Presenting CP Daily, Carbon Pulse’s free newsletter. It’s a daily summary of our news plus bite-sized updates from around the world. Sign up here
ECS25
BRIEFING – Geopolitical shadow looms as voluntary carbon market battles to rebound
The voluntary carbon market faces huge challenges amid the current geopolitical environment, experts told an industry conference on Thursday, but there is quiet momentum building behind the scenes with billions of additional dollars invested in the first quarter of the year.
EU carbon market won’t survive if it causes factory closures, industrialists warn
Politicians across Europe will be tempted to pull the plug on the EU’s Emissions Trading System (ETS) if the bloc’s flagship climate policy instrument brings factory closures and job losses, industrialists said at IETA’s European Climate Summit in Lisbon.
Still many paths for EU, UK to integrate carbon removals into ETSs
The EU and UK are preparing to integrate carbon removals into their emissions trading systems (ETSs) as net zero targets draw closer — but exactly how they do that is still an open question with multiple options on the table, a conference in Lisbon heard on Thursday.
ETS2 delay “not a solution” to address implementation issues, EU Commission says
Delaying the EU’s Emissions Trading System for road transport and heating fuels (ETS2) won’t solve implementation issues faced by member states, a senior official has said, as European countries drag their feet in adopting legislation for the bloc’s second carbon market.
New developer formed in wake of C-Quest scandal promises “radically transparent” approach
The CEO of the new carbon project developer born out of the C-Quest Capital scandal has promised that the market has “grown up” and is entering a new generation for integrity.
EMEA
EU Parliament approves streamlined green reporting rules in new ‘Omnibus’ law
The European Parliament approved on Thursday a proposal to “stop the clock” and delay application for two EU corporate sustainability reporting directives, following their vote on Tuesday to fast-track the decision.
EU faces balancing act on ETS2’s Social Climate Fund -report
The EU’s push to expand its Emissions Trading System (ETS) to transport and buildings faces a delicate balancing act, as policymakers grapple with the social impact of carbon pricing and the rollout of a Social Climate Fund (SCF) aimed at supporting vulnerable groups in the transition.
UK drawing up a net zero public participation strategy to bring people on board -minister
The UK government will publish a net zero public participation strategy later this year setting out how it intends to help people adopt low-carbon technologies — as the burden of decarbonisation the country shifts from power generation to consumer-facing sectors such as road transport and heating.
UK govt kicks into gear £100 mln fusion energy investment
The UK’s growing sector for fusion energy could see over £100 million invested via a partnership between the government and private sector as the government directs £20 mln into a fusion private venture capital fund.
BRIEFING: Stronger linkages between climate finance, carbon markets can scale climate action in Sub-Saharan Africa
Climate finance can be strengthened by drawing on experiences from market mechanisms, while carbon markets can benefit from being blended with financial instruments — thereby scaling climate action, particularly in Africa, a webinar heard this week.
Another study says EU hydrogen goals “probably not achievable”
High and rising costs, sluggish investments in supply and demand, and more competitive electricity technologies in transport, buildings and even heavy industry, mean the EU must scale back its net zero hydrogen ambitions, more researchers have said.
Euro Markets: EUAs drop to year-to-date lows amid widespread tariff-related selling
European carbon prices posted their biggest daily loss in a month on Thursday, falling to the lowest price of the year to date after the market gapped lower at the open as traders reacted to Washington’s announcement of new import tariffs on all major trading partners, dropped again in mid-morning as early US selling weighed on the market, before stabilising as participants adopted a watching brief ahead of Friday’s verified emissions data for 2024.
AMERICAS
BRIEFING: US White House attracts wave of comments following rollback of NEPA regulations
The Trump administration’s rollback of environmental impact assessment requirements attracted a flood of responses in a recent public comment period, in which industry groups endorsed the changes while individuals warned against the environmental destruction the rollback could cause.
WCI Markets: Muted impact on CCAs from US reciprocal tariff turmoil
The impact of US tariffs on California Carbon Allowance (CCA) secondary markets was relatively muted compared to the broader macro sell-off across equities, but regulatory uncertainty remains a near-term stumbling block for prices, while Washington Carbon Allowances (WCA) await guidance from upcoming legislative action.
California’s clean car rules on Congress chopping block
California regulations to scale down vehicle emissions could be overturned if three measures pass Congress next week, effectively placing the GHG reduction efforts of over a dozen American states in jeopardy.
US DOE identifies 16 federal sites for data centre development, considers CCS
The US DOE released a request for information (RFI) to inform use of federal land for AI infrastructure development, including the potential for on-site power generation with carbon capture and storage (CCS).
BRIEFING: Chile sees “encouraging” 4.4 mln offsets used in second year of CO2 tax regs
Chile’s carbon offsetting provision (SCE) within the national CO2 tax has blown past expectations in its second year of operation, rising to 4.4 million credits applied in 2024, the government revealed Thursday.
Canadian innovation hub stimulates local CDR market with second C$715/t purchase along with Japanese partners
An urban Canadian innovation hub announced Thursday the pre-purchase of CO2 removals (CDRs) for C$715 ($500) per tonne on average from six local ventures in conjunction with a consortium of Japanese partners.
US ERW developer reaches deal with Microsoft for 12k CDR credits
A California-based enhanced rock weathering (ERW) project developer announced Thursday a deal to provide Microsoft 12,000 carbon removal (CDR) credits, in a move the pair said seeks to advance the emerging technology.
Environmental markets non-profit names new head
A leading environmental markets advocacy group has named a new director.
ASIA PACIFIC
CN Markets: CEAs continue slow decline, but CCERs find support above 90 yuan
Prices in China’s national emissions market continued to decline over the past week as recent policy updates have failed to stir enthusiasm among traders, while the country’s voluntary market saw relatively robust trading activity amid improving demand.
Asian financial firms staying the course on climate, but report pushes for greater ambition
A growing number of institutional investors in Asia are integrating climate into their processes, but the speed and scale are still lagging what is needed to limit global warming to the levels that have the greatest net economic benefit to the region, according to a report published Thursday.
Coal-to-gas switching in Asia difficult to prove, Woodside CEO says
Woodside Energy CEO Meg O’Neill has acknowledged it is difficult to prove that its cargoes of its LNG are displacing coal-fired power plants in Asia, despite it being a key talking point to justify the company’s growth strategy for years.
Higher carbon price needed to support cleaner Chinese steelmaking
China’s carbon price will need to rise if cleaner and greener forms of steelmaking are to take hold despite a ‘tsunami’ of scrap steel that can be fed into cleaner furnaces coming in 2035, a consultancy said this week.
INTERNATIONAL
Record low for new coal, but retirements must speed up to meet climate commitments, report says
Last year was a record two decade-low for global coal-fired power plant additions, with just 44 gigawatts of new capacity and 25.2 GW retired for a net gain of 18.8 GW, or a total increase of 1%, a think tank said Thursday.
Brazilian bank receives carbon credits as payment for supporting large-scale debt deal
A Sao Paulo-headquartered bank has claimed payment for its role supporting a R$2 billion ($356 million) unsecured debt issuance in an unconventional form of carbon credits from a renewable energy company.
VOLUNTARY
Early CDR buyers call for proper recognition for scaling removals industry -webinar
Carbon removal (CDR) buyers on a webinar Thursday called for proper recognition by standards bodies such as the Science Based Targets initiative (SBTi) to help scale CDR and trigger buying from a wider cohort of companies.
AVIATION
Developers slam CORSIA carbon methodology restrictions as credit shortage looms
Restrictive methodology exclusions in the aviation industry’s international emissions offsetting scheme could see a lasting shortage of eligible carbon credits, potentially leaving airlines unable to meet their climate obligations, a group representing project developers has warned.
BIODIVERSITY (FREE TO READ)
All our nature and biodiversity articles remain free to read (no subscription required). However, we now require that all readers have a Carbon Pulse login to access this content in full. To get a login, sign up for a free trial of our news. If you’ve already had a trial, then you already have a login.
Conservation body awarded contract to develop Nature Repair Market method
An Australian conservation alliance has been awarded a contract to develop a permanent protection on private land method under the government’s Nature Repair Market (NRM).
Pension investor launches environmental market fund with £500-mln target
A UK public sector pension provider has launched a fund for investing in nature and climate markets with a target raise of £500 million ($657 mln).
INTERVIEW: Ecuadorian association sees potential for biodiversity credits in push to legalise environmental markets
An Ecuadorian association is pushing for a law to legalise voluntary environmental markets in the country, with the aim of having it presented again by October after it was blocked last year, its president told Carbon Pulse.
Almost all businesses struggling with UK biodiversity net gain, survey suggests
Some 92% of businesses have found the implementation of biodiversity net gain (BNG) in England difficult, causing development delays, a small survey has suggested.
French organisation to develop best practices for biodiversity markets in tropical forests
A France-based organisation involved in the emerging biodiversity market has set up an expert group with the aim of expanding its work to tropical forests.
Biodiversity Pulse: Thursday April 3, 2025
A twice-weekly summary of our biodiversity news plus bite-sized updates from around the world. All articles in this edition are free to read (no subscription required).
COMMENT
The EU NDC: A critical moment for climate change policy and the economic future of the EU
The EU faces a pivotal decision in shaping its next climate pledge ahead of COP 30, striving to balance ambitious emissions targets with economic realism, political durability, and global credibility.
—————————————————
EVENTS
Carbon Forward Turkiye – May 7-8, Izmir – Following the success of our inaugural event in Izmir, we are excited to host the second annual instalment of Carbon Forward Turkiye. With the country about to launch its national ETS, attendees will learn what’s in store for participants and other stakeholders. Also, take a tour of the region’s other carbon markets, consider the financial impact of the EU’s CBAM, and hear from experts about developments in the voluntary carbon market, CO2 removals, CORSIA, and decarbonisation in the power, industrial, and shipping sectors. The agenda will be released shortly but registration is now open, with a 30% super-early bird discount available for a limited time.
—————————————————
ADVERTISE WITH US
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.
—————————————————
BITE-SIZED UPDATES FROM AROUND THE WORLD
EMEA
Boost those grids – The EU Commission launched today a new call for proposals worth up to €600 mln under the Connecting Europe Facility (CEF) to fund key cross-border energy infrastructure projects across the bloc. The call is open to projects included on the first list of Projects of Common Interest (PCIs) and Projects of Mutual Interest (PMIs). The list was adopted under the revised TEN-E Regulation, which ends support for fossil fuel infrastructure and will help the EU reach its ambitious climate and energy goals. Project promoters may apply for EU co-financing both for studies and construction works, until 16 Sep. 2025.
Modular CCS – Carbon capture and storage (CCS) developer Carbon Clean has completed the first industrial deployment of its CycloneCC modular unit, at a nitrogen fertiliser plant in Abu Dhabi, it announced on Thursday. The mobile CycloneCC unit provides an alternative to conventional carbon capture plants by significantly reducing its equipment and halving its footprint, according to Carbon Clean. The unit was installed in under a week at Fertiglobe’s nitrogen fertiliser plant in the Al Ruwais Industrial Complex, and captured CO2 from a reformer flue gas stack that Fertiglobe then reused in urea production. The unit hit a milestone when it ran for about 4,000 operating hours over six months, reaching technology readiness level 7, Carbon Clean said.
Yet another roadmap – Energy-intensive industries, such as the chemicals, steel, paper, cement, and glass industries, are crucial for the EU economy and for decarbonisation efforts, say MEPs in a resolution adopted on Thursday. These industries are vital for jobs and for Europe’s strategic autonomy but are facing challenges as they shift to cleaner technologies, they add. The resolution stresses the need for a cost-effective transition using various technologies to reduce energy costs and avoid lock-in effects, with electrification as a key strategy.
Axed – BP is shutting its low-carbon mobility team as it shifts focus back to oil and gas, a move aligned with the British oil major’s strategy to boost returns, Financial Times reported. The unit, which worked on hydrogen and electric vehicle solutions for trucks, is no longer “commercially viable,” BP told its staff. Its activities will be absorbed into other divisions. BP said the decision does not affect its EV charging arm, BP Pulse, which remains a priority in key markets.
Russian auction – Russia’s National Commodity Exchange (NTB) held the first exchange auction of carbon units on Apr. 2. It marks the first exchange auction for the sale of carbon units with additional control over delivery. The seller and customer of the auction were Gazprom’s specialized structures that implement projects within the framework of carbon units. The price of units under the transaction was 900 rubles per 1 carbon unit (including VAT). Gazprom structures are implementing projects to prevent greenhouse gas (methane) emissions using mobile compressor stations in the preparation of sections of main pipelines for repair work. More details here.
Luton to expand – Luton airport to the north of London will be allowed to almost double in capacity after the government overruled planning inspectors who recommended blocking the scheme on environmental grounds. Transport secretary, Heidi Alexander, granted a development consent order for the airport to expand its perimeter and add a new terminal, allowing for a potential 32 million passengers a year. Campaigners have said the plan will not bring growth while damaging the environment of the local Chilterns. (the Guardian)
Sustainable skies – International Airlines Group (IAG), a British-Spanish multinational airline holding company, and Microsoft have extended their sustainable aviation fuel (SAF) partnership by five years. Microsoft will co-fund 39,000 tonnes of SAF to help reduce lifecycle emissions by approximately 113,000 tonnes. The SAF will be produced by Phillips 66 in the UK and by LanzaJet’s Freedom Pines Fuels facility in the US. The agreement seeks to support IAG’s target to power 10% of its operations with SAF by 2030 and Microsoft’s broader carbon reduction goals.
ASIA PACIFIC
Solar boom – India added 25 GW of renewable energy capacity in the financial year 2024-25, a 35% increase from last year, according to a social media post on X by Minister of New and Renewable Energy Pralhad Joshi. Meanwhile, total solar capacity grew by around 38% to surpass 100 GW, and manufacturing capacity of photovoltaic cells tripled, he added. India’s total non-fossil fuel-based capacity stood at 215 GW as of February.
Rice partnership – Japanese offset project developer Jizoku has teamed up with Karasawa Agricultural Machinery Service to create agriculture-based carbon credits in the Kanto-Koshinetsu region, it announced Thursday. The two companies said they will use an increasingly popular rice cultivation method, which cuts emissions by extending the mid-drying period, without disclosing a potential project size.
Floating solar – Indonesia launched a 192MW floating solar power plant on the Cirata Reservoir in West Java, according to a press release. The project, which claims to be the world’s largest of its kind, was developed by PowerChina. It was a joint venture between state utility PLN and the UAE’s Masdar, and became commercially operational in Nov. 2023. President Joko Widodo during the grid connection ceremony said the project supplies 300,000 MWh annually and reduces coal consumption by 117,000 tonnes.
Commitment needed – The chair of Victoria’s State Energy Commission (SEC) says the Australian state needs at least another 2 GW of committed capacity to maintain energy supply before the planned closure of the next coal-fired power plant in 2028, Renew Economy reports. EnergyAustralia’s Yallourn brown coal generator in the LaTrobe Valley will shutter later in the decade, however SEC chair Simon Corbell told a conference in Sydney that the extra capacity was needed before then. The new commitments could come from the federal government’s Capacity Investment Scheme, which in its latest tender has earmarked 1.4 GW for Victoria.
AMERICAS
Where’s pudding for proof – A US judge in federal court Wednesday pressed the EPA for proof of financial mismanagement in the agency’s termination of $20 bln in climate programme funding. Judge Tanya Chutkan of the US District Court for the District of Columbia, presiding over a lawsuit filed by Climate United – a recipient of the now-frozen funds, said that the federal government provided no substantial new evidence of wrongdoing by the groups. Chutkan paused the EPA’s move to terminate the programme in March.
Tariff trouble – Starting Apr. 5, all foreign imports to the US will face a minimum 10% tariff under a new US trade policy. While Canada and Mexico are largely exempt through the United States-Mexico-Canada Agreement (USMCA), separate 25% tariffs apply to their steel, aluminum, cars, trucks, and auto parts. However, “energy and certain minerals that are not available in the US” remain exempt, and no new energy tariffs were imposed on USMCA partners.
Symbolic – The US Senate passed a resolution 51-48 Wednesday night that would end President Trump’s tariffs on Canadian products, including 10% on energy, but it is not expected to pass the House, media reports. The measure, passed by way of three Senate Republicans crossing party lines, represented a break in the GOP on “Liberation Day” when the President announced new global reciprocal trade tariffs. (NBC)
Potential polluter pay – A California Senate bill SB 684 that seeks to claim compensation for alleged climate damages from fossil fuel companies passed 5-3 out of the state’s Senate Environmental Quality Committee and was re-referred to the Senate Judiciary Committee on Wednesday. The bill tasks the California Environmental Protection Agency with determining the total damage amount caused to the state allegedly by covered fossil fuel emissions, then assessing a cost recovery demand.
Rule reform – The US House Financial Services Committee urged Acting SEC Chairman Mark Uyeda on Monday to withdraw 14 final and proposed rules implemented under the previous administration, arguing they have made US capital markets less attractive. The Committee expressed support for Uyeda and President Trump’s nominee Paul Atkins, asserting the need to refocus the SEC’s efforts on protecting investors, maintaining efficient markets, and supporting capital formation. The targeted rules include those related to cybersecurity, short selling, securities lending, executive compensation, fund liquidity, ESG disclosures, and predictive data analytics, among others.
No kitchen appliance is safe – Two Biden-era DOE rules were submitted for repeal in Congress via the Congressional Review Act last week – HJ Res 24, targeting energy conservation standards for walk-in coolers and freezers, as well as HJ Res 75, targeting energy conservation standards or commercial refrigerators, freezers, and refrigerator-freezers. Both passed the House and are now in the Senate as of Wednesday.
Oil objection – Two US-based environmental organisations have filed a lawsuit against the US Department of the Interior seeking to block the planned restart of oil production at the Santa Ynez Unit, an offshore platform off California’s coast that has been inactive for a decade. The organisations, the Centre for Biological Diversity and the Wishtoyo Chumash Foundation, argue that the platform’s new operator, Sable Offshore, should be required to submit an updated development and production plan before resuming operations, rather than relying on plans approved in the 1970s and 1980s. The groups allege environmental and safety risks associated with ageing infrastructure and potential for pollution. (E&E News)
Coal to code – Homer City Redevelopment announced plans to convert the retired Homer City Generating Station, formerly Pennsylvania’s largest coal plant, into a natural gas-powered facility supporting a $10 bln data center campus. The project, located 50 miles (80.5 km) east of Pittsburgh, will span 3,200 acres (1,300 ha) and use seven GE Vernova turbines to produce up to 4.5 GW of electricity, roughly 10% of Pennsylvania’s total power use. Pennsylvania generators don’t face RGGI emissions obligations as the state’s participation in the programme remains mired in litigation. (E&E News)
Price plunge – Gasoline prices dropped across Canada after the federal consumer carbon tax was eliminated on Tuesday. Fuel prices fell by more than 6 cents per litre in eight provinces, with New Brunswick experiencing the largest decrease at 15 cents, according to GasBuddy data. The national average declined to C$1.44 from about C$1.55 per litre by Wednesday. The Canadian Fuels Association expects annual consumer savings to exceed C$500 ($348), while prices increased slightly in Quebec, the only province with a carbon levy.
Geothermal gains – Dandelion Energy, a US residential geothermal heating and cooling company, has partnered with homebuilder Lennar Corporation to install geothermal systems in over 1,500 new homes in Colorado over the next two years. The systems are expected to reduce homeowners’ energy costs by approximately $30 mln over 20 years compared to air-source heat pumps.
Changing course – Cielo Waste Solutions, a Canadian company focused on converting waste materials into renewable fuels, announced it will relocate its first planned commercial facility to British Columbia from Alberta, and shift its production focus to green hydrogen from renewable diesel. The decision was made in response to changing market conditions and to leverage financial incentives under BC’ Low Carbon Fuel Standard. Cielo also cancelled a proposed acquisition of a gas-to-liquids facility owned by Rocky Mountain Clean Fuels, citing regulatory and market uncertainty.
DOE award inequality – A group of Democratic congressmembers are asking the US DOE inspector general to investigate how the agency awards grants and contracts, fearing that the department may be favouring projects in Republican states over Democratic states. In a letter submitted to Inspector General Sarah Nelson Wednesday, the Democrats claimed that DOE’s awards “raise significant concerns regarding potential political motivations behind the targeting of projects in Democratic-leaning states and districts”. They go on to allege that the DOE’s recent review of its award portfolio and potential resulting cancellations appear to violate the Energy Policy Act of 2005, which states that awards must be given out on a competitive basis. “If this is the case, it would represent a serious abuse of power and an attempt to manipulate deferral funding for partisan purposes,” the letter claimed.
VOLUNTARY
Next level – ICAO invited emissions unit programmes, already eligible for CORSIA’s first phase, to apply for re-assessment by the Technical Advisory Body (TAB). This re-assessment was to determine their eligibility to supply CORSIA-Eligible Emissions Units for the 2027-29 compliance period, part of CORSIA’s second phase. Four programmes submitted applications for re-assessment: ACR, ART TREES, Gold Standard, and Verra’s Verified Carbon Standard (VCS). Climate Action Reserve (CAR) and the Global Carbon Council (GCC) don’t appear to have sent in re-assessment submissions. The review will follow the 2025 TAB assessment cycle, in accordance with the TAB Terms of Reference, Procedures, and Work Programme, an update stated. In addition to re-assessment submissions, TAB also received material change submissions from ACR, BioCarbon Fund ISFL, Cercarbono, Forest Carbon Partnership Facility (FCPF), Isometric, Premium T-VER, and VCS. ICAO is now inviting public comments on the 2025 submissions, particularly regarding each programme’s alignment with the scheme. Comments must be submitted by Apr. 18. ICAO has provisions for assessing new programmes or those that missed the initial re-assessment window. In early 2026, the TAB will open a call for new applications for eligibility for the 2027-29 compliance period. Standards not currently approved, or those that did not participate in the recent re-assessment, can apply next year. TAB will present its recommendations on these applications in Q4 2026.
Burn baby burn – Carbon removal standard and registry Puro.earth launched a public consultation Thursday for the 2025 update to its biochar methodology. Key updates in the proposed protocol include increased durability, alignment with standards, such as the ICVCM’s CCPs, and refinements and clarifications regarding biomass sourcing, biochar production, and end-use applications.
Fresh partners – Carbon credit platform Riverse has partnered with Fusinite, a lab service platform dedicated to carbon storage security verification and certification services for biochar and biocarbon. The collaboration is intended to generate simplified procedures for biochar projects, harmonized laboratory analyses, enhanced data traceability and integrity, and automated data flows, stated the announcement on LinkedIn.
AND FINALLY…
Learning from elephants – A team of scientists led by Singapore’s Nanyang Technological University (NTU) have developed ‘fungi tiles’ with elephant skin texture, which provides a sustainable cooling solution for buildings, according to a release from the university. The research team worked to add a bumpy, wrinkly texture to the tile, mimicking an elephant’s ability to regulate heat from its skin. It was found that the cooling rate of their elephant skin-inspired mycelium tile was 25% better than a fully flat mycelium tile.
Got a tip? How about some feedback? Email us at news@carbon-pulse.com
