A Japanese trading house has launched a project to reduce methane emissions in Bangladesh, with the aim of generating credits under the Joint Crediting Mechanism (JCM), it said on Monday.

Rising temperatures are increasing soil carbon storage in boreal sphagnum peatlands, according to a synthesis of field experiments.

AI use in carbon markets - Artificial intelligence could support carbon project audits, but liability for audit decisions must remain with validation and verification bodies (VVBs), participants said at a recent roundtable hosted by New York-based Genvision and the International Association of Validation and Verification Bodies. AI could help with basic checks such as reviewing whether documentation is complete, but AI systems that cannot clearly explain how conclusions are reached are unsuitable for compliance audits, which require transparent links between rules and evidence, the speakers said.

Global carbon markets contracted in 2025, with their total value falling to €791 billion, the lowest since 2021, analysts' calculations have found, with 2026 now seen as a pivotal year for setting the long-term direction of the sector.

Spot prices for Phase 1 CORSIA carbon credits tumbled last week amid a lacklustre voluntary market, where the recent collapse of the Koko Networks cookstove and clean fuel provider continues to stir debate.

Japanese energy companies are using their network of Australian industry bodies and government connections to tip the balance of both countries’ energy and climate policies in their favour, to the detriment of the climate, according to a report.

Carbon removal registry Isometric has released a new crediting method, setting out standards for measuring and certifying carbon removal through agroforestry systems.

Urged to act - AirAsia has called on Indonesian carbon project developers and the government to accelerate approval of CORSIA-eligible credits, warning domestic airlines face a supply gap as compliance obligations loom, its chief sustainability officer said in Linkedin post. Mun Ching Yap said Indonesian airlines will need at least 1.7 mln CORSIA-approved carbon credits by 2027, but no domestic credits currently meet the criteria. Failure to act could result in a net outflow of $35-100 mln in climate finance as airlines source credits overseas, she said.

Achievements - Japanese agritech startup Eco-Pork said it has achieved an average 13% reduction in GHG emissions among participating pig farms using its solution, calculated using a methodology under the domestic J-Credit programme. Its demonstration farms have also shown an 11% improvement in feed efficiency, according to its impact report published Monday. The company plans to expand business to Europe, Brazil, and Asia, beyond its existing overseas markets like the US and Ukraine. Eco-Pork in November raised $9 mln for global expansion in its latest financing round.

Proceeding with caution - Singapore will take a pragmatic, calibrated approach to its carbon tax trajectory, balancing global climate action, economic competitiveness, and the availability of decarbonisation technologies, Deputy Prime Minister Gan Kim Yong said in a parliamentary reply. Gan said decarbonisation remains essential for Singapore’s long-term competitiveness despite higher costs for the energy-importing nation, but the government would also consider carbon prices elsewhere to avoid carbon leakage. Singapore’s carbon tax is currently S$25 ($20) per tCO2e and is set to rise to S$45 per tonne in 2026 and 2027.

Support incoming - India will take action to support its steel exports amid pressure from EU's CBAM, Reuters reported, citing Steel Secretary Sandeep Poundrik. This comes as the bloc signed a trade agreement with the South Asian country last month which cut tariffs in several sectors but left the border levy unchanged, even as Europe accounts for around two-thirds of India’s steel exports.

South Korea's science ministry plans to allocate KRW 42.7 billion ($29 mln) this year, a roughly 50% increase from last year's budget, to secure the country's competitiveness in the hydrogen sector.

Seeking feedback - The joint committee for the Joint Crediting Mechanism (JCM) between Chile and Japan is seeking comments on a proposed solar project, according to a recent notice. The JCM project was designed for the installation of a 3 MW solar power plant in Chile's Maule region, with around 17,000 tonnes of emissions expected to be reduced during 2024-30. The call for public input is open until early March.

The Philippines has decided to implement a five-year strategy to ensure a robust and credible voluntary forest carbon market, local media reported.

LNG go - New Zealand will contract to build an LNG import terminal to shore up fast depleting gas reserves, the government announced. A statement said the facility will provide a reliable backup fuel source, reducing the impact of dry-year risk on electricity pricing, and stabilise electricity costs. Climate and energy minister Simon Watts said the government has shortlisted leading proposals and is progressing to commercial contracting, with the aim of signing a contract by mid-2026. A report in November from Boston Consulting Group said New Zealand would be better strengthening its domestic gas market, rather than relying on exports, but LNG imports may be prudent if supply continues to decline rapidly.

The Australian government has committed A$4.8 million ($3.4 mln) to support the development of a commercial project that will use biochar to cut emissions from electric arc steelmaking, according to an announcement.

Please comment - India’s carbon market regulator Bureau of Energy Efficiency has invited comments on a draft proposal for a carbon project that intends to install about 1,000 small digesters in rural homes. The project, developed by Kosher Climate India, is a household biogas programme in Karnataka aimed at cutting methane emissions from manure management. It estimates annual emissions reductions of roughly 5,000 tonnes of CO2e over a 10-year crediting period.

Pakistan’s federal government collected over PKR 25 billion ($90 million) in carbon taxes from a newly introduced levy in the first half of the 2025-26 fiscal year, according to data published by the Ministry of Finance last week.

Historic win - Japan's ruling Liberal Democratic Party secured a historic victory in Sunday's lower house election, a move that will reshape Japanese politics for years to come. Prime Minister Sanae Takaichi's coalition now has a supermajority of two-thirds of seats in the lower house, which would ease her legislative agenda, according to NHK's projections. The election result will also set the pace of the implementation of Takaichi's proposed energy policy, which is focused on energy security, analysts said. The Japanese government is also preparing for the next phase of the country's GX-ETS, which will become mandatory from April onwards.    

Green cash - The Asian Development Bank (ADB) and a subsidiary of Thailand's Gulf Development Public Company Limited have signed a $350 mln loan to expand renewable energy to help decarbonise the country's power sector, it announced. The financing will support the construction of two solar-plus-storage energy storage systems, with a capacity of 126 MW/151 MWh, and a 68 MW solar development that will cut emissions by 191,500 t CO2e per year. ADB is the sole mandated lead arranger, crowding in funding from Germany's DEG Bank and DBS Bank, Development Finance Institute Canada, and Export Finance Australia, as well as cash from its own capital resources and the Leading Asia's Private Infrastructure Fund 2. The multilateral development bank said the strong participation from co-financiers reflects robust market confidence in the project.

Target exceeded - The Australian state of Victoria achieved 44.6% renewable energy generation in 2025, overachieving its target of reaching 40%, the government announced. Wind farms generated around 24% of Victoria's electricity, making it the single largest renewable generation contributor, while solar accounted for 16%. The government is seeking to achieve 65% renewable energy generation by 2030, with the government saying the state's Development Facilitation Program, designed to fast track renewable energy development, has already unlocked A$9 bln ($6.3 bln) in investment across 25 projects.