Aviation emissions covered by the EU Emissions Trading System (ETS) grew 3.9% year-on-year in 2025, while those in the industry and power sectors continued to fall, according to new analysis.

Cyprus, which has taken over the rotating EU Council presidency for the next six months, will aim to clinch a deal between the 27 EU countries on the extension of the bloc's Carbon Border Adjustment Mechanism (CBAM) on Mar. 10, as well as secure agreements on the European Grids Package and the Competitiveness Fund in June.

Voluntary carbon credit issuances surged at the end of 2025 and the beginning of 2026, while the market now gears up for the expected impact of the first wave of CORSIA demand and advancements on Article 6.

CBAM hit - EU's CBAM could hit Thailand's industry by as much as THB 28 bln ($1 bln), or 3.8% of exports to the EU, the Nation reported. Steel industry is particularly troubled, chairman at the Federation of Thai Industries said. The group's data for last year showed that Thailand’s exports of iron and steel products to the EU rose by more than 250% year-on-year. That is now under risk, but EAF steel can help reduce a buyer’s carbon-related costs in the EU by 5-10%. Additionally, efforts to have the EU recognise accredited verifiers in Thailand, work on a Climate Change Act, and an emissions trading system could help blunt the impact. In neighbouring Malaysia, a carbon price of RM 200 ($47) per tCO2e by 2030 is seen as ideal to spur low-carbon steel production.

Greenhouse gas emissions covered by compliance carbon pricing schemes are expected to swell by an additional 2 billion tonnes of CO2 equivalent by the end of 2026, despite political volatility and cost-of-living pressures, according to analysts.