New wave of cash – The Asian Development Bank (ADB) has agreed a $10-mln policy-based grant to Kiribati, to bolster ocean conservation, sustainable growth, and financial inclusion of women, it said in a press release on Tuesday. Reforms include a landmark policy on fisheries and ocean management that will help the Pacific Island nation to conserve and use its marine resources sustainably. Parallel co-financing is being provided by the EU, New Zealand, Australia, and the World Bank, added ADB.

Carbon markets face a critical choice over how aggressively to adopt digital monitoring, reporting, and verification (dMRV) and other advanced tools, as methodologies have evolved under Article 6 and the voluntary carbon market (VCM), said experts on a panel on Tuesday. 

Trader asked by Carbon Pulse ahead of Wednesday's Q4 RGGI auction held a wide range of predicted settlements ranging between a deep discount to smaller premium to recent historically high secondary market prices, while analysts polled said they expected a discount.

The New York Department of Environmental Conservation (DEC) has finalised regulations for a reporting mechanism on GHG emissions, featuring some changes from earlier iterations following a public consultation.

The New Zealand government’s final allowance sale for 2025 failed to attract any bids, meaning all NZUs from this year’s auction volume will now be wiped from the system.

Through the roof – The Asian Development Bank (ADB) has approved a policy-based loan worth $650 mln to accelerate the rollout of rooftop solar in India. The cash will support a government initiative to reduce barriers for rooftop solar, the bank said in a press release Tuesday. The programme, Pradhan Mantri Surya Ghar: Muft Bijli Yojana (PMSGMBY), will offer a 60% subsidy for residential users installing a system up to 2 kW, and 40% for any additional capacity above that, up to 3 kW. Policy changes supported will include the development of operational guidelines and quality standards, said the ADB. It added that the support is expected to significantly contribute to India’s goal to install 30 GW of rooftop solar and result in 28.2 MtCO2e fewer emissions each year.

Cash call – The cross-sector Transition Advisory Group has called on New Zealand’s government to provide NZ$359 mln ($206 mln) to support the transition of 100,000 ha of land in Tai Rawhiti, in the east of the North Island, back to permanent bush to avoid future landslips. RNZ reported the region loses 55 mln tonnes of topsoil per year and that, absent intervention, the cost of cumulative storm damages over the next 30 years could exceed NZ$1 bln. In addition to the Crown money, funding is also coming from regional, private, and philanthropic avenues, said Gisborne District Council chief executive Nedine Thatcher Swann, adding that for every $1 spent, $4 of recovery cost is avoided. The group is comprised of forestry owners, Maori landowners, farmers, and representatives from Gisborne District Council and Ministry for Primary Industries.

Countries could reduce reporting burdens and strengthen the transparency and accuracy of land-sector data by aligning national forest assessments with Paris Agreement transparency requirements, suggested a new report.

Filing delay – Intervenor-defendants Conservation Law Foundation and the Northeast Organic Farming Association of Vermont filed on Dec. 1 a joinder supporting the State Defendants’ motion to extend their deadline to file reply briefs in the two cases, including the Vermont Superfund case, aligning their request with an earlier extension sought by the State Defendants. The groups seek to move the reply-brief deadline from Dec. 29 to Jan. 29, 2026, citing lengthy summary-judgment filings, the year-end holidays and efficiencies gained by coordinating schedules, while noting that plaintiffs oppose any extension beyond Jan. 12.

On to the senate – Belize's Carbon Market Bill has passed its second and third readings in the lower House of Representatives and now heads to the upper Senate chamber for final approval, according to Climate Spotlight. The bill was originally introduced in September. It offers a legal framework, including a national registry, authorisation procedures, MRV systems, and new institutions for climate oversight. Key regulations – for example, on social safeguarding and benefit-sharing – are slated to come later, as per comments by Sustainable Development Minister Orlando Habet. The government has also consulted with the World Bank and international partners like Taiwan for support in developing these guardrails, Habet said. The bill experienced pushback from opposition leader Tracy Taeger Panton, who raised the issue of carbon credit ownership, claiming that there could still be confusion over who owns or may sell these units.

The Article 6.4 Methodological Expert Panel (MEP) is expected in the first half of next year to respond to resubmitted versions of the first four bottom-up methodologies applying to the Paris Agreement Crediting Mechanism (PACM), according to a member of the UNFCCC Secretariat.

A Canadian climate tech developer would incentivise a modal shift in everyday commuters by monetising reductions in their transportation emissions, producing carbon credits for tech giants who are already tracking their movements.

Lab rebrand - The US DOE has renamed the National Renewable Energy Laboratory in Colorado as the National Laboratory of the Rockies, marking another Trump administration move to rebrand offices associated with wind, solar, and low-carbon technologies, E&E News reported. Assistant Secretary of Energy Audrey Robertson said the shift reflects a broader mandate to support all energy sources and prioritise scientific capabilities that can bolster manufacturing, reduce costs, and meet rising national power demand. While the change has raised questions about potential impacts on clean energy work, wind and solar remain listed as research areas, and a spokesperson for the lab said no programme cuts or other renamings are currently planned.

All breaks, no gas - Colorado’s Public Utilities Commission adopted a stricter ‘clean heat’ target on Monday, ordering gas utilities to cut GHG emissions 41% below 2015 levels by 2035, despite Democratic Governor Jared Polis’ office urging a 31% goal, E&E News reported. The updated standard builds on a 22% reduction required by 2030 and keeps Colorado’s 2021 clean heat law among the country’s most ambitious efforts to curb emissions from buildings, directing utilities to help customers shift to electric heat pumps and other appliances amid concerns over rising utility costs.

Policymakers can’t assume demand for clean technology will materialise based on net zero commitments and a want to save the environment, attendees of a Toronto-based climate event heard Tuesday.

European carbon allowance prices fell for a second day, fully erasing Friday's 1.3% gain, as trading activity increased markedly amid a continued surge in Dec-25/Dec-26 spread trading, while the front-month TTF gas market weakened for an eighth straight session despite a late spike on bullish headlines linked to Russia.

The EU’s incoming Carbon Border Adjustment Mechanism (CBAM) did not cause as much uproar at COP30 as in previous years, suggesting that opposition has peaked, EU Climate Commissioner Wopke Hoekstra said on Tuesday.

A UK-based power generator, and developer of bioenergy with carbon capture and storage (BECCS) projects, criticised the Science Based Targets initiative (SBTi) for failing to encourage companies to invest in durable CO2 removals. 

High price - Delaying the EU’s new carbon pricing system for buildings and road transport (ETS2) by one year to 2028 will significantly cut expected government revenues, Danish climate official Christian Stenberg told an event Tuesday. Denmark alone expects to lose around €500 mln due to the postponement, which was agreed to secure support from more skeptical countries such as Poland, Italy, and Romania during negotiations on the EU’s 2040 climate target. Stenberg said during the Brussels-based conference, organised by Politico, that the EU ETS2 is the most cost-effective tool for reducing emissions in transport and buildings, and that the one-year delay deprives governments of both revenue and an efficient mechanism for meeting climate goals.

Togo carbon transaction facility – The Togo office of the Global Green Growth Institute (GGGI) has launched an 18-month “Carbon Transaction Facility Readiness and Implementation support” project to prepare the country for participation in Paris Agreement Article 6 carbon markets. Backed by a $487,000 investment, the initiative will build capacity and train government decision-makers on Article 6 concepts, strengthen national governance frameworks, and support their implementation. By 2027, the project aims to accelerate technology development and transfer, boost institutional capacity, and improve access to climate finance in Togo, GGGI Africa wrote on social media.

Net zero chemicals, by SBTi – The Science Based Targets initiative (SBTi) on Tuesday unveiled new decarbonisation pathways to steer the chemicals industry toward net zero emissions. The Chemical Sector Pathways and Implementation Criteria give manufacturers detailed guidance to set science-based targets across key emissions sources, including primary chemicals, nitrous oxide from nitric acid production, non-primary chemicals and fertiliser use-phase emissions. SBTi said the package, developed through extensive research, consultation and pilot testing, is aligned with its Corporate Net-Zero Standard and is designed to unlock innovation, efficiency and long-term value in a sector that is the world’s largest industrial energy consumer.

WEF on carbon removals – The World Economic Forum has urged a major overhaul of financial structures to scale carbon removal and help keep global temperature rise below 1.5C. In an article posted on Dec. 2, the WEF notes a vast funding “missing middle” with projects too mature for venture capital but too risky for lenders. To address this, it underscores the need for coordinated public and private investment, risk-aligned capital, and clear demand signals from corporate buyers and governments. Currently, only 0.1% of the CO2 removals needed by 2050 are being achieved, with further progress hinging on a financial architecture that makes projects bankable, the WEF said.

The combination of a weak picture for European industry, a glut of gas, and questions around the supply of allowances post-2030 is keeping European carbon prices in check, despite expected supply tightness over the next two years, analysts told the S&P Global Carbon conference in Barcelona on Tuesday. 

Two major calls for stakeholder input have been launched by the Supervisory Body for the Paris Agreement’s Article 6.4 crediting mechanism, concerning corresponding adjustments and proposed new crediting approaches, as experts ramp up technical work in a methodology meeting running this week.

A global logistics company is generating carbon insets from using low-emission fuel in container vessels calling at its UK ports and plans to expand the initiative to other regions amid growing corporate demand, a senior company executive said in Barcelona on Tuesday.

Bilateral cooperation through Article 6.2 could lead to a more efficient deployment of global carbon removal technologies, according to a World Bank-backed study published this week.

MA market monitor - The Massachusetts Department of Environmental Protection (DEP) has released the Q3 market monitor report from Potomac Economics for the state’s Global Warming Solutions Act (GWSA) cap-and-trade scheme. According to the report, allowance prices averaged $9.45/t for 133,000 allowance transfers in 2025, nearly all of which occurred in January or February ahead of the compliance deadline for 2024. Potomac Economics found many entities holding more allowances than their latest 12-month emissions, concluding that those with holdings below their obligations would be in position to fulfil their compliance requirements either through the limited secondary market, moderating emissions, or emergency deferred compliance. Emissions under the scheme have risen more than 10% in 2025, while the latest auction in September showed a record-high settlement. In the auctions in which allowances have been sold for both 2025 and 2026 vintages, the clearing prices for the current vintage were at a premium compared to the prices for the future vintage, but given the large quantity of banked allowances after each compliance year, the prices of current vintage and future vintage allowances are expected to converge, according to Potomac Economics.

Sierra Leone has approved tax exemptions on a wide range of clean cooking technologies, in an effort to make clean cooking solutions more affordable and commercially viable.

Thailand’s Cabinet on Tuesday approved the Climate Change Bill that will introduce carbon taxes, establish a carbon credit trading regime, and create a national body to steer greenhouse gas policy.

The UK on Tuesday opened a public consultation aimed at informing a common framework  for identifying sustainability criteria for biomass.

Article 6 may now be the only way of truly connecting international carbon markets, according to a veteran analyst, with the EU credit demand signal a make-or-break moment for scaling Paris-era trading.

A Chilean resolution published Friday identifies “disqualifications and incompatibilities” for verification bodies reviewing projects that issue offsets used within the national carbon tax, reserving the right to dismiss verification outcomes where there has been a violation.

A model of an Africa-focused fund could redirect billions of dollars in pensions into nature-based projects through sustainable forestry, with future potential for biodiversity credits, a financial executive told Carbon Pulse.

The United Nations Development Programme (UNDP) has teamed up with a carbon market ratings agency to support governments in developing countries.

The EU’s forthcoming emissions trading system for road transport and heating fuels (ETS2) will be crucial not only for decarbonising transport and buildings, but also as a key source of flexibility in the power market to support growing electricity use in industry, an expert has said.

European H2 market update – The European hydrogen market is falling short of 2030 targets, despite a 51% annual increase in installed electrolyser capacity in 2024, according to the 2025 monitoring report by the EU Agency for the Cooperation of Energy Regulators (ACER). As of October, only Denmark and Ireland had notified completion of EU targets transposition, leaving regulatory uncertainty and investor hesitancy, the report said. The average cost of renewable hydrogen remains around €8/kg – four times that of fossil-derived hydrogen – ACER noted. The agency recommends accelerating implementation of EU rules, prioritising infrastructure investment, and targeting support toward hard-to-abate sectors to unlock the hydrogen market’s potential.

The UK government is seeking views on proposed reforms to its capacity market system, aimed at ensuring security of power supply while cutting energy emissions, it announced on Tuesday.

Youth pushback against oil and gas – Ten Utah youth filed a suit against the state’s Board and Division of Oil, Gas and Mining on Monday, arguing that fossil-fuel permits for coal, oil, and gas development are unnecessary, costly, and harming them by worsening Utah’s severe air pollution while ignoring safer, cleaner, cheaper alternatives. The case follows a 2025 Utah Supreme Court ruling that mooted an earlier youth case and clarified that plaintiffs must target specific government conduct rather than broad energy policies to obtain meaningful relief. The plaintiffs want the permits declared unconstitutional, harmful ones reviewed or revoked, and a halt to new fossil-fuel permits unless they serve a compelling interest and consider lifecycle GHGs, health harms, and safer alternatives.

Exxon lawsuit moves ahead – Connecticut advanced its deceptive-practices lawsuit against ExxonMobil after a state judge last week denied in full the company’s motion to strike, rejecting arguments that the case was precluded by federal law, insufficient under the Connecticut Unfair Trade Practices Act or barred by the First Amendment, among other grounds. The ruling follows earlier unsuccessful efforts by ExxonMobil to remove the case or dismiss the suit for lack of personal jurisdiction, including losses in federal district court and the Second Circuit. Connecticut filed the suit in September 2020 under the state’s Unfair Trade Practices Act, alleging ExxonMobil ran a decades-long campaign to mislead the public about climate risks from fossil fuels.

A US platform for buying sustainable products is adding a tool to enable customers to claw back tax on credit purchases, by teaming up with a non-profit investor in the carbon removal (CDR) sector.

A UK energy efficiency firm announced Tuesday it has partnered with a global infrastructure provider to launch a carbon credit registry for the built environment.

A US direct air capture (DAC) developer has secured investment from a Japanese financial institution and one of the country’s major engineering firms, according to an announcement made on Tuesday.

There is no single best way to design support schemes to help alleviate the cost of carbon pricing schemes for consumers that may need support, a study has found. 

Europe’s steel industry has seen yet another year of contraction as trade disruptions, geopolitical tensions, weak demand, and high energy prices continued to dominate the market landscape, but is likely to recover in 2026, according to a Brussels-based lobby.

Private assets will be more exposed to climate risks in 2026, but next year’s reporting landscape will likely be haphazard, with some regulators ramping up requirements despite policy rollbacks, according to analysts.

Indonesia’s geothermal resources are orders of magnitude larger than previous estimates, according to a report released Tuesday that claims the renewable energy stockpile could help meet the vast majority of the country’s industrial heat demand.

Manufacturing investment across the EU in clean technologies fell in the third quarter of 2025, as funding for electric vehicles resumed a downtrend that began over a year ago, and battery spending also slipped lower.

One of Japan's largest securities groups has teamed up with an international NGO to explore carbon credit projects under the bilateral Joint Crediting Mechanism (JCM).

Mineral precipitation occurred within hours of alkalinity addition in a series of ocean alkalinity enhancement (OAE) experiments in the North Atlantic, in some cases removing more alkalinity than was initially added and potentially rendering the approach counterproductive, a new study has found.

BP has scrapped plans to build a large blue hydrogen plant at the UK's Teesside industrial hub, blaming clashes with a data centre development plan as well as deteriorating local demand.

Nepal’s cabinet on Monday approved a Carbon Trading Regulation under the country’s Environmental Protection Act, paving the way for participation in international carbon markets.

The European Commission on Monday launched a call for evidence on a wide-ranging climate resilience and risk management initiative that aims to hardwire global warming risk into EU policymaking, investment decisions, and sectoral regulations.

Trading on Indonesia’s carbon exchange rose in November as negotiated deals revived activity after months of stagnation, though regular and marketplace segments remained subdued.

Wake up call - Indonesia is fast-tracking its forest and land rehabilitation after severe floods across Sumatra exposed extensive degradation, Ecobiz Asia reported last week, citing a senior forestry official. President Prabowo had ordered the restoration of 12.3 mln ha of critical land, giving new annual targets and priority areas. Funding will mainly come from state budgets, but the ministry is also turning to voluntary carbon markets, allowing private concession holders to generate carbon revenue from rehabilitation work, the official said. The floods have so far displaced more than a million people and killed over 600, according to the Guardian.

Talks underway - Indonesia’s carbon exchange, IDX Carbon, is in talks with international platforms, including Singapore’s CIX, to enable cross-market trading of the Southeast Asian country's carbon credits, Ecobiz Asia reported. International buyers are already entering through multiple channels, and interoperability agreements could further widen access, an IDX official said. Indonesia last month signed an MoU with ICVCM, under which it pledged to align its forestry credits with the body’s quality benchmark. It also plans an international roadshow to showcase its forestry credits to potential investors and buyers before the end of the year to operationalise the export of the country's offsets.

The volume of applications to submit land into New Zealand’s ETS has fallen further in November, according to government data published this week.

Biochar pilot - Clean energy project developer MicroEnergy Credits on Tuesday said it has launched its first biochar-based carbon removal pilot in the Indian state of Uttar Pradesh, teaming up with 2,000 farmers to convert crop residues into biochar under the European Biochar Certificate framework. The project, which uses Isometric’s methodology, aims to issue 10,000 credits by end of 2026 and sequester 5 MtCO2e through 2055, the company said in a press release.

A financial emissions accounting initiative has Monday published an updated version of its emissions accounting standard for financial institutions.

New Zealand’s finance minister Nicola Willis on Tuesday defended the government’s decision not to budget for offshore mitigation to meet its Paris Agreement targets, saying that there is no legal obligation to meet it. 

Tax it - A coal export tax could help bankroll Indonesia's proposed 100 GW village-level solar rollout, state news agency Antara reported this week, citing a non-profit organisation. Sustainable Welfare Foundation (SUSTAIN) argued that the levy should become a pillar of the Southeast Asian country’s clean energy transition. The duty could raise around $5.63 bln a year, the NGO said. It also called for a progressive tax structure, guaranteed earmarking for the solar programme, and tighter coordination across ministries and state utility PLN to ensure transparent implementation.

Take-off spot – Climate Impact X has launched its first standardised spot contract for Phase 1 (2024-26) of the aviation sector’s CORSIA programme, the Singapore-based exchange announced on Tuesday. The CIX CORSIA Phase 1 X – Global Market (CIX CP1X-GM) contract consolidates all approved registries for the period, to enable efficient delivery of credits. Announced last week, the contract began trading on Monday, with the bid-offer spread narrowing to 10 cents over the day, the exchange said. To date, around 17.3 mln CORSIA-eligible units have been issued, however demand is likely to be in the range of 180-236 mln units for Phase 1.

A European bank has formed a partnership with a New Zealand forestry company to help forest owners develop voluntary carbon market projects, it announced on Monday.

Ray for manufacturing – The Australian Renewable Energy Agency (ARENA) on Tuesday announced conditional funding of A$151 mln ($98.8 mln) for the construction of a solar module manufacturing facility, with a capacity of 500 MW per year, in New South Wales. The cash would be provided as part of the federal government’s A$1-bln Solar Sunshot Program, which is aiming to increase domestic production of solar modules. The Hunter Valley Solar Foundry project, an initiative of the Sunman Group, will develop an advanced solar manufacturing facility, drawing on its parent’s technology to reduce the use of glass in solar panels, ARENA said. It also includes a First Nations recruitment strategy and scholarship programme for those pursuing renewable energy studies.

The California-Quebec joint carbon market and Washington’s cap-and-invest programme announced auction dates and reserve prices for 2026 on Monday, along with next year’s sale volumes.

Canada could increase its GDP by C$16 billion ($11.5 bln) by 2050 with more research and investment in the nascent marine CDR (mCDR) industry, said a report.

Consultation on the improved native forest management method (INFM) is set to be launched by the Australian integrity body in a matter of days, however questions are arising about its potential additionality in New South Wales.

A UN-managed climate fund announced on Thursday that it will begin partnering with project developers, in addition to investment fund managers and advisors, to support the scale-up of nature-based investments.

Grant gridlock – The US EPA is urging recipients of the Biden-era Community Change Grant Program to complete closeout paperwork that would finalise the Trump administration’s cancellations of the $1.6 bln environmental justice initiative, a move that would prevent awardees from challenging the terminations in court, E&E News reported. The agency’s push comes as multiple non-profits and local governments pursue litigation over the cancellations, among other programme funding freezes. Some grantees say the EPA is pressing them to close out grants while simultaneously failing to release reimbursement funds, raising concerns that the agency is using the process to gain leverage in ongoing cases. Attorneys have asked a federal court to issue an injunction, alleging the EPA is withholding closeout funds and warning that forced compliance could undermine awardees’ ability to contest what they call unlawful terminations.

A Latin American country has received its first payment from the World Bank’s Forest Carbon Partnership Facility (FCPF) for verified REDD+ emission reductions.

ADB ships it – The Asian Development Bank (ADB) has announced a loan to support green port and ship decarbonisation in Anhui Province, China, totalling CNY755.64 mln ($106.8 mln). The Anhui Province Green Port and Shipping Demonstration Project is aiming to reduce GHG emissions and increase the use of smart technologies, the bank said, as well as enhance resilience to weather events and improve connectivity with inland river ports. Specifically, the project will see climate-resilient inland river ports built and kitted out with energy efficient loading facilities, smart port operation systems, and flood protection mechanisms. It will also replace diesel-fuelled ships with clean fuel container vessels and conduct studies on expanding clean and alternative fuels, according to the bank.

The Dec-25 V25 RGA futures contract jumped $1.72 or 6.4% over the Nov. 24-28 period to settle at $28.64 on ICE Friday, before breaching the $29 threshold for the first time on Monday.

Power-hungry projections – BloombergNEF raised its forecast for US data-centre electricity demand to 106 GW by 2035, a 36% jump from its April outlook, citing a surge of early-stage project announcements, it reported on Monday. The analysis found that power needs tied to artificial intelligence (AI) training and use are transforming the energy system, even as AI’s commercial returns remain uncertain and spark questions about overinvestment. BNEF estimated AI workloads will climb from about 12% of data centre capacity today to nearly 40% by 2035, pushing utilisation rates higher across the sector.

A veteran European carbon markets analyst has joined a US-based investment advisor to help drive expansion of the company's activities and develop greater investor awareness of carbon markets, according to a press release issued Tuesday.