Banks remain slow to set emissions reduction targets for agriculture even as the food system accounts for roughly one-third of global GHG emissions, according to a new technical briefing.

Quality is becoming an increasingly significant factor in voluntary carbon market (VCM) pricing, with higher-integrity credits commanding a widening premium, but the market remains weighed down by large volumes of low-integrity “junk” credits, the authors of a new market assessment said.

The fall in issuance of credits in the voluntary carbon market (VCM) in 2025 was due to a downturn in new supply of renewable energy credits, analysts said on Wednesday.

The majority of large companies in the Middle East are still sceptical of the voluntary carbon market, particularly of investments in projects outside the local region, according to experts at Carbon Forward Middle East on Wednesday. 

European carbon prices surged for a seventh day to another 30-month high on Wednesday, as bulls continued to accumulate length after data showed speculative traders had built a record bullish position in EUAs last week, while UKAs also jumped after news reports that the UK and EU are about to start talks on linking their markets.

Pivotal legislation expected this year from the European Commission this year will shape the EU’s carbon market beyond 2030, but regulatory changes coming into force in the near term are set to increase demand and constrain supply for carbon allowances.

Approximately a third of private nature funds said they regard carbon and biodiversity credits as meaningful sources of revenue, a report has said.

Flight cut warning - Ryanair has warned it will scale back flights in Belgium after the govt chose to standardise and raise the boarding tax to €10 per passenger for short-haul flights - up from previously variable rates - starting Jan. 2027.  Adding further fuel to the airline's criticism,  the city of Charleroi recently announced a local tax of €3 per passenger, effective from 2026. The boarding tax is intended to support the environment by encouraging passengers to use the train instead of fly, and also to generate state revenue. In response, Ryanair plans to gradually remove up to 2 mln of the 11 mln passengers it carries each year in Belgium. Michael O'Leary, CEO of the low-cost airline, also critiqued the EU ETS, saying it penalises intra-European flight wile encouraging travelers to fly outside the bloc. Either non-European airlines should also pay the ETS, or the European system should be reduced to match the international CORSIA standard, he argued. (Euractiv)

The European Commission on Tuesday put forward draft rules to plug land-use emissions and removals into the EU’s central carbon accounting registry, including a bespoke arrangement for Finland, which is granted special flexibility units.

The pipeline of carbon credits with a letter of authorisation (LoA) under Article 6 of the Paris Agreement is growing significantly, a carbon registry representative told the Carbon Forward Middle East conference on Wednesday.

A carbon credit marketing platform is linking up with a business solutions marketplace that will offer carbon credits that directly support sectoral and supply-chain decarbonization.

A California-headquartered carbon solutions provider has signed a delivery agreement for the first 2 million afforestation, reforestation, and revegetation (ARR) credits under its pipeline with tech giant Microsoft.

The EU and UK will begin negotiations next week on linking their carbon emissions trading systems, the EU’s climate chief said on Wednesday, marking a key step in resetting post-Brexit relations.

Zimbabwe has listed two new carbon projects on its national registry, bringing the total authorised mitigation outcomes for future international sale to 8.4 million.

Armenia submitted its third Nationally Determined Contribution at the end of 2025 to the Paris Agreement, pledging steeper greenhouse gas cuts by 2035 and signaling its intention to engage international carbon cooperation under Article 6.

A Qatar-headquartered carbon standard on Wednesday announced it has partnered with an intergovernmental group to support the development of nature-based carbon markets across Asia.

A big stretch - UK government ministers have acknowledged the country may miss its sustainable aviation fuel (SAF) target, which is key to allowing a third runway at Heathrow without breaching legally-binding climate change commitments. In response to the Commons environmental audit committee's report on airport expansion and climate targets, minister recognised the risks to scaling up SAF production to the levels needed to meet the targets of the SAF mandate. Under the UK SAF mandate, supply must scale up as part of overall jet fuel mix, reaching 22% in 2040. The govt has backed expansion at several airports including Heathrow, Gatwick, Luton, and City - citing potential to boost economic growth and provide jobs - but critics say doing so could jeopardise the net zero by 2050 goal. (the Standard)

Investment in European electric vehicle (EV) and battery manufacturing fell by a total of €400 million in Q4 2025, with investment in the solar sector remaining flat quarter-on-quarter, figures from a European think tank show.

BP has warned that it expects to write off $4-5 billion from the value of its gas and low-carbon energy segment, while also revealing the oil trading sector saw a lacklustre fourth quarter amid the drop in crude prices.

Nigeria fund - Nigeria's President Bola Tinubu unveiled plans for a $2 bln climate fund on Tuesday to support emissions reduction projects, as well as a climate investment platform to mobilise $500 mln for climate-resilient infrastructure. Both should help the country in its quest to reach net zero by 2060 and to deliver universal energy access. Tinubu also announced that Nigeria has signed a Comprehensive Economic Partnership Agreement (CEPA) with the UAE to boost trade and investment across sectors such as renewables, aviation, and logistics. The Nigerian govt aims to unlock $25-30 bln in climate finance annually, with a shift towards a blended public-private finance approach. Tinubu also referenced the country's oversubscribed green bond programme. (Reuters)

EU ETS prices are set to break the record high of €101 within the next three months, and likely go higher by mid-year, driven by a looming allowance supply crunch and pressure on heavy industries to begin trading, an expert told the Carbon Forward Middle East conference on Wednesday.

Around 15% of companies are pulling ahead on environmental leadership - unlocking over $200 billion in financial opportunities, according to analysis from an environmental disclosure platform.

Battery-electric passenger vehicles powered by off-grid solar systems are set to become cheaper than fossil fuel cars across most of the African continent well before 2040, according to recently published peer-reviewed research.

Eroding ambitions - Sweden's green ambitions are unravelling, with a weakening of near-term emissions reduction measures and a 7% rise in GHG emissions in 2024, influenced by cost pressures and a coalition govt supported by the right-wing Sweden democrats. The current coalition has eroded the country's green credentials, including scrapping the environment ministry, reducing EV subsidies, and freezing the credit guarantee programme for green industry. Green steel startup Stegra is struggling to raise capital, whilst battery maker Northvolt's cost overruns pushed it into bankruptcy, with the govt refusing to bail it out. The about-turn is striking given Sweden's access to abundant renewable energy and its previous drive to tax fossil fuels. However, voters are expected to prioritise the environment in the upcoming general election, with opposition parties - including the Greens and Social Democrats - boasting a lead in recent polling. Industry players are urging the govt to renew its green economy backing, to avoid ceding way to competitors like China. (Bloomberg News)

Gas plus CCS spending - The UK government has published an outline of the approach used to benchmark capital expenditure (CAPEX) for gas fired power plants with post combustion carbon capture and storage (CCS). This benchmarked data is intended to inform the techno-economic assumptions for future deployment scenarios of gas CCS plants. It will also support the cost modelling done by the Department for Energy Security and Net Zero (DESNZ) by providing comparative cost data for retrofit and new-build capture installations.

A record amount of offshore wind power has been allocated in the latest UK auction, supporting the country's aim to deliver almost 100% clean power by 2030.

Rising global temperatures helped rank 2025 as the third-warmest year ever measured, coming in marginally cooler than record-holders 2024 and 2023, as scientists warned an acceleration in global warming is beating earlier expectations.

Hot ground - UAE state-owned renewables firm Masdar is looking to expand its investments in Indonesia’s geothermal sector, citing the country’s large resource base and improving regulations, state news agency Antara reported. Masdar entered Indonesia’s geothermal market in 2023 by investing in Pertamina Geothermal Energy which generates about 4.8 TWh of electricity annually, avoiding nearly 3.9 MtCO2e, according to Masdar. Indonesia is the world’s second-largest geothermal producer, behind the US, and has total potential of around 23.7 GW, data from the energy ministry showed. Installed capacity stands at roughly 2.7 GW, which it plans to double by 2034.

The planet's sensitivity to greenhouse gas emissions is likely higher than anticipated, posing greater climate risks to economies worldwide, according to a new report.