Taxing turns – Fuel tax revenues worth around $920 bln a year are potentially at risk over time as electric vehicle uptake accelerates worldwide, with lower-income countries facing the sharpest fiscal exposure, according to new research in Nature Sustainability. The study estimates fuel taxes generated over $920 bln in 2023 across 137 taxing countries within a 168-country sample, and finds low-income economies rely on these revenues for over 9% of total government income on average, around three times the relative exposure of high-income states. Many highly exposed countries are associated with weaker institutional capacity and higher debt burdens, constraining their ability to replace revenues as battery-electric vehicles expand and internal combustion engine sales decline.

Retirements across the voluntary carbon market (VCM) grew year-on-year in 2025, while the total value surpassed $10 billion for the first time, according to analysts.

Prices in China's national emissions market climbed above the level of RMB 70 ($10) with a spike in trading volumes over the past two weeks, supported by growing momentum ahead of the year-end compliance deadline.

Thailand has raised registration and issuance fees for carbon credit projects under its domestic voluntary standard in a move that raises costs for developers.

The Tokyo Stock Exchange (TSE) is planning to launch an over-the-counter (OTC) trade settlement service for domestically issued J-Credits in March, a move that should streamline the trading process.

It's official - South Korea has submitted its latest NDC to the UN, pledging to cut GHG emissions by 53-61% by 2035 compared to the 2018 level. As previously announced by the government, the 53% reduction represents a linear pathway from the base year, while the 61% reflects a more ambitious target. The country is also in the process of formulating the national green transformation (K-GX) strategy to generate new growth engines while advancing the transition towards carbon neutrality.  

China has said it would take all necessary measures in response to trade restrictions under the EU's Carbon Border Adjustment Mechanism (CBAM), which enters its full implementation phase from 2026 after a two-year pilot.

Drill baby, drill - IIT Bombay and NTPC have successfully completed the drilling of India’s first test well to assess the feasibility of geological CO2 storage, in a step towards the country’s carbon capture, utilisation, and storage (CCUS) efforts. The well, drilled to a depth of 1,200 metres in the state of Jharkhand, will be used to test CO2 storage potential in coal and sandstone formations, with injection and plume monitoring planned. The project, launched under the leadership of NITI Aayog, builds on earlier work to create India’s first geological storage atlas and is intended to provide feasibility and risk assessments for full-scale CCS deployment, supporting India’s net zero and decarbonisation goals.

Open for business - Indonesia’s forestry ministry last week invited provincial governments to tap performance-based REDD+ finance through the ART-TREES mechanism, Ecobiz Asia reported. The offer was outlined at a coordination meeting with governors and forestry officials from provinces of Sulawesi, Maluku, West Nusa Tenggara and Papua. The ministry said provinces able to show verified emission reductions could access ART-TREES funding, but would need to improve monitoring, data transparency, and forest protection. It also underlined the need for inclusive governance and fair benefit-sharing with Indigenous Peoples and local communities.

Carbon squeeze - Indian steel and aluminium exporters to Europe may be forced to cut prices by 15-22% from Jan. 1, 2026, as carbon-related costs under the EU’s CBAM begin to apply, according to an analysis by India-based Global Trade Research Institute, ANI reported. The mechanism will require exporters to factor in the embedded carbon emissions of products shipped to the EU, raising compliance costs and potentially eroding competitiveness for Indian producers unless prices are adjusted to absorb the additional carbon burden, according to the report.

Bhutan has set out a framework for how it intends to participate in carbon markets, both domestic and international, while tightly controlling authorisation, pricing, and the application of corresponding adjustments.

Environmental watchdog RimbaWatch has filed what it called a first-of-its-kind climate litigation case in Malaysia, seeking judicial review over government agencies’ refusal to investigate alleged greenwashing by a fossil fuel company.