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TOP STORY

CORSIA-eligible carbon credits snapped up at $21.70 in auction

The first auction for Phase 1 CORSIA-eligible credits saw airlines snap up units at $21.70 per tonne, organising trade body the International Air Transport Association (IATA) confirmed Wednesday.

VOLUNTARY

Microsoft seals large deal for 3.5 mln Amazon rainforest carbon credits in bid to offset AI emissions

Microsoft will buy an estimated $200 million worth of carbon credits to restore parts of Brazil’s Amazon and Atlantic forests amid a surge in emissions driven by artificial intelligence, it was announced on Wednesday.

DATA DIVE: Significant interest in CCP-tagged carbon credits towards end of 2024

December saw a major jump in the retirement of credits tagged with Integrity Council for the Voluntary Carbon Market (ICVCM)’s CCPs quality label, registry data analysed by Carbon Pulse shows.

Verra releases CORSIA carbon credit label guidance

Voluntary carbon standard Verra has released a guidance document that provides instructions for how project developers can request labels for credits eligible under the UN’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).

Verra cuts project review time sharply in fourth quarter

Verra has slashed the time taken to review projects after streamlining and improving the process with its new risk-based approach that categorises projects into high, medium, or low bands, the standard body said Wednesday.

VCM ratings agency introduces ratings platform for crediting programmes

A carbon credit ratings company has introduced a new platform that allows traders to evaluate the registries and crediting programmes within the voluntary carbon market (VCM).

BRIEFING: VCM stuck in a ‘chicken and egg’ situation as participants await Article 6 development

The voluntary carbon market (VCM) is stuck in a ‘chicken and egg’ situation, with buyers and sellers each waiting for the other to unlock the trade of international carbon credits, according to experts speaking during a webinar on Wednesday.

Japanese developer to conduct agroforestry projects in Haiti

A Tokyo-headquartered project developer is expanding its presence in Haiti, in the hope of securing millions of carbon credits from agroforestry initiatives in the coming years.

EMEA

DRC to create huge tropical forest reserve, generate carbon credits

The Democratic Republic of Congo (DRC) will create a protected area the size of France to protect its tropical rainforest, which will include raising finance via carbon markets, the country announced in Davos Wednesday.

Turkiye’s ruling party to introduce CBAM proposal -media

Turkiye’s governing Justice and Development (AK) Party is preparing to introduce national climate legislation to the Grand National Assembly (TBMM) that would propose establishing a carbon border adjustment mechanism (CBAM) import levy alongside the country’s planned emissions trading system (ETS), according to local media reports.

Renewables take over EU power mix, fossil fuels at historic low -data

Wind and solar have respectively overtaken gas and coal power generation in the EU last year, as total electricity generation from fossil fuels fell to a historic low, according to fresh data published on Thursday by think-tank Ember.

Euro Markets: EUAs snap winning streak as funds amass largest net long position in almost 3 years

European carbon allowance prices weakened on Wednesday, snapping their record-equalling nine-day winning streak as the market appeared unable to shake off growing bearish sentiment, while the weekly Commitment of Traders data showed investment funds last week amassed their largest net long position in nearly three years.

Steel, cement makers defend EU’s CBAM against right-wing calls to freeze it

European steel and cement manufacturers have come out in support of the EU’s Carbon Border Adjustment Mechanism (CBAM), fending off calls from conservative parties to suspend the law.

EU’s ‘competitiveness compass’ to include decarbonisation roadmap

The European Commission’s upcoming ‘competitiveness compass’, due to be presented next week, will serve as the “North Star” for EU policymaking in the next five years, and include a joint roadmap for decarbonisation and competitiveness, Commission President Ursula von der Leyen said on Wednesday.

Polish PM calls for review of EU Green Deal laws, delay of ETS2

Poland’s prime minister has blamed EU regulations for high energy prices and warned against the planned introduction of a new emission trading system for heating and transport fuels (ETS2) in a speech to the European Parliament on Wednesday.

Credit institutions ready for Danish carbon tax on agriculture, central bank says

Danish credit institutions are well-equipped to manage losses arising from the implementation of the country’s new carbon tax on agriculture, according to a report from the country’s central bank.

Danish firms partner on 500k-tonne BECCS facility near Copenhagen

A Danish waste-to-energy company has partnered with a fund manager to build a bioenergy with carbon capture and storage (BECCS) site near Copenhagen that could generate carbon credits for corporate buyers, the two firms announced on Tuesday.

Egyptian regulator forms advisory group to VCM supervisory body -media

Egypt has formed an advisory group for the body already tasked with supervising its regulated voluntary carbon market (VCM) model, according to local media.

Trio of European carbon market experts leave long-term roles

A trio of European carbon market experts have left their long-time roles in the past two months, Carbon Pulse has learned.

AMERICAS

US agency guidance limits federal funding halt to climate initiatives

The White House issued further guidance on executive actions from the new US administration, which halted the disbursement of funds appropriated under the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act, among other policies affecting the direction of environmental policy.

DAC developer signs agreement with Shell, Mitsubishi for facility in Louisiana

A developer of direct air capture (DAC) technology has signed an agreement with Shell US Gas and Power and the American arm of Mitsubishi Corp. to act as a key technology provider for the Pelican – Gulf Coast Carbon Removal DAC Hub in Louisiana.

US Republican states sue over Biden’s offshore drilling ban ahead of Trump reversal

Attorneys General (AGs) from five Republican states were joined by two oil and gas groups in a challenge to the offshore drilling ban imposed by former US President Joe Biden’s office days before it was reversed by the administration of newly inaugurated President Donald Trump.

FEATURE: Canadian carbon tax on the chopping block

Prime Minister Justin Trudeau’s exit has raised the stakes for Canada’s carbon policy, leaving market experts questioning what’s ahead after the country’s impending election.

Alberta agritech firm launches investor bid to support carbon credit programme

An Alberta-based agricultural technology firm is seeking investors to pump up to C$1.5 million (US$1 mln) of capital into scaling its hemp-based carbon credits programme.

Commodity trader teams up with non-profits in bid to raise carbon finance for Amazon protection

A multinational commodity trader has combined with two non-profits to launch an initiative aimed at mobilising billions in private-sector investment for Brazilian rainforest protection, including via REDD+ finance.

ASIA PACIFIC

INTERVIEW: Non-profit seeks to provide India with first voluntary carbon market registry

An Indian non-profit is working to establish the country’s first indigenous registry for the voluntary carbon market, its executives told Carbon Pulse in an interview.

Thailand’s cabinet approves carbon tax on fossil fuels

The cabinet of Thailand on Tuesday approved its plan to impose a carbon tax on oil and other petroleum products in an effort to reduce the country’s greenhouse gas emissions.

South Korea prepares for carbon-linked financial products

Regulators in South Korea are preparing to introduce emissions-linked financial products, as more financial institutions will soon have access to the country’s national carbon market.

Australian oversight body explains the barring of beef herd management method

Australia’s carbon market oversight body has cited evidence and uncertainties that the beef herd management methodology no longer meets the offset integrity standards (OIS) as the reasons for why it advised against renewing it.

AU Market: ACCUs slide to 4-mth low as election uncertainty rattles the market

Australian Carbon Credit Unit (ACCU) prices recovered slightly Wednesday after hitting a four-month low Tuesday, with the lead up to the next federal election and bearish signals affecting market sentiment.

Australia’s CER opens consultation to ease audit burden for smaller ACCU developers

Australia’s Clean Energy Regulator (CER) on Wednesday opened its draft Audit Thresholds Instrument 2025 for Australian Carbon Credit Units (ACCUs) for consultation.

INTERNATIONAL

Unified global carbon market key to scaling climate finance, Davos panel says

A unified global carbon market under Article 6 of the Paris Agreement is essential for meeting climate goals, but clear governance and regulations are needed to build trust and drive investment, speakers told a panel at the World Economic Forum (WEF) in Davos.

Industrial clusters can accelerate decarbonisation, but obstacles to clean energy persist -WEF

Creating industrial clusters can help to accelerate the rollout of clean energy infrastructure, helping to achieve economies of scale, share the risks, aggregate and optimise demand, and attract capital, according to a report released on Wednesday.

BIODIVERSITY (FREE TO READ)

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Price nature into the economic system, bank exec urges

Nature needs to be priced into the economic system so its protection can be prioritised, as change is not happening fast enough, an executive at Deutsche Bank has said.

Crown Estate to deliver £20 mln to sustainable farming

The UK natural asset manager Crown Estate has announced £20 million ($25 mln) in funding to support farmers in enhancing nature recovery as part of its broader biodiversity strategy.

INTERVIEW: Swedish biodiversity company eyes collaboration with EU on nature markets

A Swedish company plans to collaborate with European institutions to help shape an EU-level nature market, with its biodiversity credit methodology among those that could be used under the scheme, its CEO told Carbon Pulse.

BNP Paribas recommends rare species metrics

France-based bank BNP Paribas has recommended two metrics for assessing the impacts of human activity on rare species, in a bid to get a more complete picture of biodiversity.

US foundation to invest $500k to support TNFD expansion

A major US philanthropic foundation is throwing its support behind the Taskforce on Nature-related Financial Disclosures (TNFD) with $500,000 in grants, it announced Wednesday.

Burned areas in Brazil increase 79% in 2024, majority in the Amazon biome -monitor

More than 30.8 million hectares burned in Brazil last year, a 79% increase year-on-year (YoY) and the largest such figure since 2019, with most of this fire damage taking place in the Amazon biome, a monitor group said Wednesday.

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EVENTS

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

• Forest Carbon Sales Manager, Manulife Investment Management Timberland And Agriculture – Boston/Remote
• 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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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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BITE-SIZED UPDATES FROM AROUND THE WORLD

INTERNATIONAL

Mike to the rescue – Billionaire and former New York Mayor Mike Bloomberg plans to increase his financial support for the United Nations climate body, in anticipation of the Trump administration’s expected funding cuts to the institution, a well-placed source told E&E News. The secretariat of the UNFCCC assists with running annual global climate conferences and is tasked by nations with monitoring progress on lowering GHG emissions. Its core budget comes from the nearly 200 countries that make up its membership. The US, as the world’s largest economy, pays the largest dues. But President Trump is expected to end those payments at a time when the UN climate secretariat has expressed concern about lacking the money to address a growing list of duties demanded by member states. Officials for Bloomberg Philanthropies and the UNFCCC secretariat declined to confirm or deny the plan to aid the UN organisation.

EMEA

Swooping in – The EU should avoid engaging in a competitive decline with the US over climate action ambitions and instead leverage the momentum from its landmark Green Deal to reinforce its leadership on the global stage, according to an analysis by the German Institute for Economic Research (DIW). With the return of Donald Trump as US President, the country’s climate targets are becoming increasingly unattainable, said DIW, warning that this poses a serious threat to global efforts to combat climate change. The outlook for sustainability-focused companies in the US may worsen in the coming years, presenting an opportunity for Germany and the EU to attract clean tech producers by offering greater political and economic stability, the analysis added. Germany and the EU must not join the race to the bottom on climate. Instead, they must increase financial incentives for green markets, the DIW said.

Heartland runs wild – Climate science deniers from a US-based think tank have been working with rightwing politicians in Europe to campaign against environmental policies (the Guardian). MEPs have been accused of “rolling out the red carpet for climate deniers” to give them a platform in the European parliament, amid warnings of a “revival of grotesque climate denialism”. The Heartland Institute, which has links to the Trump administration and has drawn on funding from companies including ExxonMobil and wealthy US Republican donors, has seized on a time when rightwing anti-climate action sentiment has been surging, and has set up a new European base in London.

Tyre-fuelled flights – The International Airlines Group (IAG) has put money into Wastefront, a UK company turning used tyres into sustainable aviation fuel (SAF), the airline group announced on Wednesday. Wastefront’s SAF is expected to give life cycle carbon emission savings of more than 80% compared to fossil fuels. IAG’s undisclosed investment makes it possible for the company to start building its fully circular tyre-to-fuel facility in the Port of Sunderland, in northern England. The plant is expected to start up in 2026 and become fully operational a year later, with an expected capacity to process up to 10 mln waste tyres a year. The UK generates around 50 mln end-of-life tyres a year, most of which exported for incineration or landfill, according to IAG. Facilities like Wastefront’s in Sundarland are also key to meeting the UK’s SAF mandate, which started this month, it added. 

UK progress grounded – British Chancellor Rachel Reeves’ expected support for the Heathrow Airport expansion would wipe out any decarbonisation benefits from the government’s clean power plan within five years of operation, according to analysis by the New Economics Foundation (NEF). Climate progress could be decimated further if the government supports expansions of London’s Luton and Gatwick airports too, which it’s expected to decide on early this year, the report said. The UK’s goal to reach at least 95% clean power by 2030 could help to avoid 46-65 mln tonnes of carbon emissions by then. But only a small portion of the emissions from the airport expansions would be regulated by the UK’s existing emissions accounting framework. The NEF also questioned the claims that the expansions would spur economic growth, as corporate air travel is in decline.

Better times – Sales of heat pumps dropped by almost half (46%) in 2024, but the industry is confident that support mechanisms will rapidly lead to a strong increase in purchases, according to the German Heat Pump Association (BWP). Uncertainties regarding municipal heat planning and little knowledge in the wider public about existing support programmes led heat pump sales to plummet last year. (Clean Energy Wire)

ASIA PACIFIC

Moving beyond Asia – UK’s LRQA has acquired Reset Carbon, a Hong Kong-based environmental services firm, in an effort to help the clients navigate challenges in ESG compliance, sustainability, and risk management beyond Asia, the global assurance provider said in a statement. The entities will combine their services across product portfolios and geographic footprints to drive demand for carbon management solutions. Reset Carbon was previously co-owned by a renewable energy company BayWa r.e. With the acquisition now complete, both the teams will work together to integrate Reset Carbon into LRQA’s operations, ensuring a smooth transition to benefit both client bases.

Let us know – The Joint Crediting Mechanism (JCM) secretariat between Indonesia and Japan is calling for public comments on two proposed emissions reduction projects in the Southeast Asian country, according to a notice published this week. Japan’s Sumitomo Forestry is proposing a rooftop solar power project exclusively for woodworking factories, while a group of companies are seeking to implement a 6MW mini hydropower plant in West Sumatra. The call is open from Jan. 23 to Feb.21, the notice showed.

Not optimistic – Indonesia and Malaysia may experience increased deforestation pressures in the future, primarily driven by the expanding use of oil palm for biodiesel production, despite that plantation expansion and associated forest conversion have slowed, according to a recent study. The research, which evaluates oil palm- and rubber-driven deforestation in the two countries between 2000 and 2021, revealed significant tree cover loss, accounting for 82 and 250% of the primary forest loss in Indonesia and Malaysia, respectively.

Cooper CCS goes beyond – Beach Energy confirmed that Australia’s first carbon capture and storage (CCS) project, eligible to earn Australian Carbon Credit Units (ACCUs), sequestered 300,000 tonnes of CO2 by the end of 2024 after start-up several months ago, when it said it expected 250,000t by year’s end. Beach shares the 1.7 million tonne Moomba CCS project in the Cooper Basin with operator and larger partner Santos. The project strips the unusually high CO2 content from the onshore natural gas wells and sends it into other, empty gas formations whereas previously it was vented. Neither company has stated what it will do with the ACCUs, but Beach’s share of ACCUs is currently higher than its emissions obligations under the Safeguard Mechanism. Santos has multiple other, more complex CCS projects at very early stages while Beach picked up two offshore permits close to its existing gas projects in Victoria. 

Partnership – Software developer PBADAO has teamed up with Murepa Korea, which specialises in carbon data solutions, to promote the use of carbon credits, it announced Wednesday. The companies said they aim to implement a new ecosystem that will revitalise the carbon market by utilising the “Pucre” application to offset the carbon footprint of businesses. PBADAO is also conducting the demonstration of a tokenised carbon credit marketplace with KlimaDAO and Mizuho.

AMERICAS

Big oil spends big money – In the 2024 election cycle, “Big Oil” spent a total of $445 mln, including $96 mln in direct donations to support Donald Trump’s presidential campaign, according to a new report published by Climate Power. The oil and gas industry also invested $243 mln in lobbying efforts towards congress. Nearly $80 mln was spent on advertising in support of Trump and other Republican candidates, as well as policy positions supported by their campaigns. More than $25 mln was also contributed to GOP candidates for congressional and gubernatorial races, with $16.3 mln directed toward Republican House races, $8.2 mln to Senate races, and $559,049 to GOP governors.

Scotiabank exits net-zero alliance – On Monday, Scotiabank became the latest major Canadian bank to withdraw from the United Nations’ Net-Zero Banking Alliance (NZBA), following similar exits by other major Canadian banks, including Toronto-Dominion Bank, Bank of Montreal, CIBC, and National Bank of Canada. The latest departure follows the earlier withdrawal of the six largest US banks and the US federal reserve from net-zero banking alliances ahead of President Donald Trump’s inauguration. The Royal Bank of Canada remains the only large Canadian bank in the alliance. (Financial Post)

Putting a lid on it – Chile has opened a public consultation period for its third round of Nationally Determined Contribution (NDC) UN climate targets, which update 2030 ambition and establish goals for 2035. In the draft document, Chile commits to hitting its emissions peak this year, after which emissions should decline to 95 mln tonnes CO2 equivalent by 2030 from around 111 MtCO2e in 2022. Then, through to 2035, emissions decline further to 91 MtCO2e. Chile has many mandatory carbon pricing and measurement mechanisms planned or in place to support mitigation efforts – including an emissions trading system and a carbon tax – but neither are mentioned in the draft NDC. In contrast, it does reference Huella Chile, a voluntary national programme by which corporations track their carbon footprint and set mitigation targets. The NDC sets a target of having 20% of national emissions included under the Huella Chile scheme by 2030. The consultation runs until Apr. 11, though NDCs are due to the UNFCCC earlier, by Feb. 10.

Math help – The software company MathWorks has contributed $1 mln to non-profit Arbor Day Foundation in its pledge to plant 10 mln trees in the six states impacted by Hurricanes Helene and Milton. The non-profit said that the funding will help its tree-planting efforts reach communities and forestland in need of restoration. The contribution advances Arbor Day and MathWorks’ existing relationship. MathWorks made a previous contribution to Arbor Day for a project focused on restoring the Mississippi Alluvial Valley’s forest ecosystem, which is expected to generate carbon credits.

SCIENCE & TECH

ABZ fluxes – A new study examines CO2 fluxes in the Arctic-Boreal Zone (ABZ) from 2001 to 2020, revealing complex carbon dynamics due to rapid warming. While the ABZ remains a net CO2 sink, more than 30% of the region functions as a CO2 source, particularly in tundra areas. However, the inclusion of fire emissions diminishes the net sink, making permafrost regions CO2-neutral. The analysis, based on a large dataset of CO2 flux observations and machine learning models, highlights significant spatial and seasonal variability. Increasing summer CO2 uptake is offset by heightened non-summer emissions, with disturbances like permafrost thaw, fires, and vegetation changes playing a key role. Despite advances, gaps remain in understanding high-latitude carbon budgets, particularly in Siberia, underscoring the need for long-term data collection. (Nature Climate Change)

AND FINALLY…

A joke too far? – Climate activists are increasingly using humour to win support for their cause and highlight inaction on climate change, aiming to be less confrontational than traditional protesting. Stunts include an online game played by hundreds of staff at asset manager Abrdn to convince the board to cut oil and gas investments, and a tiny model violin left outside Shell’s London HQ after activists boarded its oil platform in the North Sea, to poke fun at Shell for saying the non-violent protest had endangered the lives of its staff. Some experts now believe that a mix of hope, humour, and realism is the best way to encourage climate action. Some advertising and comms professionals are rallying around playful campaigns to highlight inaction, in a shift away from confrontational tones such as those adopted by Just Stop Oil. That said, “distress” does drive some people to act, according to one psychologist. (FT)

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