The EU's Carbon Border Adjustment Mechanism (CBAM) has encouraged other countries to adopt carbon pricing measures since Brussels first raised the idea in 2019, according to a first analysis of the policy's direct effect on EU trade partners. 

A non-profit on Thursday released a report outlining recommendations to unlock up to €2 billion in private investment over the next decade for peatland restoration in Europe, including scaling up water markets.

Carbon removal (CDR) should be reserved for the most difficult-to-eliminate emissions and allocated based on responsibility and capability, researchers said, arguing that misusing limited supply could undermine climate targets.

The European Commission has pledged to maintain carbon pricing signals, scale up decarbonisation funding, and accelerate CO2 infrastructure as it seeks to keep Europe’s cement industry competitive while pushing it towards net zero, following a high-level policy dialogue in Brussels on Tuesday.

European carbon prices ended Wednesday 0.7% lower, despite a robust rally after a mid-afternoon news headline had caused a brief €2.20 drop in prices, and as weekly positioning data showed investment funds had reduced their net length to the lowest since Aug. 2025.

Climate partners - Senior officials from the EU and Japan agreed to deepen their bilateral cooperation during a High-Level Dialogue on Climate Change held in Brussels this week. Both sides agreed to work together towards achieving climate neutrality and tackling shared economic and geopolitical challenges, and acknowledged the importance of the clean energy transition during the current crisis in the Gulf. They also reaffirmed their commitment to uphold multilateralism and their unwavering commitment to the Paris Agreement goal of 1.5C. The officials also discussed implementing their upcoming NDCs, and agreed to join efforts to ensure a successful COP31 in Antalya this year. They also agreed to promote bilateral exchanges this year on industrial decarbonisation, climate adaptation, carbon pricing and carbon credits, carbon capture use and storage, sustainable finance, plus climate action at sub-national level.

While supply under Article 6 remains limited, Norway sees a strong future for Paris Agreement market mechanisms and plans to keep up its engagement despite a recent vote to scrap the country's 2030 carbon neutrality goal, a political advisor to the government told Carbon Pulse.

A European energy supplier and an integrated energy major closed the first-ever trade for certified methane emission reductions on a spot exchange, in a sign of a growing interest in tackling the greenhouse gas. 

Three NGOs have called for the European Commission to not make any changes to the Market Stability Reserve (MSR), after President Ursula von der Leyen signalled last week that the EU executive was considering revising the mechanism to help soften European Carbon prices. 

The German government’s new climate protection programme contains 67 measures expected to save 27 million tonnes of CO2 by 2030 – even as fresh data show the gap to its end-of-decade target has widened to 30 Mt.

A low-carbon cement producer has partnered with a carbon data firm to assess its carbon intensity and model potential value against mechanisms including the EU's Emissions Trading System (EU ETS) and Carbon Border Adjustment Mechanism (CBAM), the companies said Wednesday.

Alien trees - Germany should actively introduce tree species from warmer and drier climates to strengthen its forests against rising temperatures, drought, and pests. This is according to a report from the Scientific Advisory Board for Forest Policy (WBW) presented to Germany's agriculture and forestry ministry, and comes as native species face sustained pressure. The advisory body identified around 10 to 15 candidate species, including Oriental beech, Turkey oak, and Atlas cedar, but stressed the approach must be carefully managed as importing seeds risks introducing disease and pests, and specialist native species also tend to fare worse in forests dominated by introduced trees. The board recommends a stepwise approach of introducing other species, as part of a broader response. Germany's forests only recently returned to being a net carbon sink in 2025 after years of droughts, storms, and bark beetle damage turned them into net CO2 emitters, according to the Federal Environment Agency (UBA). (Clean Energy Wire)

Headline news - Brussels is preparing to introduce what the Financial Times reported as an “emergency brake” in the EU ETS to prevent carbon prices from rising too sharply, following pressure from industries struggling with high costs linked to the Iran war. Per the reporting on Wednesday afternoon, the European Commission is expected to announce the measure next week, with the article referring to a cancellation of an invalidation clause linked to the Market Stability Reserve that now looks set to be part of the proposal. Carbon Pulse reported this was expected to be the case earlier in the week. However, EUA prices dived on the FT headline, which referred to an EU "carbon price brake". The invalidation clause requires the MSR to permanently cancel surplus allowances once the volume in the reserve exceeds a threshold set at the previous year’s auction volume. Any volume in the MSR above that level is then cancelled. Reuters later also published a similar story including the invalidation clause.

The European Commission on Wednesday launched a strategy to tackle wildfire risks, highlighting market-based mechanisms as a potential source of funding for prevention and restoration activities.

Dutch direct air capture (DAC) developer Skytree will deploy its first commercial systems this year in Germany and the Netherlands, where the shrinking supply of fossil-based CO2 is creating “an existential supply crisis” for the horticulture sector, a senior company executive told Carbon Pulse.

A large tranche of cookstove credits from a project in Rwanda are expected to become eligible under the UN's Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) after being certified under Verra’s VM0050 methodology.

Spanish aid for industrial decarbonisation – The European Commission on Wednesday announced the approval of a €50 million Spanish State aid scheme to accelerate the decarbonisation of industrial process heat. The aid will be granted via the EU Innovation Fund’s new “Auctions-as-a-Service” tool, using the 2025 Heat Auction. The scheme will support innovative electrified and renewable heat technologies, with aid awarded as a fixed premium per tonne of CO2 avoided through competitive bidding. Support can be granted until end-2026 and paid over five years, with incentives for flexible electricity use and strict linkage to verified decarbonised heat output.

A new alliance of organisations across the cocoa sector on Tuesday called on the UK government to urgently implement long-delayed rules on deforestation-linked commodities and align them more closely with EU requirements.

Georgia has unveiled a new climate strategy that positions the country to participate in international carbon markets under Article 6 of the Paris Agreement as it seeks to reduce emissions 50% by 2035, compared to 1990 levels.

The UK is likely to become a net exporter of electricity thanks to its clean energy growth, and will need to rely more heavily on flexible interconnectors with Europe to help balance supply and demand, said a government report.

A new African alliance – The Southern Africa Alliance on Carbon Markets and Climate Finance will be officially launched in Victoria Falls, Zimbabwe on Thursday in a major step in strengthening regional cooperation on carbon markets across the continent. The initiative aims to build robust, transparent, and effective frameworks to help countries in the region leverage opportunities under Article 6 of the Paris Agreement, enabling international carbon trading. The alliance will enhance coordination among African nations, support knowledge sharing, and promote best practices, while advancing environmental integrity and sustainable development.

In 2025, EU emissions from cars flatlined, while increased output from aviation undermined a drop in shipping's climate impact, reported green transport campaigners in an annual stocktake in Brussels on Wednesday.

Some 140,000 credits eligible for use under the UN's Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) from a Cambodian water purifier project are due to be auctioned next month, the organisers of the event confirmed Wednesday.

The aviation sector’s international offsetting programme, CORSIA, is unlikely to accept all credits issued under one of the Paris Agreement’s Article 6 mechanisms, market participants told Carbon Pulse on Wednesday.

At a time of spiralling jet fuel prices, the appeal of sustainable aviation fuel (SAF) is becoming stronger, with the fuel boasting energy security alongside lower emissions, experts say.

Europe’s decisions on its Emissions Trading System (ETS) and its future use of international carbon credits will have knock-on effects on the development of carbon markets in Asia, analysts said.

London-based global lender HSBC will only provide financing to carbon projects issuing credits certified by the Integrity Council for the Voluntary Carbon Market (ICVCM), a senior executive said on Wednesday.

Net zero hotels – The Radisson Hotel Group has committed to have 100 locations reach net zero emissions by 2030, in line with the Science-Based Targets Initiative (SBTi), the company announced on Tuesday. The group’s Verified Net-Zero (VNZ) programme seeks to eliminate Scope 1 (direct) and 2 (energy-related) emissions through electrification, the use of renewable city heating and cooling networks, and the sourcing of 100% renewable energy. Meanwhile, the Radisson group aims to significantly reduce operational Scope 3 (indirect) emissions across food and beverage, waste, laundry, amenities and business travel. The 2026 rollout will begin in Norway, followed by Denmark, Sweden, the UK and South Africa.

German minister goes off script – Germany’s economy and energy minister Katherina Reiche has called on the EU to loosen its 2050 climate neutrality goal, warning that “strict and rigid goals” risk driving away energy-intensive industries. Speaking at the CERAWeek oil and gas conference in Texas, Reiche urged the bloc to “get back” to accepting a gap of “maybe a 5 or 10% by 2050” instead of insisting on full net zero. She argued that Europe previously worked within an 85-95% emissions reduction “corridor” and should reintroduce such flexibility. Reiche argued that economic growth must come before green targets, adding that “if sustainability crashes your economy, you have to readjust”. (Politico)

Turkish cement producers have warned that the EU’s Carbon Border Adjustment Mechanism (CBAM) risks acting as a de facto trade barrier unless Brussels recognises the country’s own emissions data collected under a monitoring, reporting and verification (MRV) system aligned with EU rules, industry association Turkcimento has said.

Airline fuel gamble – European carriers are delaying fresh jet fuel hedging, betting the Iran war-driven price spike will ease later this year even as spot costs soar to about $180 a barrel, the FT reports. Ryanair and Lufthansa have paused new contracts after already hedging roughly 80% of 2026 needs at pre-crisis levels, while EasyJet is sticking to its strategy but expects pricier “top-ups”. Executives hope to lock in far lower forward prices near $70-80 a barrel in coming years, but analysts warn the strategy leaves airlines exposed to further volatility and potential ticket price hikes. (Financial Times)

Compliance markets potentially risk sidelining higher-tech and more expensive mitigation activities, developers warned, arguing that lower-cost supply could divert investment from complex, capital-intensive projects.

The first fully digitised carbon credits have been issued under Gold Standard using just digital monitoring, reporting and verification (dMRV), and traceable on the Hedera Guardian public ledger.

Geological carbon storage (GCS) features in most major fossil fuel-producing countries’ climate plans, but references often fail to reflect domestic policy and investment activity, a think tank's new briefing has found.