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TOP STORY
Several countries to use international carbon markets to achieve Paris goals, while others keep options open
A handful of mostly developing countries said they intend to use the Article 6 carbon markets to help finance their Paris Agreement climate plans by 2030 — or are keeping open the option to do so, according to the first round of transparency reports to be submitted to the UN every two years.
INTERNATIONAL
Climate finance alliance announces CEO-led restructuring
The UN-launched financial alliance announced its restructuring on Friday along with a shift in focus to address barriers to mobilising capital.
Global efforts to cut HFC-23 emissions are falling short of treaty goals, researchers warn
Global emissions of HFC-23, a potent greenhouse gas used in refrigeration, remain significantly higher than reported levels, researchers warn, raising questions about compliance with international climate agreements.
EU’s CBAM to face legal scrutiny under WTO rules, Japan finmin report portends
The EU’s recently enacted Carbon Border Adjustment Mechanism (CBAM), designed to prevent carbon leakage and support the bloc’s ambitious climate goals, faces potential legal challenges under World Trade Organization (WTO) rules, according to a new analysis published by Japan’s Ministry of Finance.
EMEA
EU ETS support for sustainable aviation fuels should be extended, industry and NGO say
An EU regulation to allocate carbon allowances to support the rise of sustainable aviation fuel (SAF) should be extended to provide greater investment certainty, industry associations and civil society said in feedback to the proposal.
Family-owned firms emit more under EU ETS but hold higher innovation potential -study
Family-controlled companies emit more greenhouse gases than their non-family counterparts under the EU’s Emissions Trading System (EU ETS), but they show greater potential for leveraging innovation to reduce emissions, a new academic study has found.
Denmark’s carbon tax and climate finance efforts integral to low-carbon drive -study
Denmark’s long-running carbon pricing scheme has been key in reducing emissions from energy-intensive industries, alongside other climate finance strategies such as green bonds and climate-focused venture capital, a new study has found.
Euro Markets: EUAs post further gains as resumption of auctions looms over market
European carbon allowances extended their gains to another seven-month high on Friday as buyers continued to build positions despite the prospect of auctions resuming nextweek, as natural gas prices consolidated just above €50/MWh for a second day.
Estonian PM questions participation in EU ETS after Estlink2 cable outage
Estonia’s Prime Minister Kristen Michal has criticised the country’s participation in the EU Emissions Trading System (EU ETS), as the country weathers an energy crisis and the fallout from a damaged undersea power cable.
Nigeria pushes oil companies to advance carbon projects with new regulatory framework
Nigeria’s upstream oil regulator has introduced a regulatory framework requiring oil and gas operators to integrate carbon projects and other decarbonisation strategies into their operations.
Launch of £1 mln insetting fund to reward British farmers for sustainable practices
A new £1 million insetting fund has been launched to reward farmers in the UK for adopting sustainable practices, funded by prominent retailers and landowners.
AMERICAS
US Treasury finalises hydrogen production tax credit rules
The US Department of Treasury (DOT) and the Internal Revenue Service (IRS) released on Friday final federal guidance on eligibility for income tax credits in the production of hydrogen established by the Inflation Reduction Act (IRA).
Vermont, oil and gas industry wrangle in fossil fuel compensation lawsuits
Vermont remains embroiled in a pair of lawsuits against the fossil fuel industry – a challenge to its climate superfund legislation and the other case involving the state’s pursuit of compensation from oil and gas companies.
US biodiesel, renewable diesel set for prosperous year after 2024 growth
The US is slated to have surpassed 5 billion gallons of biodiesel and renewable diesel (RD) consumption in 2024, and that momentum is expected to carry into 2025 as sectors continue adopting green fuels.
ASIA PACIFIC
CN Markets: CEA price continues to drop as bearish sentiment spreads
Prices in China’s national emissions market continued to decrease over the past two weeks, with analysts expecting a sustained bearish sentiment in the coming months.
China releases two more methodologies ahead of national voluntary carbon market activation
China released two new methodologies for its national voluntary carbon market, ahead of an initial issuance of credits to the market that is expected in the coming weeks.
China’s cement industry faces crucial test in decarbonisation push -analysis
China’s cement industry, a significant contributor to global CO2 emissions, could slash emissions by up to 78% by 2060 with the implementation of advanced technologies and carbon pricing policies, according to a new study.
NZ Market: NZU price reaches one-month high in first session of the year
New Zealand Unit (NZU) prices inched up in the market’s first trading session of 2025, when the new auction settings and price controls officially take effect.
South Korea may see marked increase in producer prices due to carbon tax -report
South Korea is likely to see a marked increase in producer prices if a carbon tax is implemented in the future for its climate goals, but accelerating renewable power output could substantially minimise the cost burden, according to a recent report.
VOLUNTARY
Biochar-enhanced soil could supercharge carbon sequestration, say researchers
Adding biochar to soils could significantly boost their capacity to capture atmospheric CO2, potentially playing a pivotal role in combating climate change, according to a new study.
BIODIVERSITY (FREE TO READ)
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New study finds high-potential solar sites in US overlap with critical habitats
The growing renewable energy development in high-potential Southwestern US territories could negatively impact already threatened wildlife, a study published Thursday said.
Three-quarters of England’s critical natural sites unmonitored for five years -media
Three-quarters of critical habitats and wildlife in England have not been monitored in the past five years, due to funding shortages affecting environmental public bodies, according to government data cited by local media.
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ADVERTISING BROCHURE
Carbon Pulse has published its 2025 advertising brochure and media pack, featuring updated offerings and prices. With that, bookings are now open for advertising on our website and in our newsletters.
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EVENTS
Carbon Forward Middle East – Jan. 16-17, Abu Dhabi – Announcing Carbon Forward Middle East in Abu Dhabi, a great new event to explore carbon markets in the MENA region. We’ll be releasing more details about this conference soon. For now, put Jan. 16-17 in your calendar and email info@carbon-forward.com to express interest in attending, speaking, or sponsoring.
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Premium job listings
- Assistant Director, Carbon Markets, Asia Society Policy Institute (ASPI) – Washington DC/at Asia Society Centers in US, India, Korea, Japan, Australia, France, or Switzerland
- Senior Program Officer, Carbon Markets, Asia Society Policy Institute (ASPI) – Washington DC/at Asia Society Centers in US, India, Korea, Japan, Australia, France, or Switzerland
See all listings or post a job
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BITE-SIZED UPDATES FROM AROUND THE WORLD
EMEA
Electric avenue – Fully electric vehicles accounted for 88.9% of new cars sold in Norway last year, up from 82.4% in 2023, putting the country within reach of its target of only adding electric cars on the road by 2025, Reuters reports. Top-selling brands were Tesla, followed by Volkswagen and Toyota, while Chinese EVs now account for almost 10% of new car sales. Consistent policy that penalises petrol and diesel cars with high taxes and exempts EVs from import and value-added taxes has been key to the rise in EV adoption. While another helpful factor is Norway’s lack of automaker lobby. Fully electric cars now account for almost 30% of all cars driven in Norway as of December. The EU has chosen to ban sales of CO2-emitting cars by 2035, though it may allow sales of cars that run on fuels made from captured CO2.
Giving it 125% – Germany’s renewable energy output surpassed national electricity demand on New Year’s Day, peaking at 125%, according to data from the Fraunhofer Institute for Solar Energy Systems. Strong wind and solar generation, coupled with low holiday demand, contributed to the surplus, though coal and gas plants remained online for heating and regional grid stability. Renewables accounted for 54% of Germany’s electricity in 2024, a record high, driven by 18 GW of new wind and solar capacity.
ASIA PACIFIC
Planned parks – The Western Australian state government said it has completed its Plan for its Parks target of creating 5 mln hectares of new conservation estate, including national parks, marine parks, and nature reserves. The policy was announced in 2019 and the target was achieved late last year, creating a total of 6.5 mln ha of land being conserved, representing a 28% increase in WA’s conservation estate, according to the government. Sites created or expanded include the Beeliar Regional Park, Wellington National Park, and the Fitzroy River National Park.
We are ready too – The provincial cabinet of Balochistan, one of the four provinces in Pakistan, has approved policy guidelines for trading in carbon markets. The spokesperson for the Balochistan government Shahid Rind said that the Balochistan cabinet approved the policy guidelines for trading in carbon markets along with several other policy announcements, and under the guidelines, a carbon market working group will be established at the federal level, with representation from all the four provinces. A joint policy on carbon markets will be developed with mutual consultation between all the provinces. The announcement comes a week after the federal government authorised the guidelines that were launched during COP29 in Baku.
Entrance tickets – The Beijing Green Exchange, which hosts China’s offset trading, will charge participants in the voluntary CCER market an account opening fee of 2,000 yuan ($273.28) and an annual fee of 1,000 yuan, according to a notice recently issued by the bourse. Emitters regulated by the national ETS will be temporarily exempt from the charges. The exchange will also charge both credit sellers and buyers for their listed transactions (6‰), the notice showed.
Blue MoU – A Memorandum of Understanding (MoU) has been signed between the fisheries administration of Cambodia’s Koh Kong province and South Korea’s Trendtech Company, according to Khmer Times. The MoU is to provide support for the planting and restoration of mangrove forests in four districts, to improve the biodiversity and ecosystems, and to strengthen sustainable management of fisheries resources covering an area of over 500 hectares. The partners are in the process of studying the location of the target areas, which can help to improve the livelihoods of people through the sale of blue carbon credits, the report said.
AMERICAS
Vortex time – Forecasters predict an Arctic blast will bring plummeting temperatures across much of the US east of the Rocky Mountains, potentially freezing equipment and causing power outages if systems are not adequately protected. The North American Electric Reliability Corp. (NERC), the US grid security monitor, issued an alert to the power and gas industries, urging action to prevent incidents similar to those caused by Winter Storm Uri in Texas (2021) and Winter Storm Elliott in the mid-Atlantic (2022). Past events, such as the 2021 Texas freeze, resulted in over 240 deaths and left more than 4 mln without power. In 2022, frozen gas infrastructure almost disrupted heating for 1.1 mln customers in New York City, while rolling blackouts were implemented in the southeast to maintain energy balance. The warning aligns with forecasts from the National Weather Service, NOAA, and the Department of Homeland Security, predicting freezing rain, ice storms, and heavy snowfall across the central US, the lower Great Lakes, and the southeast starting Sunday. (E&E News)
Gavel speak – Newly re-elected speaker of the US House Mike Johnson pledged an ‘America First’ agenda for the 119th Congress, including putting the US in a position of “energy dominance”, stopping attacks on LNG, and passing legislation to “eliminate the Green New Deal”, E&E reported Friday. “We’re going to expedite new drilling permits, we’re going to save the jobs of our auto manufacturers, and we’re going to do that by ending the ridiculous EV mandates,” Johnson said in an address to Congress after securing the gavel by a 218-215 vote along party lines. Last month, EPA granted California a waiver to implement 100% zero-emission vehicle sales by 2035 independent of federal mandates.
Pro-fracking push – House Republicans are prioritising a pro-fracking bill as part of their energy policy agenda, E&E reports. The proposed legislation, expected to be based on the previously introduced “Protecting American Energy Production Act,” would prevent the president from imposing a hydraulic fracking ban without congressional approval. It also includes support for state-led regulation of fracking on private and state land. This latest move aligns with Republican critiques of the Biden administration’s energy policies in conflict with spurring record-high oil and gas production.
FIO bye-o? – Republican state officials are urging the incoming Trump administration to abolish a federal office that’s investigating the effects of climate change on the nation’s growing property insurance crisis, E&E News reports. The Treasury Department’s Federal Insurance Office (FIO) is preparing to release a report showing neighbourhoods vulnerable to climate impacts and how they face rising insurance costs. Nine Republican state insurance commissioners say the report “risks misleading the public” and want the insurance office eliminated. “FIO has shifted from being unnecessary to actively harmful to consumer protection. This must come to an end,” the commissioners wrote to Elon Musk and Vivek Ramaswamy on Dec. 20. President-elect Donald Trump chose the two men to lead the Department of Government Efficiency (DOGE) with a mandate to outline major spending cuts.
Feeling better about the future – Following Trump’s victory in November, oil and gas executives reported feeling slightly more optimistic about the outlook for their companies and a little less uncertain about what the future holds, the Federal Reserve Bank of Dallas said Thursday. According to E&E News, the bank’s latest energy survey found that 57% of executives said their firms plan to boost capital spending in 2025 compared with last year. But the numbers were less exuberant among large producers – as half of those executives said their companies’ spending is expected to drop this year while 36% said it could climb slightly. That’s important because large US producers, which each churn out 10,000 barrels or more a day, account for about 80% of the country’s oil and gas production. The survey results come as Trump has pledged to slash EPA regulations tied to the industry, open up more federal lands for oil and gas production, and get producers to “drill, baby, drill”. Kunal Patel, a senior business economist with the Dallas Fed, told reporters Thursday that presidential policies often aren’t the main factor in how optimistic oil and gas executives appear.
Helping hand – The US International Development Finance Corporation has approved 22 new transactions globally in Q1 2025 to promote energy and food security, among others. The approved transactions include $500,000 in technical assistance funding to Carbon Ventures Advisors to help develop a carbon offset project in the Democratic Republic of the Congo to restore 6,000 ha of degraded woodlands. It also includes $237,500 in technical assistance to Safi Organics to support feasibility studies for new biochar manufacturing facilities in Kenya and development of carbon removal projects thereby empowering local farmers by expanding access to high-quality and affordable farm inputs. DFC gave a further $35 mln loan to Lendable Decarbonisation Fund to help extend debt financing to fast-growing companies working in the energy, transportation, and agriculture sectors around the world.
Brazilian state invests in monitoring – The Brazilian state of Goias, a large grain-producing state, announced a R$3.6 mln ($583,200) investment in a project that will create a monitoring system for GHG and carbon stocks in agroecosystems. The project, which runs through 2026, will install flux towers in the state’s Rio Verde and Cristalina regions that will collect data to develop predictive models to assess emissions and carbon sequestration. The database built by this project will be used in private and public sector decision-making, with the aim of expanding conservation management areas and increasing sequestration capacity in soils. The project is said to contribute to the UN Sustainable Development Goals by generating carbon credits and looking to improve soil quality with a goal to benefit local producers.
AVIATION
Painting planes – EasyJet said it has become the world’s first airline to use a lower-weight paint method to reduce the fuel burned by its planes. The carrier’s new approach that cuts the number of paint layers needed to create its orange and white livery is reported to deliver a weight reduction of 27 kg per plane, and is part of many incremental steps to make its aircraft lighter, it announced. The technique, developed with international company Mankiewicz Aviation Coatings, has been used on 38 EasyJet planes so far and is expected to lead to an annual fuel saving of 1,296 tonnes once the fleet-wide rollout is completed by 2030. In 2022, EasyJet pledged to achieve a 35% reduction in carbon emissions per passenger kilometre by 2035 compared with 2019 levels. It has so far made a 5% improvement, largely through flying more efficient planes, it said in September. On Wednesday, the UK government’s sustainable aviation fuel (SAF) mandate came into force, whereby SAF must account for at least 2% of all jet fuel used in flights from UK airports in 2025.
SCIENCE & TECH
Health concerns – The US EPA compiled a group of indicators of “environmental health disparities” to show the ways in which pollution may impact Americans, as part of the agency’s strategic plan. The EPA updated its site on Thursday to show it tracks blood lead levels, populations in monitored counties with poor air quality, hypertension adjusted for age, underweight and pre-term births, childhood asthma prevalence, and overall life expectancy. While those indicators can be influenced by additional factors, from genetic predisposition to lifestyle choices, the EPA said it was working to help mitigate environmental contributions to those health outcomes and disparities.
AND FINALLY…
If you like Pina CO2-ladas – Two Mount Kenya University students have developed Pine Organic, a carbon-negative fertiliser made from pineapple waste, aimed at increasing crop yields and tackling environmental challenges. Their innovation, created through their startup NanaHeal Enterprises, earned them a $3,800 award from the AYuTe Africa Challenge, which supports youth-led agritech solutions. Pine Organic has demonstrated up to a 40% increase in crop yield during trials and reduces GHG emissions by capturing atmospheric CO2. By repurposing agricultural waste, the fertiliser addresses landfill overflow and associated issues like pest infestations. The product is also set to be priced 15% lower than conventional options, making it more accessible to Kenyan farmers while creating jobs across its production and distribution. Supported by Mount Kenya University and the World Bank-funded SKIES incubation programme, NanaHeal aims to expand its impact, providing sustainable solutions for agriculture and climate change. (Fresh Plaza)
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