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TOP STORIES
Voluntary carbon market “on ice” as valuation fails to build in 2024 -analysts
The voluntary carbon market saw its value remain at around $1.4 billion last year as spot prices slumped 20%, though analysts still forecast the sector could still grow to the tens of billions by the end of the decade.
VCM Report: Outlook for market brightens in 2025 after tough year
The market outlook for 2025 is more upbeat after a difficult previous 12 months, due to an expected demand boost from Phase 1 of CORSIA and the development of Paris Agreement trading after the historic decision to finalise Article 6 at COP29.
AMERICAS
Canadian PM Trudeau resigns amid carbon policy disputes, US tariff threats
Prime Minister Justin Trudeau announced on Monday his resignation from leading the Liberal Party of Canada, kicking off a process through which he will be replaced as prime minister, citing internal party battles and the need for a new leader ahead of an upcoming election.
US EPA hands out additional pollution waivers to California ahead of administration change
The US EPA on Monday issued final notices for its decision to grant California waivers from federal pollution regulations, allowing the state to enforce stricter emission standards under the Clean Air Act (CAA) before President-elect Donald Trump assumes office later this month.
RGGI Market: RGAs trend downward absent regulatory updates, weather support
Into the first few trading days of 2025, benchmark RGGI allowances (RGAs) slipped below $24, with traders having “little confidence” in regulatory updates forthcoming in Q1, and barring above seasonal average cold weather heating demand.
Washington sets stage for first quarterly permit sale of 2025
Washington state’s Department of Ecology (ECY) released details for its Q1 allowance auction in March that does not include advance sale permits, according to a notice published by the agency on Monday.
CFTC: Producers increase net length across CCA, RGA to wrap up 2024
Producers built their net length for both California Carbon Allowance (CCA) and RGGI Allowance (RGA) holdings at the end of 2024, while managed money closed out V24 RGA short positions, data released Monday from the US Commodity Futures Trading Commission (CFTC) showed.
LATAM Roundup: Region looks inward to meet mitigation goals, Colombia releases CO2 tax data
The new year is poised to springboard domestic compliance markets, regulated voluntary markets, and Paris Agreement projects in Latin America and the Caribbean – but sees reluctance to rely on Article 6 to be a main driver of mitigation – as the region builds internal capacity to launch green growth.
ASIA PACIFIC
Woodside submits Browse CCS plans with Australian federal department
Woodside Energy has submitted plans for its offshore carbon capture and storage project (CCS) at its proposed Browse gas field development in Western Australia, as a way to limit its reliance on offsets under the Safeguard Mechanism.
Chinese coal transition costs can be reduced with multiple technologies, research says
Chinese coal power plants could save hundreds of billions of dollars in transition costs if multiple technologies are used to optimise their emission reduction pathways, alongside compulsory plant closures, according to a recent scientific research paper.
Indian state launches programme to cut livestock methane emissions 30% by 2030
An Indian state government has launched an initiative to reduce methane emissions from about 20 million dairy animals by more than 30% before the end of the decade and generate carbon credits to empower farmers, it recently announced.
EMEA
EU fossil power generation drops 10% in 2024
Power generation from EU ETS-covered plants fell 10% last year, according to grid data, driven by a 15% slump in combined coal and lignite-fired plant output.
EU ETS free allocation rules are slowing down cement decarbonisation, NGO says
The design of the EU’s Emissions Trading Scheme is hindering the decarbonisation of the bloc’s cement sector, an environmental NGO said in response to a public consultation on draft new ETS-related rules last week.
US investment firm seeks funding for carbon projects in the Congo Basin
A New York-based investment firm is seeking funding from corporations and individuals to develop REDD+ carbon projects in the Congo Basin, the company has announced.
UAE launches digital platform for CORSIA implementation
The UAE’s General Civil Aviation Authority (GCAA) has launched the region’s first digital platform to facilitate implementation of the UN’s CORSIA aviation offsetting scheme.
Euro Markets: Five-day EUA rally ends as gas weakens and auction resumption looms
European carbon prices fell on Monday, ending a five-day run of gains as the market tracked the overall weakness in natural gas and reflected participants’ moderated price expectations ahead of the resumption of EUA auction supply from Tuesday.
VOLUNTARY
Isometric issues first verified enhanced weathering credits
Isometric has issued removal credits to a German-Brazilian climate-tech company, with what’s claimed to be world’s first supply of independently verified enhanced weathering (EW) units purchased by a Dutch payment platform.
International non-profit cusps $10 bln in assets alongside conservation efforts
An international non-profit looking to help reduce or store 3 gigatonnes of CO2 by 2030 is closing in on $10 billion in assets.
BIODIVERSITY (FREE TO READ)
All our nature and biodiversity articles remain free to read (no subscription required). However, we now require that all readers have a Carbon Pulse login to access this content in full. To get a login, sign up for a free trial of our news. If you’ve already had a trial, then you already have a login.
INTERVIEW: Nature markets need to work within four years
Biodiversity markets need to work more effectively within the next two to four years to begin attracting finance, or risk interest in them vanishing, a consultant has said.
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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. Coinciding with Abu Dhabi Sustainability Week and kicking off the day after IETA’s MENA Carbon Market Dialogue, we’re bringing together regional and international carbon markets experts to discuss opportunities and risks within MENA. The two-day event will be a must-attend for anyone working in, or wishing to explore, carbon markets in the region. Last chance to register
Carbon Forward Asia – Mar. 4-5, Singapore – Our third annual Asian conference will once again be held in Singapore. Like at our past events, we’re excited to bring together experts from Asia Pacific to talk ASEAN markets, regional opportunities, developments in local and global carbon pricing, and all the topics you need to hear about across a stimulating two days. Register here
North American Carbon World (NACW) – Mar. 25-27, Los Angeles – The annual NACW conference addresses the most pressing issues in climate policy and carbon markets to the largest gathering of climate professionals in North America. NACW 2025 will dive into major new policies and developments that will shape and scale carbon markets and climate solutions with integrity and ambition. In addition to outstanding speakers, discussions, and insights, NACW provides premier networking opportunities with an active and engaged audience of carbon professionals. Join us for the content, community, and connections for successfully navigating the low-carbon landscape and advancing market-based climate solutions. www.nacwconference.com
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Job listings this week
- *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
- Carbon Project Lead, Hampshire & Montpelier Foundations – London
*Premium listings
See all listings or post a job
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BITE-SIZED UPDATES FROM AROUND THE WORLD
INTERNATIONAL
Indian affairs, part 1 – Upcoming elections in EU member states, including Germany, Romania, and Croatia, are expected to delay the finalisation of the India-EU free trade agreement (FTA), sources told Mint. Although the next round of negotiations is planned for early 2025, political transitions in key EU countries may shift priorities, impacting progress on the trade pact. Germany, the EU’s largest economy, will hold federal and state elections in February and March, while Romania’s presidential election is set for March and April, and Croatia’s presidential elections began in Dec. 2024. These elections could reduce the EU’s focus on external negotiations, as trade talks require consensus among all 27 member states. The EU is India’s largest trading partner, with bilateral trade in goods reaching €124 bln in 2023. Experts warn that political uncertainties and election cycles often slow decision-making at the EU level, with national priorities taking precedence. The India-EU FTA negotiations, which cover issues like sustainability, carbon tax, and trade barriers, have already seen delays, similar to those in FTA talks with the UK. Despite the challenges, officials remain hopeful, noting no official communication of delays. However, analysts caution that electoral outcomes and internal EU priorities may further hinder progress on the trade agreement.
Indian affairs, part 2 – The EU plans to support Indian micro, small, and medium enterprises (MSMEs) in adapting to its upcoming Carbon Border Adjustment Mechanism (CBAM) by funding decarbonisation technologies and facilitating compliance with sustainability regulations, Mint reports. This initiative, aligned with India’s Raising and Accelerating MSME Performance (RAMP) scheme, aims to address concerns over CBAM, which will impose a carbon tax on exports of products like cement, steel, aluminium, and fertilizers from 2026. MSMEs, contributing around 45% of India’s exports to the EU, face potential challenges from evolving EU regulations, including CBAM, the Corporate Sustainability Due Diligence Directive (CS3D), and the Ecodesign for Sustainable Products Regulation (ESPR). These rules may increase compliance costs, impact market access, and demand greater technical capacity for sustainability reporting. To mitigate these challenges, the EU is developing projects under the EU-India Policy Dialogue Support Facility (PDSF) to assist MSMEs with CBAM compliance, sustainability reporting, and product design standards. Proposed measures include capacity building, funding decarbonisation efforts, and technology transfer agreements. While Indian officials argue that CBAM acts as a non-tariff barrier, the EU views it as a tool to reduce emissions and prevent carbon leakage. India has sought exemptions for its MSMEs under the principle of common but differentiated responsibilities, but no formal concessions have been announced. Discussions continue under bilateral forums, with outcomes likely influencing the progress of the India-EU free trade agreement.
EMEA
LNG flows – Net imports of LNG from Russia into the EU increased by another quarter in 2024, largely due to strong end-of-year export terminal performance and early closure (mid-November) of the Northern Sea route, which would be Russia’s alternative outlet towards Asia, an ICIS analyst reported. Total imports of Russian LNG to the bloc were 15.8 mln tonnes last year. Every one in five LNG cargoes to the EU is from Russia, though not enough to signal a ‘dependency’ as offtakers can switch LNG suppliers easier than with pipeline gas, Andreas Schroeder wrote. There is little so far to prevent Russian LNG from entering the EU. The EU transshipment ban on Russian LNG comes into effect in March 2025 as part of the 14th Sanctions package, but sanctions affect only reloads and might consequently even increase direct imports into EU if no other measures follow, he wrote. It will be interesting to watch Poland’s approach to the uptake of Russian gas and LNG as it assumes the presidency of the EU Council this month, he added.
EV push – Carmakers sold a record number of electric cars in the UK last year — rising to 19.6% of all new car sales, up from 16.5% a year earlier. The figures have prompted environmental groups to urge the government to stick to tougher green targets, even as the industry argues they are unsustainable. The government is preparing to relax sales targets for 2025 to avoid imposing steep fines on manufacturers under the UK’s zero-emission vehicle (ZEV) mandate. A consultation on changing the rules will close in mid-February. The current aim is for carmakers to reach 28% of UK car sales to be electric in 2025, though manufacturers can avoid penalties for missing the main target if they sell more battery cars in later years, if they cut overall emissions, or by buying ‘credits’ from their competitors. Environmental campaigners are calling on the government to stick with the current goal, and to focus on improving chargepoint access and providing more attractive tax incentives for electric cars over fossil fuel versions. The UK is now one of the leaders of electric car adoption globally, behind Norway and China, even if sales have been slower than expected amid an industry slowdown. (the Guardian)
Lighting up streets – Solar-powered streetlights will continue to be distributed in the Niger Delta region in a bit to improve the security of people and property, which will generate carbon credits, the Niger Delta Development Commission (NDDC) has said. All nine states of the Niger Delta, including Abia, Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo, and Rivers, will benefit. The project is in line with President Bola Tinubu’s Renewed Hope Agenda for the Niger Delta, which aims to combat crime, enhance peace, and create a better living environment for residents. The commission has hired a consultant to develop a carbon credit framework for the initiative to ensure its long-term success.
Uniper shields LNG fleet – German energy giant Uniper is working to protect its LNG fleet from potential seizure by Russia-aligned nations, according to the Financial Times. Facing a €14 bln Russian court penalty it calls “politically motivated,” the company is assessing legal risks and countries it operates in, CEO Mike Lewis said. Uniper sources LNG from suppliers like Azerbaijan and the US, with shipments docking globally, including in China, according to data from Kpler. The company, nationalised after a €19 bln loss from the halt in Russian gas supplies, is eyeing a return to private ownership following a €6 bln profit in 2023. Uniper plans a share flotation as part of its recovery, bolstered by a €13.5 bln government bailout and the termination of a long-term gas contract with Gazprom. (FT)
An unfair transition – European fighters will abandon the climate change fight unless the wealthy help fund the cost of going green for all, said Frans Timmermans, architect of the EU’s Green Deal and now leader of the Dutch Green/Labour alliance. Governments need to focus their support on helping the poorest to transition, seeing as the first wave of government subsidies for solar panels and electric vehicles benefitted the most wealthy, which still have high carbon footprints compared to poorer people who are often forced back to cut back on consumption due to cost reasons, he said. Timmermans rejected pleas from the car industry for more time to switch to EVs, saying that the “Chinese will corner the market” if the EU relaxes on its targets. The unsettling pace of change to a low-carbon world is helping drive the rise in populism, but this presents an “inherently dishonest political message” that will lead to disappointment, he said. The far-right Freedom party formed a coalition with three other rightwing groups in the Netherlands a year ago, but they have struggled to implement their policies amid internal differences, resistance from the Dutch Senate, and legal constraints. (FT)
ASIA PACIFIC
Progress – China’s total GHG emissions in 2021 amounted to about 12,999 MtCO2eq (including GHG removals of 1,315MtCO2eq from LULUCF), an increase of 4.3% from 2020, according to the country’s latest Biennial Transparency Report (BTR). According to China’s latest national inventory, carbon intensity in 2021 decreased by 50.9% from 2005 levels. The government has said it aims to peak emissions before 2030 and achieve carbon neutrality before 2060. According to the country’s updated NDC, China also seeks to lower carbon intensity by over 65% by 2030.
Expanding ambitions – The Cambodian government has outlined plans to expand its carbon trading operations throughout the country, the Khmer Times reported. The Cambodian government partners with NGOs, such as Wildlife Alliance, to operate several nature-based carbon credit projects in the Southeast Asian country. Ministry of Environment spokesperson Khvay Atitya said the government would “expand our carbon trading operations” based on four principals including “zero tolerance enforcement”. It follows Verra lifting its suspension of the Southern Cardamom REDD+ project in the country’s south after human rights abuse allegations were reported by Human Rights Watch.
New player – Korean electric vehicle charging solution provider Chaevi has decided to tap into the voluntary carbon market through its partnership with developer Mocha, local media reported. Given that EV charging-based offset projects are not officially recognised in South Korea, Chaevi said it plans to explore the opportunities in the international market by working with Mocha to carry out certification, data verification, credit issuance, and trading. It also aims to utilise the partnership to develop its carbon reduction methodology.
Singapore sellers – The Singapore Carbon Market Alliance is holding an event on Jan. 14 targeted at carbon credit sellers, according to an RSVP form for the event. It will feature a presentation and Q&A session with Singapore government agencies on processes regarding Singapore’s work under Article 6 of the Paris Agreement and its international carbon credit framework’s eligibility list.
Platform – Japan’s J-Power has teamed up with three domestic companies to develop an environmental value platform to promote the efficient use of renewable energy in the country, the companies announced Monday. The partnership aims to build a new platform that can handle large amounts of transaction processing, preserve power generation data, and detect tampering, the statement said.
AMERICAS
Offshore drilling ban – outgoing US President Joe Biden on Monday issued two memoranda to restrict offshore oil and gas drilling in some 625 mln acres (253 mln ha) of the US ocean. The areas include the entire US East coast, eastern Gulf of Mexico, the Pacific off the coasts of Washington, Oregon, and California, and portions of the Northern Bering Sea in Alaska. The bans do not have an expiration date and prohibit all future oil and natural gas leasing in the areas. The environmental and economic risks from drilling in those locations “outweigh their limited fossil fuel resource potential”, the White House said in a press release.
Microsoft pushes for AI policy – Microsoft opened the new year with a set of three priorities that it says will help America achieve technological success over the next four years of the administration under President-elect Donald Trump. This three-part vision focuses exclusively on bolstering AI. It includes: investments in American AI technology and infrastructure, championing skilling programmes that will enable widespread AI adoption and career opportunities across the economy, and exporting American AI to allied nations. Microsoft claimed to be on track to invest approximately $80 bln by FY2025 to build out AI-enabled datacentres around the world, half of which it plans to invest in the US. The tech giant is calling on federal policy to help the nation achieve these goals. “With a thoughtful approach to government policy, we can sustain our leadership through well-funded basic research at the nation’s universities and broad support for private sector innovation,” the company says. Missing from Microsoft’s blog post was any mention of strategies to mitigate the emissions impact from these datacentres build-out plans.
Costly congestion – Yesterday, New York became the first US state to implement a congestion pricing programme. The scheme will use tolls to charge drivers entering Manhattan at or below 60th Street, starting at $9 during peak times. According to the MTA, the tolling programme will raise an estimated $15 bln for infrastructure upgrades to the city’s transit system. While transit supporters applaud the move, opposition and legal challenges remain from New Jersey, particularly over potential traffic and pollution impacts in neighbouring areas. (SmartCitiesDive)
Energy efficiency costs – Attorneys general from 15 Republican states are suing the Biden administration over its energy efficiency standards for federally-financed housing, arguing that the standards make affordable housing more expensive. Specifically, the suit is targeting a section of the Cranston-Gonzalez Act, a 1990 law designed to help families afford down payments on homes, that creates energy efficiency standards for new residential construction. The Republican AGs claim that while the provision was originally well intended, it is “now being stretched to the breaking point to support a green agenda that Congress never enacted”. These regulations add more than $8,000 to the cost of a new home, the suit claims. (Nebraska Examiner)
SHIPPING
Inflationary – New European Union marine fuel rules, effective from Jan. 1 as part of efforts to cut emissions, will raise shipping costs, although firms with vessels that can run on alternative fuels such as biodiesel and LNG, will benefit, two shipbrokers have said. The FuelEU Maritime regulation requires commercial ships above 5,000 gross tonnage operating in EU ports to cut emissions from marine fuels, also called bunker fuels, or pay penalties. But these fuels are in short supply, and are wanted by other sectors such as aviation. As a result, shipbroker Clarksons say that this will lead to higher prices as freight rates will be impacted. BRS shipbroker also said freight rates would increase as ships either pay a premium for greener fuels or a penalty for failing to comply. (Reuters)
AND FINALLY…
Fighting words – Colombian President Gustavo Petro has taken aim at US President-Elect Donald Trump and German politics generally on social media platform X, accusing both of resisting energy transition and thereby succumbing to “technological backwardness” that will exacerbate violent conflicts over oil and deepen the climate crisis. The post came in response to news that Trump stated the UK was “making a very big mistake” by maintaining a windfall tax on fossil fuel profits. “Open up the North Sea. Get rid of windmills!” the president-elect wrote on his Truth Social platform. “I hope that [Trump] will heed the government of Colombia, a government that is committed to the energy transition,” Petro responded.
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