States planning to rely extensively on future carbon removal (CDR) to meet their climate targets risk falling short of international legal obligations under the Paris Agreement and customary international law, according to a peer-reviewed legal analysis published on Tuesday.

Roads have been linked to forest degradation or loss across an area roughly twice the size of Mexico, equivalent to around 11% of global forest cover, with impacts concentrated in the Global South, according to a new preprint study.

Concern about climate-related disasters has intensified over the past year, even as economic and security anxieties dominate the political agenda, according to the European Parliament’s latest Eurobarometer survey, published on Wednesday.

A carbon removal standard has announced plans to comprehensively update its carbonated materials methodology as part of its regular review cycle, aiming to incorporate the latest scientific research and strengthen standards its projects.

For many people working across global carbon markets, the surprising collapse of clean energy company and cookstove developer Koko Networks shows that, fundamentally, you can't count on government authorisation for the international sale of carbon credits until the approval has been fully stamped through.

After opening sharply lower on Wednesday amid follow-on selling from the previous session's late plunge, European carbon allowances climbed back towards Tuesday's settlement price as buyers came out in force to drive a steady rally.

Flailing foundries - The EU's carbon border fee threatens to halt production at Italian foundries unless urgent correct measures are taken, according to trade body Assofond, reported by Montel. The facilities rely on inputs such as pig iron, ferroalloys, and primary aluminium, which are subject to CBAM but produced in Europe only in small quantities. Since becoming operational on Jan. 1, the EU's Carbon Border Adjustment Mechanism (CBAM) has led to market paralysis, pricing uncertainty, and growing competitive distortions, Assofond said. This is because CBAM certificate prices are unknown until 2027, meaning buyers and suppliers are unable to fix prices currently, leading deals to stall. Further, non-EU competitors can use cheaper inputs and export finished products into the EU thus avoiding the carbon levy, leading to risk of delocalised production. Assofond is calling on the EU to broaden CBAM's scope to cover downstream foundry products.

The EU should continue advancing its diplomatic push for a global fossil fuel phaseout outside of the COP process, researchers from a leading German foreign policy think tank said Tuesday.

Hydrogen setbacks - Plans to develop low-carbon hydrogen in the UK are being hobbled by high costs and the complexity of coordinating numerous industries. The setbacks risk disrupting the decarbonisation of factories in the industrial area between Liverpool and northwest Wales, where salt caverns would be ideal to store hydrogen and depleted oil wells could store CO2. Companies hoping to access low-carbon hydrogen include Jaguar Land Rover and glassmaker Pilkington, but govt efforts to stimulate the sector are being hindered by high energy bills and strained public finances. The Labour govt's hydrogen strategy has been delayed to early this year, with the govt saying it will guarantee producer prices so they can sell to industry at a similar price to fossil fuels. In Dec. 2024, it said it would guarantee the first batch of electrolytic or green hydrogen projects, totalling about 125 MW of new capacity, a maximum average of £241/MWh over 15 years and has also said it would exempt electricity used to produce green hydrogen from a key climate levy. However, consumer goods company Unilever dismissed hydrogen after a trial, saying the infrastructure won't be in place for many years. (FT)    

Carbon pricing could provide a major source of funding for social protection in developing countries, a new report has found.

Despite improvements on previous drafts, the European Commission’s proposed EU-wide certification methodologies for permanent carbon removals still fails to address the climate impact of biomass extraction, campaigners have warned, saying they were considering legal action.

Restructuring - Biomass power producer Drax may cut more than 350 roles across the company as it adapts its organisational structure, according to a press release. The company is evolving its strategy to ensure future resilience, and is focused on driving growth in flexible generation as well as advancing future uses of sustainable biomass, the statement read. Drax Group's organisational structure shall be adapted as part of this work, with a UK consultation to be launched and employees to be briefed in North America. The changes will be implemented alongside trade unions and employee representatives, it said.

Worker rights - The UK govt has introduced new rules to ensure fair working rights for employees in offshore wind. As of Wednesday, offshore wind companies seeking to participate in the Contracts for Difference (CfD) subsidy scheme and access the Clean Industry Bonus will be required to sign up to a new ‘Fair Work Charter’, to ensure that public funds deliver good, secure jobs in local communities. This charter will ensure workers access some of the benefits granted by the Employment Rights Act such as allowing trade unions better engagement with workers. The development follows a record offshore wind auction last month that contracted 8.4 GW, crowding in $3.4 bln of private investment.

Countries in the global 'sunbelt' can access zero-carbon power more cheaply than in northern Europe, provided costs of capital are reasonable, and are developing a growing number of clean industrial projects, said an energy transitions expert.

VC raise - Slate Venture Capital has secured a €132 mln first close for its inaugural growth fund focused on energy and circularity with investors including European Investment Fund (EIF), Bpifrance, and the Fonds National de Venture Industriel (FNVI). The Paris-based firm was founded in 2023 to invest in European companies developing climate technologies. It particularly targets companies where environmental performance is driven by superior economics  – through lower costs, improved productivity, and increased resilience for industrial customers. The fund plans to back 15-20 companies that are ready to expand globally. (EU-Startups)

The Malawian government will partner with a satellite data provider to monitor and verify carbon market projects, ministers announced Monday.

Public subsidies aimed at cutting carbon emissions could achieve the same climate impact at significantly lower cost if allocated more efficiently, according to a new study.

January retirements across the voluntary carbon market (VCM) fell by nine million year-on-year, while issuances also slipped to levels last seen five years ago - with one registry failing to record any new supply for the past three months.

The UN body helping to shape the Paris Agreement’s Article 6.4 carbon market has released a draft methodological tool aimed at standardising how emission reductions from biomass-related climate projects are calculated, key for crediting cookstoves projects.

Energy group Equinor said on Wednesday it would scale back investments in renewables and low-emission energy and sharply reduce share buybacks after reporting a steep decline in fourth-quarter and full-year profits.

EV tax breaks - Kenya has unveiled tax breaks for electric vehicle (EV) parts and charging stations to speed up the electrification of transport. The measures are part of a newly launched National Electric Mobility Policy, which aligns the transport sector with the country's climate goals, and include exemptions for VAT and excise duties beginning in July. They follow targeted incentives for the sector by Kenya in recent years, including and lower excise duties on selected EVs. The number of registered EVs in Kenya reached almost 25,000 last year, up from below 800 in 2022, largely driven by adoption in cities, with EV sales forecast to match those of gas- and diesel-fueled alternatives by 2042. The govt is considering road-use charges and possible electricity-based levies linked to charging stations to offset the decline in fuel tax income as the electric shift picks up a gear. (Greenwich Time)

Investment managers that collectively own $2.3 trillion of assets are supporting the relaunch of an initiative to convene their sector in the pursuit of strong climate commitments.

Heavy industries like chemicals, metals, and cement have called to freeze the EU carbon price, saying “severe pressure” from high energy bills and unfair foreign competition is causing factory closures and massive job losses.

EU-LATAM corridor - The port authorities of Valencia and Santos have signed an MoU to develop a green maritime corridor aimed at decarbonising shipping between Europe and South America, the ports announced last week. The agreement was signed on the sidelines of the Global Gateway Green Shipping Corridors and Hubs regional workshop for Latin America and the Caribbean. Under the MoU, the ports will coordinate actions to promote the use of low- and zero-emission fuels, shore-side electricity, terminal electrification, and digital solutions to improve logistics efficiency.

Ground truthing – A new study published in Scientific Reports found that incorporating spatial coordinates and open-source map information can significantly enhance property-level forest carbon stock estimates, supporting the implementation of REDD+ projects in the carbon credit market. The researchers said that large-scale maps improve estimates when calibrated using geolocated field plots, including where plot data are limited. The paper added that carbon stock estimates produced using this approach can approach the accuracy of those based on high-quality local remote sensing such as UAV-LiDAR, and that spatial coordinates serve as useful covariates for predictions within the same areas where field plots are located.

The UK government has published its inaugural framework to stimulate investment in pioneering nuclear technology, with a new service to get projects off the ground faster.