XCF merger - XCF Global (XCF), Southern Energy Renewables (SER), and DevvStream Corp. (DSC) have agreed to a binding term sheet to combine SER in a three-party merger. The merger is intended to form an integrated platform of complementary assets, with the opportunity to deploy an environmental attribute and credit generation strategy across North America and emerging markets, the companies said. The binding term sheet establishes a framework for collaboration among the three companies, and includes an investor agreement to purchase shares of XCF to fund near-term operations and complete targeted upgrades and modifications at its New Rise Reno refinery, a major US production centre for sustainable aviation fuel (SAF).

Patented HYCO1 - US-based CO2 utilisation company HYCO1 has won three patents to strengthen the company's syngas technology and carbon use. HYCO1 said these patents protect its ability to use CO2 as a working feedstock (added or native to the feedstock stream) and to deliver low-cost, low-carbon syngas for fuels, chemicals, and advanced materials. It said the portfolio also supports drop-in upgrades for existing syngas reformers as well as new low-carbon improved efficiency builds.

Carbon removal (CDR) could return global average temperatures toward pre-industrial levels after achieving net zero, but would not restore the climate system to pre-industrial conditions, a new study said.

Regulated entities’ emissions exceeded the cumulative annual compliance limit under Newfoundland and Labrador’s industrial carbon pricing system for the first time in 2024, according to a provincial report published Friday.

A stronger use of market-based climate policies, including carbon pricing reforming environmentally harmful subsidies, will be critical for Latin America and the Caribbean (LAC) to finance its transition towards low-carbon economies, according to a new report by the OECD.

New Mexico lawmakers introduced legislation that would set statewide GHG emissions limits in statute, including a requirement for net zero emissions by 2050, while expanding the rulemaking and reporting authority of state air quality regulators.

Brazil’s development bank has selected seven funds from 45 proposals received under its largest-ever call for investment in climate projects, it announced on Monday.

Rewetting peatlands could materially improve the performance of biochar-based carbon removal (CDR) compared with conventional soil applications, according to new research.

Trinidad and Tobago has committed to cutting cumulative GHG emissions 15% below a business-as-usual (BAU) baseline by 2035, with most of the ambition conditional on international support, according to its latest Nationally Determined Contribution (NDC).

Carbon Pulse rounds up carbon pricing trends and developments in the Middle East and North Africa (MENA) region for Jan. 2026, highlighting state-led responses to international compliance obligations and opportunities, and the UAE’s role as a “great convener”.

EU carbon allowances got off to a weak start on Monday, with early strength giving way to determined and repeated selling in the wake of the fifth auction discount in the last six days, and natural gas markets also opened strongly but quickly went into reverse, while some traders began to eye a floor to the market.

Renewable energy investment fell 9.5% year-on-year, according to analysts, who said the drop was in large part due to a decline seen in China.

CORSIA-eligible spot and futures prices softened last week, although volumes remain very thin amid a market that has yet to strike a balance on fundamentals, sources noted.

A Swiss telecoms company has signed a deal with a German platform to purchase durable carbon removals in service of its 2035 net zero target.

The UK government is expected to publish its Reformed National Pricing (RNP) programme in the next month – a key element in revamping the country's energy system to achieve its 2030 clean power goal, an official said on Monday.

Nigeria's solar barrier - Investors and lenders need to improve financing options to help Nigerian customers shift to solar generators, from petrol and diesel, including with the use of carbon credits, according to a report by ZE-Gen, based on smart meter data collected over a year. The study found that while most customers want to make the switch, they're impaired by high upfront costs and inflexible financing terms - even though solar generators are more economical over the long-term, because they don't require fuel. Among its recommendations, it said flexible financing models and the use of carbon credits could help to lower upfront costs and expand inventory procurement services. Meanwhile, donors and development partners could build local capacity and customer awareness by training technicians, while policymakers could strengthen regulatory support and incentives by streamlining approvals.    

Responses welcome - The Global Carbon Council (GCC) has launched a public stakeholder consultation on a draft methodology to support carbon projects that electrify communities with limited or no energy access, whilst aligning with Art. 6.4 of the Paris Agreement. The “Methodology for Electrification of Communities Using Digital Monitoring, Reporting and Verification (DMRV) Protocol” (GCCNMT017) responds to the need for a dedicated carbon accounting model for electrification projects in off-grid, weak-grid, and under-served communities. It doesn't apply to power generation for cooking purposes. The consultation is open until Feb. 18.

Storage stakes – Indiana lawmakers are advancing legislation to assume federal oversight of underground CO2 storage projects, as developers pursue a growing pipeline of proposals across the state despite local opposition, a local outlet reports. A bill before the Indiana General Assembly would require the Department of Natural Resources to seek primary enforcement authority for Class VI wells, which regulate the injection of CO2 for geologic sequestration and are currently permitted by the US EPA, where nine Indiana applications are under review. Industry groups say federal permitting has been slow and inconsistent and argue state primacy would speed investment, while critics warn Indiana may lack the resources, expertise, and independence needed to regulate complex CO2 storage projects without weakening environmental safeguards.

Steel plant to be shut - Ukraine's largest steelmaker ArcelorMittal Kryvyi Rih is set to close one of its production units in the second quarter, citing the impact of the EU's carbon border fee and high local power prices driven by Russian attacks on energy infrastructure. The plant is based in southeast Ukraine and makes billets for small-gauge and wire mills. The company has blamed the EU's Carbon Border Adjustment Mechanism (CBAM) as closing the market to much of Ukraine's metallurgical products, and also high power prices worsening its economic feasibility. Ukrainian industry is battling blackouts and electricity restrictions as a result of Russian attacks. (Reuters)

Progress review - The EU and Norway held the annual implementation meeting of the EU-Norway Green Alliance last Thursday, which convened representatives of the European Commission and a delegation from Norwegian ministries. It saw both sides reaffirm their shared commitment to decarbonisation and climate neutrality, including as drivers of growth and competition, and saw participants review the alliance's technical cooperation on areas such as energy and green shipping. The EU and Norway will now explore options to deepen partnership on several focus areas including on clean industrial policy. Both parties reaffirmed the alliance's value in strengthening cooperation beyond the European Economic Area (EEA) Agreement.

Murky horizon - Germany has yet to decide a national CO2 price for 2027 following the one-year delay to the EU's emissions trading system for buildings and transport (ETS2), the environment ministry told national outlet Tagesspiegel Background. EU ETS2 will replace the country's national system, but given its delay to 2028, the German system will run for an extra year. However, there's been no decision on the concrete design during that period. Lawmakers from the government coalition partners had proposed to freeze the price at this year's level, which is set by auctions and currently at €55-65/t, but it's not clear if the govt will follow the agreement. A higher carbon price would bring extra revenues for the state, but higher prices could also risk backlash from consumers.

Air apparent – Occidental Petroleum CEO Vicki Hollub said direct air capture (DAC) could unlock an estimated 50-70 bln additional barrels from existing oil reservoirs by enabling greater use of CO2 for enhanced oil recovery, Gas World reports. Speaking at Davos last week alongside US Energy Secretary Chris Wright, Hollub said captured CO2 can be injected into conventional and shale reservoirs, where recovery rates of around 10% could almost double using the technology. She argued that oil produced this way could be “net zero or very close to it”, as the CO2 stored underground would be equal to or greater than emissions released when the oil is used.

Geothermal money in Kenya - The African Development Bank (AfDB) Group has approved a loan of $16.5 bln to support the development of Kenya's 35 MW OrPower Twenty-Two geothermal power plant, which is expected to boost the country's baseload generation and accelerate the shift to clean energy, it announced on Friday. The project, developed by independent power producer OTTL, will is the third in the Menengai geothermal field, following the operational Sosian Menengai and Globeleq Menengai, which is under construction with separate AfDB financing. Together, they will cover the first phase of the field's development, with 105 MW of capacity. Once fully developed, the Menengai field is expected to generate around 301 GW a year, helping to displace expensive diesel-fuelled power generation.

Short- and long-lived greenhouse gases should be accounted for separately in corporate targets, offsetting, and reporting frameworks to avoid misleading climate claims, according to a report published last week.

Forest management can support both climate mitigation and biodiversity conservation, provided that environmental policies extend beyond just living trees to also include deadwood, according to a new paper.

Carbon credit tokenisation - Thailand’s carbon credit registry operator TGO has partnered with KBank-affiliated digital asset platform Kubix to study API integration for tokenising voluntary carbon units, in a move that could streamline trading, enhance transparency, and support the country’s upcoming Climate Change Act. The collaboration seeks to enable delivery-versus-payment (DvP) settlement, traceability via blockchain, and fractionalised credit ownership, according to executives from both parties. The project aligns with Thailand’s net zero 2050 goal and aims to position the country as a regional carbon trading hub.

Nearly one in five new cars sold in Europe in 2025 were fully electric, according to figures released by a think tank on Monday.

North Sea CO2 shipping deal – LBC Tank Terminals, Associated British Ports and North Sea Port announced Monday they have signed an MoU to develop a cross-border CO2 shipping corridor connecting Northwest Europe with the UK. The partnership aims to link industrial emitters with offshore storage by building out infrastructure for carbon handling, storage and transport, including at ABP’s planned terminal in Immingham linked to the Viking CCS cluster. The corridor would complement a separate inland link between LBC’s Vlissingen terminal and Duisburg.

Philippine conservation – A Philippines-based non-profit has secured additional funding from the Government of Canada to expand its work with nature-based solutions, The Manila Times reported. Backed with a further PHP 28 mln pesos (£1.24 mln), Forest Foundation Philippines plans to support five projects spread across Davao, Camarines Sur, and Palawan. Projects include mangrove restoration, community-led agroforestry, and a coastal resilience initiative. The grant builds on an existing partnership between the Government of Canada and the Manila-based NGO which has so far delivered over £99 mln to projects across the Philippines.

Post-Brexit nature check – Wales, Scotland, Northern Ireland, and England are all expected to release assessment findings for offshore habitats before the end of January, replacing pre-Brexit obligations under EU law. Statutory nature advisory, the Joint Nature Conservation Committee (JNCC), published some UK-wide findings late last week on the conservation status of offshore species including birds. The assessment covers the habitat and the species level. The JNCC was previously responsible for gathering data to meet requirements of the EU’s Birds and Habitats Directives, which are both set to be tested and potentially weakened by the European Commission this year.

Meat and fossil ad ban – The city council of Amsterdam voted in favour of banning adverts for fossil fuel and meat products last week, prohibiting campaign materials from its public spaces. The ban, which passed by 27 to 17, is the first of its kind to be approved by a capital city, DeSmog reported. Initially, Amsterdam’s new policy will cover adverts relating to specific carbon-intensive products, meaning that general promotional material for fossil fuels and meat can continue. However, general advertising will also be axed in 2028 once the city council’s contract with advertising operator JCDecaux expires.

Nine countries have pledged to build 15 GW of offshore wind per year in the North Sea, doubling down on the target to build 300 GW by 2050 during a summit on Monday.

Turkiye has appointed a high-level climate champion with experience in civil society and the United Nations to lead its work with businesses, investors, local governments, and others around November's COP31, the UNFCCC announced on Monday.

The Council of EU member states gave the final go-ahead to plans for phasing out Russian natural gas imports entirely by the end of 2027, despite opposition from Slovakia and Hungary who said the ban will increase price volatility.

An Australian carbon capture and storage (CCS) project saw injected volumes fall quarter-on-quarter in Q4 2025, while securing further Australian Carbon Credit Units (ACCUs) and submitting an application for the next batch, according to its operator’s fourth-quarter report.

Ethiopia is close to finalising carbon credit transactions under its national REDD+ programme, the Ministry of Finance said following a consultation last week with Norway on the next phase of their forest and climate partnership.

A marine CO2 removal company has announced a $20 million first close of its Series A financing.

CDR matchmaking - EU innovation agency Climate-KIC and Japan’s trade body JETRO are inviting European partners to meet Japanese climate tech start-ups in Feb. 2026, including Innovare, which converts waste rubber seeds into biochar and other bioproducts. The open call aims to spark cross-border pilots, investment, and carbon removal credit deals as part of the J-StarX Global Growth for Climate Tech in Europe Programme.

China's shale gas sector has the potential to achieve geological negative emissions, but robust carbon pricing mechanisms are considered necessary to improve the economic feasibility of such carbon storage projects, a new study has found.

Partnership(s) - Japan's Hitachi Systems has begun a demonstration project to protect 50 hectares of forest in Gunma prefecture through collaboration with a local forestry cooperative, it announced Monday. The initiative focuses on biodiversity preservation and forest management measures. Meanwhile, project developer Stellar Green has teamed up with North Pacific Bank and the government of Hokkaido's Hidaka town for the creation of forest-based carbon credits.

South Korea's plan to build two additional nuclear plants around 2038 will proceed as scheduled, the climate ministry said Monday.

Solar panel boom - India is rapidly producing solar panels amid rising electricity demand and a push to reduce reliance on China, which has fuelled "a booming yet uncertain market",  AFP reported. Indian conglomerates like Adani and Tata have been actively expanding the production of solar panels, partly due to strong policy support. The government has said all public tenders require local production. While growth in the sector is already staggering, some have expressed worries over overcapacity. India's solar manufacturing capacity is expected to soon exceed 125 GW, tripling current domestic demand, according to a report by consultancy Wood Mackenzie.

Breakthrough - Chinese energy giant CNPC has achieved industrial-scale production of a critical material used in solar panels and electric vehicles, which can help the country reduce its reliance on imports, local media reported. Its Dushanzi petrochemical plant last year produced nearly 60,000 metric tonnes of polyolefin elastomer (POE), an essential component in the manufacturing of photovoltaic modules. China's POE supply has long relied on imports, with import dependency once exceeding 95%, according to the report.

Prices in India’s compliance carbon market will remain subdued for two years before jumping towards the end of the decade, as tightening emissions benchmarks outstrip industry’s ability to reign in emissions, according to a market outlook published this week.