The voluntary carbon market (VCM) faces a pivotal year ahead as compliance frameworks converge with corporate demand for removals, creating both opportunities and bottlenecks that could reshape the sector, industry executives said at a panel discussion on Tuesday.

Withdrawal wanted - Washington state on Wednesday requested a rehearing of a US DOE emergency order requiring the TransAlta coal plant in Centralia to remain available for generation, arguing the directive is unlawful and impractical given the facility’s coal phaseout. Attorney General Nick Brown said the DOE exceeded its authority by ordering coal readiness despite the plant lacking staff, fuel, or buyers, and despite state law banning coal-fired power sales after 2025 under the Clean Energy Transformation Act. Governor Bob Ferguson (D) also criticised the order. The state said the move could raise costs, increase pollution, and disrupt state-led energy planning, and said it will pursue court action if the rehearing is denied.

Chile energy transition - The International Energy Agency (IEA) launched its Chile 2050 Energy Transition Roadmap on Wednesday, outlining a pathway for the country’s energy sector to reach carbon neutrality by mid-century under its Announced Pledges Scenario. Prepared at the request of the Chilean government, the document identified four pillars for cutting energy-related emissions, which account for around three-quarters of the national total: improved energy efficiency, deep decarbonisation of power generation, electrification of end-uses, and the build-out of modern, resilient grids. The IEA projected renewables to supply over 95% of electricity by 2035, final energy intensity to fall 45% by 2050, and annual investment across the energy system to rise sharply, particularly for efficiency, electrification, and grid resilience.

REDD+ project developers in three Brazilian states can now advance registrations under Verra's VM0048 methodology following the release of finalised deforestation risk maps, the registry announced Wednesday.

Heavy state support made solar cell and module production the most subsidised major industrial sector between 2005 and 2024, coinciding with China’s rise to dominance across the solar value chain, according to a new policy brief.

A Canadian industrial mineralisation company has reached a new agreement with a British Columbia-based mining partner to evaluate a nickel project for potential lifetime carbon removal (CDR) of up to 220 million tonnes of CO2, they announced Wednesday.

The valuable exchanges in the Brazil-led global compliance carbon market coalition has shown the country that its own programme has a long way to go before considering linkage, a Brazilian federal official said at a conference on Tuesday.

California regulator ARB is investigating a client alert sent out by a Utah-based consultancy last week that warned of imminent legal risk to US compliance carbon markets and caused allowances prices to tank.

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.

US states are shifting their focus from 'if' to 'how' carbon management should happen, and what guardrails can be implemented to protect communities, according to research by an environmental policy non-profit.

New York nuclear - New York Governor Kathy Hochul (D) unveiled Tuesday a series of energy proposals, aligning the release with the delivery of her State of the State address. These included efforts intended to boost nuclear energy, including the establishment of new initiative, the Nuclear Reliability Backbone, directing state agencies to establish a clear pathway for additional advanced nuclear generation. This initiative will be developed by a new Department of Public Service (DPS) process to consider, review, and facilitate a cost-effective pathway to 4 GW of new nuclear energy that will aim to combine with existing nuclear generation and the New York Power Authority's (NYPA) previously announced 1 GW project to create an 8.4 GW “backbone” of energy. Other proposals listed look to: add requirements for utilities before increasing consumer rates; streamline planning and administration of programmes meant to lower families' energy bills; speed up the process of connecting large energy users to the grid; support solar development in public schools; establish a sales tax exemption for EV charging stations; and prevent "phantom loads" by requiring data centres to pay more for electricity, or alternatively generate their own.

Virginia's proposed legislative return to RGGI could speed up the process of bringing it back into the programme's fold, but the question of negotiating the potential new participant's allowance budget represents a notable hurdle on the state's path back, an industry representative told Carbon Pulse.

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.

Pipe dreams – California faces an estimated $43 bln cost to maintain its gas network over the next 20 years, even as state climate goals imply a transition away from natural gas that would ultimately strand those assets and burden ratepayers, Legal Planet reports. A new brief from the UCLA Emmett Institute analyses SB 1221, which created a CPUC pilot to designate up to 30 neighbourhood decarbonisation zone projects where utilities work with communities to transition areas away from gas service. The paper examines legal and practical hurdles, including cost recovery and utilities’ obligation to serve, and recommends proactive, community-centred outreach, consistent cost-benefit analysis methods, and utility compensation mechanisms to correct misaligned incentives and better align utility, ratepayer, and decarbonisation goals.

Sunny savings – A study by Synapse Energy Economics for the Coalition of Community Solar Access finds that expanding distributed solar and energy storage in New York could save the state about $1 bln a year in energy costs by 2035, Energy Jobline reports. Boosting capacity to 20 GW would lower average residential bills by $87 annually upstate and $46 downstate, including for non-participants. The analysis also shows stronger reliability during peak winter demand, reduced exposure to gas price volatility, avoidance of about 11% of gas used for electricity generation, and nearly $947 million a year in GHG cost savings, according to the study’s authors and supporters.

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.

California Carbon Allowances (CCAs) could see upward price pressure as the state's compliance instrument bank recedes and emissions begin to exceed the cap, according to an analyst forecast presented this week.

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.

Partisan pivot - A new poll suggests Republican opposition to electric vehicles may be easing following the 2024 election, while Democrats continue to hold negative views of Tesla and its CEO Elon Musk, E&E News reported. The survey of 600 voters, conducted in Nov. 2025 and released this week, found that partisan attitudes toward EVs are shifting even as Tesla faces image challenges among likely buyers. Commissioned by the American EV Jobs Alliance and EVs for All America and carried out by Hill Research Consultants, the poll focused on voters in households earning more than $50,000 to capture opinions among those more likely to purchase a new vehicle.

Science stalled - A US Democratic effort to affirm the scientific consensus on climate change was blocked on the Senate floor after Republican objection prevented fast-track passage, E&E News reported. The resolution, introduced by Environment and Public Works ranking member Sheldon Whitehouse of Rhode Island, sought to state that climate change caused by fossil fuel combustion is not a hoax, describe GHG-driven climate change as sound science, and call for protection of congressionally authorised climate research programmes. The measure failed after Senator Roger Marshall (R) of Kansas objected to a request to pass it by unanimous consent, a procedure reserved for non-controversial actions.

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.

Indigenous-led nature-based solutions (NbS) in Canada backed by federal funding see nearly three times lower carbon losses than conventional protected areas, according to a climate scientist involved in a new study examining the environmental impacts of Indigenous land stewardship.

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)

SAF raise - Aether Fuels has raised $15 mln to accelerate progress on its commercial-scale sustainable aviation fuel (SAF) plant in Singapore, it announced Wednesday in a press release. Project Beacon is expected to produce up to 2,000 tonnes of SAF by 2028, with an expected 70% reduction in lifecycle GHGs versus standard jet fuel. The fuel will be eligible to offset obligations under aviation offset scheme CORSIA. The latest funding brings Aether Fuels' total funding to $60 mln raised since 2022 from investors including AP Ventures, Chevron Technology Ventures, Eni Next, and Aster Ventures.

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.

Weaker targets under India’s new compliance carbon market have reduced emissions reduction potential by about 2.8 million tonnes of CO2 equivalent by 2027, according to analysts.

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.

South Korea's latest monthly CO2 permit auction again went oversubscribed with an increase in the clearing price, but analysts remained cautious about the whole-year price outlook as the allowance oversupply lingers.

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)

Coming this year - Malaysian state of Sarawak will this year introduce a carbon levy on oil, gas, and energy facilities, with proceeds to be channelled into a Climate Change Fund to support forest conservation and grid modernisation, Bernama reported, citing Premier Abang Johari's speech in state capital Kuching. Sarawak also plans to align the levy with a future Malaysian national carbon pricing framework. Last year, the state passed a law to regulate carbon-related activities, including the recognition, registration, and ownership of carbon rights and carbon credits.

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.

The US withdrawal from the UNFCCC means it no longer has a say in how the billions of dollars it has contributed to the international climate treaty will be spent, as the world continues to negotiate efforts to stem emissions in the country's absence, experts told Carbon Pulse.

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.

China's top market regulator has released a batch of national standards for the development of the country's carbon capture, utilisation, and storage (CCUS) sector.

On-site work - The Korea Forest Service (KFS) has opened a local office in northern Laos to oversee a REDD+ project between South Korea and Laos, Korea Herald reported. The two countries have signed an MoU to expand their effort into the project, which covers about 1.5 mln hectares of forest in Phongsaly province. The opening of the new office will allow forestry experts from both countries to conduct on-site assessments. KFS also plans to develop a detailed implementation strategy to enhance forest carbon stocks.

A distant goal - South Korea's carbon permit price needs to double from the current level for the country's ETS to function properly, the leader of government-affiliated Korea Environment Corporation (K-eco) said Wednesday. It needs to be at least KRW 20,000-30,000 ($13-20), said K-eco Chairman Lim Sang-jun, who cited the price levels in the EU (KRW 120,000) and the US (KRW 40,000-50,000). The Korean government months ago released a five-year emissions allowance allocation plan that will determine the sentiment in the national carbon market towards 2030, which is expected to help boost prices in the coming years.

The government of New Delhi has approved a Carbon Credit Monetisation Framework that will allow the national capital to generate revenue by converting greenhouse gas emission reductions from its climate and pollution-control initiatives into tradable carbon credits, officials announced this week.

Preperations underway - Thailand’s upstream oil and gas firm PTT Exploration and Production Plc is preparing to build the country’s first carbon capture and storage facility at its Arthit gas field in the Gulf of Thailand, Bangkok Post reported. The project will be able to capture and store up to 1 MtCO2e a year, with operations expected to begin by 2028. PTTEP plans to invest about $320 mln over five years, with captured emissions stored in underground reservoirs 1,000-2,000 metres below the surface.

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.

Carbon markets in the US Northeast face a critical year as political pressures and programme deadlines converge to test the region's emissions reduction initiatives, panellists said at a conference in San Diego on Tuesday.

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.