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TOP STORY
California’s cap-and-trade regulatory update “not imminent”, says official
An update to California’s cap-and-trade programme has been further delayed as the regulator grapples with wildfire issues and challenges to other climate policies, a state official told conference participants Tuesday.
AMERICAS
California’s cap-and-trade regulatory update “not imminent”, says official
An update to California’s cap-and-trade programme has been further delayed as the regulator grapples with wildfire issues and challenges to other climate policies, a state official told conference participants Tuesday.
AMERICAS
California’s cap-and-trade regulatory delays could impact linkage timeline with Washington -panellists
California’s delay in finalising changes to its cap-and-trade scheme could affect the linkage timeline between existing WCI partners and Washington, panellists said at a conference Tuesday.
California watchdog recommends changes to offsets, allowance allocation in state cap-and-trade programme
California’s carbon market watchdog proposed several options on Tuesday to revise the design of compliance instruments under the state’s cap-and-trade programme, including potential changes to offsets and allocation of allowances.
Potential state legislature changes pose RGGI participation risks -panel
The upcoming gubernatorial race in New Jersey this year – followed by numerous similar elections in 2026 – raises uncertainty regarding RGGI members’ ongoing participation in the Northeast carbon market, panellists said at a conference Tuesday.
RGGI auction volumes drop 3.5% for first quarterly sale of 2025, CCR bucket refilled
RGGI states will offer 3.5% fewer permits at their Q1 sale compared to the prior quarter, along with a Cost Containment Reserve (CCR) restoked for 2025, according to a Tuesday announcement.
New York cap-and-invest scheme not likely to allow offsets -analyst
State agencies are expected to design New York’s ETS without provisions for carbon offsets that may allow participants to increase emissions, an analyst said at a conference on Tuesday.
New York’s ETS draft rules to be released “over the coming months”
New York Governor Kathy Hochul’s (D) 2025 State of the State report released Tuesday shed little light on when officials are expected to release full draft rules on the highly anticipated cap-and-invest programme that was expected to arrive last year.
New appeal challenges multi-state CCS pipeline project in US Midwest
A group of North Dakota landowners are appealing approval of a multi-state CCS project in the US, adding to a long list of challenges the company has navigated.
CDR funding faces potential uncertainty under Trump administration, expert says
CO2 removal (CDR)’s bipartisan nature and economic benefits are pitted against the potential repeal of climate policies and new departmental leadership, making its future in the US uncertain, a policy expert said on Monday.
US biofuels producer closes billion-dollar DOE loan for SAF expansion
A US biofuels producer has closed a more than $1 billion loan with the federal government to expand its sustainable aviation fuel (SAF) production.
US DOE channels $101 mln into cement, power plant decarbonisation
The US DOE announced Tuesday another tranche of $101 million in federal funding to support development and deployment of technologies to capture CO2 emissions from industrial operations and power generation.
Forest management group launches data platform ahead of first US carbon auction
A US programme for improved forest management carbon projects has launched a platform through which carbon credit buyers can access data on carbon credits that will be offered during its first upcoming carbon auction.
Canada projected to reach 2030 emissions reductions five years late -report
Led by CO2 abatement in the electricity sector, Canada achieved a 0.8% total reduction in emissions in 2023, which potentially put the country off-track from meeting its 2030 targets, a report said Tuesday.
Mexico City, Morelos join growing list of Mexican jurisdictions with active CO2 tax
Two new subnational Mexican carbon taxes went into effect this month after appearing in official records for Mexico City (CDMX) and Morelos State in the final days of 2024.
EMEA
ANALYSIS: Shift in EUA open interest reflects gradual transition to new compliance calendar
The shift in the EU ETS compliance calendar has led to several changes in EUA trading patterns, as open interest has started to shift away from the historical first quarter buildup and into the summer months, but there remains significant activity in contracts that were formerly important for obligated entities.
No change to EU ETS registration fees, Brussels clarifies
A draft update of the Registry Regulation governing the EU’s Emissions Trading System (EU ETS) does not contain any new legal provisions when it comes to registration fees, despite suggestions to the contrary, EU sources told Carbon Pulse.
New EU rule aims to make CO2 tests of heavy-duty vehicles more reliable
The European Commission published a regulation this week aimed at improving national verification of CO2 emissions from lorries, buses, and coaches, it announced on Tuesday.
Meeting EU’s new SAF mandate could halve aviation emissions by 2050 -EU agency
Meeting the EU’s new mandate for sustainable aviation fuels could cut the bloc’s net CO2 emissions by nearly half in 2050 — although the sector will still have to rely on carbon offsets to reach net zero, an EU aviation agency said in a report on Tuesday.
World Bank seeks experts to develop REDD+ carbon programmes in Upper Guinean Forests
The World Bank has issued a tender seeking consultants to develop roadmaps and carbon emissions reduction programmes under REDD+ to combat deforestation and degradation in the biodiversity-rich Upper Guinean Forests.
Russia adopts legislation paving way for forest carbon projects
Russia adopted a law at the start of this year that will enable emissions reduction and removal projects to be developed in the country’s forests.
Tripling Europe’s renewables won’t be enough to reach net zero -report
Renewable energy capacity in Europe is expected to more than triple by 2050, but this won’t be enough to reach net zero emissions by mid-century, a new report warned on Tuesday.
Applications open for Africa-focused CDR accelerator programme
Applications for an Africa-focused carbon removal (CDR) accelerator opened on Tuesday, with the programme looking to make Africa “a CDR powerhouse”.
Ukrainian company issues carbon credits from solar farm
A Ukrainian company has issued its first carbon credits generated from a renewable energy project, in a move it said will help raise investment in renewables and help cut emissions.
Firms struggle to track generative AI’s carbon footprint as emissions rise -report
Generative artificial intelligence is contributing to rising corporate carbon emissions, with nearly half of global executives saying the technology has increased their organisation’s footprint, according to a study released on Tuesday.
Euro Markets: EUAs cling to rising trend as buyers keep selling pressure at bay ahead of auction gap
European carbon prices ended Tuesday little changed, but kept their rising trend going for a fourth day after trading in a relatively tight channel between key technical levels in sync with natural gas, as buyers and sellers struggled for the upper hand.
ASIA PACIFIC
Taiwan seeks to bring forward ETS implementation timeline – media
Taiwan is planning to accelerate the construction work for a planned emissions trading scheme, which could be launched as early as 2026, according to local media reports.
Western Australia awards $21mln to three decarbonisation projects
Three clean energy projects will receive a multi-million-dollar funding boost from the government of Western Australia, according to an official announcement.
INTERNATIONAL
Clean energy investment to outpace upstream oil and gas in global first, analysts say
Clean energy investment will in 2025 for the first time overtake upstream spending on oil and gas development with projected spend at $670 billion, according to analysts.
WEF calls for hybrid approach of unilateral, multilateral schemes towards global carbon pricing
Global carbon pricing measures must strike the right balance between unilateral and multilateral measures to be fair and effective, and encourage incremental progress, analysis from the World Economic Forum (WEF) published Tuesday said.
Green hydrogen production falls short of expectations as cost deters buyers -report
Less than 10% of green hydrogen production projects announced in 2023 were completed on time, as high costs and limited demand hinder industrial adoption, according to a new peer-reviewed study released on Tuesday.
VOLUNTARY
Expert panel bullish for VCM, future of REDD amid flourishing offtake agreements
Talk of 2025 being a sink or swim year for the voluntary carbon market is unwarranted, and the fast reforming REDD forestry sector will play a dominant role in carbon mitigation over the next few years, a panel of experts said on Tuesday.
INTERVIEW: Ocean-based CDR firm secures major aviation-backed carbon removal deal
An ocean-based carbon removal (CDR) provider will sequester 200,000 tonnes of CO2 over four years under a new agreement that, according to a company executive, represents the largest deal of its kind in the industry, backed by an aviation-focused sustainability investment firm.
Developing nations lack public involvement in CDR growth, research finds
There is insufficient public participation in processes around carbon removals (CDR) in developing countries, which is a crucial requirement in the advancement of such technologies, a recent study has found.
BIODIVERSITY (FREE TO READ)
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Up to 1,500 English developer plans each month engaged with boosting biodiversity
Between 1,200 and 1,500 developer planning applications each month are engaging with biodiversity net gain (BNG) requirements, which suggests the law is working, a civil servant has said.
INTERVIEW: Think tank advocates EU compliance market for nature credits
The EU should take steps to establish a compliance market for nature credits, as emerging national schemes risk falling short of mobilising enough finance for conservation and restoration efforts, an influential think tank has told Carbon Pulse.
Biodiversity credit market has “immense” oversupply, expert says
The emerging biodiversity credit market is affected by outsized supply, with available credits far outstripping demand, risking fatal consequences, according to analysts.
Brazilian developer revamps biodiversity credit methodology, seeks certification under Cercarbono
A Brazilian developer is reviewing its biodiversity credit methodology for endangered species as part of the certification process under environmental standard Cercarbono, with plans to issue credits later this year, the company told Carbon Pulse.
Biodiversity Pulse: Tuesday January 14, 2025
A twice-weekly summary of our biodiversity news plus bite-sized updates from around the world. All articles in this edition are free to read (no subscription required).
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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
Calyx Webinar: 5 Ways to Minimize Environmental and Social Risk – Jan. 29 – As a carbon credit buyer you want to maximize your impact and minimize your risk. Join sustainable development experts as they share strategies for decreasing environmental and social risks in carbon projects so you can make informed purchasing decisions and investments. Register now!
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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Premium job listings
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ADVERTISING BROCHURE
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BITE-SIZED UPDATES FROM AROUND THE WORLD
EMEA
Scientific advice on removals – The European Scientific Advisory Board on Climate Change (ESABCC), an independent EU body established in 2021 by the European Climate Law, is due to publish its recommendations on carbon removals by the end of February, tentatively on the 20th or the 21st, a few days before the presentation of the EU’s Clean Industrial Deal, Carbon Pulse has learnt. The scope of the report will span all viable carbon removal methods – both permanent and temporary – with a focus on EU-level policy recommendations. “It will be quite bulky as it covers the science and policy assessment with some recommended actions and options for EU to ponder,” said a person familiar with the ESABCC’s dealings. The report will be accompanied by a summary for policymakers to catch the essential messages of the report.
A different tack – Climate change scepticism has almost disappeared from UK national press in the past 10 years, according to new research commissioned by the non-profit Energy and Climate Intelligence Unit and carried out by a group of academics including Dr James Painter of the Reuters Institute for the Study of Journalism. However, articles dismissing or contesting policies designed to address the climate crisis marginally increased in the same time period, it found. The researchers looked at 303 opinion pieces and editorials in which “global warming” or “climate change” appeared in the headline or first paragraph. In 2013/14, a fifth of all opinion pieces and editorials on climate change featured “evidence scepticism” questioning the science or claiming warming is not happening, while in 2023/24 this had dropped to 5%. There was an even bigger drop in the questioning of scientific models or methods used to monitor and predict climate change, falling to just 1% in the recent years. However “response scepticism” or “climate obstructionism” marginally increased from 23% to 24% across the decade although the nature of it has changed from critiquing technologies such as wind farms to attacking wider aspects of net zero policy. The Telegraph in particular was cited as giving voice to articles containing climate scepticism. The high costs of taking action were cited as the most common anti-action argument.
The last mile – Amazon has announced its biggest order yet of electric heavy goods vehicles in the UK, as well as the launch of on-foot customer deliveries for the first time, with trolleys that can be restocked while on-the-go. The moves are part of the retailer’s plans to achieve net zero across its operations by 2040. It will also use electric rail, and a partners’ fleet of electric vans and e-cargo bikes to help hit the target. New electric Mercedes-Benz Truck eActros trucks and Volvo FM Battery Electric trucks are joining Amazon’s transportation network over the next 18 months. The new eHGVs are expected to transport more than 300 million packages a year in the UK with no exhaust emissions once fully operational. Amazon is also planning additional fast-charging infrastructure across some UK sites. (ITV)
Memorandum of Understanding – Italian Minister of the environment and energy security, Gilberto Pichetto Fratin, met in Riyadh with the Minister of energy of Saudi Arabia, Abdulaziz Bin Salman Al Saud, to sign a MoU. Valid for five years from today, the agreement aims to strengthen energy cooperation. The main focuses are renewable energy, the reduction of methane emissions, power grids, renewable and low-emission hydrogen, its renewable and low-carbon derivatives such as ammonia, and CCS, a spokesperson for the Italian ministry said.
ASIA PACIFIC
Another way out – Using Article 6 market mechanisms could save Taiwan roughly $737 mln in costs needed to achieve its 2030 climate target, according to a recent paper. Acquiring Internationally Transferable Mitigation Outcomes (ITMOs) presents a clear and predictable estimation of marginal cost saving, the research argued. The paper also suggested a unilateral legal act to declare the retirement of ITMOs for Other International Mitigation Purposes (OIMPs), given Taiwan is not a signatory to the Paris Agreement.
Workers plan – Australia’s recently established Net Zero Economy Authority has launched its first consultation process to develop a plan for workers at AGL Energy’s Torrens Island gas-fired power station in Adelaide that is scheduled to close in June, 2026. The assessment process seeks to understand how workers and businesses will be impacted by the closure, what support and employment opportunities exist for workers in the region, and how an Energy Industry Jobs Plan could support the transition for workers and the local community, the authority said. Submissions close at 1700 AEDT on Feb. 21. The authority added that it would also engage directly with AGL, unions, workers, and other businesses in the area as part of its work.
Good Bricks – InnoCSR, a Seoul-headquartered construction firm, has registered its Good Bricks System under Verra’s Verified Carbon Standard (VCS) for sustainable green bricks production in Nepal, it has announced. The Good Bricks System is a non-fired, eco-friendly brick production technology which eliminates the need for fossil fuel combustion and leads to significant reductions in CO2e emissions compared to traditional fired bricks. The Verified Carbon Units (VCUs), can now be sold on the voluntary carbon market to entities aiming to accelerate climate action and sustainable development across the world, the statement added.
No trees, please – Farmers and conservationists have railed against the New Zealand government’s proposal to explore public-private partnerships to plant trees on low-value Crown land, Farmers Weekly reported. Environmental Defence Society chair Gary Taylor said the scheme would be an exercise in greenwashing, noting the scheme would allow both exotic and indigenous trees to be included. Federated Farmers’ Ian Anderson also noted additional trees in areas earmarked in government documents could increase fire risks.
We’ve got money – Japan’s Sumitomo Corporation is participating in the Muara Laboh geothermal power project in Indonesia’s West Sumatra through a joint venture with Inpex and PT Supreme Energy, it announced Tuesday. The joint venture has signed loan agreements with a syndicate of banks – including Japan Bank for International Cooperation (JBIC) – for the capacity expansion of the project. A long-term power purchase agreement effective until 2052 has been signed with PT PLN, Indonesia’s state-owned power company, according to the statement.
AMERICAS
Capture, cash, and careers – A new report highlights the economic potential of carbon dioxide removal (CDR) technologies in tackling climate change. The study from policy researchers Rhodium Group, estimates that scaling CDR solutions in the US could generate between $37-$72 bln in annual economic value by 2050, driven by job creation and new market opportunities. The report estimates that by 2030, CDR projects could remove up to 5 MtCO2 annually in the US, with the potential to increase this to 500 Mt per year by 2050. The industry could support up to 1.5 mln jobs over the next three decades, offering employment in engineering, manufacturing, and project management.
CFTC eh! – Canada’s Forest Trust Corporation (CFTC) announced the formation of a National Advisory Board to advance nature-based solutions in addressing climate and biodiversity challenges. The board, comprised of members with expertise in biodiversity, forestry, education, Indigenous partnerships, and climate adaptation will guide CFTC’s mission to plant and protect measurable forests using advanced digital technology.
Clark and Champagne drop out – Two contenders to replace outgoing Canadian Prime Minister Justin Trudeau dropped out of the race Tuesday, the CBC reported. BC Premier Christy Clark and Innovation Minister Francois-Philippe Champagne both said they will not be seeking Liberal Party leadership. Clark made the announcement days after having to walk back claims that she was never a member of the Conservative Party. She said that she made the decision after determining that there wasn’t enough time to mount a successful campaign, and that her French is not strong enough to connect with francophone Canadians. Champagne shared his decision with a crowd at the Canadian Club Toronto, describing it as “one of the most difficult decisions in my life”.
I dunno – The chair of the Canadian Standards Sustainability Board (CSSB), Bruce Marchand, said in a webinar Tuesday that the standard-setting organisation has engaged with provincial securities regulators, but doesn’t know what the timeline may be regarding adoption of the newly-published climate disclosure standards for compliance. Marchand added that he does not expect small- and medium-level enterprises to be within the scope of the mandate.
VOLUNTARY
Volatile times ahead – A surplus of legacy or low-quality credits, particularly from sectors such as forestry and REDD+ projects that fail to meet updated verification standards, could exert downward pressure on prices in certain market segments, but high quality units such as nature-based and advanced carbon removal technologies, are expected to command premiums of $30–$50 per tonne or higher, according to Dutch company DGB Group. Lower-quality credits, including those associated with avoidance projects that struggle to demonstrate additionality, may experience declining prices or lose market appeal altogether, stabilising at $3–$10 per tonne, the company said in its 2025 outlook. Carbon units offering additional benefits, such as biodiversity conservation, community development, or water security, are expected to command premiums of 20–50% above standard credit prices, reflecting their enhanced value to buyers. By 2030, high-quality credits could exceed $100 per tonne, while average credit prices are projected to stabilise within the $30–$50 per tonne range. As voluntary markets increasingly intersect with compliance systems through frameworks such as Article 6 of the Paris Agreement, the pricing of voluntary credits may align more closely with compliance market benchmarks like the EU Emissions Trading System (EU ETS), currently priced at approximately $90 per tonne. Credits from nature-based carbon removal solutions, including reforestation, agroforestry, and afforestation, are set to dominate pricing trends. By 2030, these credits could surpass $200 per tonne, reflecting rising demand and advancements in carbon removal technologies.
Removals for trading house – Trafigura has given a vote of confidence to carbon markets in its sustainability report for 2024, after “investing in carbon removal projects that benefit from scale and strong governance with a focus on large-scale nature-based removals projects for both regulated and voluntary carbon markets.” In the financial year of 2024, the trading house expanded its services and reach across global regulatory markets, including bolstering its team in China, and advanced its carbon removal assets. Examples of projects and initiatives include:
- The Delta Blue Carbon project in the Sindh province of Pakistan that supports the rehabilitation of mangroves with over 350,000 hectares of tidal wetlands.
- Brújula Verde, an afforestation/reforestation project on degraded lands in Colombia. The first phase involving the planting of 10,000 hectares has begun at Brújula Verde.
- Miombo Restoration Alliance, a public private partnership between 11 nations in Central and sub-Saharan Africa to develop projects that restore one of Africa’s most expansive forest ecosystems, planting native species at scale.
“We value projects that deliver climate, nature, and community co-benefits, and welcome the recent agreements of the Article 6.2 and 6.4 mechanisms at COP 29 in Baku,” the company said.
AND FINALLY…
PODER en el barrio – A San Francisco climate advocacy group is conducting a handful of building decarbonisation demonstration projects in the city’s Mission District in order to better understand the cost of decarbonising low-income housing. People Organizing to Demand Environmental and Economic Rights, or PODER SF, is gauging the cost of decarbonising low-income rental building as part of a wider effort to bring these changes to a larger population, Inside Climate News reports. However, the group is aiming to effect these plans without impacting rents in the neighborhood and pushing low-income residents out. Experts point to numerous examples where housing policy has led to renovations in certain neighborhoods that have driven renters out.
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