound drought and heat extremes

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Drought and heatwaves occurring together – known as “compound” events – have “surged” across the world since the early 2000s, a new study shows. 

Compound drought and heat events (CDHEs) can have devastating effects, creating the ideal conditions for intense wildfires, such as Australia’s “Black Summer” of 2019-20 where bushfires burned 24m hectares and killed 33 people.

The research, published in Science Advances, finds that the increase in CDHEs is predominantly being driven by events that start with a heatwave.

The global area affected by such “heatwave-led” compound events has more than doubled between 1980-2001 and 2002-23, the study says.

The rapid increase in these events over the last 23 years cannot be explained solely by global warming, the authors note.

Since the late 1990s, feedbacks between the land and the atmosphere have become stronger, making heatwaves more likely to trigger drought conditions, they explain.

One of the study authors tells Carbon Brief that societies must pay greater attention to compound events, which can “cause severe impacts on ecosystems, agriculture and society”.

Compound events

CDHEs are extreme weather events where drought and heatwave conditions occur simultaneously – or shortly after each other – in the same region.

These events are often triggered by large-scale weather patterns, such as “blocking” highs, which can produce “prolonged” hot and dry conditions, according to the study.

Prof Sang-Wook Yeh is one of the study authors and a professor at the Ewha Womans University in South Korea. He tells Carbon Brief:

“When heatwaves and droughts occur together, the two hazards reinforce each other through land-atmosphere interactions. This amplifies surface heating and soil moisture deficits, making compound events more intense and damaging than single hazards.”

CDHEs can begin with either a heatwave or a drought.

The sequence of these extremes is important, the study says, as they have different drivers and impacts.

For example, in a CDHE where the heatwave was the precursor, increased direct sunshine causes more moisture loss from soils and plants, leading to a drought.

Conversely, in an event where the drought was the precursor, the lack of soil moisture means that less of the sun’s energy goes into evaporation and more goes into warming the Earth’s surface. This produces favourable conditions for heatwaves.

The study shows that the majority of CDHEs globally start out as a drought.

In recent years, there has been increasing focus on these events due to the devastating impact they have on agriculture, ecosystems and public health.

In Russia in the summer of 2010, a compound drought-heatwave event – and the associated wildfires – caused the death of nearly 55,000 people, the study notes.

Saint Basil's Cathedral, on Red Square, in Moscow, was affected by smog during the fires in Russia in the summer of 2010.
Saint Basil’s Cathedral, on Red Square, in Moscow, was affected by smog during the fires in Russia in the summer of 2010. Credit: ZUMA Press, Inc. / Alamy Stock Photo

The record-breaking Pacific north-west “heat dome” in 2021 triggered extreme drought conditions that caused “significant declines” in wheat yields, as well as in barley, canola and fruit production in British Columbia and Alberta, Canada, says the study.

Increasing events

To assess how CDHEs are changing, the researchers use daily reanalysis data to identify droughts and heatwaves events. (Reanalysis data combines past observations with climate models to create a historical climate record.) Then, using an algorithm, they analyse how these events overlap in both time and space.

The study covers the period from 1980 to 2023 and the world’s land surface, excluding polar regions where CDHEs are rare.

The research finds that the area of land affected by CDHEs has “increased substantially” since the early 2000s.

Heatwave-led events have been the main contributor to this increase, the study says, with their spatial extent rising 110% between 1980-2001 and 2002-23, compared to a 59% increase for drought-led events.

The map below shows the global distribution of CDHEs over 1980-2023. The charts show the percentage of the land surface affected by a heatwave-led CDHE (red) or a drought-led CDHE (yellow) in a given year (left) and relative increase in each CDHE type (right).

The study finds that CDHEs have occurred most frequently in northern South America, the southern US, eastern Europe, central Africa and south Asia.

Charts showing spatial and temporal occurrences over study period
Spatial and temporal occurrence of compound drought and heatwave events over the study period from 1980 to 2023. The map (top) shows CDHEs around the world, with darker colours indicating higher frequency of occurrence. The chart in the bottom left shows how much land surface was affected by a compound event in a given year, where red accounts for heatwave-led events, and yellow, drought-led events. The chart in the bottom right shows the relative increase of each CDHE type in 2002-23 compared with 1980-2001. Source: Kim et al. (2026)

Threshold passed

The authors explain that the increase in heatwave-led CDHEs is related to rising global temperatures, but that this does not tell the whole story.

In the earlier 22-year period of 1980-2001, the study finds that the spatial extent of heatwave-led CDHEs rises by 1.6% per 1C of global temperature rise. For the more-recent period of 2022-23, this increases “nearly eightfold” to 13.1%.

The change suggests that the rapid increase in the heatwave-led CDHEs occurred after the global average temperature “surpasse[d] a certain temperature threshold”, the paper says.

This threshold is an absolute global average temperature of 14.3C, the authors estimate (based on an 11-year average), which the world passed around the year 2000.

Investigating the recent surge in heatwave-leading CDHEs further, the researchers find a “regime shift” in land-atmosphere dynamics “toward a persistently intensified state after the late 1990s”.

In other words, the way that drier soils drive higher surface temperatures, and vice versa, is becoming stronger, resulting in more heatwave-led compound events.

Daily data

The research has some advantages over other previous studies, Yeh says. For instance, the new work uses daily estimations of CDHEs, compared to monthly data used in past research. This is “important for capturing the detailed occurrence” of these events, says Yeh.

He adds that another advantage of their study is that it distinguishes the sequence of droughts and heatwaves, which allows them to “better understand the differences” in the characteristics of CDHEs.

Dr Meryem Tanarhte is a climate scientist at the University Hassan II in Morocco, and Dr Ruth Cerezo Mota is a climatologist and a researcher at the National Autonomous University of Mexico. Both scientists, who were not involved in the study, agree that the daily estimations give a clearer picture of how CDHEs are changing.

Cerezo-Mota adds that another major contribution of the study is its global focus. She tells Carbon Brief that in some regions, such as Mexico and Africa, there is a lack of studies on CDHEs:

“Not because the events do not occur, but perhaps because [these regions] do not have all the data or the expertise to do so.”

However, she notes that the reanalysis data used by the study does have limitations with how it represents rainfall in some parts of the world.

Compound impacts

The study notes that if CDHEs continue to intensify – particularly events where heatwaves are the precursors – they could drive declining crop productivity, increased wildfire frequency and severe public health crises.

These impacts could be “much more rapid and severe as global warming continues”, Yeh tells Carbon Brief.

Tanarhte notes that these events can be forecasted up to 10 days ahead in many regions. Furthermore, she says, the strongest impacts can be prevented “through preparedness and adaptation”, including through “water management for agriculture, heatwave mitigation measures and wildfire mitigation”.

The study recommends reassessing current risk management strategies for these compound events. It also suggests incorporating the sequences of drought and heatwaves into compound event analysis frameworks “to enhance climate risk management”.

Cerezo-Mota says that it is clear that the world needs to be prepared for the increased occurrence of these events. She tells Carbon Brief:

“These [risk assessments and strategies] need to be carried out at the local level to understand the complexities of each region.”

The post Heatwaves driving recent ‘surge’ in compound drought and heat extremes appeared first on Carbon Brief.

Heatwaves driving recent ‘surge’ in compound drought and heat extremes

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