Panellists on Wednesday said the voluntary carbon market (VCM) is under pressure to address long-running integrity concerns, debating whether contribution claims and stricter baseline approaches could help stabilise confidence in the system.

Paraguay has unveiled the implementation plan for its Article 6 partnership with Taiwan, prioritising electric mobility and reforestation as the backbone of a joint carbon credit pilot, local media reported.

Redacted – The US DOE is removing support for the National Definition of a Zero Emissions Building, according a notice filed Wednesday. It was filed under the previous Biden administration in June 2024, and the current DOE no longer supports the definition, discouraging states, municipalities, and standards-setting organisations from referencing the definition.

Climate analysts considered the extent to which climate policy and carbon markets have had an impact on emission curves versus economic trends during a Thursday panel discussion, with all agreeing that it’s virtually impossible to objectively know for sure.

Gas rule rework - The Massachusetts Department of Environmental Protection (MassDEP) is proposing new changes to rules aimed at reducing methane emissions from natural gas distribution mains and services. The changes are related to Massachusetts’ methane emission limits on gas operators, which Mass DEP has imposed since 2021. The methane limits, which ratchet downward annually, were introduced under the state’s Global Warming Solutions Act. The agency is accepting written public comments on the changes through Jan. 9, 2026.

Unresolved - Finland has approved two major climate policy documents – a medium-term climate plan and a new energy and climate strategy – intended to help meet national and EU emissions reduction obligations, but the government has not yet resolved how to address the sharp decline in the country’s forest carbon sinks, which are essential for its 2035 carbon neutrality goal. The medium-term plan focuses mainly on transport, including a car-scrapping incentive to accelerate low-emission and electric vehicle uptake, renewed subsidies to convert petrol cars to ethanol or gas, and targeted support for low-income households purchasing EVs. The energy and climate strategy introduces investment incentives for clean energy and low-carbon industry, including a €50 mln tax credit for electricity-based industrial projects and €90 mln for carbon capture solutions, alongside planning reforms to speed up wind and solar deployment. Climate and Environment Minister Sari Multala said the measures keep Finland on track to meet its 2030 Effort Sharing Regulation target and reaffirmed the country’s commitment to carbon neutrality by 2035. She added that decisions on forest sinks are delayed due to inadequate data, prompting a new methodological review. Updated assessments from the Natural Resources Institute Finland indicate the land-use sector has shifted from a net sink to a net source of emissions, putting both EU and domestic targets at risk. Current government actions – including forest fertilisation, afforestation, denser forest management and longer harvesting cycles – are expected to increase sequestration by only a few million tonnes, while the gap is estimated at up to several tens of millions of tonnes. (Xinhua)

The Council of EU member states and the European Parliament struck a political deal on Thursday to delay and simplify implementation of the bloc’s regulation on deforestation-free products, pushing back core obligations by a year to give companies and national authorities more time to prepare.

Researchers and practitioners have outlined eight recommended actions to strengthen ecological restoration planning and long-term project performance, presented as part of a new framework.

Italy, supported by Greece and Malta, wants to temporarily exclude the maritime sector from the EU's Emissions Trading System until a UN agreement is reached on the adoption of a global carbon pricing mechanism.

Honey, I shrunk the EPA – The US EPA is shedding office space in San Francisco (EPA Region 9) and Chicago (EPA Region 5), E&E News reported Tuesday. The government agency has framed it as “rightsizing” in order to make best use of taxpayer dollars. Nicole Cantello, union president, said that management has not been forthcoming and they are putting together unrelated offices and divisions.

Companies’ entrenched focus on carbon accounting is diverting scarce sustainability resources away from supplier engagement and real-world action to reduce emissions, a former chief sustainability officer (CSO) warned on Thursday.

Jurisdictional MRV – The state of Minas Gerais, in Brazil, launched this week a new platform for monitoring, reporting, and verification (MRV) of its CO2 emissions. The project aims to promote a more assertive and strategic approach to climate action by the state, it said in a statement. It was developed by think tank Centro Brasil no Clima and the company WayCarbon, in partnership with Minas Gerais’ Secretariat for Environment and Development (SEMAD). Resources were provided by the UK Pact, a programme of the British government to support other countries in accelerating climate transition.

EU carbon prices look set to climb further into 2026 before easing later in the decade, a team of analysts said Thursday, as tightening supply, record fund positioning, and a growing structural deficit collide with weakening industrial demand, a rapidly decarbonising power mix, and possible market intervention.

Scope 3 farming guidance - Guidance published by South Pole and WBCSD has called on companies to adopt more consistent approaches to engaging farmers in agricultural supply chain decarbonisation, with recommendations to ensure fair benefit-sharing, flexible financing, capacity building, and long-term investment. The document outlined strategies for different farm types and stressed the importance of tracking social outcomes such as livelihoods and food security alongside carbon metrics.

The UK ETS Authority confirmed on Thursday in a response to a public consultation that it will extend the British carbon market for a second phase beyond 2030, when the current first phase ends, and also announced some key changes for the system in a response to a second consultation that align the scheme more closely to the EU system ahead of a planned linkage.

European carbon prices snapped their three-day losing streak on Thursday as the market broke free in the afternoon from the pull of the main options expiry in a week's time, while the energy complex resumed its downward trend amid forecasts for milder weather.

Adaptation gap - Among the COP30 outcomes was a new target to 'at least triple' finance for climate adaptation in developing countries by 2035, but the goal is less ambitious than it seems, argues CarbonBrief. Firstly, it pushes back the proposed tripling target by five years to 2035, meaning far less adaptation finance in the near term, and it also removed a mention of 2025 as the base year, adding uncertainty as to what precisely the 2035 target means. Secondly, the new target is looser than the previous 'doubling' goal for adaptation finance 'provided' by developed countries, as it covers finance source not covered under the previous goal. Specifically, it says the tripling targets is 'in the context of' the new collective quantified goal (NCQG), which covers finance from a number of sources, including 'mobilised' private finance and voluntary contributions from wealthier developing countries. Thirdly, the tripling target falls well short of developing countries' adaptation needs, estimated by UNEP to hit $310 bln annually by 2035. So the new target would only cover a fraction (not more than a third) of their own estimated and UNEP estimated needs in coming years.

Green zones - Turkiye has expanded its certified green industrial zones to 27 nationwide. This follows the recent certification of the Ankara-based OSTIM zone that mandates solar panels on all new buildings, as well as other energy and infrastructure standards. The national green push is largely driven by external market forces such as the EU Green Deal and incoming carbon border fee, which incentivise Turkish exporters to adopt low-carbon production processes. The Green OSB Certificate is intended to help companies in these zones meet stringent environmental compliance standards, thereby boosting the country's trade positioning. (YeniSafak)

A large Romanian energy company may have underpaid on its carbon compliance costs linked to the EU's Emissions Trading Scheme (ETS), according to a media investigation published on Thursday, although the utility had denied the accusations.

The European Parliament and Council of EU member states are expected to reach a deal on the bloc's 2040 climate targets when they next meet on Tuesday, although the issue of international carbon credits remains a sticking point, according to sources.

Joining forces - The UK and the Philippines are teaming up to accelerate the clean energy transition, by way of the Philippines-UK PACT (Partnering for Accelerated Climate Transitions) programme, launched on Dec. 2 in Manila. The initiave aligns with the Philippines' target to cut GHG emissions 75% by 2030, and to reach 50% renewable energy in the power generation mix by 2040. PACT will fund interventions including on offshore wind, electric power system cost simulation, and speeding up microgrid deployment.

Net zero by 2040 - Climate consultancy ClimeCo has joined The Climate Pledge, a global coalition co-founded by Amazon and Global Optimism aiming to reach net zero carbon by 2040. As part of the pledge, ClimeCo is formally setting a goal to reach net zero across Scopes 1,2, and 3 in 15 years' time. The company will neutralise any residual emissions with high-quality carbon credits to achieve the net zero target, as well as supporting clients reduce and mitigate emissions through market-based solutions.

Curbing energy emissions - The Science Based Targets initiative (SBTi) has launched a pilot of its draft Net-Zero Standard for the power sector, which is open to companies active in power generation, transmission and distribution, storage, trading, and retail to take part. Applications are open until Jan. 16, 2026, and interested companies should complete the application form by the deadline. The draft standard offers a framework for companies across the sector to set near- and long-term science-based targets aligned with reaching net zero by 2050, and replaces and expands on the SBTi's Quick Start Guide for Electric Utilities.

Zimbabwe has opened negotiations with several countries to develop bilateral agreements for carbon credit trade under Article 6.2 of the Paris Agreement, including Singapore, Switzerland, and Malaysia, a government official said Thursday.

Tokyo-based Japan Impact Investment Network (J-IIN) is considering how companies and investors can boost biodiversity – as well as carbon sequestration – while restoring forests, a webinar heard Thursday.

Eight EU countries have banded together form an early movers' coalition to develop electro-sustainable aviation fuels (eSAFs), in an effort to push more production and uptake, the European Commission announced on Thursday. 

The UK's energy regulator has signed off on company plans to invest £28 billion in gas and power network upgrades, in an effort to accommodate the country's changing energy mix and planned renewables surge over the next five years.

A study published Thursday has highlighted structural price inequalities at the heart of the voluntary carbon market (VCM), showing that carbon credits generated in advanced economies command nearly 30% higher prices than otherwise similar projects in emerging and developing countries.

The European ceramics industry has warned of looming 30-40% cost inflation driven by rising energy and CO2 prices, calling for “emergency measures” to keep production in Europe as hundreds of small businesses struggle to meet their obligations under the EU Emissions Trading Scheme (ETS).

Airline, non-profit, and hotel groups on Wednesday warned that decarbonisation efforts risk stalling unless companies shift from “transactional” emission cuts to more complex, capital-heavy transformations.

Climate policy ambition is accelerating in Africa, Asia Pacific, and Latin America, with carbon markets growing and policy ambition sometimes overtaking that of the EU, UK, and North America, found a new report.

Rising imbalance - The risk of climate change exacerbating social inequalities was highlighted by the German government in a new report. The annual poverty and wealth report included for the first time a chapter on the social challenges of climate change and emissions reduction. It found low-income households spend up to 13% of their budget on energy - more than twice that of wealthy households, which have a larger carbon footprint and are more able to invest in building renovations or electric cars to lower the impact of CO2 prices. Germany's rising CO2 prices lead to higher heating and transport costs, which could exacerbate social inequalities, it warned.

High-integrity natural climate solutions (NCS) carbon credits are essential to effective, efficient and equitable climate policy, including under Paris Article 6.4, write eleven scientists and researchers in response to a recent Nature comment.

Verra has issued the first carbon credits bearing the Integrity Council for the Voluntary Carbon Market’s (ICVCM) Core Carbon Principles (CCP) label under its revised improved forest management (IFM) methodology, the US-based standards body said Thursday.

The European Commission launched three new funding windows worth a combined €5.2 billion in EU Emissions Trading System (ETS) revenues to support net zero technologies and industrial decarbonisation, it announced on Thursday.

DAC innovation - Climeworks has opened a direct air capture (DAC) innovation hub in Zurich, employing more than 50 engineers. The centre aims to reduce the cost and increase the efficiency of DAC, as well as investigating sorbent performance and system design. The idea is to unite R&D under one roof and thereby speed up innovation and large-scale deployment.

A key investor in one of Scotland’s largest carbon capture and storage (CCS) projects is preparing to sell its stake, introducing fresh uncertainty around the future of the initiative.

Domino effect - Software provider CarbonChain has launched a new partner programme to help advisers, consultancies, and tech platforms deliver deeper decarbonisation impact for their clients. The programme allows partners to refer, co-sell, or integrate CarbonChain’s platform to help expand carbon intelligence across their value chain. CarbonChain's software helps companies and banks to decarbonise their supply chains and provides emissions datasets, CBAM-ready workflows, and reporting tools.    

Re-election - Eve Tamme has been re-elected as chair of the Zero Emissions Platform (ZEP), which from Apr. 2026 will be known as Carbon Management Europe. Her election follows a competitive process with six candidates, she said on LinkedIn. ZEP is a non-profit advising the EU on industrial carbon management. Tamme also acts as managing director of climate policy advisory Climate Principles, among other roles including board member at Puro.earth, Carbon Gap, and Patch.

Brussels will propose that companies from countries where significant Carbon Border Adjustment Mechanism (CBAM) avoidance is detected be limited to using default, country-level emissions reporting values, the centre-right European Parliament lawmaker leading on climate issues told Carbon Pulse on Thursday.

A roadmap for financial institutions to develop mangrove-positive lending approaches has been launched by a financing initiative focused on these coastal trees.

The Sizewell C nuclear power station could generate £1.6 billion annually for the UK economy during its construction, supporting 15,000 jobs each year nationwide, according to a report published Thursday.

Slashing steel emissions - Deep.Meta is using artificial intelligence (AI) to transform the climate impact of steel production. The startup has reduced emissions by almost 10% at Spartan UK's steel plant in Newcastle, northeast England, it said in a release Thursday. Spartan UK is the only producer of steel plates in the country, and the UK steel industry contributed £1.7 bln to the British economy last year. Deep.Meta's technology uses an AI-powered digital twin plus sensor data to more accurately predict steel slab temperatures, and improve scheduling and energy efficiency. It will now enter live pilot stage at Spartan UK.

New templates - The International Carbon Registry (ICR) has released new validation and verification report templates to support validation and verification bodies (VVBs) to apply ISO 14064-3 and ICR’s validation and verification specifications in a consistent way. The new standardised templates are for Validation Report v6.1 (ValR), Verification Report v6.11 (VerR), and Validation and Verification Report v6.1 (VVR). The improvements are expected to drive integrity and clarity across the full project cycle. More details here.

Together for transparency - Climate consultancy Abatable is joining forces with BlueLayer, a digital platform for carbon project developers, to improve how developers share information with buyers and investors. The partnership will allow developers using BlueLayer to respond to Abatable-led carbon credit RFPs and procurement programmes more effectively using standardised data. This will allow them to streamline their workflows and participate more easily in procurement. Meanwhile, buyers will be able to access higher quality data from suppliers across a range of pathways, improving market transparency.

Banned for greenwashing - Adverts for Nike, Superdry, and Lacoste have been banned by the UK's advertising watchdog for making misleading claims about their green credentials. The Advertising Standards Authority (ASA) said the identified three adverts lacked evidence to back up the claims about the product's sustainability, and the companies were warned future promotions must contain "a high level of substantiation" for any sustainability claims. The rulings form part of a broader ASA crackdown on brands making misleading green claims. (BBC)

Uncertain elements of the EU's carbon border fee, such as whether it covers indirect emissions, will determine whether the policy acts as an effective trade barrier, or poses a competitive advantage, an industry conference heard this week.

Digital monitoring, reporting, and verification (dMRV) could significantly accelerate investment in industrial CO2 capture and removal projects, researchers have found, with measurement estimated to account for up to 15% of bioenergy with carbon capture and storage (BECCS) and 13% direct air capture and storage (DACCS) project costs.

An annual global asset owner survey, published Thursday, has revealed that sustainable investment continues to hold a central place in institutional strategies, as concerns about climate risk and regulatory complexity grow.

Decades of forest loss and mining expansion worsened the deadly floods and landslides that hit parts of Indonesia and killed hundreds of people late last month, according to the government and environmental groups.

A UK-backed climate programme will help Indonesia develop carbon market infrastructure via a 15-month technical assistance contract as the country seeks to close a $473 bln climate finance gap by 2035.

Carbon credits of a low quality saw their prices rise last month, moving close to an average $6 per tonne, according to updated analysts indices.

A startup risk management company is investing in electric cookstoves in Sub-Saharan Africa to ward off integrity concerns that is sees as undermining Article 6 trading, an executive told Carbon Pulse.

Nuclear power is set for a revival global because it will be a cheaper option for countries seeking to decarbonize their electricity grid compared to just relying on renewable energy, a study claims.  

A French company developing a plasma-based process to decarbonise high-temperature industrial processes has raised €30 million in Series A funding, it announced Thursday.

Australia’s carbon market integrity body has released a draft version of its improved native forest management (INFM) method ahead of the formal consultation period kicking off next month.

A global advisory and project developer have signed an agreement with an intergovernmental group to drive growth in nature-based carbon projects in Southeast Asia, they announced Thursday.

A state-backed Saudi company spearheading the development of the domestic voluntary carbon market on Thursday announced a partnership with a Singapore-based developer, seeking advice on project origination.

Europe must triple installed solar and wind capacity and lift electricity demand by about 71% by 2050 to reach net zero emissions by 2050, requiring significantly faster grid upgrades across the region, a new report has found.

A global food company this week partnered with an Indian developer on a five-year regenerative agriculture project aimed at cutting emissions across its corn supply chain and improving outcomes for farmers.

Price tag - At least $20 bln is the cost of the latest series of deadly floods across South and Southeast Asia last month, Bloomberg reported, citing government and analyst estimates. A string of cyclones combined with the northeast monsoon unleashed record rainfall in the region, killing more than 1,300 people. The news report said analysts warn that the region’s exposure to “compound disasters” is rising, with populations in high-risk flood zones increasing. In light of this, Indonesia this week started fast-tracking its forest and land rehabilitation after the floods across Sumatra exposed extensive degradation.

Emissions in the New Zealand ETS will sit below the cap for the next decade, officials told the government in advice released on Thursday, creating a buffer for dry years.

The Chinese government has given the greenlight to three new methodologies for its domestic offset programme, all nature-based solutions (NbS).

Partnership forged – Australian miner Fortescue is teaming up with Taiyuan Iron and Steel (TISCO), a subsidiary of China Baowu, on technology to decarbonise the steel industry, it said in a press release Thursday. Specifically, they are going to collaborate on an industrial trial of hydrogen-based plasma-enhanced metallurgy, which removes the need for sintering, pelletising and coking, Fortescue said – adding that this could be a possible use-case for its Pilbara ores. The two partners will build and operate a pilot indutrail line, with a production capacity of 5,000 t of molten iron per year. The Australian company is providing the finance for the project, and will form a technical committee with TISCO and partners to advance its implementation.

The New Zealand government has formally rejected the Climate Change Commission’s (CCC) advice to tighten its emissions targets across all sectors, almost two weeks after the deadline.

Canada needs to turn to domestic, public procurement amid its trade rift with the US, addressing the long-standing gap between its investment in clean technology R&D and deployment, said an executive from a Toronto-based innovation hub.

China's clean power expansion is on track to keep the country’s CO2 emissions flat this year, but vague targets could mean an emissions rebound after two years, according to a report released Thursday.

Another one - Canadian project developer Deep Sky announced a strategic partnership with Japan's Sumitomo Mitsui Banking Corporation to build a robust DAC and carbon removal market in Japan. The pair will develop commercial pathways for DAC offtakes in Japan, financing structures, and policy frameworks.

Three months after the case was nearly dismissed, a North Dakota judge ruled Tuesday in favour of a landowner group in finding the amalgamation law of the state’s CO2 injection programme to be unconstitutional.

The rural US, which accounts for 19% of the population, produces a disproportionate amount of emissions, according to a new report published on Tuesday that highlights the opportunities to decarbonise such regions.

Bye-bye Buttigieg's baby – The US Department of Transportation has proposed to reset the federal Corporate Average Fuel Economy (CAFE) standards for 2022-31, which were established under the former Biden administration. The rules laid out how far vehicles must travel on a gallon of fuel, and Transportation Secretary Sean Duffy accused the previous administration of illegally using the CAFE standards as a "backdoor electric vehicle mandate". The new proposal, titled Freedom Means Affordable Cars, proposes to increase the fuel economy standard across all vehicle classes through 2031. It will eliminate the credit trading programme that was set to begin in 2028 and is projected to save $109 bln over the next five years, the government agency said.

Electrifying – Accelerating the buildout of renewable generation, transmission, and battery storage is essential to keep residential electricity prices affordable over the next decade, according to a report published Thursday by the Australian Energy Market Commission. The report projected residential electricity per unit prices (not bills) will fall by 5% over the next five years, supported by renewable generation growth. However, it warned those prices could rise by 13% from 2030-35 unless new renewable generation, battery, and transmission projects are delivered more quickly than currently forecast. It found delays to wind and transmission projects could increase annual household electricity prices as much as 20%, while prolonging the life of existing coal plants to meet future demand growth could pose significant price risks. Australia's largest coal-fired plant, Eraring in NSW, is slated to close in 2027, however a separate report published this week by the Australian Energy Market Operator said there were energy security risks with shuttering in that timeframe due to the need for new synchronous condensers.

A group of major glass, packaging, mining, and automotive companies on Thursday announced the launch of a global certification programme to cut emissions and raise sustainability standards across the glass supply chain.