In today’s edition:

⚡️ Toyota plans to pour $8bn into battery manufacturing

🚜 EU agricultural emissions only reduced by 3% between 2005 and 2021

🌳 Japan’s first government-backed certificates for biodiversity conservation

⚡️ Energy (1-minute read)

US Battery Galore

What happened: Toyota is pouring a further $8bn into its battery manufacturing plant in North Carolina, the largest such investment by a foreign carmaker since the US passed the Inflation Reduction Act in 2022.

Details: The newly announced funding would take the Japanese group’s investment in the plant — one of its largest outside Japan — to about $13.9bn by 2030 it would also add more than 5,000 jobs

Why The IRA, championed by the Biden administration, included $370bn in subsidies to build a US supply chain for green industries such as electric vehicle and battery manufacturing and swiftly decarbonise the US economy

Playing Catch-up?: The US car sector is also experiencing a slowdown in demand for EVs as high-interest rates and macroeconomic pressures bruise consumer interest. Big carmakers, including Ford, General Motors and Tesla, have paused plans to expand EV production in recent weeks. Toyota is investing heavily in battery technology to make up ground on its rivals. Unlike global peers, Toyota had earlier bet on hybrids and hydrogen fuel cell vehicles rather than battery EVs. It wants to have electrified options available for every Toyota and Lexus model globally by 2025 and plans to sell 3.5mn battery-powered vehicles every year from 2030. (Full story here).

🚜 AgriTech (1-minute read)

Denmark wants to cultivate carbon-conscious agriculture in the EU

What happened: Denmark’s climate minister is advocating for EU farmers to pay for their greenhouse gas emissions by integrating the agriculture industry into the EU’s cap-and-trade emissions trading system, known as ETS. The move comes as EU agricultural emissions only reduced by 3% between 2005 and 2021, while emissions from the power sector fell by 37% over the same period — helped by the sector’s addition to the ETS.

Details: Policymakers in Brussels have periodically attempted to deal with pollution from agriculture, with the sector set to become the bloc’s largest emitter of greenhouse gases by 2040. Politicians recognise that forcing all farmers to pay for emissions would favour larger, industrial-level farms over smaller family farms, which are hit particularly hard by rising costs. However, attempts to include large farms in the bloc’s new ETS rules last December failed, following a challenge by member states and the powerful agricultural lobby. 

New approaches needed: The EU is considering making supermarkets pay for carbon emissions related to the food products they sell in the hope of prompting them to source goods produced with the lowest emissions. However, the diverse nature of the sector which is made up of many small and some large businesses would make verification difficult. (Full story here).

🌳 Nature (1-minute read)

Japan's biodiversity-boost plan is a “Go”

What happened: Japan has begun a pilot programme to provide government-backed certificates to private companies that support biodiversity conservation projects. These certificates will be similar to biodiversity credits and document support for biodiversity activities under the Taskforce on Nature-related Financial Disclosures. 

Details: The pilot will run throughout 2024, with the government issuing certificates to companies providing support like investment or donations to “Other Effective area-based Conservation Measures” (OECM) sites. OECM sites are 122 specific areas selected by Japan’s environment ministry that protect and conserve nature and biodiversity even though it is not their primary purpose — think bird sanctuaries and urban green sites. These OECM sites are central to Japan’s plans to meet its Global Biodiversity Framework target of protecting 30% of its land and marine areas by 2030.

An important test case: The pilot programme was devised by the country’s 30 by 30 Alliance, which is led by the government but includes many conservation groups and private companies. If the pilot is successful, the full programme will be launched in 2025, and could provide a framework for other nations seeking to combine private finance and innovation with public sector certification and regulation to support biodiversity protection. (Full story here).

💭 Little Bytes

Quote: “We really do have to acknowledge that this is a world of finite resources. And the one thing that’s magic in this world is the innovation.” Bill Gates

Stat: Developing countries need up to $387bn a year to adapt to extreme weather — UN

Watch: Satellites are helping São Paulo's public schools plant mini-forests

🗞 In other news…

🎣 Gone Phishing

Three of these stories are true, one we've made up. Guess which:

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