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TOP STORY
German coalition deal paves way for EU’s 2040 climate target plan
The German government coalition deal, unveiled on Wednesday, shows support for the EU’s mooted 90% greenhouse gas reduction target for 2040, with some space reserved for international credits delivered under Article 6 of the Paris Agreement to meet the objective.
AMERICAS
WCI Markets: Quebec lawmakers reaffirm support for province’s cap-and-trade programme, US compliance markets stage recovery
The National Assembly of Quebec on Wednesday reaffirmed its support for the province’s cap-and-trade programme in the wake of a broader pushback on climate policies in Canada, and a threat from the US government to terminate the ETS of WCI partner California, with allowance prices in the secondary market staging a recovery from overnight collapse.
BRIEFING: Expect changes to industrial carbon pricing, if not scrapped outright post Canadian-election -webinar
A Toronto-based consultancy is weighing risks to Canada’s climate policy ahead of its rapidly approaching federal election and finding little certainty for industry – particularly in Alberta, where the provincial government is reportedly considering changes to its carbon market programme.
US tariffs expected to pinch EV market -report
US tariffs are expected to put foreign EV manufacturers in a pinch, as more than a third of battery powered automobiles are imported from outside the country, according to a report.
Stronger US policy signals needed to support industrial decarbonisation -panellists
Senior figures from the US fossil fuel industry and environmental advocacy organisations called for stronger support of policies for decarbonisation, including reducing methane emissions and the protection of key climate incentives, including the Inflation Reduction Act (IRA) tax credits for carbon capture, utilisation, and storage (CCUS) projects.
ARB offset issuances dip in latest two-week cycle as DEBs units reemerge, YtD lead in new credits narrows
The number of compliance-eligible offsets issued by ARB fell about 8% from the previous two-week issuance period, as the state regulator once again issued units tagged with direct environmental benefits to the state (DEBs) and 2025’s year-to-date (YtD) increase in new credits narrowed, state data published Wednesday
California lawmakers plead with DOE to preserve hydrogen hub funding
A group of California congresspersons is urging the US DOE to preserve the $1.2 billion awarded to the state’s hydrogen hub as the agency reportedly considers cuts to clean energy spending.
Texas bill would prohibit GHG emissions tracking
Texas lawmakers are considering a bill that would prohibit greenhouse gas (GHG) emissions tracking within the state.
US renewable fuels producer inks offtake deal with SAF accelerator
A US renewable fuels company on Wednesday announced a multi-year offtake agreement with a sustainable aviation fuel (SAF) accelerator involving carbon credits for SAF production.
Former US DOE official joins carbon management platform as head of policy
A New York-based carbon management platform announced Wednesday that it has hired a former US DOE official to serve as its head of policy.
EMEA
Lawmakers clash over risks of EU green taxonomy review
Members of the European Parliament’s environment and economic affairs committees raised numerous questions during a hearing Tuesday on the EU’s sustainable finance taxonomy, highlighting the risk of greenwashing in the reporting simplifications proposed by the European Commission.
BRIEFING: ETS2 reform debate “growing” in Brussels, EU presidency says
Debate on the EU’s Emissions Trading Scheme for road transport and heating fuels (ETS2) is picking up in the Council of EU member states, where at least 10 countries have called for stronger safeguards against rising prices, according to the Polish presidency.
UK’s first CO2 injection test paves the way for CCS in depleted gas fields, developer says
A UK oil and gas company has completed the country’s first test of injecting CO2 into a carbon capture and storage site under the North Sea, it announced on Wednesday.
Egyptian financial regulator expands influence in VCM oversight body
Egyptian Financial Regulatory Authority (FRA) Chair Mohamed Farid will be able to name more personnel to the country’s voluntary carbon market (VCM) oversight body, according to a decision issued Tuesday by the FRA’s Board of Directors.
Climate disinformation never disappeared, it’s back to hit the EU ETS
There has been a resurgence in climate disinformation and misinformation in the EU, with the Emissions Trading System (ETS) emerging as a primary target for coordinated campaigns — likely driven by Russia, according to NGOs.
Euro Markets: EUAs drop for sixth day despite finding compliance support as gas drops heavily
European carbon prices dropped for a sixth consecutive day, setting a new six-month low before recovering modestly amid steady compliance buying and despite a 50% cut in speculative long positions, as the turmoil in financial and commodity markets continued following US President Donald Trump’s increase in tariffs on China to 104%, and energy markets also slumped.
ASIA PACIFIC
NZ commissioner repeats calls for forestry to be phased out of the ETS
The New Zealand commissioner for the environment has called for forestry to be removed from the emissions trading scheme, reiterating previous concerns about the potential wave of exotic afforestation current settings could create.
Nepal advances net zero by five years in draft for third NDC
Nepal has released a draft version of its third Nationally Determined Contribution (NDC), outlining a set of climate targets that up ambition levels as the country pursues net zero greenhouse gas emissions five years earlier by 2045.
FEATURE: Decarbonisation is driving NZ firms to biomass
New Zealand is increasingly turning to wood pellets to reduce emissions and shift away from coal, driven by regulations and company climate commitments, according to experts and industry.
Developers welcome lifting of PNG REDD+ moratorium, but questions remain
Carbon project proponents have broadly welcomed Papua New Guinea’s move to begin lifting the suspension of its moratorium on new voluntary REDD+ projects, though it is still unclear exactly when it will happen.
Decades of restoration efforts improve China’s terrestrial CO2 sinks, research says
Decades of efforts in ecosystem restoration have significantly improved China’s capacity to absorb CO2 through soil, according to a recent paper.
INTERNATIONAL
BRIEFING: Article 6.4 Supervisory Body makes headway, first PACM credits may hit market as soon as July
The Article 6.4 Supervisory Body (SBM) is making strong progress on the Paris Agreement Crediting Mechanism (PACM), with the first credits from a transitioning activity on course to reach the market as early as July this year, a UNFCCC official told a webinar on Wednesday.
GGGI invites Article 6 carbon project proposals in Cote d’Ivoire, Nepal
The Global Green Growth Institute (GGGI) on Wednesday issued a call for expressions of interest (EoI) from project developers in Cote d’Ivoire and Nepal to build a pipeline of mitigation activities that could generate carbon credits under Article 6 of the Paris Agreement.
VOLUNTARY
DATA DIVE: Voluntary carbon market oversupply hangover to lift by 2030s, say analysts
The voluntary carbon market (VCM) is likely to see a substantial rise in prices in the early 2030s as excess supply clears, before embarking on a steep upward growth curve to 2040, according to analysts that have identified untapped demand potential among industrials and emerging economies.
Financials refuse to cut fossil fuel exposure, favour companies with carbon credit strategies -report
The majority of financial institutions have no plans to reduce their exposure to fossil fuels over the next decade, while still increasing their exposure to green assets and prioritising portfolio companies with carbon credit strategies, according to a new study.
High-quality carbon credits see record premium in March, says rating agency
High-rated voluntary carbon credits commanded a record-high price premium in March, averaging 62% higher than the lowest scored units, according to a data update from a rating agency.
SBTi ready for more “pragmatic” approach, says new CEO
The new head of the Science Based Target initiative (SBTi) has underlined the standard setter has “moved on” from the challenging carbon credit discussions within the organisation last year, and will take a “pragmatic approach” moving forward.
SHIPPING
Shipping negotiators forge ahead with carbon tax talks, despite US threat of retaliation
A US threat to impose “reciprocal measures” against countries that support a global carbon tax for shipping won’t blow the multilateral process off course, negotiators said Wednesday as they pressed ahead with crucial UN talks in London.
BIODIVERSITY (FREE TO READ)
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JP Morgan secures $1.5 bln for forest, climate fund
JP Morgan Asset Management (JPMAM) has raised $1.5 billion for the Campbell Global’s Forest & Climate Solutions Fund II, surpassing its original fundraising target.
TNFD announces IFRS collaboration
The Taskforce on Nature-related Financial Disclosures (TNFD) and the IFRS Foundation have announced a formal commitment to deepening their work towards enabling nature-related disclosures.
Illegal gold mining keeps driving deforestation on Amazon Indigenous lands, Greenpeace finds
Illegal gold mining led to the destruction of 4,219 hectares of forest across four Indigenous territories in the Amazon region over 2023-24, according to a report by Greenpeace.
EU agrees on microplastic pollution regulation
The EU has provisionally agreed on proposals to regulate microplastic pollution that are expected to reduce plastic pellet losses by up to 74% in a bid to preserve biodiversity.
Flood protection the most financially important benefit of nature, investment bank says
Nature’s ability to protect from floods is now seen as the most financially important benefit provided for businesses, an investment bank has said.
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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
INTERNATIONAL
Personal impact – Individual actions — like changing what we eat, travel, and how we power our homes — could theoretically eliminate the average person’s carbon footprint, but people require broader systemic support to make these changes, according to a report by WRI published Wednesday. Only about 10% of the projected emissions reductions are possible when people are encouraged to make these changes without broader environmental shifts, like more bike lanes or solar incentives, while unlocking the remaining 90% requires systemic support. There is therefore an urgent need for strong national and subnational policies and company actions that make sustainable choices easier and more accessible for all, the report found. Policymakers should focus on the biggest impact changes, such as living without a car that is 78 times more effective at cutting emissions than composting, WRI stated.
Coal shoulder – Nearly 60 countries have drastically scaled back their plans for building coal-fired power plants since the Paris Agreement in 2015, according to figures released by Global Energy Monitor (GEM), analysed by Carbon Brief. Among those making cuts of 98% or more to their coal-power pipeline are some of the world’s biggest coal users, including Turkey, Vietnam, and Japan. The data also shows that 35 nations eliminated coal from their plans entirely over the past decade, including South Korea and Germany. Global coal-fired electricity generation has increased since 2015 as more power plants have come online. But the data on plants in pre-construction phases in 2024 shows what GEM called a dramatic drop in proposals for future coal plants. The number of countries still planning new coal plants has roughly halved to just 33, with the proposed capacity – the maximum electricity output of those proposed plants – dropping by around two-thirds, the analysis said.
EMEA
Dutch courage – Amsterdam-based Carbon Equity has closed €105 mln for its Climate Tech Portfolio Fund III, attracting 460 investors, the founders of the fund confirmed on LinkedIn. The fund allows participation in at least 150 climate innovations, including green hydrogen, CO2-free cement, iron-air batteries, and next-gen proteins, via 7-10 selected private equity and venture capital funds. Launched last year with a €200 mln target, the fund is part of Carbon Equity’s broader mission to drive climate solutions. The firm now manages over €300 mln across nine climate tech and infrastructure funds, supported by more than 1,250 investors, reinforcing its growing influence in the climate investment landscape.
Tech tackles tonnes – Orbital Materials, a US-based company that uses AI to accelerate the development of advanced materials, has partnered with UK cloud provider Civo to pilot carbon removal technology for data centres. The initiative aims to reduce the environmental impact of data infrastructure, which is expected to generate 2.5 bln tCO2e globally by 2030. As part of the agreement, Orbital expects to deploy its carbon capture solution at Civo’s UK-based data center by the end of 2025 and aims to use Civo’s high-performance computing resources to continue AI-driven development.
First time – Iraqi Minister of Environment Hallo Askari on Tuesday announced that the Middle Eastern country is preparing to host its first international conference on carbon markets in May (Ashour Land). The conference will be held under the patronage of Prime Minister Mohammed Shia Al Sudani. Environment Minister Askari has reportedly stressed that this gathering represents a step forward for the government’s efforts to diversify national income sources and promote sustainable development. The conference aims to attract local and international investors, he added. Meanwhile, Nazir Abboud Fazaa, director of the state-owned Carbon Economics Company (CEC), stated that local, regional, and international companies have expressed willingness to invest in carbon markets. Iraqi officials have in recent months shown a keen interest in exploring opportunities within Paris Agreement Article 6 carbon markets – and potentially the mainstream voluntary carbon market as well. The government’s priority sectors include carbon capture, utilisation, and storage (CCUS), nature-based solutions (NbS), and renewable energy.
ASIA PACIFIC
Guidance – Taiwan’s environment ministry has published a set of draft guidelines for government agencies to conduct climate risk assessment, it announced Wednesday. The document will provide operating procedures and work standards for government departments to make risk assessments and thereby formulate adaptation plans, the ministry said.
Almost done – South Korea aims to conclude negotiations for a planned nuclear project in Czech, estimated at 24 trillion won ($16.7 bln), in late April or early May, according to Yonhap. If finalised, the Czech deal would mark the Asian country’s first overseas nuclear power plant since 2009.
Hydrogen hustle – India’s Bharat Petroleum (BPCL) and Sembcorp Green Hydrogen India, a unit of Singapore’s Sembcorp Industries, have partnered to develop renewable energy and green hydrogen projects across India. The partnership will also explore green ammonia production, port decarbonisation and emerging clean fuel technologies, the companies said in a press release. BPCL is targeting 10 GW of renewables and net zero Scope 1 and 2 emissions by 2040. Sembcorp, which has 6 GW of renewables in India, aims to scale low-cost green hydrogen.
Whipped – Palau’s president, Surangel Whipps Jr, criticised Peter Dutton, the Liberal Leader of the Opposition in Australia, while endorsing the country’s bid to host a UN climate conference on behalf of the Pacific, the Guardian reports. Whipps warned he’d be “deeply disappointed” if the Coalition dropped it. Speaking in Sydney, Whipps recalled losing two-thirds of an island in Palau due to rising sea levels, stressing the dire climate reality Pacific nations face. He referenced a 2015 joke by Dutton about “water lapping at your door” as emblematic of dismissive attitudes. Whipps emphasised the importance of solidarity and urgent climate action, reinforcing that Pacific voices must be heard on the global stage.
Call me consultant – Indian offset developer EKI Energy has been selected as “carbon consultant” of a methane reduction project in the Indian city of Varanasi. The Varanasi Smart City Bio-Conversion Project, will reduce an estimated 33,187 tCO2e emissions over seven years and utilises anaerobic digestion technology to transform around 70 tonnes per day of animal manure and organic feedstock into clean energy and organic fertilisers. By converting waste into compressed biogas (CBG), the initiative has already avoided 2,806 tCO2e emissions during its first monitoring period, the developer said.
AMERICAS
Deficit deal demands – President Donald Trump rejected the EU’s offer to eliminate tariffs on cars and industrial goods in exchange for reciprocal action, stating it would not be sufficient to offset the US trade deficit with the bloc. At a White House press conference on Monday, Trump said the EU must commit to purchasing $350 bln worth of US energy to qualify for tariff relief, arguing that such a move would rapidly eliminate the deficit. His remarks followed an earlier proposal by European Commission President Ursula von der Leyen to establish zero-for-zero tariffs.
Assessments axed – The US Commerce Department has terminated approximately $4 mln in federal funding to Princeton University for climate risk assessment programmes, stating that the projects do not align with the Trump administration’s priorities. The decision followed a review of financial assistance programmes under the National Oceanic and Atmospheric Administration (NOAA), and was described as part of efforts to reduce the size and cost of the federal government.
Ammonia team-up – Energy technology company Technip Energies received a contract to help build the ammonia production facility planned by a joint venture in Louisiana. Technip will also work to integrate low-carbon ammonia technology from Topsoe into the industrial-scale project. Financial details were not disclosed in the release on Tuesday, but Technip noted the contract award represents more than €1 bln ($1.1 bln) in revenue.
Data-driven decarbonisation – Tachyus, a Houston-based software company specialising in modelling and optimisation tools for the oil and gas sector, has signed a new contract with INEOS USA Oil & Gas, the American energy arm of global petrochemical company INEOS. Under the agreement, INEOS is expected to deploy Aurion, Tachyus’ cloud-based emissions management platform, to track, forecast, and report GHG emissions across its facilities. The platform integrates data from multiple sources and uses auditable calculations to improve transparency and support INEOS’s goal of achieving net zero emissions by 2050.
Jack of all (carbon market) trades – Consultancy ClearBlue Markets launched a new market intelligence product on Thursday aimed at compliance market participants. The Vantage Position Optimization solution, using ClearBlue Vantage, the company’s AI-based carbon intelligence platform, integrates funding data with market intelligence, risk reports, advocacy, transaction support, and compliance reporting. The solution is intended to help compliance market participants, multi-facility operators, and new market entrants optimise their market position and investment decisions. The tool is currently available for the WCI Quebec participants, the Alberta Technology Innovation and Emission Reduction (TIER) programme, and the Ontar Emissions Performance Standards programme. It will be next made available to WCI California participants, as ClearBlue adds North America, Europe, and UK markets in a phased rollout in 2025.
Cap-and-trade talks – Washington’s Department of Ecology (ECY) will host a public meeting on Apr. 30 at 1530 EST (1930 GMT) to discuss the cap-and-trade rulemaking announced in March, which seeks to facilitate linkage and consider other programme updates. The session will announce subsequent meetings throughout spring and summer to solicit feedback on rulemaking topics. As well, the agency has scheduled a community forum at 1730 EST on May 5 to seek input from potentially impacted communities and climate groups to discuss environmental justice issues related to the rulemaking.
Accounting advice – Brazil’s Central Bank launched Wednesday a public consultation on accounting guidelines released in Dec. 2024 for the treatment of different carbon units – namely, allowances from the approved Brazilian ETS, biofuels-based carbon avoidance credits (CBIOs) from the RenovaBio compliance scheme, and voluntary carbon credits (VCCs). Interested parties can submit suggestions until May 31, 2025.
VOLUNTARY
Templates for trees – The UK’s Woodland Carbon Code team Scottish Forestry and the IUCN UK Peatland Programme have published template agreements for buying and selling units from woodland and peatland projects in the UK. Developed in partnership with legal experts, the templates are tailored to each of the UK’s legal jurisdictions and aim to support market confidence.
Proto-call for comments – The Climate Action Reserve (CAR) announced efforts to develop an Argentina Landfill Protocol, kicking off a month-long comment period on Tuesday. Feedback received by May 8 will guide how GHG reductions are quantified, monitored, reported, and verified in landfill gas collection projects in the country. The new protocol is expected to support the creation of carbon credits to encourage methane capture in landfills, and is slated to be presented to the CAR board for approval in June. Most municipalities in Argentina have irregular final disposal systems of waste, with only some controlled methods of disposal implemented as of 2018, according to the country’s Ministry of Health and Environment.
AND FINALLY…
Dire situation – US Biotech company Colossal Biosciences announced on Monday that it had “resurrected” the extinct dire wolf through gene editing, but scientists quickly pushed back on the claim, arguing the animals are not true dire wolves. Critics claim that the company genetically modified gray wolves by inserting around 20 dire wolf genes, focusing on superficial traits like fur colour. Experts also note that thousands of genetic differences separate the extinct dire wolf from gray wolves and that the dire wolf may not even be closely related to wolves at all, according to prior genetic studies. The announcement, unveiled with media fanfare and collaboration from ‘Game of Thrones’ author George R.R. Martin, has raised concerns among scientists about the scientific accuracy and ecological purpose of such projects. Colossal has yet to publish its latest findings in a peer-reviewed journal.
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