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TOP STORY
US compliance carbon markets collapse as White House plans action against state ETS schemes, reignites “clean coal”
California Carbon Allowances (CCA) and RGGI Allowances (RGAs) plummeted almost 25% and 13% in after-hours trade as US President Donald Trump’s latest executive orders (EO) signed on Tuesday directed the Attorney General (AG) to take action against state climate policies along with plans to reignite the domestic coal industry.
AMERICAS
FEATURE: Under Trump, an evolving chapter for US-China climate relations
The world’s two largest emitters and former allies in climate policy could diverge in emissions reductions ambition, experts warn, as China grows its fossil energy profile and US President Donald Trump reverses core foundations of the country’s environmental policy while imposing global tariffs.
Republican senators reintroduce legislation to establish US carbon border tariff
A pair of Republican senators have introduced updated legislation establishing a US carbon border tariff fee on imports from countries with perceived dirtier production practices, targeting China in particular.
RGGI Market: Auction volumes drop 1% QoQ for second quarterly sale of 2025
RGGI states will offer 1% fewer permits at their Q2 sale compared to the prior quarter, with the notable absence of cost containment allowances that were all scooped up at the first auction of the year, according to a Tuesday announcement.
Pennsylvania Republicans introduce bill to require carbon fee public consultation, legislative authorisation for cap-and-trade
GOP lawmakers in Pennsylvania introduced Monday a bill requiring a state agency to submit a recommendation for a carbon fee regime to regulate CO2 emissions after completion of public consultation, but also stipulating that any cap-and-trade programme must be legislatively authorised.
Maryland lawmakers mandate power sector emissions reductions in policy overhaul
An omnibus energy policy package passed by Maryland lawmakers Monday would require new natural gas-fired power generators to transition to lower-emitting energy sources and mandate electric companies to procure zero-emission credits.
US legislators introduce tax credit to boost RNG use in US transportation sector
US lawmakers have introduced bipartisan legislation to establish a tax credit for RNG used as transportation fuel in the country until 2035.
US-based CDR developer to offtake 2.3 MtCO2 annually in 25-yr agreement
A US-based carbon removal (CDR) project developer announced Tuesday a 25-year offtake agreement with an ammonia producer aiming to sequester 2.3 million tonnes of CO2 per year.
Wisconsin lawmakers consider SAF tax credit
Wisconsin lawmakers are seeking co-sponsorship on a bill to establish a new state sustainable aviation fuel (SAF) credit, while the US Congress considers a measure to axe the federal clean fuels credit.
Newfoundland and Labrador backs offshore carbon storage innovation with C$3 mln grant
Newfoundland and Labrador has awarded C$3 million ($2.2 mln) to a university and major offshore oil producers in an attempt to strengthen the province’s capacity to assess and advance offshore carbon storage.
EMEA
US tariffs amplify Europe’s existing supply chain and energy security challenges -experts
The onslaught of US tariffs, and the resulting trade war it could trigger, reinforces the need for Europe to bolster its own energy security and create opportunities for clean tech on the continent, according to industry observers.
Decision on Europe’s 2035 NDC unlikely before July, EU presidency says
Talks on the EU’s 2035 Nationally Determined Contribution (NDC) to the Paris Agreement are ongoing, but no decision has been taken yet as views differ on the approach to take, the Polish EU Council presidency told Carbon Pulse, outlining the options on the table.
Key lawmaker pushing for Article 6 credits in EU’s 2040 climate goal
The European Commission’s promised 90% emissions reduction target for 2040 is “completely unrealistic” without international carbon credits delivered under Article 6 of the Paris Agreement, according to a senior EU Parliament lawmaker from the ruling European People’s Party (EPP).
Developer eyes Singapore market for Ghanaian cookstove project
A Seoul-headquartered developer has launched a clean cooking project in Ghana compliant under Article 6 of the Paris Agreement, expecting the credits to sell at a price making them attractive for Singaporean emitters with carbon tax obligations, the developer told Carbon Pulse Tuesday.
CO2-based graphite could cut dependence on Chinese imports for EV batteries
A developer of battery-grade graphite from CO2 emissions plans to reach industrial-scale by 2030, reducing Europe’s dependence on Chinese imports and providing battery makers with a ‘carbon neutral’ alternative to what is currently on the market.
France consults on three new agri-carbon methodologies under domestic scheme
France has opened public consultations on three agricultural methods aimed at reducing greenhouse gas (GHG) emissions through improved farming practices under its Low Carbon Label scheme.
UK carbon capture firm secures €2.5 mln in EU funding
A UK carbon capture technology specialist has won €2.5 million in EU funding, the company announced on Tuesday.
‘Industrial-scale’ green steel pilot plant in Austria slated for 2027 start
A group of companies have agreed to fast-track the development of a new, clean steel furnace that will be fired with green hydrogen and fed by high-grade iron ore from one of the world’s newest and largest mines.
Euro Markets: EUAs give up more ground as late cross-market selling unwinds steady strength
European carbon prices weakened for a fifth consecutive day as the impact of US tariffs continued to roll over global markets, after EUAs had spent much of the day tracking steady gains in equities and gas before giving up their advance amid a late bout of aggressive selling.
ASIA PACIFIC
SK Market: South Korea cancels April CO2 allowance auction amid bearish sentiment
South Korea has decided to cancel this month’s carbon permit auction, as sentiment in the national emissions market remains bearish.
INTERNATIONAL
BRIEFING: Interest in SF6 carbon crediting on the rise, Article 6 the catalyst to scale
Article 6 carbon markets have the potential to massively scale crediting of SF6 mitigation, with interest increasing in 2025, according to a new report.
FEATURE: Key officials drive momentum for carbon markets in Iraq
A few high-ranking officials in the Iraqi government are accelerating Article 6 and voluntary carbon market (VCM) engagement after years of dormancy, with efforts centred on a new state-owned carbon markets enterprise.
LDC-focused impact fund eyeing Article 6, CEO says
An impact investment fund with a focus on least-developed countries (LDCs) is in the early stages of exploring Article 6 projects, its CEO told Carbon Pulse.
Global ETS revenues drop despite more schemes coming online, says ICAP
Revenues from emissions trading systems (ETSs) fell for the first time last year even as a record number of schemes came online, primarily due to lower prices and higher market volatility, according to a report released Tuesday.
Fossil fuel firms fall further out of Paris alignment -report
No major oil and gas producer is aligned with the Paris Agreement on climate change and many have regressed since last year, a report released Tuesday has found.
VOLUNTARY
VCMI, Benin partner on carbon markets policy tool to support NDC assessments
The Voluntary Carbon Markets Integrity Initiative (VCMI) has partnered with a government agency in Benin to launch an initiative to help policymakers assess whether to apply voluntary carbon credits towards Nationally Determined Contributions (NDCs) under the Paris Agreement or not.
Scaling ERW among Global South farms requires careful trust-building -developer
Scaling up carbon removal (CDR) credits via enhanced rock weathering (ERW) projects on smallholder farms in the Global South requires a careful public engagement process involving years of trust-building, an ERW project developer said on Tuesday.
Gold Standard removes CCP eligibility from three Turkish landfill gas carbon projects
Gold Standard has removed the Core Carbon Principles (CCP) eligibility for credits issued by three landfill gas projects in Turkiye.
Carbon removal buyer seeks to scale, diversify purchases in 2025
A non-profit buyer of carbon removal (CDR) is looking to scale investment and diversify its portfolio this year, having reached over $3 million in purchases so far.
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.
Renewable projects must pick better locations to protect nature, conservationists warn
Australia needs to do better if it wishes to meet its clean energy, climate, and biodiversity targets, but can manage this by siting renewables projects where they will do the least harm to nature, according to green groups.
FEATURE: Dutch non-profit pioneers biodiversity credit scheme with national ambitions
A Dutch initiative is spurring three pilots of a government-backed biodiversity credit framework it hopes will scale nationally, Carbon Pulse has learned.
Venture capital nature tech investments top $2 bln in 2024
Venture capital (VC) investments in nature tech startups surpassed $2 billion last year, with the biodiversity credit and MRV markets attracting one-fourth of early-stage support, according to a recently released analysis.
Biodiversity Pulse: Tuesday April 8, 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).
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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
Forest accounting – The European Commission put forward draft rules on Monday to update the Union’s registries for EU member states to report on CO2 removals coming from land use and forestry. The update became necessary after the EU adopted its 2030 climate target, which required amending an EU regulation on the inclusion of greenhouse gas emissions and removals from land use, land use change and forestry (LULUCF) in the bloc’s 2030 climate policy framework. This regulation was divided in two compliance periods – 2021-25, and 2026-30 – each imposing obligations on EU countries regarding the performance of their LULUCF sectors. To achieve these objectives, “it is necessary to set out rules for accounting of the relevant operations in the Union Registry and their tracking,” the Commission said in an explanatory memo introducing the draft rules. The draft is open for a four-week public consultation running until May 5, at midnight. Based on the comments received, the Commission will then issue a final draft, that will be submitted to the European Parliament and the Council of EU member states for scrutiny. If they don’t vote to reject them within two months, the new registry rules will then be considered adopted and published in the Official Journal of the EU.
Connect the dots – A study released by Connect Energy Economics explores how a well-designed hedging obligation in the electricity market can support a secure, affordable, and climate-neutral power supply within a market-based framework aligned with climate goals. The study was commissioned by the Association of Energy Market Innovators (BNE), the Foundation for Family Businesses, the German Chamber of Industry and Commerce (DIHK), the European Energy Exchange (EEX), the German Association of Energy Purchasers (VEA), the German Electro and Digital Industry Association (ZVEI), and other organisations. The study outlines a proposal for how the “technology-neutral and market-based capacity mechanism” discussed during the coalition negotiations could support the continued evolution of the electricity market. At its core is the concept of a hedging obligation—requiring electricity suppliers to hedge their delivery commitments. This approach would incentivize investment in the controllable capacity actually needed, enabling a swift, market-driven, and cost-efficient way to ensure security of supply. As a result, the introduction of an additional, costly electricity price levy on households and businesses to fund a separate capacity market, as currently debated, would be unnecessary.
L’Affaire du Siecle – The French state has been hit by a lawsuit claiming it is failing to protect its people from the impacts of climate change, in what the petitioners say is the first legal case of its kind in the EU. The case has been brought by 14 French citizens who are affected by extreme weather, as well as civil society groups including Oxfam France, Greenpeace France, and Notre Affaire a Tous. The suit, which they have dubbed the Case of the Century, argues that France lacks an effective climate adaptation strategy, even as nearly two out of three people are highly exposed to climate risks and a quarter of the population lives in flood-prone areas. France’s National Climate Change Adaptation Plan, presented in March, falls short of what’s needed because it lacks dedicated funding, a binding legal framework, rigorous monitoring, and concrete risk prevention and management measures, the petitioners claimed. The lawsuit, brought before the Council of State, aims to compel France to strengthen its adaptation policies and introduce concrete measures to protect and support the population.
Hydrogen hype – EET Hydrogen based in Ellesmere Port near Liverpool, northwest England has secured more than 30 agreements to supply low-carbon hydrogen to businesses. The customers span 10 sectors: chemicals, glass, power, automotive, construction, refining, aerospace, food and beverage, pharmaceuticals, and ground transport. The low-carbon hydrogen will be produced at EET Hydrogen’s second hydrogen production plant (HPP2) and will help the industry to grow and provide jobs. HPP2 will be co-located with HPP1 at the Stanlow Manufacturing Complex with a proposed production capacity of up to 1,000 MW, enough energy to power a city the size of Liverpool. (Chester Standard)
Emissions cut – Swedish investor Kinnevik has reduced its operational emissions by 22% between 2019 and 2024, according to its latest annual & sustainability report released on Tuesday. The firm aims to halve emissions by 2030 and has purchased over 2,800 tCO2e in carbon removals from portfolio companies Agreena and Charm Industrial, the report said.
Irasshaimase, Asuene – Japanese sustainability solutions provider Asuene has opened an office in London, marking its “full-scale entry into the European market”, it said in a press release. This adds to its offices in Singapore, the US and Thailand, as well as the Global Development Center in the Philippines, and follows recent partnerships in Taiwan and the broader Asia Pacific region. The firm also plans to pursue mergers and acquisitions in Europe, it said. In August last year, it secured $5.3 million in the second close of its Series C financing, bringing its total Series C funding round to $33 mln.
ASIA PACIFIC
RIP NZGIF – The New Zealand Green Investment Finance (NZGIF) vehicle is being wound down, the government announced on Tuesday. Climate change minister Simon Watts said that the NZGIF has invested almost NZ$400 mln ($224 mln) with very limited results, and that the government has more than 20 other funds with similar goals. He added that the NZ ETS is “more robust” now, reducing the need for government involvement in stimulating investment. NZGIF has 90 days to draft a plan on how it will manage-down its investment portfolio for ministers. The NZGIF was established in 2019 to accelerate investment in the country’s low-carbon transition. It was blindsided late last year when SolarZero, one of its flagship investments, entered voluntary liquidation following the withdrawal of backing from BlackRock.
Coal keeper – Australia’s Queensland government has committed A$400 mln ($242 mln) into maintenance of government-owned generators, with plans to assess whether to keep one of them running beyond its planned closure of 2028, Bloomberg reports. Liberal National Party (LNP) government, elected late last year, announced it would also create a new energy roadmap for the state, which will likely do away with the previous government’s renewable energy targets and plans for coal-fired power to exit the grid by 2035, local media have reported. David Janetzki, the state’s treasurer and energy minister, argued Tuesday that Queensland’s fleet of coal-fired power plants are much younger and more efficient than those operating in other states.
Beneath the soil – Japanese developer Green Carbon has partnered with the Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA) to promote sustainable agriculture in the region, it announced Tuesday. Their partnership will focus on the development of nature-based carbon credit projects, especially those related to carbon farming.
Engineering step – Australian clean aviation alliance Jet Zero announced an engineering contract this week with Technip Energies, a clean energy spin off of the French engineering giant. The company is working on the Project Ullyses in Townsville, Queensland, to turn bioethanol into sustainable aviation fuel (SAF). The contracts are expected to run for several months and cover an extensive package of engineering activities, documentation and planning to refine the cost estimate for the Project, develop detailed timelines and prepare a scope and basis for further engineering work. Ulysses is expected to be producing 102 mln litres of SAF and 11 mln litres of renewable diesel by 2028.
Greener pastures – Global infrastructure manager Morrison is expanding its presence in Singapore by sending James Shaw, operating partner and New Zealand’s former minister for climate change and environment there, the firm announced. Morrison is working with investment funds on projects in Southeast Asia and around the region, particularly in the renewable energy sector, according to a media statement. Shaw said he would be looking to build on the networks he developed during his time in government to help tackle climate change. Former Green Party leader Shaw announced his appointment to Morrison among others following his departure from Parliament in May, last year.
AMERICAS
Moo-dified genetics – The Bezos Earth Fund, a philanthropic organisation created by Jeff Bezos, and the Global Methane Hub, an international philanthropic organisation dedicated to reducing methane emissions, will jointly invest $27.4 mln aiming to cut livestock methane emissions, the funds said in a press release. The initiative will fund research and breeding programmes across North America, Latin America, Europe, Africa and Oceania, screening over 100,000 cattle and sheep to identify and promote naturally low-emitting livestock. The Bezos Earth Fund is contributing $19.3 mln, with the remaining $8.1 mln from the Global Methane Hub.
Funds frozen further – The Trump administration is using a recent US Supreme Court decision to support its efforts to maintain freezes on federal grants from the Federal Emergency Management Agency (FEMA) and the EPA. The Justice Department’s lawyers cited the court’s 5-4 ruling, which allowed the administration to pause $65 mln in education grants during ongoing litigation, as justification for similar actions in two separate cases involving halted funding.
Statutes suspended – The US Department of Homeland Security has waived a number of environmental and conservation laws to fast-track construction of new border barriers and roads along the Mexican border near San Diego. The decision, made on Tuesday, is issued under Section 102 of the Illegal Immigration Reform and Immigrant Responsibility Act, and suspends statutes including the National Environmental Policy Act, Endangered Species Act, Clean Water Act, and Coastal Zone Management Act.
Too soon to put a label on it – Reuters reported on Friday that over $1 bln in carbon capture projects funded by the US DOE are slated for cuts, according to a list seen by the press agency. Four carbon capture pilot projects awarded a total of $309 mln, as well as three later-stage demonstration projects in California, Texas, and North Dakota that received $890 mln for integrated carbon capture, transport, and storage technologies, were reportedly marked to be cut. A DOE spokesperson told Carbon Pulse that the agency is conducting a department-wide review to ensure all activities follow the law and align with the Trump administration’s priorities. The spokesperson added that speculation by anonymous sources about the result of the review is “just that – speculation”.
Waiting for biofuel obligations – On Tuesday, 17 bipartisan US senators sent a letter to EPA Administrator Lee Zeldin asking for a multi-year Renewable Fuel Standard (RFS) proposal starting with 2026 volumes. The 2026 renewable volume obligations were expected in Nov. 2024, but were put on hold until this year. The senators asked the EPA to raise RFS volumes for biomass-based diesel and advanced biofuels to reflect changes pursued by the Trump administration to increase liquid-fuel production. Multi-year standards would provide “certainty and growth for the biofuels industry”, the legislators wrote.
Allowance adjustments – Washington’s Senate Ways and Means Committee on Tuesday approved the third iteration of House Bill 1975 (HB 1975), which adjusts the price ceiling as well as the Allowance Price Containment Reserve (APCR) schedule under the state’s cap-and-trade programme. The latest version of the bill lowers the price ceiling to $80 in 2026–27, and directs the Department of Ecology (ECY) to offer all allowances scheduled to be placed in the APCR through 2040 during the second compliance period that would span 2027-30. The bill will now be considered in the Senate Rules Committee.
Radiating nuclear support – The state of Louisiana joined a national lawsuit challenging the US Nuclear Regulatory Commission’s regulation over small modular reactors and other nuclear innovation, the state’s Department of Environmental Quality announced on Tuesday. The lawsuit, initially filed on Dec. 29, 2024 by Texas, Utah, and private sector companies, alleges that the federal regulator is overstepping its authority by subjecting projects of a smaller size and risk profile to the same licensing requirements as traditional nuclear plants. Louisiana Governor Jeff Landry (R) said joining the lawsuit is about pursuing pathways to small modular reactors and potentially removing “unnecessary red tape”.
Pact for the planet – Peru and China have agreed to strengthen bilateral cooperation on environmental issues following a meeting on Monday between Peru’s Environment Minister Juan Carlos Castro and China’s Minister of Ecology and Environment Huang Runqiu. The talks, held under the existing Environmental Cooperation Agreement, covered climate change mitigation, biodiversity conservation, solid waste management, and marine pollution. Both sides discussed joint strategies including the use of carbon markets to reduce GHG emissions.
Project progress – The Canadian Nuclear Safety Commission (CNSC) has authorised Ontario Power Generation (OPG) to construct a BWRX-300 small modular reactor at the Darlington New Nuclear Project site in Clarington, Ontario. The 10-year construction licence includes conditions requiring OPG to implement mitigation measures, maintain an environmental follow-up programme, seek approval before removing regulatory hold points, and engage with Indigenous communities. The licence does not permit reactor operation, which would require a separate application and approval process.
VOLUNTARY
New partners – Credit marketplace Carbonplace is partnering with carbon registry Isometric, aiming to strengthen confidence in the voluntary carbon market, help it to scale, and enable businesses to invest with certainty.
Digital deeds debut – Verra has released digital versions of multiple deeds of representation and the VCS Requantification Notification Form (v1.0) on the Verra Project Hub, as part of its ongoing digitalisation initiative. The digital deeds allow project stakeholders, such as project proponents and validation/verification bodies, to make legally binding warranties regarding emissions reductions and CO2 removals. The new requantification form enables projects to update methodologies used in previous verification periods and notify account holders of changes to Verified Carbon Units (VCUs). A public list of submitted requantification notifications is also now available.
Prioritisation pending – Verra launched a technical REDD survey on Tuesday, available through Apr. 25, to inform the order it develops allocated deforestation risk maps and project baseline activity data. The data is is required for projects using VM0048 and VMD0055 methodologies, which have been approved by the Integrity Council for the Voluntary Carbon Market.
SCIENCE & TECH
CO2 upgrade – Wartsila Gas Solutions has launched a new technology for purifying and liquefying the CO2 captured from biogas upgrading plants, it stated in a release Tuesday. Traditional biogas upgrading plants have been based on the principles of ‘catch and release’ of CO2, but instead of this, Wartsila’s Puregas BC technology purifies and liquefies the CO2, turning biogas into a carbon negative solution, the company claims. Consequently, the Puregas BC solution eliminates the already minimal (less than 0.1%) methane emissions from biogas upgrading plants. The solution offers a profitable revenue stream for the plant owner, as the captured CO2 is purified to food and beverage grade, and/or storage grade, the release stated. Upcoming regulations for e-fuels production is also requiring bio CO2 as feedstock, for which this could be a good fit.
AND FINALLY…
Wildfire wine – A recently published study led by researchers at Oregon State University and Massey University in New Zealand found that certain consumer groups, particularly those who enjoy smoky flavours in food and drink, are open to drinking smoke-impacted wines. The study, which included 197 participants in New Zealand, identified two consumer clusters—one that disliked smoke-impacted wine and another that liked it, with the latter showing greater appreciation for smoky flavours and higher self-reported wine knowledge. Label descriptions, especially those that referenced smoke explicitly, increased acceptance among the disliking group, raising their average liking score from just over 3 to more than 5 on a 9-point scale. The findings suggest that blending techniques and targeted labelling may help winemakers market wines affected by wildfire smoke, a growing concern as global wildfires increasingly impact grape quality.
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