Modern geothermal could replace up to 42% of the EU's coal and gas-fired generation, according to analysis released on Monday by an energy think tank.

Egypt’s trade ministry this week decreed that exporters operating in several sectors covered by the EU’s Carbon Border Adjustment Mechanism (CBAM) must submit copies of CO2 emissions reports for official review and analysis, to support global market access.

The European Commission wants to harness the bloc's nascent carbon removal certification scheme – an extension of the voluntary carbon market – to help EU member states achieve their climate targets at national level, officials have said.

Catalonia climate credits – The Spanish autonomous community of Catalonia has launched a temporary programme to advance the implementation of its Climate Credits System, a voluntary domestic scheme created in Dec. 2023 focused on nature-based solutions. The three-year programme will sit within the Directorate General for Climate Change and Environmental Quality and will recruit three technical specialists to develop methodologies, align the system with EU and national regulation, and integrate updated scientific knowledge, Europa Press reported. Funding will come from Catalonia’s Climate Fund, financed by revenues from regional environmental taxes, including levies on vehicle CO2 emissions and polluting installations.

A Canadian forest intelligence software platform has acquired a Brazil-headquartered forest management platform, expanding its global reach.

Media reports this week suggesting the European Commission plans to relax the planned phaseout of free carbon permit allocation to industry sent benchmark EUAs plunging at their lowest level for four months, but analysts have cautioned that the selling has been highly speculative and the market is likely to remain fundamentally tight in 2026.

European carbon prices recovered from a drop to their lowest in four months on Friday morning to end the day modestly higher, after early selling had driven the market down by nearly 19% from its late January highs, with a resurgence in offering triggered by analysis that suggested the transfer of EUA supply from a special reserve into the market could depress prices.

Low-carbon steel plans - Rio de Janeiro-headquartered power utility Axia Energia, formerly known as Electrobras, has partnered with the German Corporation for International Cooperation (GIZ) to build Brazil's first green hydrogen plant dedicated to the production of low-carbon steel, reported Estadao Conteudo. With an expected capacity of up to 10 MW, the unit will transform solar, wind, or hydroelectric energy into hydrogen destined for a partner plant, aiming to drastically reducing emissions compared to a traditional blast furnace fueled by coke or natural gas. The plan is to prove economic viability on a commercial scale, structure certification methodologies, and train professionals, strengthening the entire green hydrogen and low-carbon steel supply chain. The project is part of the develoPPP programme, funded by the German Federal Ministry for Economic Cooperation and Development (BMZ).

Getting found out - Italy’s foundry industry is close to a production shutdown due to rising costs linked to the EU’s Carbon Border Adjustment Mechanism (CBAM), Steel Orbis reports. Industry association Assofond has argued that CBAM penalises European foundries that rely on imported raw materials such as pig iron and ferroalloys, which are subject to carbon charges. At the same time, non-EU competitors can export finished products to Europe with fewer costs, creating unfair competition, the lobby said. With weak demand and shrinking margins, many foundries risk closure, it added. The sector is now urging policymakers to revise CBAM rules and extend transition measures to avoid deindustrialisation.

Helping hand - The UK government has published an agreement whereby it will support EP Lynemouth Ltd, operator of former coal and now biomass Lynemouth Power Station, from 2027 to 2031. It establishes a time-limited contract for difference subsidy that guarantees a fixed electricity price. The deal also includes caps on generation, mechanisms to reclaim excess profits, and stricter sustainability standards for biomass and emissions. Its aim is to maintain reliable, low-carbon backup power, protect public finances, support local employment, and give time to plan the site’s long-term future after subsidy support ends, according to the government statement.

Methane plea - US Democratic lawmakers have penned a letter urging the EU to maintain "robust and consistent implementation" of its methane regulation (EUMR). The administration of President Donald Trump and US oil and gas groups have also called for adjustments to the regulation. The Democratic lawmakers said the EUMR is a critical measure for incentivising the capture of GHGs, and clear, consistent rules would be important for minimising trade barriers for lower-methane energy sources between the US and EU, as well as alleviating the bloc's reliance on Russian natural gas.

Speculation on the UK carbon market is driving up allowance prices, inflating electricity costs for consumers and the country's manufacturing sector, the Chemical Industry Association (CIA) said on Friday.

A paper by the Oxford Institute for Energy Studies has argued that current carbon accounting models fail to adequately recognise carbon emissions which are prevented from entering the atmosphere, rendering some corporate emissions avoidance activities invisible.

An EU expert group held extensive discussions Wednesday on an upcoming certification scheme for emissions reductions from livestock farming, without finding consensus on the scope of the methodology, or how to measure and track progress.

The European Commission has greenlit plans to store CO2 in the Prinos reservoir of Greece, with full capacity expected to reach 3 million tonnes of CO2 annually.

Private clean energy funds have raised $178 billion since 2021 – over three times the total for fossil and broader energy portfolios combined, according to a report released Thursday.

Orsted update - Orsted has reported fourth-quarter profit before EBITDA, excluding new partnerships and cancellation fees, slightly below estimates - rising to DKK 8.10 bln (€1.08 bln) from DKK 7.55 bln a year earlier. This is slightly below an average forecast of DKK 8.24 bln in a company poll. The company expects core profit this year above DK 28 bln, matching a target shared in January. Its focus is on offshore wind in Europe and select Asia Pacific markets, it said. Also this week Orsted agreed to sell its European portfolio of 825 MW of onshore wind, solar, and batteries to Copenhagen Infrastructure Partners in a €1.44 bln transaction, expected to close in the second quarter. (Reuters)

Climate finance cuts - The UK govt plans to cut aid to poor countries hit by the climate crisis by more than a fifth - from £11.6 bln over the past five years to £9 bln in the next five, the Guardian reported. Accounting for inflation, this would represent a reduction of about 40% in spending power since 2021 when the £11.6 bln budget was agreed. The £9 bln climate spending pledge will likely equate to £2 bln a year over the next three years, then £1.5 bln a year in 2029-30 and 2030-31, which is beyond the current parliament. Experts have complained that UK climate finance lacks transparency over spending, made worse since Brexit as the country no longer follows EU reporting standards. Some civil servants are reportedly relabelling projects focused on other social issues under the climate finance umbrella.

The UK has joined the Global Green Growth Institute’s (GGGI) Carbon Transaction Facility (CTF) in an effort to back international carbon trading under Article 6 of the Paris Agreement and strengthen global cooperation on mitigation outcomes.

The administrative burden and implementation costs of the EU Emissions Trading System (ETS) are “relatively limited”, though there is room for improvement, a new government-commissioned study in the Netherlands has concluded.

The US and Indian space agencies have begun releasing data from a “next-generation” Earth observation satellite launched last year, which scientists said will be a step-change in how the world tracks forests, biomass, and land-use change, with implications on measurement and verification for carbon markets.

Global power consumption is set to increase by 3.6% annually between 2026 and 2030, outpacing GDP growth and putting mounting pressure on grids, prices, and decarbonisation efforts, according to the International Energy Agency (IEA).