Problems with the Lights - An investigative report by Follow The Money (FTM) has raised serious questions over the viability of Norway’s flagship CCS initiative, Northern Lights, just weeks before it begins operations. Launched as Europe’s first cross-border CO2 transport and storage network, Northern Lights is backed by oil majors Equinor, Shell, and TotalEnergies and aims to permanently store emissions under the North Sea. The project has been heralded as a cornerstone of European decarbonisation efforts, with initial clients including Yara, Orsted, and Heidelberg Materials. But FTM’s investigation reveals the project is grappling with high operating costs, limited transport capacity, and uncertain long-term funding. With just two ships currently capable of transporting liquefied CO2, analysts warn that key targets - such as Yara’s 800,000-tonne annual commitment - may be unachievable without a much larger fleet. Even with two more vessels under construction, experts say a dozen may be needed as the project scales. FTM’s cost analysis, drawing on figures from the IEA and Wood Mackenzie, estimates that Yara could spend at least $140 mln per year on capture, transport and storage - raising doubts over the project’s commercial sustainability. Similar cost burdens were calculated for Orsted and Heidelberg Materials. The current cost of CCS through Northern Lights far exceeds EUA prices. The report also flags wider concerns about CCS technology, citing a pattern of underperformance among global projects and warnings from think tanks like IEEFA that CCS may offer false reassurance while prolonging fossil fuel use. Despite strong political and financial backing from Norway and the EU, FTM notes that the project’s first phase experienced a 20% cost overrun, with future funding sources unclear. Subsidies have so far shielded companies from the full cost burden, but the investigation raises doubts over whether the model is scalable or sustainable.

Subsidised leasing could enable up to 3 million households on low or modest incomes to switch to electric vehicles by 2032, softening the impact of any potential price rises of fuel caused by the introduction of the EU's emission trading system for heating and transport in 2027 (ETS2), according to new analysis published on Monday.

A Canadian cleantech firm plans to invest $40 million to establish a manufacturing facility in Egypt focused on flare gas recovery, carbon capture, and reinjection technologies, officials said following high-level talks in Cairo.

Big tech on the high seas - Danish shipping company Norden has partnered with Microsoft on a pilot project to reduce the tech giant’s maritime Scope 3 emissions by nearly 10,000 tonnes of CO2 over three years. The collaboration involves using waste-based biofuels and a 'Book and Claim' system, which allows Microsoft to account for emission reductions even if the low-carbon fuel isn’t physically used on its own shipments. Norden claims its biofuel voyages offer an 80-90% life cycle emissions cut compared to conventional fuels. The companies are also working with the Roundtable on Sustainable Biomaterials (RSB) to trial improvements to the RSB’s Book and Claim framework, aiming to enhance transparency and credibility in tracking sustainable shipping fuel claims. This project adds to a growing industry trend, with initiatives such as the Maritime Book and Claim System launched in 2024 by RMI, the Maersk Mc-Kinney Moller Center, ZEMBA, and Hapag-Lloyd, and a five-year MoU signed by Japan’s MOL and Be Forward for a car carrier Book and Claim service to Africa starting in 2025.

A UK-based climate fintech firm has launched a request for proposals to finance carbon credit projects with institutional debt, marking a fresh bid to unlock non-dilutive capital for developers seeking at least $1 million.

The European Commission this week proposed changes to its fluorinated gas (F-gas) regulation that would exempt around 10,000 small firms from registering in the EU’s F-gas Portal from 2026, as part of wider efforts to cut regulatory red tape while preserving climate goals.

Carbon pricing policies, including both taxes and fossil fuel subsidies, significantly influence countries’ export competitiveness in heavy industries, with coordinated global action key to mitigating trade distortions, a new study has found.

A US-based carbon removal (CDR) buyers' coalition focused on nature-based solutions has received an unexpectedly high volume and quality of responses to its inaugural request for proposals (RFP), according to early insights from the process published Friday.

A Dutch researcher has estimated the electricity consumption of AI modules and complete AI systems based on global chip production capacity and modules in use.

A South Africa budget announcement this week has confirmed a proposed price rise for the country's CO2 tax from next year as well as the expansion of carbon credit provisions, which will allow affected entities to use more offsets to meet their obligations.

European carbon prices slipped lower on Friday but found resilience above €70 despite US President Donald Trump threatening hefty tariffs on the EU, which sparked a short-lived afternoon sell-off on EUAs, while UKAs secured a 7% weekly gain.

The GHG emissions from burning fossil fuels must be considered in the environmental impact assessments (EIAs) for their extraction, ruled a European court this week.

In a third letter to global climate negotiators, published Friday, Brazilian COP30 President-Designate Andre Correa do Lago urged countries to shift gears when they meet in Bonn next month, warning against postponing important decisions.

Elimini President Laurie Fitzmaurice gave the keynote speech at this week's Carbon Unbound 2025 conference in New York. Here is a summary of her remarks.

An initial agreement struck on Monday to link the EU and UK emissions trading schemes (ETS) includes a key commitment from Britain to ensure “dynamic alignment” with the bloc's carbon market legislation – a move that puts Britain's emissions cap on the negotiating table, sources told Carbon Pulse.

The European Commission may be throwing the baby out with the bathwater in its ongoing attempt to simplify corporate sustainability reporting obligations, an NGO has warned on Friday.

Ghana and Singapore have signalled early support for a proposed Article 6.2 soil carbon project in Ghana’s Upper West Region targeting 3.6 million tonnes of CO2 by 2030, the project developer announced this week.

Saudi CDR - Solar-powered direct air capture (DAC) and energy from waste (EfW) with carbon capture, utilisation and storage (CCUS) are highlighted as key carbon removal options for Saudi Arabia to explore by a new scientific paper. The Kingdom is exploring CDR options such as CCS, afforestation, mangrove and wetland restoration in steps to meet its net zero by 2060 goal, but will likely require sector-specific regulations, such as diverting municipal solid waste to EfW plants to get there. Saudi Arabia aims to capture and permanently store 9 Mt of CO2 annually by 2027, with plans to increase this to 44 Mt/year by 2035, though meeting these targets will require extensive and costly infrastructure to support future DAC and BECCS facilities, the paper states. Research by KAPSARC suggest that substantial carbon removal will be required to meet the country’s net zero goals, with estimates suggesting a need for 250–371 Mt/year by 2060.

Capacity incapicity - Many African countries, including Zambia, are missing out on the benefits of carbon trading due to limited capacity and a lack of public awareness, according to the African Institute for Carbon Trading and Sustainability (AICTS). CEO Kudakwashe Manyanga highlighted the urgent need for investment in education and capacity building to enable the generation and trade of carbon credits, which are created by projects that reduce or remove carbon emissions. Speaking at the launch of Zambia's new Renewable Energy Certification platform (ZAM–REC), Manyanga stressed that despite efforts by the Zambian government, more must be done to promote carbon trading and ensure citizens, including traditional leaders and students, understand and engage with the sector. MentorMe CEO Elias Chipimo echoed the concerns, noting that information gaps are a major barrier and that platforms like ZAM–REC could help communities access the knowledge needed to benefit from carbon markets. He described the renewable energy certification initiative as a “game-changer” for investors and a vital step toward Zambia meeting its climate commitments under the Paris Agreement. (Zambia Monitor)

Short-term sea-level changes driven by climatic oscillations such as El Nino and the Indian Ocean Dipole (IOD) can trigger widespread mangrove dieback and reverse their role as carbon sinks, a study released Friday has found.

Say no to Nord - The EU is preparing to propose sanctions on the Nord Stream 2 gas pipelines linking Germany and Russia, aiming to block any future revival of the project amid ongoing peace discussions over the war in Ukraine. According to Bloomberg, the European Commission will begin consulting member states shortly, with strong backing from Germany and Chancellor Friedrich Merz, who sees the move as a way to end domestic debate over restarting the pipeline. Although Nord Stream 2 was completed but never certified, and partly damaged in 2022, recent speculation about reviving it - spurred in part by US-led peace efforts aimed at the war in Ukraine - has raised concerns. The EU sees a ban as a strategic step to cement its commitment to phasing out Russian gas imports by 2027 and to shield itself from external pressures, including from Russia and the US. While some Eastern European countries and German industries remain dependent on or hopeful for Russian gas, analysts say restarting the Nord Stream routes remains unlikely. The proposed sanctions, part of the EU’s 18th package against Russia, would require unanimous approval from all 27 member states.

Net-Zero Industry Act advances - The European Commission adopted four pieces of secondary legislation and a communication on Friday: rules on non-price criteria in renewable energy auctions; an act listing net-zero technology final products and their main specific components; a communication on where the EU's supply of net-zero technologies comes from; common criteria on strategic project selection that allows these projects to benefit from priority status at national level; and a list of specific components for which the Net Zero Industry Act requirements will apply.

The European Commission is expected to put forward its legislative proposal for a 2040 climate target ahead of a meeting of EU27 environment ministers on June 17, EU sources said on Friday.

CORSIA compliant - The European Commission has adopted its annual updated list of countries other than the EU and EEA countries, Switzerland, and the UK, that are considering applying the UN's CORSIA. China is not on the list, as it has not been for the past few years, while the US remains, for now. The aviation industry is currently in CORSIA's first phase (2024-26), with the 'mandatory' phase starting in 2027, lasting until 2035, for member countries. In the first phase, participation is voluntary for these member states.

The UK Court of Appeal on Thursday dismissed a legal challenge brought by an environmental campaigner against the British government’s decision to approve a major gas-fired power station with carbon capture and storage (CCS) in Teesside, ruling that ministers had acted lawfully in balancing the project’s emissions with national climate goals.

Stop it now! - Civil society organisations in the Republic of Congo and internationally are demanding an immediate ban on oil and mining operations in the Conkouati-Douli National Park, ahead of the First Global Congress of Indigenous Peoples and Local Communities of Forest Basins. The protest centres on the government’s plan to issue the ‘Niambi’ hydrocarbon exploration permit to Oriental Energy, covering nearly 1,300 sq. km, much of it within the park’s core protected zone - an area legally off-limits to such activity under Congolese law. Critics argue the move would threaten endangered species, violate Indigenous rights, and contradict Congo’s own environmental commitments, including its 30x30 conservation target and obligations under national and international laws. The park supports around 7,000 residents and is home to species such as lowland gorillas and humpback dolphins. Activists highlight a broader trend of protected areas in the Congo Basin being opened up for extractive activities. NGOs are urging President Denis Sassou Nguesso to cancel the permit and any others affecting the park and are calling on international donors to condition conservation aid on meaningful protections for forest communities and ecosystems. (Rainforest Foundation UK)

The largest political party in the European Parliament, the European People's Party (EPP), is pushing to delay final talks on the Green Claims Directive (GCD), currently slated for June 10, according to multiple sources close to the file.

A large non-profit will start work on a €32.7-million German-backed project that could help the Philippines meet its global climate and nature targets, it announced this week.

UK standard body Social Carbon has launched an insetting framework for supply chains in forestry, land use, and agriculture (FLAG).

UN officials tasked with helping to shape the Paris Agreement Crediting Mechanism (PACM) will review and discuss a new clean cooking crediting programme at the next methodological expert meeting in July.

Greener construction - Saint Gobain is launching a new low-carbon stone wool insulation facility in Leicestershire, central England, which is expected to start operations in 2027. The plant will initially produce 50,000 tonnes per year of stone wool insulation for the British market, with the potential to double its output to 100,000 tonnes per year. It aims to reduce the embodied carbon of construction projects by lowering the Scope 1 and 2 CO2 footprint of stone wool insulation, and is part of the construction manufacturer's commitment to reach net zero by 2050. The plant will have a renewably powered electric furnace. (Roofing Today)

Ship retrofits - Estonia's government has launched a €25 mln grant to incentivise shipowners to carry out green retrofits on their vessels such as carbon capture technologies, hybrid engines, renewable fuel-powered equipment, and exhaust gas cleaning systems. This makes it one of only a few European countries to offer direct financial support for ship retrofits in the form of state aid. If successful in their application, shipowners and operators will receive subsidies covering 15%-30% of the eligible retrofit costs, up to a maximum of €5 mln per project. The government will consider factors such as the ship’s flag state, how frequently it visits Estonian ports, and the kind of work to be carried out when assigning funding. (Cruise & Ferry)

An Australian direct air capture (DAC) startup has signed an agreement to deploy solar-powered DAC modules in Kenya, as interest grows in using the Great Rift Valley’s geology and renewables for CO2 removal projects.

The EU’s top court on Thursday upheld a European Commission decision denying a Swedish miner a more generous carbon allowance allocation under the bloc’s ETS, ruling that iron ore pellets are not direct substitutes for sintered ore within the scheme.