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TOP STORY
EU’s 2040 climate target plan facing delay amid political infighting
The European Commission will put forward its 2040 climate target bill “sooner rather than later”, a spokesperson said Friday, reaffirming that Europe’s aim is still to get its legislation adopted before the COP30 UN climate summit in November.
VOLUNTARY
INTERVIEW: Carbon industry misinterpreting definition of ‘net zero’ emissions, says physicist
Carbon markets are misinterpreting how the target of “zero net emissions” should be reached, according to a physicist behind the concept, speaking to Carbon Pulse.
Carbon crediting for peatland rewetting may overestimate climate benefits -study
A new study has raised concerns about the long-term effectiveness of peatland rewetting as a carbon farming strategy, warning that current crediting mechanisms may overestimate the climate benefits of such projects if they fail over time.
INTERVIEW: New Climate Label certification could raise almost $7 mln annually for carbon credits
A new certification requiring consumer brands to set a $15/tonne internal carbon fee could raise $6.75 million this year to be spent on carbon credits, if the companies signed up so far maximise the full potential of offsetting available to them.
Gold Standard consults on new methodology tackling huge GHG pollution from aircraft contrails
Gold Standard is seeking feedback on a methodology to credit emissions reductions from tackling commercial aircraft contrails, estimated to account for a large share of the sector’s global warming contribution.
Arctic geoengineering project shuts down over ecological risks, financial challenges
A non-profit geoengineering research initiative aimed at slowing Arctic ice melt has announced it will cease operations after more than a decade, citing ecological risks and financial challenges.
AMERICAS
CFTC: Investors continue CCA, LCFS pullback
Financial entities continued to cool off from California Carbon Allowance (CCA) and Low Carbon Fuel Standard (LFS) futures and options holdings, while emitters increased longer-dated CCAs and LFS positions, latest figures from the US Commodity Futures Trading Commission (CFTC) showed Friday.
LCFS surplus bank reaches new highs with record net credit build in Q3
California’s Low Carbon Fuel Standard (LCFS) cumulative credit surplus surged to a record high of 4 mln in Q3, as renewable diesel (RD) and renewable natural gas (RNG) net credits reached new peaks, according to state data.
Carney plans to replace Canadian consumer carbon tax with ‘green’ incentives, industry to pick up tab
Federal Liberal leadership hopeful Mark Carney, former governor of the Bank of Canada, is pledging to scrap the country’s revenue-neutral consumer carbon tax in favour of ‘green’ incentives and tougher targets for heavy industry.
American timberland firm expects surge in carbon credit sales amid rising demand
An American timberland company anticipates a sharp rise in voluntary carbon credit sales in 2025, forecasting a five-to-ten-fold increase compared to 2024, as demand for high-integrity forest carbon projects continues to grow, its executives said on Friday.
US DOE awards up to $1.5 mln to Canadian CCS developer for pulp mill carbon capture study
The US DOE has selected a Canadian carbon capture and storage (CCS) developer for a cost-sharing deal of up to $1.5 million to study CO2 capture at an Arkansas pulp site, the British Columbia-based firm said this week.
Climate Action Reserve opens second public consultation on Mexico forest carbon protocol
US-based carbon standard Climate Action Reserve (CAR) has opened a second public consultation on proposed updates to its Mexico Forest Protocol Version 3.0 (MFP V3.0), seeking to clarify and strengthen requirements for project eligibility, monitoring, and verification.
EMEA
Europe’s industrial slump not caused by EU ETS – for now, say analysts
The share of carbon in the cost structure of industries covered by the EU’s Emissions Trading Scheme (EU ETS) is currently too small to cause deindustrialisation on its own, but will become a growing cause for concern in the coming years, analysts said.
Euro Markets: EUAs plough higher amid stubborn buying, as UKAs post largest ever weekly gain
European carbon permits returned a 15% monthly increase in January after posting their seventh gain in the last 10 days on Friday, with a strong auction outcome underpinning the market’s stubborn strength amid firming power and gas, while UKAs recorded their largest-ever weekly gain.
Germany greenlights overdue EU ETS reform law
Europe’s largest economy has finally moved to transpose the latest version of the EU Emissions Trading System (ETS) regulation into national law.
German multinational enters African soil carbon market with first Kenyan projects
A German multinational has partnered with a business consortium in Kenya to facilitate soil carbon offset projects in the East African nation and across the continent.
ICROA endorses Iceland-based carbon registry
An Iceland-based carbon registry has received received full and unconditional endorsement from the International Carbon Reduction and Offset Alliance (ICROA) for its crediting programme.
Ghana to explore pension scheme funded by carbon credits, green group hits back -media
The parliament of Ghana has set up a committee to explore a proposed pension scheme for the members which will be funded by revenues generated from carbon credits, even as the idea has been severely criticised by a local non-profit.
ASIA PACIFIC
Australian govt defers nature positive bills until after election
The Australian government has deferred legislation to establish federal environmental protection and information-gathering agencies until after the upcoming election, local media reported.
Philippines’ first Indigenously co-owned REDD+ project targets Verra registration
Global non-profit Conservation International (CI) is looking to establish what it says is the first indigenously co-owned carbon project in the country, using Verra’s latest REDD+ methodology.
Rio Tinto partners with Norway’s leading aluminium firm to cut emissions with carbon capture
Anglo-Australian mining giant Rio Tinto and a Norwegian aluminium producer announced this week a five-year partnership worth $45 million to develop carbon capture technologies in a bid to reduce emissions from aluminium smelting.
INTERNATIONAL
WTO-backed technology transfer can help Caribbean meet EU CBAM challenge -think tank
The World Trade Organization (WTO) can support members of the Caribbean Community (CARICOM) intergovernmental union to avert the worst impacts of the EU Carbon Border Adjustment Mechanism (CBAM), according to a regional think tank, though CARICOM should also pursue greater intra-bloc alignment between climate and international trade policy.
G20 falls behind on climate pledges as NDC deadline approaches
As time runs out for countries around the world to submit new national emissions reduction targets to the UN, G20 nations are failing to lead by example, researchers have found.
BIODIVERSITY (FREE TO READ)
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Liechtenstein private bank, UK analytics firm partner to enhance biodiversity risk assessment
A Liechtenstein-headquartered private bank and asset manager has teamed up with a UK-based nature analytics company to better assess how its investments impact biodiversity.
UK govt launches consultation on land use framework
The UK government launched on Friday a public consultation on a framework aimed at enhancing decision-making on land use across the country, with potential implications for the emerging nature markets.
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EVENTS
India Climate Week – Feb. 3-7, New Delhi – Carbon Markets Association of India (CMAI) is launching India Climate Week at Hotel Le Meridien, New Delhi. This event will bring together policymakers, industry leaders, and climate action advocates to discuss carbon markets, green technologies, and India’s Net Zero path. Highlights include panel discussions on emerging climate trends, a two-day certification workshop on carbon markets by Indian Institute of Corporate Affairs (IICA), the launch of India SAF and EPR Alliance, and field visits to CBG and Article 6 technologies. The event will feature Shri Nitin Gadkari, Hon’ble Union Minister of Road, Transport and Highways, and Shri Manohar Lal Khattar, Hon’ble Union Minister of Power. Register here.
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 solu
tions. www.nacwconference.com
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BITE-SIZED UPDATES FROM AROUND THE WORLD
INTERNATIONAL
No love for Paris – Indonesia has raised doubts about the Paris Agreement’s fairness following former US President Donald Trump’s renewed decision to withdraw from the climate accord. According to the FT, Indonesia’s climate and energy envoy, Hashim Djojohadikusumo, questioned why developing nations should comply with emission reduction targets when the US, as a major historical polluter, is reversing its commitments. His remarks come amid broader concerns that the US withdrawal could undermine global climate action. Indonesia, the world’s sixth-largest GHG emitter due to its reliance on coal, faces significant challenges in meeting its climate pledges. President Prabowo Subianto has committed to phasing out coal by 2040, but analysts view this as an ambitious target given Indonesia’s ongoing expansion of coal-fired power plants, particularly for nickel production. Indonesia has also expressed frustration with the $20 bln Just Energy Transition Partnership (JETP), a financing initiative led by the US and Japan to support its transition away from coal. Hashim suggested the programme would likely be scrapped under Trump and criticised it as a “failed programme”, citing delays in fund disbursement and disagreements over coal plant retirements. The UN’s climate chief Simon Stiell reaffirmed the importance of Paris, stating that the transition to clean energy remains the “economic growth deal of the decade” and that engagement remains open for all nations. Meanwhile, Indonesia, along with other countries, faces difficulties in meeting its upcoming emissions reduction targets, with many expected to miss the February deadline to update their NDCs.
Capture & remove – The UN’s IPCC will meet in Hangzhou, China from Feb. 24-28 to work on a methodology report on CO2 removal (CDR) technologies and carbon capture, utilisation, and storage (CCUS), the body announced last week. The single methodology report will include guidelines for sectors such as energy; industrial processes and product use; agriculture; forestry, and other land use; waste; CCUS; as well as direct removal of CO2 from waterbodies. The decision to work on the report was taken during IPCC’s 60th session in Turkey last year and the Methodology Report will be provided by the end of 2027.
EMEA
Handing over the reins – The CEO of Orsted, Mads Nipper, will step down after a series of huge writedowns of the Danish wind developer over the past few years on both sides of the Atlantic and a significant drop in its share price. Nipper will be replaced by his deputy Rasmus Errboe on Saturday, the company announced. Nipper led the offshore wind giant for four years, but struggled to improve its financial performance after setbacks and surging costs at several of its biggest projects. Orsted shares have dropped about 80% during Nipper’s tenure from the peak in early 2021. They traded little changed in Copenhagen on Friday and are down about 18% this year. The most recent writedown, a $1.7 bln hit in the US earlier this month, put Nipper’s leadership at risk, while future US growth is in doubt after President Donald Trump moved to halt federal permitting and leasing areas for new offshore wind. Following construction of the world’s first offshore wind farm in the early 1990s in Denmark, Orsted has become symbolic of the promise and risks of offshore wind — an industry that has been hard hit by high interest rates and supply chain bottlenecks. (Bloomberg)
Trash cash – The UK’s plans to bring waste incinerators under the ETS could increase costs for councils by over £1 bln annually and could lead to more waste being sent to landfill or exported, The Guardian reports. Currently, incinerators handle about half of England’s waste, but environmental groups argue they undermine recycling efforts and emit significant CO2. The new charges, set to take effect in 2028 after a reporting period from 2026, are expected to make incineration more expensive than landfill or exporting waste. Experts warn this could lead to worse environmental outcomes, such as higher landfill use, increased transport emissions, or illegal disposal. The Local Government Association has raised concerns about the financial burden on councils, as incinerator operators are likely to pass on costs. The government insists the move is necessary to cut emissions and improve waste management, aiming for a circular economy and reduced reliance on landfill. Industry groups support the policy but advocate for measures such as banning biodegradable waste in landfills and preventing waste exports to ensure effective emissions reductions.
Climate-tech cluster – The first ‘SuperCluster ClimAccelerator’ is a newly launched programme designed to accelerate high-impact industrial decarbonisation startups across the UK, France, Germany, Belgium, and the Netherlands. Announced and launched on Friday by Cambridge Cleantech, Cambridge Consultants—part of Capgemini—and EIT Climate-KIC, the ClimAccelerator will provide deep technical and commercialisation support to early-stage startups with industrial decarbonisation technologies in the development stage. The 16-week hybrid in-person and online program starts in Spring 2025. The region in question boasts the third-largest tech ecosystem globally, valued at more than $1 trillion, the partners said in the release. The ClimAccelerator is open to 8-10 high-potential startups from the SuperCluster region and will open its application phase in Jan. 2025.
Germany powers up – Germany installed nearly 600,000 new battery storage systems in 2024, increasing total capacity by 50% to 19 GWh, according to a press release that cited preliminary data from the German Solar Industry Association (BSW Solar). Home battery storage accounted for 580,000 of the new systems, bringing total household capacity to 15.4 GWh. Large-scale battery installations doubled, reaching 2.3 GWh, with further growth expected. Transmission grid operators have received 650 connection requests totaling 226 GW.
Subsea cable – Xlinks First, which is planning the world’s longest subsea power cable between the UK and Morocco, says the project needs political support to become a reality. Expected to reach financial investment decision this year, financial close in 2026, and start of construction before end of next year, it’s hoped the project would provide the UK with a reliable source of green power that would compliment the country’s growing fleet of turbines in the North Sea. Under the proposal, the Xlinks First would spur as much as £24 bln of investment, with about £5 bln of that in the UK. Xlinks now needs political backing and is talking to the government to secure a fixed power price, with it says would need to be above that of UK offshore wind. The project will come online in 2031, just after the 2030 clean power goal, and would include some 11.5 GW of solar and wind farm capacity, coupled with batteries to store excess power. (Bloomberg)
Greening Serbia – Serbia’s Ministry of Environmental Protection and the European Union are launching a new support package in the areas of climate change policies, circular economy and businesses, and biowaste management. The package is worth €16.3 million and will also go to help set up a mechanism on carbon pricing.
Fruit-bearing trees – A recent report by Nairobi-based Center for International Forestry Research and World Agroforestry (CIFOR-ICRAF) has found that agroforestry can support Kenya’s target to reduce GHG emissions by 32% by abating 4.1 MtCO2e by 2030. The report found that fruit trees played an important role in on-farm carbon storage, however, their potential remains to be utilised in Kenya. It also found that new allometric equations provide a simple way for farmers to estimate carbon in their trees, and empower them to negotiate better results-based payments. The report revealed that by integrating fruit trees into carbon projects, Kenya can scale up agroforestry while safeguarding food security and livelihoods and the farmers can benefit from carbon markets without compromising their land or food production.
ASIA PACIFIC
Financial hit – Australian legal group the Environmental Defenders Office (EDO) on Friday filed its financial accounts with charity authorities, detailing the A$9 mln ($5.6 mln) hit it took as a result of its failed legal case against oil and gas company Santos over its Barossa LNG project. The EDO said the costs to Santos had been paid in full through the use of reserves, access to insurance, and the securing of a A$6.5 mln interest-free, working capital facility which it said would take years to pay off. However, it said the organisation has pledges of support that give it confidence the debt will be met. EDO CEO David Morris said there were “powerful forces” in Australia and abroad “who would be delighted if the EDO ceased to exist”, but vowed the organisation would continue to support the community.
New J-Credit project – Japan’s Nippon Telegraph and Telephone West Corporation and Regional Revitalisation Co-Design Institute have signed an agreement to support the “Kihoku Town Forest J-Credit Creation Project”, to promote the creation and sale of credits under the J-Credit Scheme, they announced Friday. Kihoku Town manages town-owned forests covering an area of around approximately 1,437 hectares by contributing to the absorption of CO2, cultivating water resources, and supplying timber. Through this initiative, the partners aim to achieve sustainable forest management and promote green transformation measures.
JCM deal – Japan and Kazakhstan adopted the rules and guidelines for implementing the JCM in accordance with Article 6 of the Paris Agreement at a recent joint committee meeting, according to a statement released Friday. The Japanese government’s JCM funding support projects were introduced during the meeting. Japan will promote JCM projects in Kazakhstan to reduce GHG emissions through decarbonisation technologies and contribute to the NDCs of both countries, the government said in the statement.
AMERICAS
Coalition calls for cap-and-invest clarity – A coalition of environmental groups, New Yorkers for Clean Air, is urging New York Governor Kathy Hochul (D) to move forward with the state’s cap-and-invest programme (NYCI) by immediately releasing draft regulations. Advocates expected Hochul to announce details in her recent budget proposal, but she provided little information, prompting criticism from activists who view further delays as unnecessary. Hochul’s office maintains that the programme is progressing, but environmental groups argue that immediate action is needed, particularly given recent federal policy shifts. (City & State New York)
Climate change cleanse – Employees at the US Department of Agriculture (USDA) have been ordered to delete landing pages discussing climate change across agency websites and document climate change references for further review, E&E reported. The directive from USDA’s communications office could affect information across dozens of USDA programmes, according to the outlet. In 2024, the department announced funding to support initiatives in areas such as conservation, sustainable forestry, and biofuels and clean energy. Earlier this month, the USDA also announced the appointment of over 30 members to its VCM advisory council.
Lightning plan strikes – Governor Josh Shapiro introduced yesterday the “Lightning Plan,” an energy strategy aimed at job creation, consumer cost reduction, and infrastructure development in Pennsylvania. The plan includes streamlining permitting, modifying the Pennsylvania Economic Development for a Growing Economy (EDGE) tax credit, and creating new incentives for hydrogen and sustainable aviation fuel production. It also includes a cap-and-invest programme, the Pennsylvania Climate Emissions Reduction Act (PACER), which aims to set Pennsylvania’s carbon limit and invest in reducing electricity costs. The plan was first proposed by Shapiro in Mar. 2024.
To LNG and beyond – Hawaii’s state energy office is looking to LNG to reduce its emissions, according to a study published by the agency this week. In balancing lifecycle carbon intensity, cost-effectiveness, and commercial viability, four priority fuels emerged in order: imported LNG; imported hydrogen; local renewable natural gas, or biomethane; and imported biodiesel or renewable diesel. The office said that LNG emerged as the most cost-effective transitional fuel until carbon-emitting fossil fuels can be permanently eliminated by 2045 through the other three options. Hawaii faces the highest electricity costs in the US and also projects increased demand across its islands. Despite their plans to rely on LNG as a transitional fuel, the local governments in Hawaii have filed lawsuits seeking alleged climate-related damages from oil and gas companies. The cases were permitted to proceed in state Supreme Court following a refusal from the US Supreme Court to review the lawsuits.
When you’re E15 – A new Kansas house bill (HB 2012) would create an ethanol tax credit of 5 cents/gal (1 cent/litre) from 2026-31 for fuel blends between 15-85% ethanol. The amount of issued tax credits would be capped at $5 mln per tax year, and any unused credits can be carried forward for up to five subsequent taxable years. The bill text states that it was sponsored by the House Committee on Taxation and requested by Sandy Braden on behalf of biofuels producer POET. It was referred to the House Committee on Agriculture and Natural Resources as of Thursday.
Carbon Done Later – Vancouver-based project developer Carbon Done Right announced Saturday that it has been granted an extension on the closing of its non-brokered private placement. Originally expected for January, the company said the final tranche of the offering is now expected to close on or before Feb. 17, subject to certain closing conditions. Earlier this month, Carbon Done Right announced it has completed third-party validation of its Sierra Leone project under Verra methodology and can now issue credits.
Belize blue economy – The World Bank’s advisory board announced Friday that it has approved a $32.2 mln initiative to help advance Belize’s blue economy. The Belize Blue Cities and Beyond Project will focus on improving the management of coastal and marine resources, increasing safe water supply, and reducing land-based pollution in targeted urban areas, the bank said. Specific work areas under the programme include establishing regulatory mechanisms and digital infrastructure for carbon transactions. The World Bank said it expects this will help Belize to develop carbon credits that can be marketed internationally and unlock sustainable financing mechanisms for the blue economy.
VOLUNTARY
CDR accelerator – Carbon project platform CEEZER has launched the third edition of its Carbon Coalition accelerator, inviting early-stage project developers with scalable CDR solutions to apply by Feb. 28. The three-month program aims to support innovators in the VCM by addressing challenges such as buyer engagement, certification, contract management, and pricing. Participants will gain access to CEEZER’s buyer network and receive market insights to accelerate commercialisation. Eligible projects should have an operational pilot but not yet be issuing credits. Selected projects will be announced in May, with sessions running from April to June.
Not gonna pay – Shell has avoided paying compensation for nearly 2 mln discredited carbon credits it supported in China, as Verra has been unable to hold the world’s largest offsets buyer to account for the scandal, according to Climate Home News. Carbon Pulse previously reported that compensation for the credits had not yet been received by Verra, while a spokesperson for the standard told Carbon Pulse Friday that there was nothing new in the Climate Home article, following on from the previous statement issued earlier in January, as discussions are still ongoing. The oil major was closely involved in 10 discredited projects that aimed to slash methane gas released from rice paddies across eastern China, but the units, which Shell partly used to justify sales of ‘carbon neutral’ LNG – failed to cut GHG emissions as claimed, according to Climate Home. To date, Verra has received compensation from just five of the 25 activities exposed last year for malpractice, including those from buyers Vitol (China) Energy and Timing Carbon Asset Management. The projects from which Shell bought were originally set up by Chinese agritech firm Hefei Luyu, but Shell acted as their “authorised representative” in dealings with Verra, assuming “all applicable rights and responsibilities” equivalent to those of the developer, as per the Climate Home reporting. On Sep. 11, 2024 – less than two weeks after Verra’s compensation order – Hefei Luyu and Shell ended their agreement, enabling the latter to abandon the projects. However, exiting the agreement does not relieve Shell of its past obligations, according to an expert speaking to Climate Home. A lawyer told Climate Home that Verra could bring legal proceedings against Shell but said doing so could hurt its own business prospects, given the oil major is by far the largest buyers in the VCM. As yet, Verra has taken no action against Shell, while it has sanctioned Hefei Luyu.
AVIATION
SAF methodology – The International Air Transport Association (IATA) has released its methodology for accounting and reporting the emissions reduction associated with the use of sustainable aviation fuel (SAF) by airlines. In a statement Friday it said the methodology is a critical step in the preparation of the IATA SAF Registry, scheduled to launch in April 2025, which is expected to play a key role in creating a functioning global SAF market. Its core principles are to create a level playing field, to prevent double counting, to ensure integrity in environmental reporting claims, and to ensure data is transparent and verifiable.
AND FINALLY…
The death and life of great American rodents – Rat populations are rising in urban centres alongside global temperatures, according to a study published in the journal Science Advances on Friday. Over the past decade, rats increased by 390% in Washington DC, 300% in San Francisco, and 186% in Toronto, researchers found. Just three of 16 North American cities assessed experienced declines, as urban centres with greater temperature increases over time also saw larger increases in rats. The research, led by scientists at the University of Richmond, attributed the rising rodent populations to expansion of seasonal activity periods and food availability for urban rats.
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