The Washington Department of Ecology (ECY) published on Thursday a draft proposal for considerations to extend the offer of free allowances for emissions intensive, trade-exposed (EITE) facilities under the state's cap-and-trade programme beyond 2035.

California Carbon Allowance (CCA) prices dipped even as market activity picked up as the market remained void of regulatory and political updates ahead of next month's auction, while Washington Carbon Allowances (WCAs) inched higher above levels required to trigger additional reserve volumes, traders said.

Agency aid axed - US House Republicans have advanced a fiscal 2026 spending bill that would eliminate funding for the International Energy Agency (IEA), citing concerns that the Paris-based agency has shifted from objective energy analysis to promoting climate policy, E&E News reported. The proposed cut, approved by the House Appropriations Committee, marks a significant break from decades of bipartisan support for the IEA, which was founded in response to the 1970s oil crisis.

Rollbacks endangered - The Trump administration is expected to soon release a proposal to topple the EPA’s landmark endangerment finding, but E&E News reported the strategy comes with big risks. The outlet reported that, if the EPA pins too many regulatory rollbacks to revoking the endangerment finding, rule repeals may not stand up in court.

Ditch the diesel - The Canada Infrastructure Bank (CIB) has closed a C$24-mln ($17.6 mln) loan to support remote First Nation community, Atikamekw of Opitciwan, in Northern Quebec. The Onimiskiw Opitciwan Ltd. Partnership will construct and operate the 4.8-MW Centrale de cogeneration d'Opitciwan to generate electricity by burning bark, sawdust, and woodchips produced by an adjacent sawmill as the community moves away from diesel-based energy. The project is expected to cut more than 11,000 tonnes of emissions and reduce the use of diesel by 4.6 million litres annually.

Transmission troubles - The US DOE has cancelled a $4.9 bln loan guarantee for the Grain Belt Express, a major transmission project intended to carry renewable energy from Kansas to the eastern US, E&E news reported. The agency said the commitment was rushed out during the final days of the Biden administration.

Zero-emission zeal - California regulator ARB approved amendments on Thursday to its Advanced Clean Truck (ACT) and Zero-Emission Powertrain Certification regulations to provide manufacturers with added flexibility while preserving emissions reductions. The changes include adjustments such as allowing credit pooling between states, expanded credit offset options, and updated requirements for near-zero emission vehicle range and certification protocols. The changes follow President Trump’s June attempt to revoke federal waivers for California’s emissions rules, which is currently under legal challenge.

Bills, bills, bills - New Hampshire Gov. Kelly Ayotte signed HB 123 into law last week, enacting a moratorium on carbon sequestration projects in state forests and creating a study commission to examine their fiscal and ecological impacts. The bill defines pre-sequestration timber tax revenue and directs the new commission to evaluate implications for state and local tax bases, forest management, and the logging industry.

The US Securities and Exchange Commission (SEC) has told a federal appeals court it does not plan to revisit its contested climate disclosure rules, asking for pending legal challenges to proceed.

Brazil’s proposed global fund for preserving tropical forests and jurisdictional REDD (J-REDD) can work in unison rather than as rivals, a webinar heard Thursday.

It ain't easy being green - In the first round of earnings calls since the passage of the One Big Beautiful Bill Act, renewable energy developers sounded optimistic tones while simultaneously indicating the growing toll the Trump administration is having on the sector. GE Vernova, for instance, said sales of its wind turbines were down while orders for its gas turbines were up. NextEra Energy, meanwhile, underscored the importance of renewables and battery storage for bridging the gap to meet near-term demand while waiting for new gas and nuclear capacity to come online. (E&E News)

Hurry it up - The American Clean Power Association, a US renewables group, is pushing the state of California to allow utilities to speed up renewable energy purchasing before tax credits expire, according to E&E News. The group filed a motion in the state’s Public Utilities Commission this week asking regulators to allow developers to “undertake immediate procurement” to ensure that ratepayers benefit from the tax credits that are set to soon expire thanks to Republicans’ One Big Beautiful Bill Act. The group is asking the commission to initiate an emergency procurement track next month.

Microsoft’s thirst for bioenergy with carbon capture and storage (BECCS) credits dominated the carbon removal (CDR) sector in the second quarter, according to a data platform.

Gold Standard’s new process of approving private insurance policies for carbon project developers looking to sell credits in the UN aviation offsetting scheme could help to boost supply in a crunched market – particularly if other standard setters follow suit and big insurers join in, officials involved in the arrangement told Carbon Pulse. 

AI ambitions - US President Donald Trump unveiled an executive order and action plan aimed at rapidly expanding US AI infrastructure by streamlining permitting for data centres and prioritising fossil fuel and nuclear energy to power them, E&E News reported. The plan proposes regulatory changes to environmental review processes and encourages the use of federal land for construction, while largely omitting wind and solar. While the administration promotes energy “abundance”, analysts say current policies may instead restrict power supply just as AI-driven electricity demand is projected to surge.

A Canadian carbon project financier on Thursday said it finalised settlement agreements over two troubled carbon offset projects in Indonesia and Mexico, but is continuing to pursue a lawsuit against former executives and consultants over alleged misconduct and mismanagement.

Redirecting projected climate-driven profit losses from the US homeowners’ insurance market to mitigation efforts could fund up to 85% of the global annual carbon reductions needed to limit warming to 1.5C, according to a peer-reviewed study published Thursday.

The development of a carbon-differentiated market for commodities is primarily held back by a lack of standardisation in the monitoring, reporting, and verification (MRV) of product-level emissions, even though regulations like the EU's carbon border levy will directly tie emissions to financial value, said analysts on a webinar Thursday.

Last year saw a record for global total coal demand, with a rise of 1.5% to nearly 8.8 billion tonnes globally driven by power demand, but this will slow in 2025 and reverse by next year, the International Energy Agency (IEA) said in its mid-year coal update.

Southeast Asia’s efforts to mitigate climate change are under growing strain as Western donors cut back on aid, tightening already limited budgets for energy transition in a region dominated by coal, an analysis released this week has found.

Australian miner Fortescue on Thursday said it is still well-placed to meet its "real zero" emissions target by 2030 even after mothballing two of its green hydrogen projects.