Algorithm appetite -The California Energy Commission (CEC) adopted the 2025-2045 California Energy Demand Forecast following a condensed public consultation period with workshops in late 2025 and early Jan. 2026 where stakeholders debated rapid shifts in the state's energy landscape. The forecast projects peak electricity loads rising 42-61% by 2045, driven by aggressive transportation and building electrification, with AI-driven data centre growth in Northern California emerging as the primary factor in recent revisions. The adoption provides the official roadmap for California Independent System Operator (CAISO) and California Planning Utility Commission (CPUC) to plan grid infrastructure and procure new energy resources. The public consultation process was fast-tracked to meet statutory deadlines, with the final document reflecting critical late-stage updates on industrial load requests. The forecast underscores California's challenge balancing ambitious carbon-neutrality goals with unprecedented grid scaling requirements to support emerging technologies.

New England's bridge fuel - New England can decarbonise natural gas-fired electricity generation through hydrogen co-firing, renewable natural gas, and carbon capture rather than replacing aging turbines, according to a University of Pennsylvania's Kleinman Center for Energy Policy analysis. Many existing turbines carry manufacturer certifications allowing 15-50% hydrogen co-firing by volume, while clean hydrogen produced from biomass waste gasification coupled with carbon capture offers net-negative emissions potential. Renewable natural gas from dairy, food, and municipal waste provides drop-in decarbonisation for existing units. Regional ultramafic and mafic rock formations could enable permanent CO2 storage through mineralisation.

Joint carbon accounting - Global business, finance, and climate leaders coordinated by London-based Systemiq issued Friday a joint statement calling for stronger and more unified carbon accounting standards to accelerate decarbonisation, warning against fragmentation into parallel frameworks. The signatories said globally consistent, decision-useful GHG accounting across full corporate value chains, including Scope 3 emissions, is critical for risk management, investor decision-making, and credible transition planning. The statement urged policymakers to strengthen and evolve existing global frameworks such as the GHG Protocol and ISO standards, rather than prioritising product-level approaches that could undermine corporate accountability. It said reinforcing current systems would improve comparability, reduce costs, and support faster progress toward net zero.

Credit where due - The Colorado Department of Public Health and Environment (CDPHE) Air Pollution Control Division (APCD) released a draft Emission Reduction Credit (ERC) guidance document for 30-day public comment through Feb. 21 with new ERC application forms available for immediate use. The guidance implements newly effective Regulation  covering voluntary, permanent air pollution reductions in nonattainment areas. The document details creditable emission reduction criteria, baseline emissions methodology, certification process from application to certificate issuance, and requirements for new major stationary sources to use certified ERCs as offsets for Nonattainment New Source Review.

Natural gas's day in court - The Washington Supreme Court heard arguments Thursday on whether to revive Initiative 2066 (I-2066), a 2024 voter-approved measure protecting consumer access to natural gas that a lower court blocked as unconstitutional, Courthouse News Service reported. A coalition including Seattle, King County, and environmental non-profits argued the initiative inhibits air pollution regulation under the Clean Air Act and conflicts with building codes requiring renewable energy promotion. King County Superior Court in 2025 declared the measure violated the single-subject constitutional rule and failed to explain how it changed existing law. The state and Building Industries Association of Washington argued each provision relates to protecting natural gas access, satisfying constitutional requirements. No ruling timeline was indicated.

Savanna methodology - Colombia-based BioCarbon Standard has opened a public consultation on Version 2.0 of its BCR0005 methodology for activities preventing the conversion of natural savannas, it announced Friday via LinkedIn. The updated methodology revises scope and applicability, baseline and additionality criteria, and treatment of fire, leakage, and reversal risks, while integrating BioCarbon’s last MRV tools. Stakeholders can submit comments until Jan. 30, 2026

Patagonian macro-project - The Nature Conservancy (TNC) and local developer Halkis presented a soil carbon project for Patagonia at an event in Neuquen province this week, detailing plans to generate voluntary carbon credits through large-scale regenerative grazing practices, Agrositio reported. The binational Argentina-Chile ESTEPPA programme aims to develop a soil organic carbon project, with credits generated from changes in livestock management that increase carbon stocks in grassland soils. TNC said the initiative ultimately seeks to scale up to 10 mln ha of Patagonian rangelands by 2030, with an estimated mitigation potential of more than 5.5 MtCO2e per year. The first implementation phase will focus on a 200,000-ha cluster by 2026. ESTEPPA aims to register under Verra’s VCS.

Removal rules roadmap - The Climate Center released a CO2 removal (CDR) policy guide last month urging California to maintain separation between CDR and emissions reductions, counting removals solely toward dedicated targets of 7 MtCO2 by 2030 and 75 MtCO2 by 2045 rather than the state's 85% emissions reduction requirement. The report recommends strengthening Community Benefits Agreements for industrial CDR including community rights of refusal, requiring science-based setbacks from projects and CO2 pipelines, banning enhanced oil recovery, and developing fossil-free CDR funding mechanisms including compliance markets and tax incentives that do not rely on offsets. Additional recommendations include increased research funding, expanded nature-based solutions investment under AB 1757, and refined monitoring, reporting, and verification protocols.

Saving on electricity - Massachusetts State House Speaker Ron Mariano met privately with representatives on Tuesday to discuss energy affordability in the state. House Democrats have noted that policymakers must be “realistic” regarding the impacts on energy bills, and to specifically consider long-term utility bill relief. The discussions have continued as Gov. Maura Healey announced an initiative on Thursday to temporarily reduce residential electric and gas bills during the winter by about 15%, or a total of $180 mln. (NBC)

Pushing back on coal - Environmental and consumer advocacy groups led by the Sierra Club filed rehearing requests with the US DOE on Thursday to challenge the Trump administration's extension of two Indiana coal plants.  The DOE had forced the last coal units in Indiana to stay open in December. The agency said during that time that it is considering to issue emergency orders to keep all baseload power plants open. The conservation groups alleged the extension of the plants past their 2025 retirement dates is an unlawful use of the Federal Power Act, adding to other challenges that Sierra Club and Earthjustice have filed against similar orders to extend coal plants in Washington, Michigan, and Pennsylvania. The groups also plan to file a challenge next week against the DOE's decision to extend a Colorado plant.

Extra subsidies - The New York Public Service Commission, which regulates utilities in the state, voted to extend nuclear plants until at least 2049 during a meeting on Thursday, approving a $33 bln subsidy over the next 20 years to four reactors. Regulators made the decision based on reliability concerns if the plants were to shut down. New York has subsidised nuclear resources for the past decade to ensure they remain economically competitive with cheaper natural gas resources. In 2017, the PSC approved a $7.6 bln proposal from the state to help fund the plants through 2029.  (E&E News)

The US still offers more compelling subsidy of CO2 storage over Canada, though other factors have been successful in pulling Canadian companies back across the border, developers said on a panel Friday.

Both producers and managed money trimmed their length in the California Carbon Allowance (CCA) futures and options market, while financial players entered a net long position in the RGGI Allowance (RGA) futures market, the latest US Commodity Futures Trading Commission (CFTC) data published Friday showed.

An eleventh US state has filed a lawsuit against Big Oil for alleged climate deception, accusing companies in the sector of conspiring to limit energy diversification.

Colima fund - Mexico’s Colima state plans to finance community environmental and climate mitigation projects through a fund that could reach up to MXN$ 60 mln ($3.5 mln), sourced from its carbon tax and managed via the State Environmental Fund, local authorities told Colima University's newspaper on Friday. The mechanism will prioritise state-level nature-based solutions, which aligns to the regulations adopted in December by the state for its carbon credit compensation system.

Silence isn’t strategy - US Senator Sheldon Whitehouse (D-RI) has pushed back against what he calls “climate hushers” within the Democratic Party, arguing that avoiding climate change in political messaging risks suppressing voter enthusiasm and conceding ground to Republicans, E&E News reported. The Rhode Island senator said Democrats should continue linking climate change to tangible economic impacts such as insurance costs, property values, and energy bills, while also criticising fossil fuel industry influence on policy under President Trump. His comments come amid a broader party debate after Democrats’ 2024 losses, with some lawmakers favouring a tighter focus on affordability and energy prices. Whitehouse maintained that economic and climate arguments are compatible and that retreating from broader climate messaging would amount to strategic defeat.

A South Dakota legislative committee on Friday advanced a proposed constitutional amendment that would restrict eminent domain for economic development purposes, a move that could further enhance legal barriers to use of the practice for the development of CO2 pipeline proposals.

SAF study started - Jamaica has launched a Sustainable Aviation Fuels (SAF) feasibility study to assess the country’s potential to cut aviation emissions and strengthen climate resilience, with the work managed by UK International Climate Finance. Announced on Tuesday at the headquarters of the Jamaica Civil Aviation Authority in Kingston, the study will examine feedstock availability, fuel and energy infrastructure, aviation demand, export potential, and the policy and investment landscape, alongside cost and competitiveness challenges. Energy, Transport and Telecommunications Minister Daryl Vaz said the initiative aligns with national development and climate priorities, citing Jamaica’s vulnerability to climate impacts, with findings expected to inform policy and investment decisions.

E15 encore – Illinois has renewed calls for the US Congress and the Trump administration to mandate nationwide, year-round sales of E15 fuel, arguing the move would support farmers, cut emissions, and strengthen energy security as corn supplies swell. Governor JB Pritzker (D) again urged federal action, warning that reliance on temporary summer waivers creates uncertainty for growers as corn production hits record levels, with the US Department of Agriculture (USDA) estimating output above 17 bln bushels for the first time. State officials said permanent E15 could lift corn demand by around 2 bln bushels a year, citing Renewable Fuels Association analysis, as prices slide to their lowest levels since August, further pressuring farmers facing rising input costs.

Environmental groups petitioned a federal appeals court to overturn the US EPA's approval of West Virginia’s authority to regulate CO2 storage wells, arguing the agency unlawfully handed oversight to a state with a poor enforcement record and weaker rules than federal law.

The Trump administration will disrupt nearly $84 billion in loans and commitments, marking another blow to renewable energy and clean technology in the US.

The voluntary carbon market (VCM) largely stabilised in 2025 after the sharp contraction that began in 2022, marking a transition out of the downturn phase seen over the previous two years, according to a new report.

New Mexico has earned the last stamp of approval from regulators for its clean fuels programme, with an aim to be up and running this summer.

Fee increase - Oregon's Department of Environmental Quality (DEQ) has announced a rulemaking to make permanent temporary fee increases for GHG reporting that were implemented in July 2025. The rulemaking does not propose to make any other adjustments, the department added. DEQ has appointed an advisory committee to review fiscal information related to the proposed rules. The next committee meeting will take place on Feb. 6 at 11oo P (1900 GMT). Those interested in participating can join here. Earlier this month, DEQ announced a rulemaking plan for trade-exposed industrial facilities under its Climate Protection Program (CPP).

European carbon prices posted a 4% weekly drop, the first weekly decline since early December, and ended the day marginally lower despite spending most of Friday in positive territory, as activity diminished and traders reduced risk ahead of the weekend amid growing concerns around the potential for military action in the Middle East.

EU-Ecuador green investment deal – The European Union and Ecuador on Friday concluded negotiations on a Sustainable Investment Facilitation Agreement (SIFA), the EU’s first such deal with a Latin American country, the European Commission announced. The accord seeks to make Ecuador’s business environment more transparent and efficient by cutting regulatory uncertainty and bureaucratic hurdles, while upholding environmental and labour commitments and supporting the Paris Agreement. It features a dedicated annex on sustainable energy and raw materials and is backed by an €8 million EU project to improve Ecuador’s investment climate and energy transition.

PACM progress – PACM market infrastructure got a boost Friday as the UNFCCC announced two areas of progress: the entry into force of a multi-year implementation contract to build core elements of both Article 6 registries, and an open comment period for proposed methodology A6.4-PMM006 on fertiliser production with renewables-based ammonia. The digital infrastructure initiative will be led by Trovio, with EY providing support in user experience. The methodology A6.4-PMM006 has been submitted by think tank Perspectives Climate Research, and input will be accepted till Jan. 27. The inaugural project would be a "state-of-the-art renewables-based ammonia-based fertiliser production facility located in Uberaba, Minas Gerais, Brazil", as per the project design document submitted to the UNFCCC.

Combining drone data with satellite metrics can significantly improve carbon stock monitoring in tropical forests where field plots are limited, according to a peer-reviewed study published Friday.

A roughly C$14 million ($10 mln) grant will fund the expansion of Indigenous-led conservation initiatives across Canada, targeting greater access to carbon and nature finance for First Nations.

Natural gas demand stagnated in 2025, growing by less than 1% globally, while production of liquefied natural gas (LNG) increased by almost 7%, with around three-quarters of the growth concentrated in the second half of the year, according to the International Energy Agency (IEA).

€70 bln per year needed for adaptation – The European Union must collectively invest about €70 billion a year in climate adaptation through 2050 to curb mounting climate risks and boost resilience, a new study for the European Commission has found. The study estimates annual needs of €30 bln for infrastructure, €21 bln for ecosystems and €12 bln for food security. France, Italy, Germany and Spain face the largest investment needs, while overall adaptation finance remains insufficient, the study warns. It urges better data and integration of climate risks into national budget planning.

Brazil agri reporting pilot – Diginex, a sustainable RegTech business, has signed a joint venture framework agreement with Brazil’s Mato Grosso state and local partner BGlobal to develop a digital ESG and decarbonisation infrastructure producing auditable emissions and sustainability data, starting with a pilot in the beef sector, the company said. The platform aims to standardise measurement and reporting across agricultural value chains, support the state’s Passaporte Verde export initiative, and generate data capable of underpinning credible carbon and nature-based applications, while remaining focused on governance and transparency.

Green bonds can materially cut funding costs for “virtuous high‑emitters” investing in credible decarbonisation projects, even if they are far from being green champions, according to new research by the European Central Bank.

The rising “shadow fleet” in global shipping lanes threatens to torpedo the International Maritime Organization’s (IMO) already precarious plans for reaching net zero, an analyst group has warned.

Consumers can be a pillar of the electric transition, including through electric vehicle (EV) batteries supporting the grid and overall acceptance of the shift, said experts at the World Economic Forum in Davos.

The World Economic Forum (WEF) announced a new direction for its Trillion Trees (1t.org) project this week, transforming it into a broader alliance aimed at encouraging the private sector to invest in forests.

Record-low cost of green technology, particularly solar, is helping India leapfrog the fossil-fuel heavy development path taken by China and Western economies, according to a new report.

The European Court of Justice has rejected Poland's appeal against fines imposed for failing to shutter its Turow lignite mine, located on the border with Czechia.

A US-registered forestry and agriculture fund manager has raised $52.5 million in the first close of its second farmland vehicle, aiming to make its inaugural investments in early 2026.

Permits in China's emissions market continued to trade around RMB 78 ($11.19) over the past week, and analysts expecting allowance prices to hover around the same level in the short term amid a relatively optimistic outlook.

Nepal has become the first Asian country to sign an agreement with the LEAF Coalition, unlocking up to $55 million in results-based climate finance for forest protection in a major step towards the use of jurisdictional REDD+ credits in international compliance markets.

Indonesia biodiesel – Indonesia aims to end diesel imports in 2026 as it ramps up mandatory biodiesel blending, the energy ministry said on Friday. Southeast Asia's largest economy's biodiesel mandate has been rising, lifting domestic consumption to 14.2 mln kilolitres last year, exceeding official targets and cutting diesel imports by about 3.3 mln kilolitres. Energy Minister Bahlil Lahadalia said higher blending levels, alongside expanded refining capacity, have created a diesel surplus of around 1.4 mln kilolitres. Indonesia is also planning to stop importing medium- and high-octane gasoline by 2027, while surplus diesel will be redirected to produce aviation fuel.

The European Commission has signed off on its first set of EU-wide carbon farming certification methodologies with almost no substantive changes compared to a draft that leaked last week, locking in proposed accounting rules and a generous transitional regime for early projects.

The government is being called on to better resource the development of Australian Carbon Credit Unit (ACCU) methodologies, as well as prioritising those that integrate biodiversity, as part of an ongoing review of the scheme.

Taiwan is seeking to accelerate the development of an emissions reduction project through its Article 6 partnership with Paraguay this year, according to the island's environment ministry.

Low-cost, short-haul European airlines are shifting their position away from supporting a possible extension of the EU’s Emissions Trading System (ETS) to international flights, analysis of lobbying activity reveals.

The coming year will see a plethora of sentiment-shifting events and milestones in Australia’s carbon market; however, experts have pointed to the mid-year review of the Safeguard Mechanism as the flagship agenda item that will shape the scheme in the years to come.

Wind-ing road - Three offshore wind projects in Western Australia have been awarded final feasibility licences, the federal government announced Friday. The three projects could deliver around 4 GW of renewable electricity into the South West Interconnected System, the government said, with Bunbury Offshore Wind being offered licences for two projects and Westward Wind being offered one. Acceptance of these offers will allow proponents to commence detailed feasibility investigations and consultation under the framework, the government said. Canberra is struggling to attract feasibility licence applications in other offshore wind zones in Australia, with the one bid in the Illawarra zone being withdrawn by its proponent and bids in the Bass Strait being deemed uncompetitive, according to the government.

Solar shining - The Australian government has published its outcomes paper on the core design principles of its Solar Sharer Offer, it announced Friday. The program is designed so that energy retailers offer households with smart metres at least 3 hours of free electricity in middle of the day when solar generation is at its peak. The government said the programme will be optional and enable more Australians to access abundant clean energy, which is frequently forced to be curtailed, in the middle of the day. Outcomes from the consultation held last year include tailoring the free-power period to local conditions and enhancing system efficiency overall. The scheme will begin on July 1 and be made available in South Australia, New South Wales, and South East Queensland.

Upcoming webinar - Verra will host a webinar on Feb. 24 at 1000 ET/1500 GMT to provide an overview of its ABACUS label, a designation launched in 2024 with an Amazon-led working group that identifies carbon credits generated under Verra’s Afforestation, Reforestation, and Revegetation methodology (VM0047) that exceed baseline methodological requirements. The session will cover label eligibility criteria, validation and verification requirements, insights from applying the label, and next steps for its further development, alongside responses to frequently asked questions. A representative from Amazon will join the discussion to share perspectives on market demand and pricing dynamics for labelled credits. Register here.

Timber credit oversight - The West Virginia Senate Energy, Industry, and Mining Committee approved Senate Bill 118 (SB 118) creating a Division of Forestry-administered Forest Carbon Registry tracking properties encumbered by forest carbon offset agreements. Carbon project developers or landowners must submit geographic information system shapefiles, landowner and developer contact information, project dates, duration, and forest management obligations within 120 days of executing carbon offset projects, with county courthouse filing required by July 1, 2027. The bill is similar to another legislative initiative introduced in the legislature in Mar. 2025. Senator Eric Tarr (R) introduced the legislation responding to concerns about private carbon market deals lacking reporting requirements. The bill has advanced to the Finance Committee, according to Charleston Gazette-Mail.

Paraguay methodologies - The Ministry of Environment and Sustainable Development (MADES) of Paraguay, through its Carbon Markets Directorate (DMC), said on Wednesday it had made available a homologation form to initiate technical reviews of certification methodologies for GHGs mitigation projects that will become eligible under the country’s carbon market framework. This is part of the programme to Operationalise the National Carbon Market Framework implemented by the Global Green Growth Institute (GGGI).

Offset shore - Washington's Department of Ecology (ECY) is seeking expressions of interest for an exploratory working group to evaluate feasibility of a Blue Carbon Offset Protocol under the state's cap-and-invest programme, covering aquatic ecosystems including seagrass beds, wetlands, and riparian forests. The ECY disclosed it would roll out this working group as it announced rulemaking to update its forestry offset protocol. The working group beginning mid-March will examine potential pathways for protocol development based on voluntary market blue carbon protocols, novel approaches, and scientific research. The ECY is seeking expertise in blue carbon ecosystem management, restoration, conservation, and voluntary offset project inventory, development, registration, and verification. Input will inform rulemaking on potential protocol adoption under WAC 173-446.

Ratings tie-up - Calyx Global, a rating agency, and Climate Impact X (CIX), an exchange, have struck a strategic partnership, which will give users of the exchange evaluations of credits integrity.  Calyx Global said it has over 1,000 GHG and 500 SDG ratings that assess the quality and integrity of carbon credits. Calyx co-Founder Duncan van Bergen said, by integrating our independent ratings into the CIX platform, the partners were giving the participants the necessary tools to "distinguish real impact from noise".

Renewables rerouted - US Republican lawmakers in Wisconsin have advanced a bill that would require renewable energy projects supplying electricity to data centres to be built on-site, as part of a broader effort to regulate the sector after the state offered large tax incentives to attract major technology companies, E&E News reported. The state Wisconsin Assembly passed Assembly Bill 840 largely along party lines on Tuesday, less than two weeks after its introduction, sending the measure to the Senate. The legislation includes provisions aimed at limiting impacts on utility rates, water use, and land use associated with data centre development. Democrats, environmental groups, labour organisations, and some industry stakeholders have criticised the bill, and Governor Tony Evers (D) is unlikely to sign it into law, according to a spokesperson.

Argentina’s climate homework – A UN technical review published on Thursday indicated that Argentina needs to prioritise capacity-building in two areas to facilitate its Biennial Transparency Report (BTR): estimating expected GHG emission reductions resulting from mitigation policies and measures, and developing and reporting emissions projection scenarios. The group also noted that the South American country needs to reduce its emissions by 8.2% under its NDC to reach its 2030 goals – equivalent to 28,750 ktCO2e.

Frontier lime-aid - Frontier has awarded $2 mln in R&D grants to UK-based Leilac and Sweden-based SaltX to support the production of zero carbon lime on behalf of Stripe, Shopify, and Google. Frontier said zero carbon lime could be a low-cost feedstock for several carbon removal applications and its goal is to accelerate the lowest‑cost, most commercially ready processes for producing zero‑carbon lime, starting with these two companies.

Grant tug-of-war - A federal appeals court has found a lower court abused its discretion when it ordered the Trump administration to reinstate nearly three dozen Biden-era grants for environmental initiatives, according to a report by E&E News. The administration appealed the ruling by an Obama-appointed judge last spring.    

California Carbon Allowances (CCAs) futures prices continued to fall over the last week ahead of additional incoming supply from the Q1 auction and amid put buying, though the long-term outlook of the market was largely unchanged, traders said.

Any fees tied to emissions benchmarks within carbon-intensive, trade-exposed (CITE) products would double US revenues if expanded beyond a carbon border adjustment mechanism (CBAM) to include domestic production, new research published on Wednesday shows.

A US-based marine carbon dioxide removal (mCDR) company is actively selling its product beyond carbon markets to circumvent the technology scale-up “valley of death”, a company representative said at a conference on Thursday.

In a market with a lot of price and integrity uncertainty, universities are poised to carry out important due diligence when buying carbon credits, according to panellists on a Wednesday webinar.

California emissions from transportation fuels this year appear to be on track to be lower than 2024 levels after year-over-year (YoY) diesel and gasoline sales declined in October, state fuel tax data posted Thursday shows.

Less than a sixth of major US pension funds representing $3.25 trillion in assets have adopted strong climate solutions investment strategies to protect their assets from climate-related financial risks, according to a new analysis by an environmental non-profit.