It's official - The US has formally triggered its withdrawal from the Paris Agreement, notifying the UN on Tuesday, with the exit set to take immediate effect, according to a UN depositary notification. The withdrawal follows US President Donald Trump's Jan. 2025 announcement that the country would be exiting the agreement.

Carbon capture commenced - Oil and gas major ExxonMobil said on Monday it began commercial operations of a carbon capture and storage (CCS) project with ammonia producer CF Industries in Louisiana in 2025, with the project expected to transport and store up to 2 MtCO2/year from CF’s Donaldsonville complex. The company said it has also signed agreements to handle a combined 2 MtCO2/yr from planned projects with AtmosClear and Lake Charles Methanol II in Louisiana, and expects to begin CCS operations with Linde and Nucor later this year. ExxonMobil also said it targeting a final investment decision on its first low-carbon data centre by the end of 2026. (Reuters)

Decarbonisation deal - Holcim, a Switzerland-headquartered multinational building materials company, has invested in Capsol Technologies to support the scaling of Capsol’s post-combustion carbon capture and heat recovery technology. Capsol, a Norway-listed company, develops carbon capture systems based on hot potassium carbonate (HPC), a mature chemical absorption process used to remove CO2 from industrial gas streams. The companies said the investment follows a CapsolGo demonstration project planned for 2025 at Holcim’s Dotternhausen cement plant in Germany and forms part of Holcim’s broader decarbonisation strategy.

Carbon leakage has been estimated to offset between 5-30% of domestic emissions reductions in most recent studies, according to a new review that proposes a framework for analysing the spillover effects of mitigation efforts.

A heads up - Washington's Department of Ecology (ECY) announced Tuesday it is planning to share materials and draft language related to centralised electricity markets and electricity imports during the first week of February, and is encouraging interested parties to provide comment and input. Feedback received will help informing ongoing rulemaking to facilitate linkage with the California-Quebec ETS. The ECY said it will issue a notice when materials are posted, but it will not hold a workshop specific to the material. However, ECY staff are available to meet with interested parties upon request to answer questions or receive feedback.

Carbon tariff study slips in - The US Congress has incorporated language from the bipartisan “Providing Reliable, Objective, Verifiable Emissions Intensity and Transparency (PROVE IT) Act” into report text accompanying a fiscal 2026 spending minibus signed into law last week, directing the US DOE to study and compare the carbon intensity of US-made goods with those produced abroad, E&E News reported. The measure, backed by Senators Kevin Cramer (R-ND), John Curtis (R-UT), and Chris Coons (D-DE), had previously stalled amid conservative concerns it could lead to carbon taxes. Appropriators said the study is intended to provide US-generated data as the EU CBAM officially enters into force. While bill reports are not legally binding, agencies typically follow them, and the DOE-led study would be due by January.

Canada should develop a national biomass strategy similar to its hydrogen framework to guide the allocation of forest and agricultural resources toward carbon reduction, researchers said.

In his 12th letter from the COP30 presidency, Brazilian COP President Andre Correa do Lago has introduced a two-tier multilateralism framework to accelerate climate action, warning that consensus-based decision-making alone is too slow to match the pace of global warming.

A major exchange group in Asia and a stock exchange in Latin America signed a Memorandum of Understanding (MoU) on Tuesday to promote the development of carbon markets in their regions and advance sustainable finance.

While a dozen EU member states support exempting fertilisers from the EU's carbon border fee, the European Parliament is taking a more cautious line.

European carbon prices clawed back all of Monday's 1.4% decline despite a volatile and indecisive session, highlighted by a particularly weak auction result that did not deter bulls, with traders focusing their attention on Wednesday's Commitment of Traders report, while natural gas prices fell back even amid updated forecasts for colder weather.

Pie in the sky - Two of the world’s largest aircraft leasing companies have poured cold water on the aviation industry's ability to meet its goal of eliminating carbon emissions by 2050, the FT reports. John Plueger, chief executive of America’s Air Lease, said the targets "are practically unachievable as I see it now”. He pointed to the industry’s persistent production and delivery challenges among the factors undermining progress. Aengus Kelly, the head of AerCap, which is the world's largest aircraft leasing company, dismissed the 2050 target as "pie in the sky". Both CEOs were speaking in interviews at the Airline Economics conference held in Dublin this week. Kelly, in his interview, said customers would not pay the extra costs for sustainable aviation fuel (SAF), which is critical to reaching net zero.

Revenue rise - Guyana’s finance minister, Ashni Singh, said in the 2026 budget speech on Monday that the country expects to generate GUY$49.7 bln ($237 mln) in carbon credit revenues in 2026, up from GUY$41.1 bln ($197.7 mln) projected in last year's budget speech. Singh did not provide further details on recent or planned transactions. According to the Guyanese government, the country has earned roughly $400 mln from carbon credit sales to date, with 15% of total revenues allocated to Amerindian communities.

Mozambican LNG - The African Development Bank (AfDB) will provide a $150 mln loan to support the development of Mozambique's Coral North floating LNG project, it announced last week. The offshore liquefaction plant, led by Italy's Eni, is expected to cost more than $7 bln and have a capacity of 3.55 mln tonnes of LNG per year. It would follow Mozambique's first LNG plant, Coral South, which started operating in 2022. The project's developers have committed to set aside some of the LNG for clean cooking access, domestic industrial development, gas exports to the Southern African Development Community region, and gas-to-power projects. These will enhance the region's energy security and resilience, the AfDB said.

Issuances were increasingly concentrated in newer vintages (less than 4 years old) in 2025, which is consistent with stronger buyer preferences linked to integrity considerations, according to a report from an NGO, published on Tuesday. 

VC for climate tech - Venture capital firm 2150 has raised €210 mln for its second climate tech fund, taking its total assets under management to €500 mln. The London-based company attracted 34 investment from across Asia, Europe, and the US, including a US-based church group and two family offices in Europe. The commitments reflect investor confidence in its strategy to back tech startups working to reshape cities and the industries that power them, it said. (Impact Alpha)

Belgian biochar pilot – Belgian wastewater utility Aquafin has secured funding from the Helios Foundation to build a pyrolysis and drying unit at the Menen treatment plant, aiming to convert over 5,000 tonnes of sewage sludge annually into 600 tonnes of biochar. The project is expected to avoid more than 2,000 tonnes of CO2e emissions per year and capture an additional 640 tonnes of biogenic CO2, supporting decarbonisation in sectors such as metallurgy, construction, and soil remediation. The investment amount was not diclosed.

EVs overtaking - Sales of electric vehicles (EVs) overtook petrol cars in the EU for the first time in Dec. 2025, according to industry group the European Automobile Manufacturers' Association (ACEA). Battery EV registrations reached 217,898, up 51% year-on-year from Dec. 2024, while sales of petrol cars in the EU fell 19% year-on-year to 216,492 last month. Overall in 2025, EVs reached 17.4% of the market share in the bloc, up from 13.6% the previous year. Germany, the Netherlands, Belgium, and France accounted for 62% of registrations of new battery-electric cars in the bloc last year. While petrol car registrations fell by 18.7% across 2025, with all major markets seeing a decrease. Hybrid vehicles remain the largest segment of the EU car market at sales of 324,799 in Dec. 2025, but sales of cars powered by electricity are growing even faster. (Carbon Brief)

Helsinki-based carbon removal (CDR) registry Puro.earth has launched a premium service aimed at enabling more frequent issuance of verified carbon removal credits, seeking to shorten the time between production and market availability.

The potential adoption of a global price on shipping emissions later this year requires regaining the support of countries who were previously in favour but voted for a one-year delay in October, after a US-led opposition campaign, experts told Carbon Pulse.

Contrail impacts - The European Commission and Eurocontrol have released a second version of the Non-CO2 Aviation Effects Tracking System (NEATS), an IT tool for monitoring, reporting, and verifying the non-CO2 climate impacts of aviation such as contrails and nitrogen oxides. The tool allows aircraft operators to calculate the climate impact of their flights, and relies largely on the PyContrails Python library, which models contrails. The upcoming version 3 will support EU ETS reporting for 2025 emissions and will introduce dedicated interfaces for aircraft operators, verifiers, and competent authorities.      

A technical assessment released this week by the UNFCCC found that Sudan's updated national forest emission levels were now mostly transparent, complete, and broadly aligned with international guidelines, marking clear progress since its last review in 2020.

Peatland payback - Peatland restoration can deliver climate mitigation benefits within a few decades, according to a new paper by the University of Eastern Finland. The results suggest that peatland restoration can contribute to between 2 and 6 CO2-equivalent tonnes per hectare of annual climate mitigation, in a 100-year assessment perspective - suggesting that restoring weakly productive forestry-drained peatlands could play a key role in contributing to the land-use sector emission scenarios in Finland. The study focused on nutrient-poor and acidic peatlands, where growth of Sphagnum moss can result in a temporarily effective carbon sink.  

Using cheap water sensors could help cut the cost of monitoring, reporting, and verification (MRV) for carbon removal from enhanced rock weathering (ERW), but the method requires site-specific calibration and periodic verification to be reliable, according to a study published last week.

ICR consultation - The International Carbon Registry (ICR) has begun a targeted consultation with its approved Validation and Verification Bodies (VVBs) on the future update of the ICR Validation and Verification Specifications (VVS). This follows the revision of ICR’s core programme requirements late last year. The 30-day consultation open from now to Feb. 25 reflects ICR’s commitment to principles-based alignment with ISO 14064-3, consistent and defensible validation and verification outcomes, and continuous programme improvement informed by practitioner experience.

A consumer healthcare company has noticeably cut its indirect emissions by applying a carbon price equivalent to the EU's Emissions Trading Scheme (ETS) when selecting suppliers in its tendering process.

The EU should avoid using only net emissions targets, which conflate genuine emissions reductions with removals, due to the uncertain nature of both natural carbon sinks and engineered removals, according to experts.

Plugging the gap - Michael Bloomberg has spent more than $3 bln on supporting global climate action over the last decade, as broader financial support gives way in the Trump era. This included $270 mln pledged to two climate initiatives around COP30 last year through Bloomberg Philanthropies and funds to cover a budget shortfall at the UNFCCC due to the absence of a US contribution. By comparison, the Rockefeller Foundation has pledged to spend $1 bln over five years, and some other climate funders have scaled back support in the face of US administration hostility to climate action. The Bezos Earth Fund ended its support for the Science Based Targets Initiative after an $18 mn three-year grant expired, and the philanthropic arm of The Children’s Investment Fund Foundation has stopped funding US green groups. (FT)

Indonesia’s push to dominate global nickel supply chains for electric vehicles is driving a rapid expansion of captive coal-fired power plants, putting the country’s climate targets in jeopardy and exposing its exports to possible carbon penalties, a report warned on Tuesday.

Enhanced concrete weathering (ECW) may offer a viable pathway for carbon removal (CDR) when applied to soils, but environmental risks and site-specific factors must be carefully managed, according to a report published this month.

Two companies have signed an initial agreement to develop a cross-border carbon capture, utilisation, and storage (CCUS) project in the Baltic Sea region that they say will be transformative for industrial polluters and and e-fuels producers.

Liberia’s Carbon Markets Authority (CMA) has appointed a global consultancy to support international climate finance mobilisation and develop a national carbon market framework, backed by 100% grant-based or concessional funding.

Ocean alkalinity enhancement (OAE) could help lower atmospheric CO2 and ease ocean acidification, but its effectiveness declines over time due to carbon cycle feedbacks, a new modelling study has found.

Hidden dangers - The UK government has published a report into the risks the country will face if global ecosystems collapse due to climate change, which found the degradation of forests, rivers, and coral reefs could lead to a "global competition for food" beginning in the 2030s. Previously blocked by the govt over fears the findings were too negative, an internal version described the risks of mass migration to the UK as a result of rainforest die-back in the Congo and rivers drying up in South Asia, giving rise to more populist politics and greater pressure on strained infrastructure. The authors said the drying of Himalayan rivers could escalate tensions between China, India and Pakistan, potentially leading to nuclear war, and that NATO could be drawn into conflicts over remaining breadbaskets in Russia and Ukraine. The govt is hiding the true danger of climate change from people, a source told the Times, adding that honest conversation is urgently needed about the risks to prosperity.

The EU can now justify boosting renewable energy spending on grounds of security alone amid a more unstable world, an international policy institute has argued.

India will not be granted exemption from the EU’s Carbon Border Adjustment Mechanism (CBAM) under a landmark free trade agreement signed in New Delhi today, officials stressed, saying the two sides will instead open a “technical dialogue” to ease implementing issues.

A Qatar-headquartered carbon standard is moving to embed biodiversity co-benefits more deeply into its framework, while signalling that a standalone nature markets remain a longer-term ambition dependent on regulatory and demand-side development.

China's environment ministry has mapped out its work priorities for this year, including proposing revisions to the country's emissions trading regulations and expanding the supply of nationally issued carbon offsets.

A Dutch climate technology startup focused on certifying Scope 3 emission reductions in the agri-food sector has raised €1.25 million in a new funding round to accelerate its expansion into the US and Brazil.

Indonesia has completed the delivery of all contracted forest carbon units under its results-based payment agreement with the World Bank’s Forest Carbon Partnership Facility (FCPF), marking one of the largest jurisdictional REDD+ transactions to date.

Up to £100 billion in investment will be needed by 2050 to deploy long-duration energy storage (LDES) at the scale required to stabilise a renewable-powered grid and meet rising AI-related demand, according to a roadmap published Monday.

Belgium’s updated climate roadmap for 2030 shows higher ambition but still falls short on renewables and energy efficiency, the European Commission said in an assessment of the country’s National Energy and Climate Plan (NECP), released on Monday.

A London-headquartered company working with biodiversity units has announced an assessment framework, designed to give buyers more confidence that nature and carbon credits represent credible environmental outcomes.

Potential incentive - The Taiwanese government is considering promoting the application of facade-integrated photovoltaics (FIPV), used to replace conventional building materials for electricity generation, via carbon pricing mechanisms, local media reported. In Taiwan, large new buildings with a floor area of more than 1,000 square metres would be required to install rooftop solar panels later this year. In order to further encourage the installation, the Ministry of the Interior has said it will discuss with the environment ministry whether it is possible to grant carbon credits for FIPV projects.

Moves in Japanese power market - Morgan Stanley is set to enter Japan's spot power market, the latest overseas financial institution to capitalise on the volatile market. It has designated a person to hire and lead personnel for its spot trading business in the country, according to Bloomberg. Meanwhile, Enechain, a startup operating the largest energy marketplace in Japan, recently raised JPY 5.05 bln yen ($31.9 mln) to support its business expansion. Cumulative gross merchandise volume in Enechain's core wholesale electricity market has surpassed JPY 3 trillion, company data showed.      

Malaysia’s rapid growth in private car ownership risks undermining efforts to decarbonise its transport sector, with rising vehicle demand projected to outpace emissions reductions from electric vehicles, according to a recent report.

The Saudi state-backed Regional Voluntary Carbon Market Company (VCM) has forged a strategic partnership with Qatar-based international carbon standard the Global Carbon Council (GCC) to include GCC’s credits on its exchange.

Peru’s Ministry of Environment (MINAM) has approved the Paris Agreement Crediting Mechanism (PACM) as an official standard admissible into its National Registry of Mitigation Activities (RENAMI), also accepting several methodologies from the waste sector.

Deeper cuts in emissions from power generation, transport, and agriculture will be needed for Australia to make its 2050 net zero goal credible, the OECD said in a report published last week.

Carbon market news captured mainstream Brazilian headlines and Paraguay pressed on with Article 6, while the tough reality of international carbon pricing sank in for emissions-intensive sectors and economies, in a truly heterogeneous week for LATAM.

The Australian government has begun its formal consultation work on the long-awaited integrated farm land management (IFLM) carbon credit method, however "considerable revisions" to the exposure draft are already being called for.

Travel decarb - Indonesia will launch a transportation decarbonisation roadmap in May of this year, setting out medium- and long-term measures to cut emissions across land, air, and maritime transport, state news agency Antara reported, citing a senior minister. The plan will prioritise rail expansion across Sumatra, Kalimantan, and Sulawesi provinces, alongside regulations to support the use of sustainable aviation fuel. It will also allow the use of carbon offset mechanisms within transport subsectors to help meet national climate targets. Officials hope the roadmap can be showcased at the COP31 climate talks in Turkiye in November.

A6 forum - A Japan-Mongolia carbon market forum will be held in Ulaanbaatar on Feb. 27, aiming to spur deal-making momentum under the Joint Crediting Mechanism (JCM), Article 6 Implementation Partnership (A6IP) Centre announced. Co-organised by the Mongolian and Japanese environment and energy ministries, the event will focus on rules-to-projects execution of Paris Agreement Article 6. Sessions will cover JCM frameworks, crediting procedures and methodologies, alongside tech-forward pitches from Japanese and Mongolian firms.

Malaysia's government agency for forest financing mechanisms has established a partnership with a crediting standard to strengthen emerging forest carbon frameworks, they announced Tuesday.

Up and running - Australian oil and gas operator Santos has announced the first LNG cargo from the Barossa project has been successfully loaded, departing Darwin on Jan. 25. The Barossa project is covered under Australia's Safeguard Mechanism and operated by Santos which has a 50% stake, followed by Prism Energy International Australia (37.5%, and Jera Australia (12.5%). The backfill project is one of Australia's most polluting projects, thanks to the Barossa gas field's high CO2 content. The project is expected to abate some of its high emissions through the Bayu-Undan CCS project, which Santos is in the process of front-end engineering design work for, however it is unclear if it will reach a final investment decision.

Growing more wild - Australian nonprofit Forever Wild has acquired the Challa Station, in Western Australia, it announced on a LinkedIn post. The station includes the human-induced regeneration project (ERF121431) of the same name which has generated 121,120 Australian Carbon Credit Units since it was first registered, according to data from the Clean Energy Regulator. It follows Forever Wild announcing it had purchased the nearby Meeline Station last week. Forever Wild executive director Fiachra Kearney said in the post the purchase was completed as part of a "large, multi-million dollar" nature finance investment representing over seven years of work to create a single contiguous landscape protecting large scale ecosystem services. The FWI Western Deserts Programme has now created one of Australia's largest privately managed conservation landscapes covering more than 600,000 ha, according to Kearney.

A group of attorneys general (AGs) from Democrat-led states filed a brief on an industry-led lawsuit, alleging that federal agency actions at the end of the year violate their sovereign interests and harm their investments in clean energy resources.

Australia will hold its first auction event for its fledgling offshore wind sector in August, the Victorian state government announced Tuesday.

RGGI Allowance (RGA) futures rose nearly 2% week-on-week (WoW), as traders said the weekend's polar vortex didn't push prices significantly higher ahead of the programme's largest quarterly auction in years.