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TOP STORY
DATA DIVE: UN postpones 2035 NDC deadline after few countries submit plans on time
The UN has pushed the deadline for the submission of new Nationally Determined Contributions (NDCs) to September, after just a handful of countries sent them in ahead of the initial date of Feb. 10.
EMEA
Uncertainty as EU delays CO2 transport and storage package until 2026
Initially expected in 2025, the European Commission has decided to push back its regulatory package for CO2 transport and storage infrastructure until next year, causing uncertainty for carbon capture and storage (CCS) projects, the industry has said.
Euro Markets: “Tired” EUAs extend sideways trend, post 2% weekly loss despite new highs in natural gas
European carbon prices traded sideways on Friday to end the day 0.4% higher and week 2% lower despite strength in the wider energy complex, as participants continued to speculate on the prospects for sustained strength in a market being increasingly described as “stuck”, “tired”, and “rangebound”.
Kenyan energy company to tender 1.8 mln CDM carbon credits
A Kenyan power company and carbon project developer will tender in February around 1.8 million carbon credits issued last year to geothermal energy projects under the UN’s Clean Development Mechanism (CDM).
AMERICAS
New US EPA petitions federal courts to pause lawsuits against power plant standards
The newly installed administrator at the US EPA moved the courts to hold all consolidated litigation against former President Joe Biden’s power plant emissions standards for 60 days, buying time for the new administration to review the underlying rule.
Republican state AGs, industry challenge New York’s Climate Superfund Act
A group of 22 Republican state attorneys general (AGs) and industry groups are challenging in federal court New York’s recently signed “Climate Superfund” law that targets fossil fuel firms.
California senator makes another attempt to set ground rules for CDR
A California senator introduced a CO2 removal (CDR) bill on Wednesday, the second attempt by the lawmaker to prescribe rules surrounding CDR development in the state in recent years.
CFTC: Compliance slashes RGGI exposure, investors brave CCA price slump
Producers took a drastic haircut to their RGGI Allowance (RGA) long holdings, while investors raised California Carbon Allowance (CCA) net length even as prices faltered over the week, latest figures from the US Commodity Futures Trading Commission (CFTC) showed Friday.
Brazil issues decree for Indigenous, traditional access to public forests
An interministerial decree in Brazil released this week seeks to regularise access to undesignated federal public forests in the Legal Amazon for Indigenous and traditional communities.
Brazilian state signs carbon credits MoU with environmental services firm
A small Brazilian state signed an MoU on Friday with a Sao Paulo-based environmental services firm that entails a carbon project the pair said could be worth more than R$300 million ($51.7 mln).
ERW could cut CO2 by up to 300 mln tonnes annually in US by 2050 -report
Deploying basalt-based enhanced rock weathering (ERW) in US agriculture could remove between 160-300 million tonnes of CO2 annually by 2050, and 250-490 mln tonnes by 2070, according to a new study published this week.
US CCS projects may capture more than 30 MtCO2 annually from ethanol production -research
By the end of 2024, 51 carbon capture and sequestration (CCS) projects in the US were in the planning stages aiming to store at least 30.5 million tonnes of CO2 each year from ethanol refineries, according to a research study released Wednesday.
BECCS, DAC small factor in net-zero Canada -report
New projections by a federal regulator suggest carbon capture technologies like bioenergy power generation with carbon capture, utilisation, and storage (BECSS), and direct air capture (DAC) aren’t yet ready to play a major role in Canada’s net-zero future.
Canada faces higher carbon removal burden under equity-driven policy approach -researchers
Canada will need to scale up its CO2 removal (CDR) efforts significantly beyond its current net-zero commitments if it is to meet global climate fairness standards, according to a new analysis.
INTERVIEW: Hybrid DAC developer eyes scale-up with ‘water-positive’ approach
Hybrid direct air capture (HDAC) technology could help drive down the cost of carbon removals (CDR) by capturing both CO2 and water in a single process, the founder and CEO of a California-based firm told Carbon Pulse.
Florida biochar company files for bankruptcy protection
A Florida-based company specialising in converting green waste into biochar-rich products has filed for Chapter 11 bankruptcy protection, according to court documents.
ASIA PACIFIC
Australia Market Roundup: Regulator issues 3.35 mln ACCUs in final 2024 issuance
The Clean Energy Regulator (CER) minted some 3.35 million Australian Carbon Credit Units (ACCUs) in its final issuance in 2024, as traded volumes and prices sank in January, according to analysis.
CN Markets: CEA price stable, but volume slips amid bearish sentiment
The Chinese Carbon Emissions Allowance (CEA) price edged down this week with shrinking market liquidity, a bearish trend market observers said may continue until more policy clarity is provided.
Tokyo-based developer tries again with cookstove JCM methodology
A Japanese project developer has made a second attempt to propose a cookstove methodology under the Joint Crediting Mechanism (JCM), the first of its kind under the scheme if approved.
Australian miner partners with green steel hopeful for low emissions iron work
An Australian miner sitting on an iron ore deposit saw its share price jump close to 20% by the middle of Friday after it announced an in-principle agreement to supply a large-scale green iron plant in Western Australia.
VOLUNTARY
INTERVIEW: Market needs to come to “acceptable compromise” to scale REDD+ projects
International carbon market stakeholders, including standards, rating agencies, and bodies such as the Integrity Council for the Voluntary Carbon Market (ICVCM) and Science Based Targets Initiative (SBTi), must find a path to come to an agreement on REDD+ methodologies if they wish to scale projects in the sector, a market veteran told Carbon Pulse.
Global organisation launches first accounting standard for cocoa, outlines carbon removals framework
An international organisation has announced the world’s first accounting standard for the cocoa sector, setting a framework for companies to report Scope 3 emissions and measure carbon removal.
Mangrove restoration offers up to 15:1 benefit-cost ratio, researchers estimate
Restoring mangrove forests could generate billions of dollars in economic and climate benefits, with a global benefit-cost ratio (BCR) as high as 15 to 1, according to a new study.
AVIATION
BRIEFING: Experts confident of strong CORSIA supply and demand, including from US
Carbon market participants are confident that there will be both strong supply and demand for CORSIA credits, including from US airlines, despite political developments this year that have cast uncertainty over international climate initiatives.
FEATURE: UK set to miss 2030 green jet fuel goals by half, increasing airline carbon exposure
The UK could miss its production goal of 10% sustainable aviation fuel (SAF) in total jet fuel use by 2030 by almost half, according to industry experts, with potential implications for airline exposure to carbon prices under the UK ETS and the UN’s CORSIA international offsetting scheme.
INTERNATIONAL
INTERVIEW: Energy transition payments make fertile ground for carbon pricing
The $5.2 billion Clean Technology Fund (CTF) is helping to sensitise developing country governments to carbon pricing by supporting energy transition finance and programming, according to an executive at the organisation.
BIODIVERSITY (FREE TO READ)
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Major US nature study cancelled via executive order to bolster the energy industry
A major US-wide nature study has been cancelled amidst the deletion of multiple environmental government sites through a recent executive order (EO) aimed at boosting energy production by President Donald Trump.
Petrobras launches bioeconomy fund eyeing carbon, biodiversity credits
Brazilian state-owned oil company Petrobras has established a bioeconomy fund to support climate- and nature-focused initiatives in the country, with plans to target carbon and biodiversity credit projects.
UK consultancy, online platform team up to scale nature markets
A UK-based consultancy has joined forces with a digital environmental marketplace to scale nature markets across the UK, seeking to reward farmers and landowners who implement biodiversity restoration projects.
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EVENTS
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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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
Gaps and growth – A projected carbon removal supply gap means AI companies must support substantial investment and early action to develop more projects that remove carbon from the atmosphere, according to an article published this week by the World Economic Forum. This increase in efficiency must be combined with an acceleration in the growth of clean energy and carbon removal to prevent further escalation of climate risk as AI deployment continues to expand, the organisation said. To manage the risk of rising emissions and carbon removal supply shortages, AI companies should secure long-term agreements with providers now, the organisation recommended.
To clarify – Indonesia’s environment ministry has reaffirmed the country’s commitment to the Paris Agreement following comments last week from its climate envoy, Hashim Djojohadikusumo, questioning its relevance following the US withdrawal. Hashim suggested it was unfair for Indonesia to comply if the US did not, sparking concern among environmental groups. However, the ministry emphasised Indonesia’s leadership in climate efforts and the benefits of global cooperation. It did not clarify whether Jakarta is reconsidering its participation. Indonesia remains a major emitter but has pledged to phase out coal power within 15 years and reach net-zero emissions by 2050. Environmentalists fear that the US exit will weaken global climate commitments. (AFP)
EMEA
Decisions, decisions – Pressure on UK Energy Secretary Ed Miliband to come to a decision on the Rosebank oil field site developed by Shell and Equinor underscores the potentially conflicting goals of the government to drive economic growth while also reduce GHG emissions. A court ruled last month the companies need to reapply for environmental permits because the prior approvals failed to consider the impact of burning oil and gas from the fields. Once that’s done and following the publication of new government guidance on emissions, the final decision is Miliband’s. He criticized the project on social media in Mar. 2023, calling it a waste of taxpayer money, but on Friday said there’s a difference between being in government and being in opposition. Prime Minister Keir Starmer indicated Thursday the government won’t interfere with exploration licenses already granted. Equinor says the project would attract £6.6 bln of direct investment to the UK and create 2,000 jobs during development, as well as 525 full-time jobs during the field’s lifetime. (Bloomberg)
Template time – The UK ETS Authority has published on Friday templates and guidance on 2025 baseline data collection for market participants. Between Apr. 1 and Jun. 30, 2025, all installation operators within scope of the ETS are required to submit data to their regulator ahead of the next allocation period. This data collection period is also used as the application window for free allocation and for hospital or small emitter (HSE) and ultra-small emitter (USE) status. The ‘Baseline Data Report’ template has been designed for use by all operators to meet their submission requirements, apply to acquire USE/HSE status, and/or to apply to receive free permits in the next allocation period, the Authority said. USEs should complete a separate template. Failure to submit the report by the deadline will result in an operator not receiving free allocation at any point during the second allocation period, the Authority confirmed.
Two more weeks – The UK government has extended the deadline for its consultation on implementing CORSIA. Originally set to close on Feb. 10, 2025, the consultation period has been extended to 2359 GMT on Feb. 24. This consultation seeks public feedback on the UK’s proposed approach to enacting CORSIA, including draft secondary legislation covering offsetting requirements and enforcement provisions. It also explores options for how CORSIA and the UK ETS should apply to flights that fall under both schemes, particularly those departing the UK and arriving in the European Economic Area (EEA) or Switzerland.
Yara not listening to me – Ammonia producer Yara International halted output at its Hull, UK, plant in late Jan. 2025, and is also planning to close its facility at Tertre, Belgium. The closures, amounting to 700,000 t/yr of lost production, are part of a 1 Mt/yr reduction in output planned across the company’s European operations, and are expected to be permanent. The move comes amid a broader shift in Yara’s European ammonia strategy, as high energy costs dampen the competitiveness of domestically-produced ammonia, according to the article. The major fertiliser producer expects to reduce its European ammonia production by 1 mln t over the coming years and rely more on imports into the continent. A total of 300,000 t of that is from the Hull curtailment, while another 400,000 t is projected to come offline with a planned transition of the company’s Tertre plant in Belgium. The final 300,000 t will arise from optimisation efforts at the company’s industrial plants, Matt Hoisch, associate editor at S&P Global wrote on LinkedIn.
CBAM impact – The EU’s Carbon Border Adjustment Mechanism (CBAM) is already leading aluminium and steel producers in the UAE to reconsider the energy that powers their production, according to Sharif al-Olama, the UAE’s undersecretary for energy and petroleum affairs. Olama said reducing the energy intensity in the UAE’s aluminum and steel industries is the primary focus of those sectors right now and that complying with CBAM has already impacted the oil heavyweight’s energy mix, with 25% of its electricity coming from clean sources currently. The Gulf country’s installed capacity for power generation in 2022 comprised 6% nuclear, 10% solar, 82% gas and 2% oil, but by 2050, solar is expected to make up 52% of installed capacity, with gas dropping to 38% of the mix and oil falling below 1%, S&P reports. Many renewable energy projects are under development in the UAE and it currently has 34 operational projects.
Leaps ahead – Industry association Carbon Removal Kenya has been launched to promote and support the permanent carbon removal in Kenya and Africa-wide. The organisation will champion diverse permanent CDR pathways like direct air capture (DAC), biochar, enhanced rock weathering (ERW), and storage via mineralisation, said the announcement on LinkedIn. CRK is a membership organisation comprising of CDR suppliers, investors, marketplaces, NGOs, policy makers, and supporters, and also aims to help young students and entrepreneurs get into CDR.
Exceeding expectations – Germany looks set to exceed its 2030 onshore wind power target by 2.6%, according to analysis by Google-backed think tank Goal100. It took into account the number of applications and permits for new wind farms, and the shortening of approval processes, finding that the country would likely exceed its target of 115 GW of installed wind capacity by 2030 by 3 GW. More than 50 GW of planned capacity is currently awaiting approval or already being installed, which will contribute about 60% of the required additional capacity to hit the 2030 target. The rapid expansion of wind energy is crucial to converting the steel sector to climate neutrality, they concluded. Expanding onshore wind capacity is a key part of Germany’s goal for climate neutrality by 2045, including hitting the milestone of a 65% reduction in emissions by 2030.
Symbolic connection – Baltic states Estonia, Latvia, and Lithuania will sever the last major energy link to Russia and join the EU’s electricity network on Sunday, in a historical and symbolic move, though there are fears of further sabotage to critical cables. The three nations have been part of the Brell system connecting them to Russia and Belarus since the end of the second world war, managed almost entirely by Moscow, and although no electricity trade has occurred since Russia’s invasion of Ukraine in 2022, the link has been key to balancing regional consumption and production. Yet Baltic officials fear the synchronisation is not without risks, after a rising number of suspected acts of sabotage to power, data, and gas links in the Baltic and North Seas. Estonia will deploy soldiers to land connectors and power stations during the synchronisation process. And all government ministries had been put on alert to counter disinformation campaigns that have spread false messages about price spikes and blackouts. Analysts do not expect linking of the Baltics to the EU electricity grid to have a significant impact on prices, though any potential incidents resulting in damage to interconnectors would likely spike Baltic prices. (FT)
Going electric – An EU law to mandating companies to electrify their corporate car fleets could deliver 2 million EV sales by 2030, or half what carmakers need to meet their emissions targets by then, according to a new study by Transport and Environment (T&E), a clean mobility advocacy group. For carmakers like Stellantis or BMW the percentage even goes up to 54% and 58% respectively, T&E said, calling on the European Commission to legislate on the matter and set an EU target for all fleets with over 100 cars to buy only electric as of 2030. Fleet electrification targets would especially benefit European automotive groups as 62% of their car sales are in the corporate market compared to only 49% for non-European carmakers, T&E said. The European Commission has expressed its interest in the idea, and the EU Transport Commissioner has been charged with drafting a law “for clean corporate fleets”. In January, the EU Commission launched a dialogue on the future of the European automotive industry and is preparing an Automotive Industrial Action Plan for publication on Mar. 5.
French sailing – The French government will support the development of low-carbon ships and decarbonisation technologies for the sector by way of the Corimer Low-Carbon Ships initiative, for which the deadline to submit proposals is Oct. 15, 2025. Projects can be executed by a single partner or consortium of up to five. €1 million is the minimum total project cost threshold for projects, individual or in a consortium, led or coordinated by an SME. €4 mln is the minimum for projects, individual or in a consortium, carried out by a large company. Selected projects will receive aid in the form of a mix of grants and repayable advances. (shipandbunker.com)
ASIA PACIFIC
Green-ish loan – Singapore telecommunications conglomerate Singtel’s data centre arm, Nxera DCT, secured a S$643 million ($475.5 mln) green loan to fund the development of its DC Tuas data centre. The 58MW data centre achieved a Green Mark Platinum certification, the highest level under the scheme for certifying green buildings, as part of the loan criteria. It will feature an efficient liquid cooling system and is expected to be operational by 2026. At present, data centres worldwide consume about 1% to 2% of total power with demand for electricity growing 160% by 2030, according to Goldman Sachs.
Snapped up – Potentia Energy, a JV between Italy’s Enel Green Power and Japan’s Inpex announced it will buy a controlling stake in 1 GW worth of renewable energy projects in Australia from private equity and superannuation fund investors. The acquisition comprises 700 MW of wind and solar assets, and 430 MW of battery energy storage projects under development in South Australia and Queensland.
Fuelling awareness – The Thai government has teamed up with a university and two oil firms to raise awareness about the upcoming carbon tax. Consumers will see real-time carbon emissions data during fuel purchases at PTT stations, while Bangchak’s “Green Miles” app will track carbon reductions and tree equivalents. A study by Chulalongkorn University will assess the campaign’s impact on 3,500 consumers. The carbon tax, set at 200 baht ($5.90) per tonne of carbon, is expected to be implemented in February without affecting retail fuel prices immediately, and is expected to reduce emissions by as much as 30%.
Nuclear bandwagon – Vietnam approved a nuclear development plan with a focus on the Ninh Thuan Nuclear Power Project, which includes two plants with four units. The two plants in central Vietnam will be developed by state-owned utility EVN and oil and gas company PetroVietnam, with a project completion deadline set for Dec 31, 2031. The government said it is developing policies, legal frameworks, and securing investment with a vision to become a regional leader in nuclear technology by 2050. Last week, India and Indonesia also unveiled plans to expand nuclear energy.
Low-carbon cement – South Korea’s Lotte Engineering & Construction has successfully applied its ‘CO2 reaction-hardening cement,’ which hardens using CO2 rather than water, at its construction sites, according to Chosun Biz. The technology developed by Lotte, which has participated in a government-backed research project, allows for cement production at about 200C lower than that of conventional cement, thereby reducing the amount of limestone used by 30% and cutting CO2 emissions.
Entry – Seoul-based trading house Ecoeye has become the first South Korean company to obtain trading membership from the European Energy Exchange (EEX), according to a statement released this week. With the membership, Ecoeye now has direct access to EUA trading, ensuring a seamless and efficient purchasing process, the statement said.
Opening up – South Korea has opened up its national emissions market to a wider group of financial institutions, as the government seeks to revive the sluggish market. Effective Feb. 7, the government has amended relevant rules to allow financial institutions such as asset managers and insurers to participate in the emissions market.
ByWill’s in town – Project developer ByWill and Minowa Town in Japan’s Nagano Prefecture have signed a partnership agreement to achieve carbon neutrality. The agreement, formalised on Feb. 4, aims to create and circulate environmental and economic value through initiatives such as forest management and LED equipment installation. Minowa Town declared its goal of net-zero CO2 emissions by 2050 in July 2022, with an interim target of a 60% reduction by 2030 (compared to 2013 levels). Measures include the promotion of solar energy, insulation improvements, LED upgrades for public facilities, and forest conservation efforts. The collaboration with ByWill aims to leverage these initiatives into the J-Credit system, which certifies and enables the sale of carbon reduction credits. The partnership was facilitated through an introduction by Hachijuni Bank, which had previously signed a business matching contract with ByWill in Aug. 2023. ByWill will support Minowa Town in registering, applying, monitoring, and selling J-Credits, starting with LED-related initiatives and expanding into forestry management. This initiative is expected to serve as a model for other municipalities and private businesses in Nagano Prefecture, the parties said, encouraging further decarbonisation efforts.
Funds raised – Australian soil nutrient company RLF Agtech announced it has raised A$2.4 mln ($1.5 mln) on the Australian Securities Exchange. The company raised the cash via an entitlement issue, with the outcome representing a take-up of 64%, as well as a heavily oversubscribed shortfall placement, it said. RLF will use the funds to build its team and resources to roll out its Australian business strategy and negotiate further distribution agreements. Last year, the company formed a strategic alliance with Carbon Ag Solutions to develop the company’s Accumulating Carbon in Soil System Plus tech, which it hopes to implement to generate carbon credits.
Clear things up – South Korean government agency Korea Forest Service (KFS) has invited businesses to apply in a share of $207,000 to help reduce the administrative burden of organisations carting out carbon offset projects. The agency said it would support business plans by dividing them into absorption, storage/reduction, and information and communication technology categories, with further sub-categories therein. Successful applicants can receive support for administrative costs required for writing business plans and monitoring verification.
AMERICAS
Retreat & regroup – US Democrats, still reeling from their electoral losses, are refining their messaging to focus on “climate populism” – framing climate policies as benefiting working families while portraying Republicans as aligned with wealthy interests, E&E News reports. Their strategy highlights the financial costs of rolling back clean energy incentives, citing reports that suggest repealing climate policies could significantly increase household energy bills. Leading Democrats, including Senate Minority Leader Chuck Schumer and Senator Brian Schatz, are pushing this message more aggressively, arguing that inaction on climate change has tangible economic consequences. They are also rallying against recent executive actions that halted funding for clean energy and infrastructure projects. To bolster their case, Democratic-aligned groups are arming lawmakers with data and polling to demonstrate public support for climate initiatives. Some Republicans have also signalled openness to preserving clean energy tax credits, and Democrats hope to leverage business interests reliant on these subsidies to sway more GOP members. Despite their minority status and competing public concerns over immigration and inflation, Democrats are banking on a retooled strategy and bipartisan cooperation to protect climate policies. However, they acknowledge the difficulty of persuading Republicans to prioritise environmental issues.
He down with CBAM – During his Senate Finance Committee confirmation hearing Thursday, Jamieson Greer, President Donald Trump’s nominee for US Trade Representative (USTR), expressed support for exploring carbon tariffs as a means to protect American industries and promote environmental standards, while also emphasising the broader strategic use of tariffs in the administration’s trade policy. When asked about his support for a carbon border adjustment mechanism (CBAM) and the role of the USTR in its design, Greer pledged that the USTR would offer technical support to inform bipartisan legislation. He agreed that stronger environmental standards in the US should be leveraged to enhance the competitiveness of American industry, while underscoring the importance of resilient supply chains for economic and national security, and advocating for a pragmatic trade policy focused on rebuilding US manufacturing. As well, Greer defended the Trump administration’s use of tariffs, stating that they serve multiple purposes, including ensuring reciprocal trade policies, funding government operations, encouraging domestic manufacturing, and achieving non-trade-related policy goals such as controlling drug smuggling. However, while acknowledging that tariffs historically played a significant role in funding the US government, relying solely on them for revenue is not feasible today.
Fracking forever – The US House passed the Protecting American Energy Production Act (HR 26) in a 226-188 vote on Friday, which prohibits a president from restricting the use of fracking unless explicitly authorised by Congress. House Republicans said that the measure protects the American energy industry, in line with President Donald Trump’s executive order to unleash American energy. HR 26. Sponsored by Rep. August Pfluger (R-TX), HR 26 must also pass through the US Senate before it becomes law.
Energy equity ends – The Trump administration has halted federal initiatives aimed at ensuring local communities benefit from large energy projects, effectively ending policies implemented under former President Joe Biden, E&E News reported. On Jan. 20, Trump issued a number of executive orders, including stopping federal work on diversity, equity, and inclusion, affecting agencies including the Department of Energy (DOE). As a result, acting DOE Secretary Ingrid Kolb suspended requirements for grant recipients to submit community benefit plans and paused the Justice40 initiative, which aimed to direct 40% of federal programme benefits to disadvantaged communities.
SCOTUS watch – The US Supreme Court has denied the Trump administration’s request to delay proceedings in multiple environmental cases, including Diamond Alternative Energy vs. EPA, which challenges California’s authority to set stricter vehicle emissions standards. The decision allows litigation to continue, with government briefs due by Feb. 26. The case concerns California’s long-standing Clean Air Act waiver, which the Biden administration reinstated in 2022. Industry groups and Republican-led states have argued against the waiver, while the EPA is reassessing its validity. The court also declined to pause other Clean Air Act cases, including EPA vs. Calumet Shreveport Refining, Oklahoma vs. EPA, and PacifiCorp vs. EPA, which involve biofuels policy and cross-state ozone pollution regulations. (E&E News)
EV plans suspended – The US Federal Highway Administration (FHWA) has suspended approval of all State Electric Vehicle Infrastructure Deployment plans under the National Electric Vehicle Infrastructure (NEVI) Formula Program. The decision follows a review by the new Department of Transportation leadership, which has rescinded existing NEVI guidance and plans to update it in line with new policy priorities outlined in the recently effective DOT Order 2100.7, titled “Ensuring Reliance Upon Sound Economic Analysis in Department of Transportation Policies, Programs, and Activities”. Until revised guidance is issued, no new obligations under the NEVI programme will be approved, though reimbursement for existing commitments will continue. The updated draft guidance is expected to be released for public comment in the spring before final adoption.
Jersey jumpstarts grants – New Jersey Governor Phil Murphy (D) has announced $35 mln in grants to help local governments transition to electric vehicles (EV), including school buses, transit buses, and trucks, using proceeds from the state’s participation in RGGI. The funding supports the Diesel Modernization Program, with grants awarded on a first-come, first-served basis. Additional incentives are available for small businesses and municipalities. The initiative aligns with New Jersey’s Advanced Clean Trucks Rule (ACT), based on California regulations of the same name. Since 2019, New Jersey has allocated nearly $540 mln for EV adoption, including charging infrastructure, school bus electrification, and shared electric transportation programmes.
Carbon cashback – A Democrat-backed bill to establish a “carbon cashback” programme in Hawaii aimed at reducing GHG emissions while providing financial relief to residents has passed a second reading in the state’s House of Representatives. House Bill 760 (HB 760) would also increase the existing Environmental Response, Energy, and Food Security Tax (commonly known as the “barrel tax”) on fossil fuels in annual increments to discourage consumption, with rates based on a University of Hawaii Economic Research Organization (UHERO) study. To offset the financial burden, the bill introduces a refundable carbon cashback tax credit, benefiting lower-income households the most. The tax credit increases annually until 2035, with single filers receiving up to $473, joint filers up to $946, and dependents up to $237. The bill also reinstates the Agricultural Development and Food Security Special Fund, providing grants, research funding, and support for Hawaii’s food security efforts. Additionally, it creates a Carbon Emissions Tax and Dividend Special Fund to administer tax revenues and conduct public awareness campaigns. Revenues from the tax will be allocated across environmental programmes, clean energy initiatives, and agricultural development, with at least $3 mln directed toward food security and $1 mln for the cashback programme. The Department of Taxation would be required to submit annual reports on tax revenues and credit distributions, with a comprehensive review due in 2035 to assess the programme’s effectiveness. By adopting a progressive tax-and-dividend model, HB 760 aligns with Hawaii’s zero-emissions target under Act 15 (2018). The bill has sparked debate among lawmakers, with supporters highlighting its potential to boost food security and promote sustainable practices, while critics question its financial impact on taxpayers and effectiveness. Economists suggest that if implemented well, HB 760 could raise public awareness about carbon emissions and food security, contributing to a more sustainable agricultural sector in Hawaii. The bill has now been referred to the House Standing Committee for Economic Development & Technology.
EV fee approved – Starting Feb. 13, Albertans will be required to pay a C$200 ($140) annual tax when registering their electric vehicles (EV), aligning with the fuel tax paid by internal combustion engine vehicle owners. The tax, introduced through the province’s Budget 2024 and passed in the Alberta Legislature last year, will be collected by registry agents and online. Exemptions apply to electric motorcycles, off-highway vehicles, hybrids, and certain groups, including the federal government, diplomats, and First Nations individuals with a registered reserve address. Provincial ministers stated the measure ensured fairness in road maintenance contributions among all drivers.
Cleaner, faster – The British Columbia government on Thursday unveiled plans to introduce new legislation to fast-track clean energy projects in the province. Announced by energy and climate minister Adrian Dix, BC Hydro CEO Chris O’Reilly, and BC Energy Regulator (BCER) Commissioner Michelle Carr, the law would grant the BCER authority over renewable energy projects, streamlining the approval process by eliminating the need for multiple ministry approvals. Dix stated that the BCER would act as a “one-window regulator” for permits supporting major electricity transmission projects, including the North Coast transmission line. The legislation is set to be introduced when the Legislative Assembly returns this month. Dix highlighted the economic and environmental benefits of accelerating renewable energy development, as well as its role in reconciliation with First Nations. The announcement follows the fast-tracking of 18 critical mineral and energy projects, including Cedar LNG and the NEBC Connector, due to tariff threats. Dix also acknowledged recent partnerships with First Nations, particularly the electricity purchase agreement with Saulteau First Nations, which he said would generate significant investment and job opportunities. He estimated the initiative would bring C$5-6 bln in investment, create thousands of jobs, and provide C$3 bln in equity for First Nations. Carr emphasised that the BCER’s independent regulatory role ensures efficiency across the entire lifecycle of energy projects, while Dix also underscored the importance of strengthening BC’s economy in response to US tariff threats, advocating for economic diversification and market expansion.
Think tank tackles tariffs – The CD Howe Institute, a Canadian public policy think tank, convened a Trade Crisis Working Group on Jan. 28 and Jan. 29 to address the economic impact of US tariffs on Canadian imports, which were postponed earlier this week by President Trump until Mar. 2025. The group examined Canada’s trade relationship with the US, potential retaliatory measures, and negotiation strategies. Members of the working group highlighted the importance of targeted responses, engagement with US lawmakers and the public, and avoiding panic-driven rhetoric. They also discussed leveraging Canada’s role as a key US trade partner and responding constructively to border security concerns. The group will reconvene later this month to assess further developments.
Auction time – MexiCO2, a Mexican carbon platform and subsidiary of the Mexican Stock Exchange, will on Feb. 20 host the first-ever auction of Chilean offsets to be used toward the country’s $5/t carbon tax. This will help entities offset a percentage of their taxable emissions before the tax deadline at the end of February. Among other requirements, eligible Chilean offsets for 2024 must be no older than V21 (in keeping with a maximum three-year window between the year of reduction and the year of the taxed emissions). MexiCO2 on Thursday announced a roadshow to precede the auction, which will take place on Feb. 12.
VOLUNTARY
Biochar consultation – Isometric has released an update to the ‘Biochar Production and Storage Protocol and Biochar Storage in Agricultural Soils Module’ for public consultation over a 30-day period. The protocol outlines monitoring, verification and reporting (MRV) best practices for high-quality carbon removal through biochar production and storage, with the module outlining the durability and monitoring needed for biochar applied to agricultural soils. These updates were developed in line with the Isometric Standard and created by Isometric’s in-house science team. More details here.
AND FINALLY…
Straw wars – President Trump announced plans to issue an executive order (EO) next week to reverse the Biden administration’s policy to phase out single-use plastics in US federal agencies by 2035. Trump made the announcement on Truth Social, a social media platform, stating that he will be “ending ridiculous Biden push for paper straws, which don’t work”. The policy, signed by former President Biden last summer, aimed to eliminate single-use plastic products in federal food service, packaging, and events by 2027, with a full phase-out across federal agencies by 2035. It remains unclear if any additional policies may be rescinded under the proposed EO. The latest announcement follows a series of EOs recently signed by Trump aimed at rolling back environmental initiatives implemented under the Biden administration.
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