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TOP STORY
EU, UK strike initial agreement in ETS linking talks
UK carbon permit prices jumped an initial 6% on Monday following early news that the EU and UK had struck a broad deal to reset their relations after Brexit, including an early-stage agreement to link their emissions trading systems (ETSs) and exempt each other from upcoming carbon border fees — although few details were provided on the timeline for implementing a market link-up.
KENYA CARBON MARKETS CONFERENCE
BRIEFING: Kenyan Article 6, CORSIA trading squeezed by NDC ambition
Kenya’s supply of ‘correspondingly adjusted’ (CA) credits is severely constrained by ambitious commitments in the country’s Nationally Determined Contribution (NDC) UN climate targets, according to speakers at the Kenya Carbon Markets Conference in Nairobi on Monday.
Nations to launch government-led coalition to scale use of high-integrity carbon credits
The governments of Kenya, Singapore, and the UK will soon launch a government-led coalition to unlock demand and scale the use of high-integrity carbon credits, Kenyan officials announced in Nairobi on Monday.
EMEA
Russia files WTO complaint labelling EU’s CBAM, ETS as discriminatory and protectionist
Russia has launched a formal complaint at the World Trade Organization (WTO) over the EU’s Carbon Border Adjustment Mechanism (CBAM) and Emissions Trading System (ETS), arguing the schemes amount to a protectionist and discriminatory trade barrier masquerading as climate policy.
Germany in U-turn on nuclear, easing EU clean energy deadlock
Germany has dropped its longstanding opposition to nuclear power in a significant shift under newly elected Chancellor Friedrich Merz, according to media reporting citing French and German officials.
ETS2 success necessary to preserve the rest of the EU’s climate policies -report
The EU’s climate policy depends on the success of the incoming Emission Trading System for heating and transport (ETS2), as its effective implementation will safeguard the existing ETS and the rest of the bloc’s climate framework, according to a report by a German political foundation.
BRIEFING: EU looking into blended finance to support carbon removals
The European Commission is looking into a combination of public and private finance to support carbon removals (CDR) and bridge the gap with the CO2 price on the EU’s Emissions Trading Scheme (ETS), an EU official has said.
Brussels seeks views on how states can claim flexibility towards land use emissions targets
The European Commission is seeking opinions on a draft act setting out how EU countries can claim a flexibility mechanism for counting emissions reductions under the bloc’s Land Use, Land-Use Change, and Forestry (LULUCF) Regulation.
Euro Markets: EUAs slide as sellers remain in charge, while UKAs jump on linking agreement
European carbon prices extended their recent losses as selling pressure continued from Friday into Monday before stabilising through the afternoon, following the broad moves in natural gas and power prices, while UK Allowances ended the day at their session peak and the UKA-EUA spread climbed to a two-year high in reaction to the EU-UK agreement to pursue carbon market linking.
FEATURE: Italian renewables developers breathe sigh of relief as court overturns restrictions
Italy’s renewable energy sector received a lifeline last week, after an administrative court decided to dismantle a controversial decree that threatened to gridlock solar and wind project development across the country.
INTERVIEW: Rebuilding EU solar manufacturing requires public support -impact investor
Re-establishing solar manufacturing in Europe is key to energy security and reclaiming the continent’s presence in high-tech solar products, but will require public support to give projects an edge against fierce global competition, an expert at an impact investor told Carbon Pulse in an interview.
Funds labelled “green” under EU rules hold $33 bln in top carbon majors -report
Investment funds classified as sustainable under EU regulations held over $33 billion in fossil fuel assets at the end of 2024, backing firms linked to around 18% of annual global CO2 emissions, a new investigation has found.
INTERVIEW: Real estate pioneers move forward on low-carbon label, despite EU headwinds
A European initiative on low-carbon building certification is moving ahead, undeterred by recent moves by Brussels to dilute EU corporate sustainability reporting rules, its initiators told Carbon Pulse.
AMERICAS
RGGI Market: Benchmark RGAs hover around $22 absent market catalysts
Benchmark RGGI allowance (RGA) prices hovered around the $22 handle in the absence of a significant driver as the market awaits updates on the ongoing programme review, federal pushback, and the upcoming Q2 auction in June.
California power sector CO2 emissions dip in April as renewables hit almost year-long high
California power sector CO2 emissions dipped some 1.6% year-on-year (YoY) in April as the share of generation stemming from renewables hit an almost year-long high, state data published Friday showed.
Mexico would save $1.6 bln per year on gas imports by meeting 2030 renewables goal -study
Meeting its 2030 renewable energy target will help Mexico reduce its reliance on US natural gas and save $1.6 billion on gas imports, according to analysis published by a global energy think tank.
US non-profit approves first 16 companies using internal carbon fee for climate certification
A San Francisco-based non-profit announced Monday the first 16 companies approved under its new certification scheme that requires businesses to use an internal carbon fee to financially support their climate pledges.
Restoration startup secures first biodiversity-labelled funding in Brazil
A Brazilian startup has secured the country’s first biodiversity-labelled financing applied to forest restoration activities, receiving R$80 million ($14.2 mln) from the federal Climate Fund.
ASIA PACIFIC
Pakistan to roll out carbon levy, make industrial gas surcharge permanent as part of IMF bailout
Pakistan will start charging a carbon levy on petrol, diesel, and fuel oil from July, and is planning to make a separate gas surcharge for off-grid industries permanent, as part of a broader economic package backed by the International Monetary Fund, according to an IMF staff report.
GreenCollar quits Climate Active, blasts environment movement’s “own goal” on carbon credits
Australia’s largest carbon project developer has quit the federal government’s Climate Active scheme, arguing it has become too risky for companies to participate without being accused of greenwashing.
Australia publishes landfill gas exposure draft ACCU method for consultation
The Australian government has released the long-awaited exposure draft for an updated landfill gas carbon credit methodology for consultation.
Australian developer argues enviro plantings offer best ACCU returns as market to turn tight
The Australian carbon market is facing the threat of an undersupply undertow despite the buoyancy created by the recent federal election result, a project developer said Monday.
States could drive emissions drop at Australian coal mines, think tank says
Complementary policy tools could help reduce emissions at a swathe of coal mines on the east coast of Australia by leveraging state emissions targets in tandem with the Safeguard Mechanism, and incentivise real fugitive methane leak drops over offsets and other federal measures, a think tank said Monday.
New Zealand’s only CCS project could be dropped due to insufficient carbon price
New Zealand is set to abandon its only carbon capture and storage (CCS) project after proponent Todd Energy said the economics don’t stack up as rules currently stand, despite a NZ$50 ($39) carbon price, Radio New Zealand (RNZ) reported Monday.
New Zealand forecasts lower ETS shortfall
New Zealand on Monday updated its annual five-yearly forecast on supply and demand in its emissions trading scheme, slightly adjusting down the expected shortfall in permits compared to last year.
China thermal power production drops 2.3% in April, renewable energy expansion continues
Thermal power generation in China fell in April, while wind and solar power both posted double-digit increases, according to government data published Monday.
“Carbon news” coverage an effective, informal regulatory mechanism that spurs Chinese corporate climate action -study
“Carbon news”, or media coverage of greenhouse gas emissions and climate technologies, is playing a critical role in encouraging Chinese companies to adopt greener practices and accelerate innovation, according to a new academic study.
INTERNATIONAL
Steelmakers risk locking in massive emissions as refurbishments near -report
Steelmakers across Europe and Asia are on the brink of locking in carbon emissions equivalent to those of entire countries, unless they shift away from relining coal-based blast furnaces to cleaner technologies, according to a report published Monday.
VOLUNTARY
VCM Report: ARR carbon credit prices rally as Microsoft steps in with mega-deal
Prices for afforestation, reforestation, and revegetation (ARR) carbon credits jumped last week amid news that Microsoft has bought 18 million units in a forward purchase agreement from a US firm, but other sectors continued to flat line.
McKinsey reiterates goal to purchase 100% removal credits by 2030
Global consultancy McKinsey has reiterated its goal of expanding the proportion of removals in its offset portfolio, as it seeks to help scale permanent carbon removal solutions.
Structural barriers undermine Indigenous, local communities’ access to climate finance -study
A new global study identified both the benefits and barriers of financial mechanisms such as payments for ecosystem services (PES) programmes, which are aimed at supporting environmental stewardship by Indigenous Peoples and Local Communities (IP&LC).
Intensive oyster farming rivals mangroves, seagrass for long-term carbon storage, study finds
Intensive oyster farming can significantly enhance long-term carbon storage in marine sediments, with burial rates comparable to seagrass and mangrove ecosystems, according to a new study.
BIODIVERSITY (FREE TO READ)
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Little GEF nature financing reaches local communities, report says
Too little Global Environment Facility (GEF) funding reached Indigenous Peoples and local communities (IPs and LCs), where it was most needed over 2023-25, and it often failed to align with local priorities, according to a briefing led by the International Institute for Environment and Development (IIED).
Australian state proposes bill to protect and restore biodiversity
The South Australian state government has introduced a biodiversity bill to parliament that could ramp up measures to safeguard native species.
Tesla unwilling to talk about deep sea mining concerns, non-profit says
Electric vehicle manufacturer Tesla did not engage with requests for dialogue about its position on deep sea mining before it applied for the blocking of a shareholder proposal on the topic, according to a non-profit investor in the company.
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EVENTS
Carbon Removal Investment Summit: June 3, London – cCarbon is hosting this exclusive, one-day conference with the goal of accelerating carbon removals through a data and modelling-driven discussion. It will bring together a distinguished group of investors, capital providers, carbon removal buyers, leading developers, and other key stakeholders to unlock investment and create partnering opportunities. An invite-only investors’ conclave will take place during the summit to explore pathways for unlocking and chanelling capital into carbon removals. Attendees will have the opportunity to participate in high-impact sessions to discuss the business case for nature- and technology-based removals. cCarbon will unveil a data-driven benchmarking tool designed to assess carbon removal providers based on key factors like feasibility, scalability, and maturity. Register here
Eurelectric Power Summit: June 3-4, Brussels – Rising cybersecurity threats, procurement issues, and escalating geopolitical tensions are testing the resilience of Europe’s energy sector. Transport, big tech, and industry are raising new demands: from lower electricity prices and more competitive contracts for industrials to exponentially higher electricity demand from data centres and AI. Meanwhile, the energy price crisis caused the average energy consumer to be increasingly sceptical of the power sector and Europe’s energy transition. Join the most influential policymakers and industry leaders in Europe at Eurelectric’s Power Summit to make sense of these megatrends. Register here
Climate Action for People and Nature (Gold Standard): June 5-6, Paris – Join climate leaders, policy makers, innovators, and corporate trailblazers committed to bridging the gap to net zero. This two-day event offers practical insights and tools to help your organisation navigate evolving climate targets, carbon markets, environmental attribute certificates (EACs), and other impact-driven mechanisms. Don’t miss the chance to network, learn, and lead credible climate action that drives real impact for both people and planet. Purchase your ticket today
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Job listings this week
- Technical Lead, Nature-Based Carbon Development, Invert – Ottawa/Remote
- Head of Carbon, Brooklyn Navy Yard Development Corporation – Brooklyn, NY
- Energy Manager (Carbon), Meta – Menlo Park, CA/Remote (US)
- Director of Verification & Methodology, Tradewater – Remote
- Cap-and-Invest Climate and Energy Policy Lead (Environmental Planner 5), Washington State Department of Ecology – Lacey
See all listings or post a job
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BITE-SIZED UPDATES FROM AROUND THE WORLD
NOTICE: Our bite-sized updates are to no longer appear in the CP Daily newsletter. They will be relocated to the new CP Daily News Ticker that will be launched on the Carbon Pulse website in the coming days. The CP Daily News Ticker will act as a ‘live blog’, also featuring all Carbon Pulse news and analysis published that day, appearing in real time. A link to the Ticker will appear in our daily newsletters. It will remain free to read for Carbon Pulse non-subscribers, but it will eventually be migrated to paid access only.
INTERNATIONAL
Nature-based boost – The UN Development Programme (UNDP) in the Philippines and Canada have launched the NatureNest Accelerator, a six-month programme aimed at supporting ten local enterprises to scale nature-based solutions (NbS) that promote climate resilience and ecosystem protection. NatureNest is expected to provide capacity building in business operations, climate resilience, and gender equality, alongside one-on-one mentoring to improve access to financing. Filipino government agencies, including the Department of Finance, the Department of Environment and Natural Resources, and the Bangko Sentral ng Pilipinas, expressed support for the programme. Applications are open until Jun. 13.
Defining the roadmap – The Institute for Climate and Society Brazil and Nature4Climate held a roundtable Monday for climate journalists to underscore the importance of reaching the $1.3 trillion climate finance goal by 2035 established in Baku. The Baku-Belem Roadmap, which is developed by both the Azerbaijan and Brazilian COP presidencies, sets a vision and direction for COP30 in Belem, said Professor Josue Tanaka of the Grantham Research Institute. That vision will not only include novel ways to reach that target, but also define ways to more efficiently distribute existing dollars to developing nations, panellists said.
EMEA
Nuclear new-build – The construction of two new nuclear power plants in the Netherlands will cost an estimated €20-30 bln, said climate and energy minister Sophie Hermans on Friday. This is the government’s first cost estimate. It is based on technical feasibility studies by EDF and Westinghouse, the two potential builders. Cost estimates will become more accurate once designs and locations are selected, said the minister. Overall however, the price tag corresponds to experiences in other European countries, she noted. The first plant is expected to be ready at the end of the 2030s at the earliest.
SAF in Rotterdam – Swiss start-up Metafuels plans to open its first commercial-scale sustainable aviation fuel (SAF) factory in the Port of Rotterdam, according to TNW. The facility will be built in collaboration with liquid energy storage provider Evos. Metafuels’ “aerobrew” technology converts renewable methanol into jet fuel, claiming up to 90% lower life cycle emissions than conventional jet fuel. Its factory will be able to process both biomethanol (from biowaste) and e-methanol (from renewable hydrogen and captured CO2). Metafuels expects both its Dutch plant and a Danish facility to start producing fuel for commercial use from 2028.
Microbial impact – Equinor has partnered with the University of Manchester to study how microbes in underground storage sites could impact carbon capture and storage (CCS) projects, responding to concerns that their response to CO2 injection remains poorly understood. While some microbial responses could provide CO2 storage benefits, others could possibly lead to methane production, infrastructure corrosion, or loss of injectivity. The two-year project will collect samples from saline aquifers and oil production sites to study how the microbes respond to high concentrations of CO2. Microbial monitoring is not yet included in the monitoring strategy for CCS sites as required by the UK’s North Sea Transition Authority, but gaining a deeper understanding of how microbial communities respond to CO2 storage is seen as critical to the industry’s long-term success. Equinor’s Northern Lights CCS project in Norway is set to begin operating this year, and it’s also working alongside BP and TotalEnergies on the Northern Endurance Partnership CCS project in the UK’s Northeast. (Energy Voice)
CCS contract – Engineering consultancy Penspen has secured the contract to advance the development of the HyNet CO2 transportation pipeline at Liverpool Bay. The multi-million-pound deal signed with United Living Infrastructure Services will see Penspen deliver the detailed engineering design to develop both the pipelines and above-ground installations, to transport CO2 from local industrial emitters in Stanlow to the Liverpool Bay CCS facility via a network of new assets and repurposed infrastructure. Eni reached financial close for the HyNet CCS project last month, which will decarbonise heavy industry around Liverpool Bay through CCS and low-carbon hydrogen.
Dockside decarbonisation – DP World, a Dubai-based global logistics company, has extended its UK Carbon Inset programme through the end of 2025 after registering over 150,000 containers in the first three months. The initiative allows importers to claim 50kg of CO2e carbon credits per loaded container handled at DP World’s London Gateway and Southampton terminals, aiming to reduce Scope 3 emissions through the use of lower-carbon marine fuels by its subsidiary, Unifeeder, a European short-sea shipping and logistics provider.
ASIA PACIFIC
Record quarter – China installed 60 GW of new solar in the first quarter of 2025, analysis by Rystad Energy released Monday said, the highest ever recorded in a first quarter in the country’s history. Rooftop solar PV accounted for 60% of that total. The installations were the result of entities rushing to meet policy deadlines set by the National Energy Administration’s new guidelines which come into effect in May, the firm said. The rules encourage rooftop solar as a way to ease grid congestion issues, improve grid stability, and cut reliance on centralised power plants. Rystad predicts the surge in rooftop solar will continue, totalling 130 GW in 2025.
Disclosure urged – Kepco, South Korea’s largest electricity utility, has been accused of failing to disclose material climate-related risks in its $11 bln global medium-term note programme listed on the Singapore Exchange, with a whistleblower complaint filed Monday by non-profit Solutions for Our Climate (SFOC). The power company in the bond filings did not reveal its continued reliance on coal-fired power and financial exposure to LNG price volatility, SFOC said in a statement. Also, labelling hydrogen and ammonia fuel blends as “carbon-free” could mislead stakeholders, the statement said.
Pitch your ideas – Japan’s environment ministry is calling for feasibility study proposals for emissions reduction projects with synergy under the bilateral Joint Crediting Mechanism (JCM), according to a notice published Monday. The ministry said three feasibility study projects, each with costs of no more than JPY 20 mln ($138,142), will be selected. The Japanese government is also seeking JCM project proposals that can provide benefits beyond emissions reductions.
Speeding up – Nepal has submitted its third NDC to the UN, vowing – as previously reported by Carbon Pulse – to reach net zero emissions in 2045, five years earlier than its former target. The plan also lists a number of other climate commitments, most of which rely on financial contributions from abroad.
Reviving fallow lands – Indian portfolio company Hexa Climate has partnered with Asvata, a carbon credit venture of the RPG Group, to launch an afforestation project in the state of West Bengal, the partners told Carbon Pulse in an email. Under the project, around 500,000 trees will be planted to revive fallow land into forest ecosystems, thereby generating 375,000 credits over the next 20 years. The partners aim to register the project under carbon standard Verra, with plans of scaling up to 1.5 mln trees, they added.
AMERICAS
Subsidy showdown – US House Republicans are preparing to modify their party-line budget reconciliation bill this week, potentially including a stronger rollback of Inflation Reduction Act (IRA) clean energy tax credits, before attempting to pass it through the lower chamber, E&E News reported. The package, advanced by the House Budget Committee on May 18, includes provisions to cut climate-related grants, repeal parts of the IRA, and sell public lands.
Case dismissed – A Pennsylvania judge has dismissed a climate lawsuit brought by Bucks County against six major oil and gas companies and the American Petroleum Institute. The case alleged that the companies violated state consumer protection laws by misleading the public about the environmental risks of fossil fuel use. The judge found that the county’s claims could not be raised in state court. The decision marks at least the fifth dismissal of similar climate liability suits within the past year. (E&E News)
Electrolyser expansion – Electric Hydrogen, a Massachusetts-based manufacturer of high-power electrolyser systems, announced that Infinium, a Texas-based producer of commercial eFuels, will use its 100 MW HYPRPlant electrolyser at Project Roadrunner, a large-scale eFuels facility in Pecos, Texas. The system is designed to lower total installed hydrogen project costs by up to 60% and aims to support the production of sustainable aviation fuel (SAF), eDiesel, and eNaphtha from CO2, power, and water. The project, expected to be the world’s largest eFuels facility when it begins operations in 2027, is backed by Brookfield Asset Management and Breakthrough Energy Catalyst.
Cash to cut carbon – Scotiabank has opened applications for the fifth edition of its Climate Action Research Fund (CARF), which seeks to provide grants ranging from C$25,000 to C$100,000 ($17,900-71,700) to registered charities and non-profit organisations conducting research to support the transition to a lower-carbon economy. The fund, which allocates approximately C$1 mln annually over 10 years, aims to stimulate research on topics including decarbonisation pathways, carbon sinks, climate finance mechanisms, and regulatory changes. Projects must be novel, have clearly defined deliverables and timelines, and show potential to inform decarbonisation or financial institution efforts. Applications are due by May 22.
I’ll take that – Around six in 10 Americans view more stringent environmental laws and regulations to be worth the cost, but opinions vary significantly by party and region, according to a 2023-24 survey conducted by think tank Pew Research Center. The survey, which included some 36,900 participants, found that Democrats and Democratic-leaning independents think such laws are worth the cost (82%), while Republicans and GOP leaners opined that they cost too many jobs and hurt the economy (59%). Minnesota and Washington, DC showed the broadest support for stricter environmental regulations, followed by 28 other states. The think tank said that views diverged in 20 other states, while a majority of adults in Wyoming did not support the laws.
Wood you believe it – The Government of Guyana, in collaboration with the Global Green Growth Institute — an intergovernmental green finance organisation — and with funding from the UK’s Partnering for Accelerated Climate Transitions programme, recently launched a project to strengthen Guyana’s Monitoring, Reporting and Verification (MRV) systems. The initiative aims to improve GHG emissions reporting, sustainable forest management, and access to climate finance, with support from the Guyana Forestry Commission. The project seeks to expand data collection across land use and forestry sectors, including mangroves, and is expected to enhance reporting capacity and potentially unlock up to £46 mln in carbon financing. The project is scheduled to run until Dec. 2026.
VOLUNTARY
Marine CDR – Registry Puro.earth’s first ocean-based carbon removal methodology approved by its advisory board has evolved from OSB (ocean stored biomass) to MACS (marine alkalinity and carbon storage). In an update on LinkedIn, Puro wrote the durability estimate has been revised from 1,000+ to 200+ years, that ongoing field trials are key to gathering real-world data and validating methodology assumptions, and that continued R&D efforts are focused on enhancing environmental integrity, MRV, and credibility. More on their blog.
Mammoth troubles – Swiss direct air capture firm Climeworks has acknowledged delays in ramping up its Mammoth plant in Iceland, which began operating in 2024. The facility, designed to remove 36,000 tonnes of CO₂ annually, captured just 750 tonnes in its first 10 months, with net removals of only 105 tonnes, The Guardian reported. The company cited mechanical issues and said upgrades are underway. Climeworks also recently announced job cuts and uncertainty around its US-based Project Cypress amid shifting policy signals.
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