The EU carbon market is being increasingly shaped by political intervention, macroeconomic uncertainty, and shifting structural drivers, experts said, warning that investor confidence has been severely dented.

WA electricity draft rules - Washington's Department of Ecology (ECY) published on Monday draft updates on imported electricity and centralised electricity markets (CEMs) under its cap-and-invest programme. Draft updates in the language include: specifying that new power rules for electric power entities (EPEs) start for 2027 emissions; adding new provision enabling specified imports reported from "aggregated zero-emissions generation sources"; imposing new reporting requirements for "market purchasers", or a electrical distribution utility that directly or indirectly purchases any electricity through a CEM to serve Washington load in the data year; and expanding and clarifying the definition of a "electricity importer" to, for example, identify importers for bulk unspecified imports from a CEM. The ECY will hold a public workshop on May 5 to discuss the draft, while written feedback on the proposal will be accepted from May 5-20.

Solar and wind met almost all electricity demand growth last year, while fossil generation stayed flat, according to the latest report by an energy think tank.

RGGI Allowance (RGA) futures reached record highs above the $30 mark on Monday as some traders pointed to tightness of supply and demand as the factor driving prices to historic levels recently.

Big sky imminent – US Energy Corp., an energy and carbon management firm, has secured fresh financing to advance a carbon hub, it announced on Monday. The company said it closed a $20 mln senior secured debt facility alongside earlier equity proceeds to complete the Phase 1 capital stack for its Montana-based Big Sky Carbon Hub project, while suspending its equity line of credit. The funding is expected to support construction with initial helium sales and carbon management operations targeted for Q1 2027, with no financial covenant testing until Mar. 2027 and maturity in 2029.

Planting profits – BCarbon, a US-based non-profit carbon credit registry, has issued more than 80,000 carbon removal credits from Texas-based Carbon Rho’s Red River pilot project, covering 2023-25 vintages, it was announced on LinkedIn last week. The afforestation project is designed to scale across the states of Arkansas, Louisiana, Oklahoma, and Texas. Spanning more than 15,000 acres (6,070 ha), the project aims to connect forested areas into conservation corridors along the Red River, with carbon credit revenues supporting conservation practices and other ecological benefits, backers said.

Sable saga - A California judge ruled on Friday that the Trump administration's order for Sable Offshore to restart oil operations at the previously-shuttered Santa Ynez complex does not undo previous operational limits placed on the facility by the judge, E&E News reported. Santa Barbara Superior Court Judge Donna Geck's ruling is a win for environmental groups and the state of California, which has challenged the order by the US DOE. Sable Offshore has already resumed oil transportation across key segments of the Santa Ynez Pipeline System and is ramping production across its California offshore assets, reported World Oil. Currently, 40 wells across Platform Harmony and Platform Heritage are producing an average of about 750 barrels per day (bpd) per well, with 74 wells expected to be activated and average output expected to be around 700 bpd, according to the outlet. Sable also expects Platform Hondo to begin production in June 2026, with estimated peak output of approximately 10,000 bpd.

Burning wood for carbon capture projects is unlikely to deliver net carbon removals for up to 150 years, with emissions in one modelled scenario remaining more than double those of natural gas with CCS over that period, new research found.

Under to over - The German government plans to require new high-voltage direct current (HVDC) transmission lines to be built over rather than underground, reported Tagesspiegel Background Energie & Klima on Monday based on a draft amendment to a Federal Requirements Planning Act. The move would end a ten-year priority for underground construction introduced to overcome public resistance to new cables, noted Clean Energy Wire (CLEW) - and save billions of euros. Germany's Federal Network Agency has estimated that building lines overhead rather than underground could save €35 bln by 2045. Lower costs for grid expansion should translate into lower grid fees and therefore contribute to lower electricity prices and competitiveness, a key government priority. Germany needs to extend its transmission grid in part for renewable power from the windy north to reach the industrial south. Germany's states will have to approve the government's plan. However, while Bavaria has welcomed it, criticism has come from the north, Tagesspiegel Background reported on Monday. (Tagesspiegel Background and CLEW)

A new carbon finance company launched on Monday said it secured over $50 million to expand a Kenya-based agroforestry carbon project, pitching early-stage funding as a way to unlock stalled projects and draw in institutional capital.

Blood from a stone - The Chapter 7 trustee for bankrupt California-based carbon offset company, CTN Holdings, formerly Aspiration Partners, has asked a Delaware court to block investors from claiming co-founder Joseph Sanberg and others defrauded them, according to Law360. In a November suit, investors alleged Sanberg made claims that Aspiration was financially successful, but those declarations were false. Sanberg pleaded guilty to two counts of wire fraud in October. The trustee said Aspiration's insurance policies only have $800,000 remaining, and that sum should be protected so all creditors can share it.

Spot credits for Phase 1 of CORSIA traded around $14 this week, while the ending of Indonesia's moratorium on selling voluntary carbon units internationally looks set to unleash a flood of fresh REDD issuances onto the market. 

Bench vs benefits - Leaked internal memos show conservative justices on the US Supreme Court focused on industry costs when they moved in 2016 to block the Obama-era Clean Power Plan, with Chief Justice John Roberts calling it “the most expensive regulation ever imposed” and warning of “irreparable” harm to energy companies, while making no reference to the costs of climate change or the rule’s projected benefits, E&E News reported. The documents, reported by The New York Times, indicate the court weighed compliance costs and potential coal production declines heavily in granting an unprecedented stay before lower court review, despite US EPA estimates that climate and public health benefits would outweigh costs. Legal experts cited in the report said the memos suggest some justices had effectively formed views on the merits early and relied on limited briefing, raising concerns about the court’s decision-making process and its increasing use of emergency orders.

The US Supreme Court (SCOTUS) on Friday handed oil companies a boost in their fight with Louisiana officials over coastal damage costs, siding with Chevron in a case that could shape similar claims against other oil and gas players, including Exxon Mobil.

European and UK carbon prices weakened on Monday, with both markets trading in a very narrow range after initial volatility. while energy markets initially jumped after Iran closed the Strait of Hormuz in response to the seizure by US forces of one of its commercial vessels and then quietened as traders waited for news on peace talks.

Limits to Colombia’s national carbon project registry (RENARE) are stunting progress toward launching the national ETS (Spanish: PNCTE), inhibiting voluntary market (VCM) regulation, and necessitating Article 6 workarounds, speakers said at the Colombia Carbon Forum last week.

A group of heavy industrial companies and trade lobbies, the ceramic industry's association, and the Spanish government have all expressed concerns to the European Commission about its incoming update to the benchmarks used to determine how many free EU ETS allowances to hand out, according to documents seen by Carbon Pulse.

The cost of meeting demand for CORSIA-Eligible Emissions Units (EEUs) in 2025, at current market prices and based on expected sectoral growth figures, could near $2 billion, according to industry data presented at the Colombia Carbon Forum last week.

Germany has proposed allowing international Article 6 carbon credits into the EU’s Market Stability Reserve as part of broader plans to retool the bloc’s Emissions Trading System (ETS) around industrial competitiveness, according to a document seen by Bloomberg.

A planned biochar carbon removal plant in eastern Germany will supply heat under a long-term offtake agreement, the companies involved said last week.

Countries around the world are back to negotiating a carbon price for international shipping, with hoping to reach final adoption later this year – but they will have to contend with intense pressure to break the current framework apart.

Dollars for greener fuel - Synthetic fuel developer Rivan has raised $34 mln in a funding round led by IQ Capital, to support the launch of a new manufacturing plant and double its team. The company uses solar powered to produce green hydrogen, combining that with CO2 captured from the air to create carbon-neutral natural gas. Over the last year it has built the UK's largest synthetic natural gas (SNG) plant at 1 MW, tripled its customer contracts, and moved from pilot to operational system, the release said. The funding will allow Rivan to become the first company to inject SNG into the UK gas grid and build a larger plant in Europe.

Solar accord – Renewable energy firm Neoen and Matachewan First Nation have been awarded a 20-year contract for a 50 MW solar project in Ontario by the province’s grid operator, it was announced on Monday. The 65 MWp facility in northeastern Ontario will be co-owned equally by the partners and is expected to generate around 100,000 MWh of emissions-free electricity each year. Construction is due to begin in 2028 with commissioning targeted for 2029, marking Matachewan’s first utility-scale renewable project. Neoen was also awarded a second solar contract under the same procurement with Garden River First Nation, bringing its total secured capacity to 718 MW in Ontario and 968 MW across Canada.

Local communities and private forest owners in Tanzania will be allowed to participate in carbon markets under new government guidelines, a government official said in parliament last week, according to local media.

Niger's office - The state of Niger's government has reaffirmed its commitment to setting up a Carbon Market Office, in an effort to become a key player in Nigeria's rising carbon market system, the local newspaper Punch reported, following a meeting on the proposed framework. The planned Carbon Market Office is part of the state's economic strategy, and seen  as a way to open access to climate finance, encourage green investments, create jobs, and strengthen Niger's revenue base, according to secretary to the state government, Abubakar Usman. The state of Niger set out a plan in December for participating in Article 6.1 markets, positioning the UN crediting system as a key tool to finance its sustainable development.  

A Qatar-based carbon market initiative has completed its first auction of CORSIA-eligible credits, with units from a Cambodian clean water project clearing above a $14/tonne floor, it announced Monday.

Community oversight - Recent changes to the Northern Kenya Rangelands carbon project's 2021 implementation agreement grant the 22 community conservancies involved greater control over managing the carbon credits generated from their land. The changes must be concluded by June 30 and will ensure all project activities and governance structures comply with the 2023 Climate Change Amendment Act and the 2024 Carbon Markets Regulations. The changes are expected to streamline activities at the world's largest soil carbon project, through better governance and community involvement. The revised agreement is being hailed as marking a shift towards greater community influence in carbon finance, but its impact will ultimately depend on how well the changes are implemented. (People Daily)

Cattle in Pakistan’s Punjab province could generate millions of dollars in climate finance by converting manure into biogas, fertiliser, and carbon credits, according to a government-backed feasibility study.

Three US-based corporations have committed to act on deforestation linked to their avocado supply chains following shareholder filings on the topic, a report has said.

Bamboo biochar – A community-led biochar initiative in the Indian state of Meghalaya, backed by carbon advisory firm Kompliance Kart, is converting bamboo waste into durable carbon removal, the company said in a LinkedIn post. The project works with the Meghalaya Basin Management Agency, a local farmer producer group, and research partners including ICAR Meghalaya and MEGNOLIA. Biochar will be applied to farmland to boost soil health and crop yields, while carbon credit revenues are expected to generate income for participating communities.

UK sunshine – Orsted, a Danish energy group, will work on a solar power project in the UK, it announced last week. The group will partner with UK-based developer, PS Renewable, to create a solar park in East Riding of Yorkshire. Once operational, the 500 MW project is expected to power up to 160,000 homes. The project, classed as a Nationally Significant Infrastructure Project (NSIP), will run a consultation from June this year targetting a planning decision by 2028. Commissioning is currently set for 2033.

Hydrogen alliance – A Swedish green steel producer has joined the The European Resilience Alliance for Clean Hydrogen & Derivatives (ERA), it announced late last week. Stockholm-based Stegra will work with the alliance to promote decarbonisation and clean hydrogen to European policymakers, according to its statement. Stegra received SEK 390 million (€35.5 mln) last year from the Swedish Energy Agency last year to support the construction of a large-scale, low-carbon steel plant in Boden.

The market for nature-based carbon removals will withstand Microsoft’s possible pause in carbon removal (CDR) activity, with investor appetite and a broader base of corporate buyers looking to support the sector, according to an expert.

Discounts, discounts - Taiwan will collect carbon fees of around NTD 4.5 bln ($143 mln) this year, of which NTD 4.05 bln will be used to subsidise carbon reduction technologies and local climate adaptation efforts, Central News Agency reported. Taiwan will begin collecting carbon fees from major emitters in May, with most emitters considered qualified for steep discounts under the programme. Entities can pay much lower fees if they have obtained approval from the government for a voluntary emissions reduction plan and have been considered at high carbon leakage risks. A total of 224 facilities, representing 76% of total emissions covered by the carbon levy programme, can enjoy an 80% discount due to high leakage risks, the government said Monday.            

Another route - South Korea and India agreed Monday to cooperate on stabilising energy supply chains amid international oil shock, according to Yonhap. The two countries will strengthen bilateral cooperation to ensure a stable supply of energy resources and key raw materials, including naphtha, President Lee Jae Myung said in a statement. South Korea is predominantly reliant on fossil fuel imports, and imports most of naphtha, a key feedstock for the petrochemical industry, from the Middle East via the Strait of Hormuz.

French centrist MEP Pascal Canfin sees a price corridor for the EU Emissions Trading System (ETS) as a realistic way to marry market flexibility with the predictability investors need, telling Carbon Pulse it can be designed inside existing market rules without being challenged as a new tax.

Malaysia’s Terengganu state has signed a memorandum of understanding with an oil and gas company to explore the development of nature-based carbon projects.

Applications open – Nature-based carbon standards programme Equitable Earth is seeking experts to join its Technical Advisory Board (TAB), with applications open until May 15 and successful candidates set to begin in July 2026. The Paris-based organisaiton will provide technical oversight and guidance to ensure methodologies and programme documents remain scientifically robust and aligned with market best practice, it said on its website. The new TAB members will be expected to review and provide expert input on methodologies and programme documents, participate in quarterly meetings, challenge and improve technical approaches, and sign off on standards before publication, while maintaining confidentiality and declaring conflicts of interest.

Two major companies in Japan's heavy industry have endorsed a business consortium developing carbon capture, utilisation, and storage (CCUS) hubs across Asia.

Italy could reach net zero by significantly scaling up carbon removal (CDR), with potential capacity seen as high as 91 million tonnes a year, but only if it acts swiftly, according to a new report.

Big numbers - Indonesia’s blue carbon potential can reach 10 mln tonnes of CO2 annually, national news agency Antara reported, citing the marine affairs minister. Mangroves covering roughly 998,000 ha could sequester about 6.3 Mt per year, while seagrass meadows spanning over 860,000 ha may absorb around 3.8 Mt annually, he said in a statement. The minister added that Jakarta is also formalising trading mechanisms, requiring marine spatial permits and registration in the national carbon registry to avoid double counting. The ministry’s blue carbon action plan released earlier this year, however, said it would target roughly 3.45 mln ha of mangroves and 660,000 ha of seagrass meadows.

Fleet efficiency - India has reached a broad agreement with automakers on the third phase of its Corporate Average Fuel Efficiency (CAFE-III) norms, a scheme that pushes automakers to reduce emissions and is set to take effect from April next year, following months of negotiations, Economic Times reported. The revised framework slightly eases earlier proposals while retaining a tighter emissions trajectory through FY 2032, aiming to cut average fleet emissions to below 80 gCO2/km. The rules also introduce incentives for electric and hybrid vehicles.

The renewables boom slowed global growth in energy-related CO2 emissions to a tiny fraction last year, according to the International Energy Agency (IEA).

Liquidity in Indonesia’s carbon exchange will be critical in diverting private sector finance into decarbonisation projects and help the Southeast Asian country meet its climate targets, the country’s financial regulator said in a new roadmap.

The International Court of Justice’s (ICJ) Advisory Opinion on the Obligations of States in respect of Climate Change (ICJ Opinion) is already driving legal and regulatory developments, with directors of companies in the fossil fuel sector considered most exposed to associated risk, a research and advocacy organisation said Monday.

Take it slow - Malaysian state Sarawak's premier over the weekend cautioned against rushing cliamte legislation, urging safeguards for the state’s constitutional rights over carbon resources, Dayak Daily reported. He said Sarawak will continue to independently manage carbon trading, describing it as part of the state’s land heritage and sovereign rights, even as the state has moved to align its policies with the federal government. The premier further said the federal government had agreed to exclude neighbouring Sabah and Sarawak from central control over carbon trading.

The New Zealand carbon price reached a 5-month high on Friday due to lower-than-expected forestry issuance, while the market anticipates upcoming ETS advice from the Climate Change Commission (CCC).

At your fingertips - Singapore-based superapp Grab in 2025 avoided and removed 772,000 tonnes of CO₂e through verified carbon credit projects, equivalent to around 180,000 cars taken off the road for a year, according to its latest sustainability report. Under the Green Programme, the company leverages its digital platform to enable voluntary consumer participation in carbon projects across Southeast Asia. The voluntary scheme was refreshed last year, expanding supported projects in the region from 5 to 17, the report showed.

Metal money - Renewable Metals has raised A$12 mln ($8.5 mln) in Series A funding, led by the Clean Energy Finance Corporation (CEFC) and supported by Climate Tech Partners, to advance its Australian-based lithium-ion battery recycling technology, it announced in an emailed statement. The company has developed a patented hydrometallurgical process capable of recovering over 95% of key metals from all major battery chemistries at lower cost, enabling more viable large-scale and onshore recycling. The funding will support a demonstration plant in Western Australia and development of a commercial facility in New South Wales, aiming to reduce reliance on exporting battery waste and strengthen domestic critical minerals supply chains.