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TOP STORY
PREVIEW: Moment of truth for proposed GHG shipping levy as IMO member states gather in London
The UN’s International Maritime Organization (IMO) is meeting over the next two weeks in London to decide whether to apply a global emissions levy to reach net zero shipping by 2050.
EMEA
EU considers looser 2040 climate target amid political pushback -media
The European Commission is exploring ways to soften the enforcement of its 2040 emissions target, as Climate Commissioner Wopke Hoekstra seeks to placate concerns from industry and EU governments wary of stringent climate policies, news site Politico reported on Monday.
Finland nears coal exit with closure of Helsinki’s Salmisaari plant
Finland is poised to become virtually coal-free years ahead of schedule, as utility Helen shut down its 177 MW Salmisaari coal plant in Helsinki on Tuesday, marking a landmark moment in the country’s clean energy transition.
BRIEFING: EU “taking more time” with carbon storage in buildings methodology
The European Commission needs more time to assess the carbon sequestration potential of construction materials used in new and renovated buildings before releasing a first draft methodology in the second half of this year, EU officials have said.
UK launches review into greenhouse gas removals with carbon markets in focus
The UK has launched a review into the potential role for greenhouse gas removals (GGR) in reaching its Paris Agreement and legally-binding net zero goals, also considering the role of international credits for offsetting residual emissions.
Economy-wide carbon pricing most efficient, economical route to net zero, UK experts say
Economy-wide carbon pricing, including carbon border adjustment mechanisms, presents the most efficient and economical way of reaching net zero, according to analysis recorded by the UK’s House of Lords upper parliamentary chamber.
Euro Markets: EUAs find support from compliance buyers after tariff worries drive market to 3-week low
European carbon prices tumbled early on Monday as a risk-off mood prevailed across markets amid the prospect of widespread US tariffs, leading to aggressive selling that pushed benchmark EUA prices to their lowest in three weeks before prices steadied as compliance and speculative buyers emerged at the lows, while participants readied themselves for the publication of verified emissions data for 2024 on Apr. 4.
Germany sees 28% drop in ETS auction revenues in 2024 despite “robust” primary demand -report
Germany raised €5.5 billion from EU carbon allowance auctions to stationary installations and aviation last year, down from €7.7 bln the year before, despite volumes remaining relatively flat year-on-year, its ETS authority said in an annual report published Monday.
AMERICAS
Environmental groups sue New York for delaying economy-wide ETS regulations
A coalition of environmental groups filed a complaint on Monday against New York’s environment ministry for alleged sudden and inexplicable delays in releasing regulations set by its climate law over five years ago.
US hydrogen hubs could become ‘superhubs’ in global network -report
Hydrogen hubs in the US have the potential to become “superhubs” with large demand, supply, and import capacities that will act as nodes of the global hydrogen industry, according to a report released this month by an oil and gas industry organisation.
RGGI Market: RGAs break through $23 absent CCR volumes, awaiting regulatory movement
RGGI allowance (RGA) prices continued to rise last week breaking and holding above the $23 threshold in thin trading in the absence of the Cost Containment Reserve (CCR) buffer and awaiting regulatory clarity on programme changes.
Washington ECY commences new rulemaking for cap-and-trade linkage to include additional topics
The Washington Department of Ecology (ECY) on Monday announced a new linkage rulemaking to update the state’s cap-and-trade programme, replacing an earlier attempt to align ongoing developments and address a wider range of topics.
WCI Markets: WCA outlook muddled by California’s rulemaking, legislative shifts in Washington
Washington Carbon Allowance (WCA) prices will likely continue their trend upward heading into linkage with WCI partners, but forecasts are clouded by legislative shifts and California’s considerations for programme revisions, North American Carbon World (NACW) heard last week.
USDA releases $537 mln for biofuel infrastructure obligated through IRA
The US Department of Agriculture (USDA) released funds obligated through the Inflation Reduction Act (IRA) totalling $537 million for biofuel infrastructure projects on Monday.
Brazilian development bank, oil giant launch carbon credit initiative to support Amazon restoration
Brazil’s national development bank and a state-owned oil giant launched an initiative Monday to support forest restoration in the Amazon via carbon credits, aiming to capture approximately 15 million tonnes of CO2.
US waste management firm launches carbon division for biochar credit generation
A Colorado-based waste management company on Monday announced its launch of a division focused on in-house biochar production for credit generation.
Canadian cleantech firm sells stake in carbon credit originator for C$7.5 mln
A Canadian cleantech firm has sold its majority stake in a carbon credit origination and streaming firm for around C$7.5 million ($5.2 mln).
ASIA PACIFIC
CBAM threatens $397/t penalty on Indian steel exports by 2034, says think-tank
India’s steel industry faces potential carbon levies of up to $397 per tonne by 2034 as the EU prepares to implement its Carbon Border Adjustment Mechanism (CBAM) next year, threatening the competitiveness of the world’s second-largest steel producer in its key export market, according to a think-tank.
Changes to Australia’s Safeguard should be made in formal review, expert cautions
Any future Australian government should hold off on making changes to the Safeguard Mechanism until the legislated review in 2026-27, when it can bee examined more holistically alongside other issues, according to an expert.
AU Market: Reformed Safeguard’s compliance cycle finishes, as market focussed on election
Australia’s reformed Safeguard Mechanism officially completed its first compliance cycle on Monday, however activity remains quiet, as all eyes are fixed on the May 3 election.
Korean agency, securities firm partner to support international carbon projects
State-funded Korean Trade-Investment Promotion Agency (KOTRA) has teamed up with a domestic securities firm to encourage the advancement of international greenhouse gas reduction projects.
Indian regulator allows embattled green credits for ESG
India’s securities regulator will allow listed companies to utilise green credits as part of its sustainability reporting requirements, even as the green crediting scheme has been taken to the Supreme Court over claims of harm to natural ecosystems.
Cleaner iron making could cut billions of tonnes of carbon in Asia, researchers say
Switching from metallurgical coal-fired steel furnaces to using hot briquetted iron (HBI) made from green hydrogen could make huge cuts in steel sector emissions in Asia, but in order for nations to meet climate commitments they must halt the build of any new blast furnace-basic oxygen furnace (BF-BOF), researchers have said.
VOLUNTARY
VCM Report: CORSIA carbon market still “frozen” despite long-term outlook, March sees retirements slump
The CORSIA Phase 1 carbon market remains stuck in a “wait-and-see” stance, with existing standardised contracts failing to move over the past week despite fresh, strong demand projections, and new CBL spot products announced for an April launch.
INTERNATIONAL
Carbon taxes can provide strong incentive to decarbonise buildings -report
Carbon taxes that apply above a minimum level of operational performance can be a key driver of reducing building sector emissions, especially when accompanied by clear communication on performance, according to a new report by the World Business Council for Sustainable Development (WBCSD).
BIODIVERSITY (FREE TO READ)
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French company accused of dumping toxins into Colombian wetlands
NGO Global Witness has accused a France-headquartered waste management company of dumping pollutants into protected wetlands in Colombia, potentially harming wildlife and local communities.
Tokyo sets up fund to support nature, climate start-ups
The Tokyo metropolitan government and two major financial companies have announced the first contributions to a fund targeting a total of 10 billion yen ($66.6 million) that seeks to support start-ups contributing to nature positivity, climate tech, or the circular economy.
Italian non-profit seeks feedback on biodiversity credit framework
An Italian non-profit is seeking feedback on a framework for voluntary biodiversity credits, aiming to establish criteria for companies implementing nature restoration projects.
Canadian non-profits call for cancellation of common forest management pesticide
A collection of Canadian non-profits dedicated to safe food and forest management are calling on the federal government to cancel the use of a common forest pesticide.
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NEW REPORT
How offtake agreements are shaping the future of biochar: Long-term offtake agreements are transforming the biochar carbon removal market — securing supply, stabilizing prices, and providing financial certainty. Supercritical’s latest report, Locked in or Left Behind?, explores key shifts in procurement strategies and what they mean for the future of carbon removal. With 62% of high-quality biochar credits for 2025 already committed and prices rising 18% in 2024, securing an offtake could be the key to guaranteeing supply and price stability.
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EVENTS
European Climate Summit – Apr. 1-3, Lisbon – To kick off our Annual Regional Climate Summit Series of this year, we at IETA look forward to welcoming delegates this Spring to our flagship European Climate Summit (ECS) 2025, taking place at the Pavilhao Carlos Lopes. ECS will take place amid a rapidly changing geopolitical landscape, even as carbon markets in the EU and globally continue to mature and expand. A new political cycle for EU climate action has begun, and the task of preparing carbon markets for their next stage presents both new challenges and opportunities. In this dynamic context, competitiveness, integrity, and innovation will be at the heart of our discussion. Be part of the conversation driving the next phase of carbon market evolution. Join us at ECS to engage with policymakers, business leaders, and climate market pioneers who are shaping the future of carbon markets. Organised by IETA, ECS is an in-person event. Register
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BITE-SIZED UPDATES FROM AROUND THE WORLD
INTERNATIONAL
2’s old news – Top Wall Street institutions are increasingly preparing for a future where global temperatures rise by more than 2C above pre-industrial levels, surpassing the Paris Agreement’s targets. Recent reports from Morgan Stanley, JPMorgan Chase, and the Institute of International Finance reveal that major banks now expect a 3C increase, citing stalled decarbonisation efforts and political shifts, especially in the US under Donald Trump’s administration. Morgan Stanley, for example, projected a 3C scenario in a March research note, forecasting significant growth in the air conditioning market as a result. The Institute of International Finance has called for a coordinated shift in climate messaging, acknowledging that the 1.5C goal is likely unachievable and urging financial institutions to recalibrate their targets accordingly. JPMorgan’s reports outline similar expectations, using warming projections of 2.7C to over 3C in risk modelling, though the bank maintains its net zero 2050 pledge. Former investment banker Gautam Jain described these forecasts as both pragmatic business decisions and politically expedient moves, given the current policy environment in Washington. (E&E News)
EMEA
Linking chat – British PM Keir Starmer is poised to accept the jurisdiction of the European Court of Justice (ECJ) and align with EU rules to hit net zero, wrote the Telegraph. However, any moves for the UK to rejoin the EU ETS would mean changing British rules to match EU laws, accepting decisions from a foreign court, and pressure to stay in lockstep with Brussels’ net zero policies. Rejoining the EU ETS would increase the UK carbon price, making it more expensive to pollute and cutting emissions further and faster, which would help reach the net zero goal but could increase costs for consumers. Yet it would also save UK companies from looming costs under the EU’s Carbon Border Adjustment Mechanism (CBAM) and stop Northern Ireland having to impose the new carbon border tax on British goods because of the region’s Brexit deal. Olof Gill, European Commission spokesperson for EU-UK Relations, told The Telegraph that linking the market could have “benefits for climate action”, but warned: “The ambition and the scope of a potential linking would be assessed in light of the EU’s climate ambition.” The UK-EU summit on May 19 could pave the way for linking negotiations but there’s a long way to go before any tangible agreement on connection can be made.
Energy dependency – Total EU gas demand remained flat in 2024, but imports of Russian gas rose by 18% in 2024, mainly due to increased imports into Italy, Czechia, and France. Russian imports continue to grow in 2025, threatening the 2027 Russian gas phase-out pathway. The data comes from Ember and shows that the EU needs to step up and deliver on commitments, if it’s to bring economic and security benefits to citizens. Moreover, gas prices rose by 59% in 2024, with supplier volatility at an all-time high, while EU’s fossil gas supply is set to exceed demand by 26% in 2030.
SAF scarcity – Major European airlines have warned the European Commission there isn’t enough sustainable aviation fuel (SAF) to meet European targets. “We are paying very high prices, and there is simply not enough – that’s the reality,” said Luis Gallego, CEO of International Airlines Group (IAG), the parent company of Iberia and British Airways, and speaking on behalf of industry group Airlines for Europe (A4E). Gallego cited a Boston Consulting study that predicts a 30% shortfall in SAF by 2030 compared to what EU regulations will require. He lamented that SAF is three to five times more expensive than kerosene, and stressed that aviation must remain affordable and accessible for everyone. European carriers have warned the region is falling behind due to stricter regulations than other parts of the world, which have tripled operational costs since 2014. (Mobility Plaza)
EU bioeconomy consultation – The European Commission opened a public consultation on Monday on its future bioeconomy strategy, due to be published before the end of the year. “The bioeconomy plays a key role in supporting the EU in reaching its climate and energy goals by 2030 and climate neutrality by 2050,” says the Commission’s document released on Mar. 31. Rising demand for wood and other biomass-based products is putting a strain on Europe’s forests, implying trade-offs, the document suggests. The strategy will seek to address this by “prioritising extended high-value applications while encouraging industries and consumers to embrace circular practices that maximise economic returns from each unit of biomass”. This might also entail “providing targeted support and incentives for higher value added uses of biomass feedstock and by-products, in line with the cascading principle” where biomass is used first for durable materials like wood for construction, and burnt for energy only as a last resort, when reuse or recycling is not possible.
Sailing sustainably – The EverLoNG consortium, an EU-funded project led by the Netherlands Organisation for Applied Scientific Research (TNO), concluded that no major regulatory or classification rule obstacles currently exist to prevent the adoption of onboard carbon capture (OCC) systems. The over three-year project, supported by €3.4 mln in EU climate funding, aimed to accelerate OCC deployment by conducting demonstrations aboard LNG-fueled ships operated by TotalEnergies and Heerema Marine Contractors. Trials showed OCC could reduce lifecycle emissions by 39-44%.
ASIA PACIFIC
Finger in every pie – Vingroup, one of Vietnam’s biggest conglomerates and the parent of Nasdaq-listed electric vehicle company Vinfast, signed an agreement with the province of Long An to explore collaboration on carbon credit projects. The aim is to ensure legal compliance and facilitate registration on international carbon trading platforms. The agreement, however, is still in its early stages. Long An, situated in the fertile Mekong river delta, is an agricultural hub specialising in rice cultivation. (Vietnamnet)
Biochar solution – Japanese biochar project developer Towing will participate in a government-backed demonstration project to restore degraded pastures and promote sustainable agriculture in Brazil, it announced Monday. It aims to apply its biochar solution to multiple fields, including ones in southeastern and northern Brazil, according to a company statement. Towing said it is seeking business partners in the South American country.
New kid on the block – Shizugin Management Consulting, part of the Shizuoka Financial Group, has been officially added to the Japanese government’s list of J-Credit providers. Even though the scheme has been around since 2013, Shizugin is only the ninth company to get listed. The company said it supports the creation of credits that have benefits related to environmental conservation, but did not provide further details.
Don’t take the money – Australia’s New South Wales government has been told by Origin Energy that it will not opt-in to using taxpayer funds for the first year of the agreed extension of the 2.8 GW Eraring coal-fired power plant, Renew Economy reports. It means that Origin will assume the financial responsibility for keeping the country’s biggest power station open for the first year of the extension, which was announced in May, last year. The decision effectively halves the A$450 mln ($281 mln) taxpayer burden to keep the powerplant open, after it was originally slated to close in 2025, but was extended to 2027 over energy security fears. The NSW government said in a statement the agreement between itself and Origin supported an orderly exit from coal-fired power.
Case dismissed – New Zealand’s Court of Appeal has dismissed a case against the Climate Change Commission and former climate minister James Shaw, brought by Lawyers for Climate Action NZ. The group claimed that the Commission’s advice to Shaw in preparation for New Zealand’s first NDC were inconsistent with a 1.5C pathway and had sued for a judicial review. The High Court previously found against the group, who then appealed it.
AMERICAS
Green grant gridlock – Three US non-profit recipients of federal climate grants are suing the Trump administration, arguing that the EPA exceeded its authority in attempting to rescind their awards under the $20 bln Greenhouse Gas Reduction Fund. In a court filing submitted on Mar. 28 in the US District Court for the District of Columbia, the plaintiffs—Climate United, Coalition for Green Capital, and Power Forward Communities—cite the Supreme Court’s 2024 decision in Loper Bright vs Raimondo, which ended the Chevron doctrine that had long given federal agencies broad deference. The non-profits argue that the EPA’s actions conflict with both congressional intent and the agency’s own rules. (E&E News)
Subsidy sunset – Ohio lawmakers are moving to repeal subsidies for two coal-fired power plants operated by the Ohio Valley Electric Corp. (OVEC), marking a shift from policies enacted under the 2019 HB 6 legislation, which was later tied to a major bribery scandal. Both the state legislative chambers have passed bills that would eliminate utility charges for the Clifty Creek and Kyger Creek plants, owned by a consortium including American Electric Power and Duke Energy. Differences between the two versions must be reconciled before the legislation can proceed to Gov. Mike DeWine (R). (E&E News)
Clean energy cutbacks – The US DOE is considering clean energy cutbacks for its grids, according to a Politico report. The news outlet reported several lists circulating at the DOE and on Capitol Hill propose eliminating carbon capture projects, transmission lines, and grid updates. Lists include fortifying the New England electricity system for extreme weather, grants to expedite permitting, and cutting two-thirds of industrial demonstrations in its clean energy branch.
Exhibit eliminated – US EPA Administrator Lee Zeldin announced the closure of the agency’s $4 mln museum, citing low external visitation and high operating costs as reasons for the decision. Built under the Biden administration and located at EPA headquarters in Washington, DC, the one-room museum saw fewer than 2,000 external visitors between May 2024 and Feb. 2025 and cost over $600,000 annually to operate. The closure is part of a broader review of agency expenditures.
Washington emissions – A new report by Washington’s Ecology and Commerce Departments has found emissions from 21 of the state’s highest emissions producing agencies has increased, despite a direction to “lead by example in reducing their GHGs”. The report stated the agencies saw a slight increase to 667,000 tCO2 in 2023, up from 662,000 tCO2 in 2022. Still, state agencies were below their 747,000 tCO2 emitted in 2020.
Grid gripes grow – At a joint legislative hearing regarding rising energy costs on Mar. 28, New Jersey lawmakers from both parties expressed concern over the state’s energy future, warning that without new power generation, the region could face blackouts, E&E News reported. A senior official from PJM Interconnection, the regional grid operator for 13 states including New Jersey, told legislators that consumers should expect high electricity prices “for some time”. The session served as a critique of both Gov. Phil Murphy’s (D) energy policies and PJM’s grid management, with Democrats focusing on the grid operator and Republicans criticising the state’s energy strategy. Lawmakers broadly agreed on the urgent need to add new power supply.
Fuelled by fees – US lawmakers are considering new fees on EVs to help address long-standing funding shortfalls in the Highway Trust Fund, which supports federal road and transit infrastructure. The fund, primarily financed through gasoline and diesel taxes that haven’t increased since 1993, has relied on over $275 bln in congressional transfers since 2008 to remain solvent. With the infrastructure law’s funding set to expire in 2026 and expenditures projected to exceed revenue by 2028, proposals under discussion include a flat one-time tax on EVs and mileage-based fees. Transportation Secretary Sean Duffy (R) is expected to address the issue during an Apr. 2 senate hearing.
Carbon capture corridor – Frontier Carbon Solutions, a US-based carbon management company, has launched an initiative to capture and permanently store over 400,000 tCO2 annually from refineries across the Midwest. Using liquefaction technology, the company aims to produce CO2 with over 90% purity, transport it via existing rail infrastructure to its under-construction Granger Carbon Terminal, and then transfer it through a dedicated pipeline to an underground injection site.
Inclusive investment – Brazil is developing a Sustainable Finance Taxonomy aimed at directing investment toward environmentally and socially sustainable activities. The draft framework addresses key sectors such as agriculture, livestock, forestry, fishing, and aquaculture, and includes criteria to exclude activities linked to illegal deforestation. It also incorporates social considerations by addressing regional, socioeconomic, racial, and gender inequalities.
Carbon coast – Cuba reaffirmed its plans to enter the carbon market, including a focus on blue carbon, following a government decision in February. The announcement was made in Havana during the agri-food trade forum of the UN-organised Mano de la Mano Initiative. Cuban Deputy Minister of Science, Technology, and Environment Rudy Montero said that the country would prioritise areas such as forests, waste, energy, and blue carbon in alignment with its updated Nationally Determined Contribution (NDC). “The insurance sector could become a key player in funding the work we need to do to restore and manage the blue carbon assets in our coastal waters,” added FAO Senior Fishery Resources Officer, Kim Friedman. The UN FAO pledged support for Cuba’s efforts in inventory, management, and monetisation its blue carbon assets.
VOLUNTARY
On track – The Equitable Earth Coalition has confirmed to Carbon Pulse that its work will come to market via an independent standard company and remains “on schedule”, despite another media source reporting last week that its launch had been delayed. “Discussions to see that happen [are] right on schedule in 2025, have been ongoing for several months, and are close to fruition,” a spokesperson said. Expect an official announcement in due course once the details are finalised, they added. Equitable Earth plans to launch a new forest carbon standard using new spatial technology with a focus on the Global South.
AND FINALLY…
Climate risk and insurance – Insurers are increasingly taking into account climate scenario analysis or climate stress testing, according to a couple of reports released by the United Nations Development Programme’s (UNDP) Sustainable Insurance Forum (SIF) on Monday. Drawing from separate surveys conducted in late 2023 and 2024 among 30 and 31 SIF member jurisdictions respectively – representing over 80% of SIF’s global membership – they offer analysis of regulatory approaches and best practices to integrating climate risk into insurance decisions. Most surveyed insurance supervisors already consider climate-related risks in their supervisory activities, while a majority of insurance supervisors have incorporated climate risks into regulatory capital frameworks—although implementation gaps remain. Physical and transition risks dominate insurers’ climate risk assessments, while litigation risk was to date less frequently considered, the reports found. It called for an expansion in the availability and quality of climate risk data, and to build supervisory expertise and institutional capacity around it, as well as improving the use of climate scenarios and stress-testing tools.
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