Uncertainty over how companies can use and communicate carbon credits is a bigger barrier to demand than price levels, speakers said during a webinar on Tuesday. 

The race for nuclear fusion gathered pace this week with the UK and Japan both announcing their own plans to crack the technology commercially by the end of the next decade.

European lawmakers warned on Tuesday that the use of European Commission powers to suspend the EU Carbon Border Adjustment Mechanism (CBAM) for entire industries could weaken incentives for companies to invest in decarbonisation.

Reducing the pace at which free emissions allowances are phased out will be essential for the European chemicals industry to survive over the short-term, according to the head of the sector’s trade body.

A senior European Commission climate official has said they would like to see a carbon removal (CDR) ‘Buyers’ Club’ prototype emerge from a European Carbon Farming Summit taking place in Italy this week.

Italy, backed by four other EU nations, has called for extra flexibilities beyond 2035 for cars running on carbon-neutral fuels, as part of talks on revising the EU's CO2 standards for cars and vans.

European carbon allowance prices extended the previous afternoon's decline for much of Tuesday, falling to a new 11-month low amid sustained selling pressure before rallying in the last quarter of the day, as traders continued to react to the European Commission's plan to propose early amendments to the market's supply regulation mechanism and anticipate Wednesday's expiry of March options.

The EU could better target free emissions allowances to sectors most at risk of global competition, according to new analysis published Tuesday.

Down to business - The Carbon Business Council has launched the Direct Storage of Biomass (DSB) Coalition, a new industry working group aimed at advancing the understanding, credibility, and responsible deployment of direct biomass storage as a CDR pathway. The DSB involves the durable storage of organic materials such as waste wood, agricultural residues, biochar, and other biological matter, effectively locking away carbon that was previously absorbed by plants. These materials can be buried or stored underground in sealed environments, offering a method of long-term carbon removal that builds on existing forestry and agricultural systems. The coalition brings together a wide range of stakeholders, including project developers, technology providers, and policy experts, to collaborate on best practices and improve clarity around the pathway. Chaired by Keith Driver of Leading Carbon/Clear Sky Limited, the group includes companies such as Graphyte, Isometric, Puro.Earth, Vaulted Deep, and Living Carbon, among others. Its core aim is to support better-informed decision-making by carbon credit buyers, policymakers, and other market participants. Key priorities for the coalition include publishing a detailed issue brief on how the DSB works and its role in climate and land-use policy, as well as engaging with buyers and stakeholders on its scalability, durability, and potential co-benefits. The group also plans to explore frameworks for responsible biomass sourcing and long-term stewardship, particularly in relation to forestry, agriculture, and land management practices. Industry participants emphasise that DSB has the potential to scale relatively quickly because it leverages existing biomass supply chains. However, they also stress that scaling must be accompanied by robust standards, transparency, and collaboration across the sector. The coalition is intended to shift focus from individual projects to broader industry outcomes, addressing shared challenges such as monitoring, reporting, verification, and policy alignment.

Coca-Cola Europacific Partners (CCEP), one of the world’s largest Coca-Cola bottlers operating across Europe and Asia Pacific, has reduced its absolute GHG emissions across Scope 1, 2, and 3 by 18.9% since 2019, it said in its annual report.

The High Integrity Forest Investment Initiative (HIFOR) has announced updates to both its methodology and its guide and standard, including changes to align with high-integrity principles for biodiversity credit markets.

The European Commission’s December reforms to the Carbon Border Adjustment Mechanism (CBAM) represent a significant step in bringing the EU’s flagship carbon border policy into full operation, but major design questions remain unresolved, according to a new analysis.

Agricultural practices that reduce farms’ exposure to climate shocks will not only strengthen EU food security and support ecosystems but also provide better income stability for farmers, the European Environment Agency (EEA) said in a policy briefing on Tuesday.

The European Parliament’s environment committee on Tuesday voted down a resolution that sought to reject the European Commission’s proposal on permanent carbon removal activities under the EU’s Carbon Removal and Carbon Farming (CRCF) certification framework.

The European Commission has launched a public consultation on proposed revisions to the criteria underpinning the EU Taxonomy, the bloc’s classification system for sustainable economic activities, in a bid to simplify the framework and make it easier for businesses and investors to use.

Sweden has launched a funding call of around SEK 15 million (€1.4 mln) to support carbon removal (CDR) research, covering projects involving the capture, transport, and geological storage of biogenic CO2 or CO2 removed from the atmosphere.

Pricey petrol - The surge in oil prices is expected to drive the cost of fuelling a petrol car in Europe up to five times more than for charging an electric vehicle, the NGO T&E found. With international oil prices rising above $100/bbl, the cost of fuelling a petrol car is estimated to go up by €3.80 per 100 km, to €14.20. The average cost of charging an EV, on the other hand, goes up by €0.70 to €6.50/ 100 km, as higher gas prices push up the cost of electricity. This can result in an extra €89 per month for every petrol car in a company's fleet, since company cars drive longer. EV company cars, instead, would cost an extra €16 per month.

Warsaw has proposed slowing the pace of annual emissions cuts in the EU’s Emissions Trading System (ETS) by reducing the Linear Reduction Factor (LRF), so that the volume of allowances in the bloc’s carbon market would fall to zero by 2050, instead of around 2040.

e-SAF mandate challenge - European airlines are preparing to oppose EU rules requiring the use of synthetic sustainable aviation fuel (SAF) from 2030 and plan to call for a delay or repeal of the mandate due to concerns about high costs and insufficient supply, sources told Reuters. The announcement is expected at an industry event hosted by trade group Airlines for Europe (A4E) and details are still being finalised. Non-profit Transport & Environment has said A4E wishes to postpone the eSAF mandate until enough production is online, but another source said airlines were also considering calls for the mandate to be scrapped altogether. Synthetic SAF projects with ⁠firm investment are expected to only produce 0.7% of volumes needed to meet EU targets in 2030 - leading passengers to pay billions of euros in penalties, pushed onto airlines by fuel suppliers, according to A4E. Airlines say that planned e-SAF production facilities are unlikely to come online in time to meet the mandate.

Low-quality carbon credits have been given the green light for compliance in the first phase of the international aviation offsetting scheme CORSIA, warned a rating agency.

Reform's rally - Reform UK has pledged to scrap VAT and green levies on household energy bills in the UK if it wins power, claiming doing so would save the average household £200 a year. The Right-wing party that's been leading in recent polls has said it would remove the Renewables Obligation levy, which helps fund renewable energy projects and was estimated to add £117 to the average household energy bill in 2025/26, in addition to the Carbon Price Support that Reform says would save the average household £15 a year. These policies would eventually be cost neutral, it claims, as the party plans to terminate and unwind subsidies for renewables. Reform's pledge coincides with increased focus on rising UK energy bills due to the impact of the war in the Middle East, with the UK govt committing to bolster renewables to improve energy security in response, and pledging £53 mln to support households reliant on heating oil. (BBC)

European Parliament members have backed new rules introducing a single methodology for calculating greenhouse gas emissions from all types of passenger and freight transport, rubber-stamping a deal with member states. 

A Swedish carbon analytics company has launched an enterprise platform to help companies manage and retire EU emissions allowances (EUAs) as voluntary climate action, it announced Tuesday.

Two carbon market veterans are developing new market infrastructure to improve trading and help buyers source credits, aiming to provide comparable infrastructure to more mature financial markets.

EU climate chief Wopke Hoekstra has indicated that the European Commission will present its planned reform of the Market Stability Reserve (MSR) in the coming months and before a wider scheduled review of the bloc's Emissions Trading System (ETS), which could now come as early as the end of the second quarter.