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TOP STORY
EU ETS verified emissions fell 5% in 2024, European Commission says
Verified emissions reported from installations and aircraft operators covered by the EU ETS fell by 5% year-over-year in 2024, the European Commission said Friday.
AVIATION & SHIPPING
GHG levy for shipping dropped in favour of credit trading system at IMO talks
A flat-rate greenhouse gas levy for shipping has been removed from the latest negotiation text at a meeting of the UN’s International Maritime Organization (IMO) in favour of a tiered compliance system focused on GHG fuel intensity that would effectively introduce a credit trading system.
New aviation carbon levy proposals “deeply concerning”, risk global climate policy fragmentation -ICAO
The UN’s civil aviation agency has raised concerns over renewed international proposals to impose levies on aviation emissions, warning they could jeopardise more than three decades of progress towards a unified global approach to climate action in the sector.
EMEA
Euro Markets: EUAs plunge most in a year as widespread “panic” selling sidelines 2024 emissions data
European carbon prices plunged in line with the global markets rout, posting their biggest weekly loss in more than a year as equities and commodities continued to respond to the US announcement of widespread tariffs, and China’s response imposing import levies of its own, and sidelining the annual publication of EU ETS verified emissions data that largely matched analyst forecasts.
EU’s 2040 climate target due “before summer”, climate chief says
The European Commission will publish its proposal for a 2040 climate target “before summer”, the EU’s climate chief Wopke Hoekstra said on Thursday.
Norway eyes 70-75% reduction target in next NDC
The Norwegian government will propose a 2035 GHG emissions reduction target of 70-75% below 1990 levels, but without specifying how much of that will be made domestically, the nation’s climate and environment minister has said.
New EU-Central Asia partnership brings over €10 bln in climate cooperation
The EU and Central Asia signed a new Strategic Partnership on Friday, including €10 bln worth of investments in areas like critical raw materials, batteries and green hydrogen, European Commission president Ursula von der Leyen announced at a bilateral summit in Samarkand, Uzbekistan.
Future of world’s largest soil carbon project in limbo as Kenyan court ruling faces appeal
Community leaders from northern Kenya have filed appeals challenging a landmark court ruling that halted conservancy operations in Isiolo County – a decision that threatens the future of the world’s largest soil carbon project.
Outgoing AfDB president warns of African “carbon grabs” by foreign investors
Akinwumi Adesina, president of the African Development Bank (AfDB), has criticised what he calls a “carbon grab” by foreign companies, accusing them of paying minimal prices for African carbon credits while undervaluing the continent’s natural capital.
EUA-TTF price correlation suggests lower carbon prices to come -analyst
The recent high positive correlation between EU carbon and front-month TTF natural gas prices “points to much lower EUA prices in the nearest years”, as energy use continues to fall due to energy security concerns rather than climate policies, according to an analyst.
ECS25: INTERVIEW – Swiss cement maker calls for 100% CBAM controls at EU borders
Swiss multinational Holcim is calling for “100% testing” of cement imports at key European ports of entry, to make sure the EU’s Carbon Border Adjustment Mechanism (CBAM) is fully watertight.
Swiss CDR investor to buy 25k credits from West African biochar sites
A Zurich-based carbon removal (CDR) financier on Wednesday announced it will purchase 25,000 carbon credits from biochar facilities in West Africa.
AMERICAS
LCFS prices rip higher as ARB releases third 15-day notice in administrative approval effort
California regulator ARB published a third 15-day package on Friday reflecting updates to its Low Carbon Fuel Standard (LCFS) amendments that the state’s Office of Administrative Law (OAL) had requested last month, which sent futures prices soaring 13.5% on the day.
WCI compliance instrument surplus bloats 17% in Q1, general account exits higher
The compliance instrument surplus for the California-Quebec joint cap-and-trade programme at the end of Q1 jumped 16.7% over the prior quarter at the end of 2024, with 22 entities closing accounts as allowance prices have declined in the absence of regulatory clarity, state data published Thursday showed.
Washington draws down total allowances on offer at Q2 auction, but raises number of available V25s
Washington’s Department of Ecology (ECY) will offer a lower overall number of allowances at the second quarterly auction of 2025, but a higher number of V25s, according to a notice published Friday.
CFTC: Traders pare down open interest in RGGI, V25 CCAs as regulatory uncertainty persists
Market participants cut down open interest (OI) in V25 California Carbon Allowances (CCAs) and RGGI allowances (RGAs) with lack of progress on the regulatory front, while building V26 CCA OI to new highs, data published Friday by the US Commodity Futures Trading Commission (CFTC) showed.
US ethanol exports drop 30% in February -industry group
US ethanol exports declined “sharply” in February amid key market changes, an industry group wrote on Thursday.
Florida lawmakers advance bill banning weather modification and geoengineering
The Florida Senate approved legislation on Thursday banning geoengineering and weather modification activities within the state.
Canada’s GHG reduction strategy needs a rethink -report
A new report by a Canadian policy think tank is pressing Canada’s next government to rethink the country’s GHG reduction strategy, amid uncertainty after the consumer carbon tax was cut.
LATAM Roundup: Spring comes for compliance measures
A string of Latin American national governments announced timelines and milestones for carbon tax and cap-and-trade measures over the past two weeks, pointing to an acceleration of compliance carbon pricing from Mexico to Chile.
ASIA PACIFIC
Papua New Guinea to lift voluntary REDD+ moratorium, minister announces
Papua New Guinea has begun the process to unwind its moratorium on new REDD+ projects in the country, the government announced.
Japan ties JCM approval process to Article 6 in bid to attract investments
Japan has abolished the implementation guidelines for projects under the Joint Crediting Mechanism (JCM), instead aligning the process with the Article 6 framework in order to simplify the process and make it more attractive to developers and investors.
VOLUNTARY
Development of marine climate projects is outpacing effective governance, study finds
The speed at which ocean-based climate projects are being developed and expanded to address the impact of climate change is outpacing the ability to govern them, presenting risks to marine ecosystems, a study published this week has found.
Durable CDR buying jumps after SBTi opens door for removals in climate targets
The durable carbon removal (CDR) market surged to fresh highs in the first quarter of the year after the Science Based Targets Initiative (SBTi) opened the door for the sector to be used by companies to meet climate targets, finds a new report.
Researchers release open-access global map of nature-based carbon offset projects
A team of researchers has released a global open-access database containing the geospatial boundaries of 575 forest-based carbon offset projects across 55 countries, aiming to boost transparency in the voluntary carbon market.
Cheap, common materials could replace expensive polymers in DAC -study
Inexpensive and widely available materials can effectively remove carbon dioxide directly from the atmosphere, scientists from Northwestern University have claimed in what might be a significant breakthrough for carbon capture technology.
Cover crops can improve farmland carbon sequestration by reducing erosion -study
Introducing cover crops on farms between growing seasons can improve agricultural carbon stock by reducing soil erosion, according to a new study.
INTERNATIONAL
Study warns economic cost of climate change far greater than previously estimated
A new study has found that the global economic damage caused by severe climate change may be far greater than previously estimated, with losses potentially quadrupling when global weather effects are included in economic forecasts.
Aluminium risks big rise in emissions unless it shifts away from fossil fuels, report says
Global carbon emissions from the aluminium industry will rise by nearly 50% by mid-century unless it adopts cleaner energy sources, an energy agency warned Friday.
BIODIVERSITY (FREE TO READ)
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California sees launch of wildfire insurance incorporating nature-based solutions
A global conservation organisation and a London-headquartered brokerage and consulting firm have launched a new insurance policy incorporating nature-based solutions (NbS) to address the wildfire crisis in California.
EU biodiversity chief backs nature credits, urges local authority participation
Nature credits have the potential to help the EU close the existing financing gap on conservation and restoration efforts, with local authorities playing a critical role in shaping the market, the bloc’s biodiversity chief said on Thursday.
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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.
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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.
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BITE-SIZED UPDATES FROM AROUND THE WORLD
EMEA
Italian threats – Talking at a Parliament question-time, the minister for Made in Italy Adolfo Urso accused EU rules of being too stringent to protect the bloc’s economy in the face of the new tariffs imposed by US President Donald Trump. “We ask the EU to act immediately”, he said, and to “suspend the Green Deal rules that led to the collapse of the car industry, to create a deregulation shock that eliminates constraints for European companies, to support buy European, to give preference to made in Europe in procurement, and to promote free trade to open up to other alternative markets,” Urso said in his intervention. “In the next few days we will meet with business associations to evaluate possible countermeasures”.
Norway ETS2 – The Norwegian government has put forward draft legislation to transpose the EU’s new Emissions Trading Scheme for road transport and heating fuels (ETS2) into national law, according to an official release published on Friday. “I am pleased that we can now get in place the last parts of these climate quota rules in Norwegian law,” said Minister for Climate and Environment Andreas Bjelland Eriksen. The aim, he said, is to cut emissions and restructure the Norwegian economy while observing the country’s climate obligations as part of its membership of the European Economic Area (EEA). The proposed legislative amendments mean that the scope of Norway’s Climate Allowance Act is expanded to apply to the activities and obligated entities covered by ETS2. The government is also proposing amendments to ensure that the Emissions Trading Act’s general rules for supervision, management measures and sanctions apply to both ETS1 and ETS2. The ETS2 must enter into force in Norway by Oct. 1, 2025 because reported emissions in 2025 must be verified by an independent and accredited third party, the government said.
State aid – The EU Commission has approved a €300 mln Greek scheme to support the production of sustainable biofuels and renewable liquid transport fuels of non-biological origin. The aid will be granted no later than Dec. 31, 2025.
Billions of shillings – Tanzania’s Ikungi district is expecting to generate 20 bln Tanzanian shillings (around $7 mln) every year from carbon trading, local newspaper the Guardian reported. Credits will be generated through the conservation of forests, according to District Commissioner Thomas Apson, which would help the district reduce dependence on the central government for development funds. Around 26 villages in the district are expected to benefit from the project, once it becomes operational.
Plan B – The UK is launching a £10 mln study into the risks and impacts of measures to block some of the Sun’s rays as a way to prevent global warming. The country has no plans to introduce such methods — known as solar radiation modification — but they’re attracting growing interest globally as the world falls behind in the climate change battle. The study will be funded through the Natural Environment Research Council. Four research projects will launch in April, using computer modeling to study the impacts and risks of such measures. The research will look at a process known as stratospheric aerosol intervention that spreads particles into the atmosphere to reflect the Sun’s rays, as well as marine cloud brightening, where sea water is sprayed into the air to increase how reflective clouds are over the ocean. Another study will try to measure the impact of these methods by using models that compare such efforts to volcanic eruptions for example. (Bloomberg)
Doing deals – Ethiopia has signed carbon trading deals worth $70 mln with various countries and international organisations, Xinhua reports. The agreements were made possible through the Green Legacy Initiative, which has raised the country’s forest cover to 23.6%. No further details were provided. Launched in 2019, the initiative aims to tackle deforestation and promote environmental restoration. It has led to partnerships with bilateral and multilateral entities, including the World Bank. Ethiopia now plans to plant 7.5 bln seedlings in the upcoming rainy season. PM Abiy Ahmed recently announced that the country has exceeded its goal of planting over 40 bln seedlings. The UN Economic Commission for Africa has highlighted the potential of carbon markets to help African nations unlock economic value through sustainable development.
ASIA PACIFIC
Grid your loins – Australia will begin constructing its first declared Renewable Energy Zone (REZ) in New South Wales, the state government announced, with the help of A$750 mln in funding from the Clean Energy Finance Corporation (CEFC). The state government’s EnergyCo has appointed ACERZ – a consortium of Acciona, Cobra, and Endeavour Energy, to design, build, and finance the Central-West Orana REZ transmission project. The REZ will deliver at least 4.5 GW of new network capacity by 2028, to connect 7.7 GW of wind and solar projects. The funding supplied by the CEFC came via the federal government’s Rewiring the Nation Fund.
Call for action – India called on BRICS nations to mobilise $1.3 trillion for meeting NDC goals, during the 11th BRICS Environment Ministers’ Meeting in Brasilia, the Indian Ministry of Environment, Forest, and Climate Change said in a press release. The Indian delegation also called for collective leadership on climate, equitable transitions, and stronger multilateral engagement. Last year, BRICS nations partnered to develop a carbon market.
Desert astroturf – An Australian gas developer trying to commercialise an LNG-scale resource deep in the outback desert has been accused of ‘astroturfing’. Tamboran Resources, which is working on a shale gas project in the Northern Territory’s Beetaloo Sub-basin with an eye to export markets via a new LNG plant in Darwin, has been named by the ABC in a campaign by Freshwater Resources to create a fake, pro-gas community group. This is the third time the accusation has appeared, with the same complaints popping up in 2023 and 2021. ‘Australians for Natural Gas’ was in fact set up by the company CEO Joel Riddle, the ABC said. Tamboran listed on the Australian bourse several years ago then moved its primary listing to the US after a lacklustre showing on the ASX, but has backing from US oil billionaires like Bryan Sheffield. Australia’s gas industry has spent years trying to win hearts and minds outside of conservative political circles, with varied success, even going so far as to launch a cooking series based on food that can be cooked with a gas stove, which remains the most common form of cookstove in the country.
Biodiversity fund – President of Kazakhstan Kassym-Jomart Tokayev announced this week the establishment of the International Biodiversity Fund, Trend has reported. During the Central Asia – European Union summit in Samarkand, Uzbekistan, Tokayev said the fund will target nature positive initiatives including biodiversity restoration and water protection projects. “We need international support in developing water-saving technologies, smart irrigation, and hydrological monitoring,” he added. Additional details have not been disclosed so far.
AMERICAS
Parliamentarian says no – Republicans hoping to stop California’s strict vehicle emissions rules ran into another problem Friday, when the Senate’s referee ruled they can’t use a quick legislative tool. According to E&E News, Senate Parliamentarian Elizabeth MacDonough determined that three Clean Air Act waivers the Biden EPA gave California are not rules and cannot be undone through the Congressional Review Act vote, Democrats said. The conclusion aligns with what Democratic lawmakers; environmental groups; and Congress’ own watchdog, the Government Accountability Office, have said. But Senate Republicans suggested they may not follow the parliamentarian’s decision. “I will continue to address all options available to strike down these rules and eliminate the consequential impact they would make across our country,” said Environment and Public Works Chair Shelley Moore Capito (R-W.Va.).
They see me Rollin(g)s – The USDA will expedite timber harvest in line with President Donald Trump’s executive order to expand American timber production by 25%, according to a secretarial memo issued by Secretary Brooke Rollins on Friday. The memo establishes an “emergency situation determination” on 112.6 mln acres of federal forest land, directing the US Forest Service to increase timber outputs, simplify permitting, remove National Environmental Policy Act (NEPA) processes, reduce implementation and contracting burdens, and to work across levels of government and industry to deliver reliable and consistent timber supply. Actions taken by the agency will support improving the durability, resilience, and resistance to fire, insects, and disease within forests and grasslands across the National Forest System, the memo noted. Separately, the US Forest Service faces a lawsuit filed by self-described “forest advocates”, which alleges that the agency failed to assess the effects of its logging projects on carbon storage and emissions. The recent rollback of NEPA regulations also attracted a flood of nearly 90,000 comments from individuals and organisations.
Weighing costs – At a Saturday public hearing organised in Washington’s Senate Ways and Means Committee, there was support for HB 1409 from an environmental coalition and utilities representative. Those testifying against the bill represented trade associations for the petroleum industry and Washington businesses. The substitute bill that passed 54-41 in the House on Mar. 10 aims to reduce the carbon intensity (CI) of fuels regulated under Washington’s Clean Fuel Standard (WCFS) to 45% below 2017 levels by 2038 from a 20% reduction currently, among other provisions. Increased WCFS credit prices from tightening programme stringency would enable investments in decarbonising the grid, the Tacoma Public Utilities representative said. However, both industry representatives that testified against HB 1409 warned of affordability concerns and rising fuel costs that would have a ripple effect across Washington’s budget, impacting transportation costs for fleet operations including law enforcement, emergency services, school districts, and public transit. As of December, state taxes and programme costs add about $1 to a gallon of gasoline in Washington and California, they noted. HB 1409 is scheduled for an executive session in the same committee on Apr. 7.
The ‘A’ list – Washington’s Senate Ways and Means Committee also heard on Saturday public testimony on substitute HB 1912 that directs the Department of Ecology (ECY) to implement a remittance programme to compensate farm fuel suppliers exempt from the state’s cap-and-trade regulations. The bill also proposed to extend the current five-year exemptions indefinitely and was passed in the House on Mar. 12 with a 93-4 vote. Several farm association representatives urged lawmakers to include propane in the list of exempt fuels. In the latest version of the bill there was confusion as to the status of propane and natural gas used for agricultural purposes, since the definition of “special fuels” included only diesel and biodiesel. Legislative staff noted that a separate section of the bill included payments to farm fuel users who purchased kerosene, propane, or natural gas for agricultural purposes in the remittance programme. Two farm association representatives criticised insufficient funding proposed for HB 1912, as an initial $30 mln in appropriations had been reduced to $3 mln, which they said would not cover agricultural fees for even one year, let alone with the addition of special fuels in the exempted list. HB 1912 is also scheduled for an executive session in the same committee on Apr. 7.
All in favour – Another bill discussed at the Saturday hearing of Washington’s Senate Ways and Means Committee was substitute bill HB 1975 initially intended to lower Washington’s cap-and-trade scheme’s 2026 price ceiling to $80, before a Feb. 21 substitute bill extended that proposed cap through 2027 and adjusted APCR Tier 1 and 2 prices lower. However, the second substitute bill removed amendments to lower Tier 1 levels, but retained Tier 2 provisions. The bill also proposed front loading all allowances into the second compliance period between 2027-30 from APCR volumes through 2040, and passed the House on Mar. 10 with an 84-11 vote. At the Saturday hearing, legislative staff pointed out that revenue impacts from the amended programme could not be determined in the accompanying fiscal note. However, staff cautioned that the bill would shift emissions allowances into the current decade from the next one, which may lower near-term permit prices in the short term, but could make it harder for industries that received free allowances in future years of the programme. Public testimony from several industry association representatives in support of HB 1975, said that placing the allowance price cap prior to linkage would help ease energy costs for the state and public. No one testified against the bill on Saturday. HB 1975 is scheduled for an executive session in the same committee on Apr. 8.
Ridin’ clean – A bill in Hawaii’s legislature to enact a state clean fuels programme – SB 1120 – inches closer to becoming law, according to legislative filings. The bill passed the House floor and returned to the Senate Friday, though the Senate disagreed with amendments made in the former chamber. The bill will now head to conference committee for a final draft and vote in both chambers. If signed into law, it would require the state to adopt rules no later than Jan. 1, 2028, inclusive of an implementation date, standards for emissions measurement, mechanism for credit generation, and exemptions as appropriate.
Regulations rejected – West Virginia lawmakers voted 18-16 to reject Senate Bill 730 (SB 730), which sought to impose stricter regulatory oversight to forest-based carbon offset projects in the state. State senators Eric Tarr (R), Jack Woodrum (R), and Darren Thorne (R) introduced the bill on Mar. 10, proposing creation of a forest carbon registry overseen by the West Virginia Division of Forestry. Under the bill, carbon offset agreements would have had to be registered with the state, along with carbon offset projects managed directly by landowners or carbon trading firms.
Margin move – The California Energy Commission (CEC) has postponed its decision on whether to cap oil refinery profit margins until 2026, E&E News reported. Initially expected to present a broader plan this spring, the agency will now limit its upcoming vote to rules addressing refinery backup fuel supply under legislation signed by Governor Gavin Newsom (D) last year. Development of a possible refinery profit cap proposal and other strategies will begin later this year and extend into 2026, according to agency officials.
Moving ahead – Senate Bill 285 (SB 285), introduced by California Sen. Josh Becker (D) on Feb. 5, has been re-referred to the Senate Appropriations Committee following a 6-2 vote in favour during an Environmental Quality Committee hearing on Apr. 2. The bill would allow only certain types of CDR to reduce GHG emissions.
Campus credits – The University at Buffalo (UB) has become the first State University of New York campus to purchase ozone depleting substance (ODS) carbon credits as part of its strategy to achieve climate neutrality. The credits are intended to offset emissions from university-related air travel and other transportation sources without current decarbonisation alternatives. UB purchased nearly 9,000 credits for $112,000, equating to a price of $12.50/t. New York-based ACT Commodities will act as broker in the carbon credit deal. The project from which the credits stem has received an AAA rating from Calyx Global, and originate from ODS activities carried out by A-Gas in Bowling Green, Ohio, according to a UB press release.
Production surge – January estimates from the EIA showed total US capacity for operable biofuels increased slightly, according to a monthly report published on Mar. 31. Ethanol production expanded to 18.4 bln gallons (69.4 bln litres) in the first month of the year, from 18.3 bln gal in December. The EIA reported that a small but growing amount of biodiesel is being consumed in the residential, commercial, and power sectors, though the transportation sector still consumes a vast majority of the fuel.
Sanitation scandal – A Brazilian company previously accused of bidding fraud is part of two consortiums awarded contracts totalling R$179 mln ($31 mln) for sanitation and drainage work connected to COP30 in Belem, Brazil. The contracts, managed by the Para State Secretariat of Public Works, are partly financed by the Brazilian Development Bank and linked to preparations for the UN climate conference. The company, BA Meio Ambiente (Bemaven), and its legal representative, Jean de Jesus Nunes, are defendants in ongoing civil and criminal cases over alleged fraud in a 2010 public works tender.
Brazil buddies – State-owned oil firm Petrobras and petrochemicals company Braskem have signed an MoU to increase research into opportunities for CCS projects in the Brazilian state of Bahia, reported Tribuna da Bahia. The companies will seek to jointly evaluate technical aspects related to the capture, transport, and storage of CO2, as well as potential business models between the companies. Brazil’s Fuels of the Future bill signed into law last year requires authorisation and provides guidelines for carrying out CCS activities, with all projects regulated and monitored by Brazil’s National Agency of Petroleum, Natural Gas, and Biofuels (ANP).
AND FINALLY…
Sustainable slopes – As climate change reduces natural snowpack, ski resorts across North America are turning to snow farming, that is, harvesting and redistributing existing snow, which they say is a more sustainable alternative to traditional snowmaking. Resorts like Monarch Mountain in Colorado and Banff Sunshine Village in Alberta have long relied on techniques such as building snow fences and using wood chips to trap and preserve snow. While man-made snow can extend ski seasons, it requires significant water and energy and can negatively impact wildlife and vegetation. Snow farming offers a lower-impact solution, though its effectiveness depends on consistent snowfall, which is increasingly threatened by warming temperatures.
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