Global climate finance flows reached an all-time high of $1.9 trillion in 2023 and are expected to have surpassed $2 trillion in 2024, according to a report published Tuesday.

Global carbon offset markets and carbon capture technologies are on track to jointly become a trillion-dollar industry by mid-century, driven by corporate climate targets, tightening regulation, and accelerating investment, according to new forecasts from a major consultancy.

Eye in the sky - The European Space Agency (ESA) on Monday released the first images from its new biomass satellite, marking a major milestone in forest carbon monitoring and climate science. Launched under ESA’s FutureEO programme, the satellite is the first to carry a P-band synthetic aperture radar capable of penetrating dense forest canopies to measure woody biomass — crucial for estimating global forest carbon stocks. Still in its commissioning phase, the satellite has already delivered striking images from regions including Bolivia, Brazil, Indonesia, Gabon, Chad and Antarctica. These early returns demonstrate its potential not only to assess forest health but also to reveal subsurface desert features and internal ice structures, offering new insights into Earth’s extreme environments. Scientists are optimistic that once fully operational, the satellite will dramatically improve our understanding of how forests influence the carbon cycle and help address climate change.

Sales of cheap voluntary carbon credits continued to dominate trade in a week where the European Commission signalled it would pull the plug on the proposed Green Claims Directive, though developments on Monday suggested this may no longer be the case, with the drama generating significant regulatory uncertainty.

The vast majority of business leaders say the price of inaction on climate will outweigh the cost of the energy transition, with nearly two-thirds expecting increased costs from global warming this year, according to a new survey.

The market for carbon removal credits is increasingly seeing demand outstrip supply, with credit deliveries unable to keep up with the rate of purchases, analysis by Carbon Pulse shows. 

International climate negotiators have asked the UN to price out options for winding down its old carbon offsetting scheme, transferring market operations to the Paris Agreement's trading framework, and dividing up the left over money – after more than a decade of talks. 

A carbon ratings agency and data provider has unveiled a new product making thousands of its quality assessments public.

Vietnam’s decision to only allow the sales of forest-based carbon credits after domestic climate targets have been met may create similar export restrictions as those that have been muting Indonesian sales in recent years, according to analysts.

Factory reset - Indonesian developer Fairatmos has signed an MoU with state-owned PT Surabaya Industrial Estate Rungkut, which develops and manages industrial zones, to conduct a pre-feasibility study for carbon reduction projects. The collaboration will focus on wastewater management, energy efficiency, and low-carbon technologies including reforestation. Fairatmos will provide digital MRV tools and align projects with both national and international carbon standards, it said.

Political trends and ESG backlash are shaping investors’ nature finance strategies but not stopping spending plans, according to a survey by an investment and advisory firm.

Hard to let go - Coal remains a dominant energy source in Indonesia (60%), Malaysia (43%), Pakistan (18%), and Bangladesh (8.5%), despite growing climate commitments, a recent report from Hong Kong-based research group Climate Finance Asia has found. According to the report, coal is deeply embedded in Asia’s energy systems, yet the financial architecture to support its retirement is still underdeveloped. Major obstacles to shift from coal to clean energy are policy uncertainty, lack of long-term coal retirement strategies, credit risk, lack of bankable transition projects, inflexible power purchase agreements (PPAs), and limited access to affordable renewable financing, the report said.

Japan's top financial regulator is seeking to develop high-level principles to underpin a transparent and sound carbon credit market.

New record - Australia's National Electricity Market (NEM) has seen a new wind and solar instantaneous output record set on Monday, RenewEconomy reports. Data from GPE NEMLog, which tracks the country's main grid, showed wind and solar set a new output peak of 12,563 MW at 10:30 AEST on Monday, topping the previous peak of 12,261 MW set in Dec. 2024. The share of renewables in the NEM when the record was set, was around 65% but short of the record of more than 75%, which reflected higher demand at the time. A number of new wind projects, including at Goyder South in South Australia and Clarke Creek in Queensland, has boosted the wind component considerably, according to the outlet.

Australian Carbon Credit Unit (ACCU) issuance hit 2.17 million in May, the highest monthly volume this year so far, as the Clean Energy Regulator published more carbon project data on its register.

Provincial planning - The government of Khyber Pakhtunkhwa in Pakistan is planning to form a 10-member Climate Action Board to coordinate and oversee climate strategies across the province, Business Recorder reported. For this purpose, the provincial government has already tabled the draft KP Climate Action Board Act, 2025 in the provincial assembly. The board would be responsible for maintaining a GHG inventory and establish emissions baselines. It will also conduct, promote, and oversee research on mitigation, adaptation, and climate finance across departments. As well, it will facilitate carbon market participation and support the generation of carbon credits. Lastly, the board will be responsible for reviewing, approving, and executing MoUs and letters of intent along with other such agreements, the media outlet added.

30% EV by 2030 - Pakistan has rolled out its National Electric Vehicle (NEV) Policy 2025-30, aiming for 30% of vehicles sold to be electric by 2030. Under the policy, the government will install 40 EV charging stations along the motorways and promote battery swapping and vehicle-to-grid (V2G) technologies. The policy will result in fuel savings of 2.07 bln litres annually and cut emissions by 4.5 MtCO2e, the Dawn reported. It will also result in the cutting of healthcare costs by $405 mln per year and save $1 bln in foreign exchange. As well, the government has allocated about $32 mln in subsidies for accelerating the shift. It also plans to launch a digital platform to manage applications and subsidy disbursement. The policy is expected to help Pakistan earn $53 mln in revenue through the generation of carbon credits, the outlet added.