The value of Australia’s carbon market grew 10% in total traded market value to A$1.4 billion ($978 mln), driven by increased activity under the Safeguard Mechanism, according to an analysis published Thursday.

Allowing nature-based removals in the EU ETS may cause the price of allowances to drop by as much as 10%, an analyst said on Wednesday.

As carbon removal (CDR) companies approach the end of their financial runways, investors expect a challenging year ahead for the industry, though some see strategies that could carry the sector through.

The voluntary carbon market (VCM) has become relatively stable after recent volatility, with steady buyer interest and pricing - but market growth still faces deadlock, a recent survey found.

Green sands - A four-decade Chinese project to stabilise the edge of the Taklamakan Desert has created a measurable carbon sink, researchers said. A study led by the University of California found shrub planting since 1978 has lowered atmospheric CO2 over treated areas by 1-2 parts per million, verified using NASA satellite data. The findings suggest afforestation can absorb carbon even in extreme deserts. Still, researchers warned water scarcity limits expansion, meaning desert greening can support, but not replace, broader climate mitigation efforts. Even if the entire Taklamakan Desert were covered, it would sequester only around 60 MtCO₂ per year, or 10% of Canada's emissions.

Preserving forests without actively managing them may hinder Australia’s emissions reduction goals given carbon loss risk from wildfires, a scientific review said on Wednesday.

Increased demand for renewable diesel driven by facilities covered under the Safeguard Mechanism could help drive broader uptake that could unlock decarbonisation opportunities in Australia’s road freight transport sector.

Vietnam’s largest conglomerate has launched stakeholder consultations for two carbon credit projects covering electric two-wheelers and charging infrastructure.

SAF project - Keppel Ltd, a Singapore-based asset manager and infrastructure group, and sustainable fuels developer Aster plan to jointly assess a sustainable aviation fuel project on the city state's Jurong Island, targeting production of up to 100,000 tonnes a year of ethanol-based SAF, the companies announced. A feasibility study has been completed and the firms will next carry out front-end engineering design ahead of a final investment decision. The project would support Singapore’s plans to mandate 1% SAF use from this year, rising to 3-5% by 2030.

Japan low-carbon fuels – Japanese shipping company NYK has invested in XFuel for the development of low-carbon fuel for an undisclosed amount. The latter's proprietary chemical liquid refining solution can convert contaminated and mixed waste hydrocarbon liquids into ultra-clean, marine-grade fuels. NYK said it aims to utilise existing fuels through collaboration with XFuel, including the recycling of fuel sludge (fuel tank sediment) generated from our operating vessels.

An ASX-listed sustainability software provider has decided to acquire a biochar project developer, as it seeks to expand its presence in the global carbon removal market.

Australian oil and gas producer Woodside Energy has signed a voluntary carbon credit offtake agreement that will go towards meeting its corporate emissions reduction targets.