California Carbon Allowance (CCA) futures edged up towards the mid-$29 range ahead of next week's Q2 auction as the market looks for clarity from the sale and a planned vote on proposed changes to the state's Cap-and-Invest Program.

Nature-related investments remain a small portion of assets-under-management (AUM) for Canadian investors, but they're making progress, according to a recent survey.

Alpine uptake – A new study published in the Journal of Environmental Management found that afforestation on subalpine pastures in the Austrian Alps created local carbon sinks, storing more carbon per hectare versus adjacent pastures. Researchers said most of the sequestration came from tree biomass rather than soil carbon gains, equivalent to around 441 tCO2/ha over 42-65 years after planting. However, the study also found mixed biodiversity impacts.

Stakeholders from a wide swath of sectors urged California regulator ARB to revise various proposed updates to the state’s Cap-and-Invest Program to address concerns around affordability, ambition, and other areas in submissions on the 15-day notice released by the agency.

$1 bln investment - US-based investment firm SG2 has closed a $1 billion growth-stage investment fund. The fund, which drew international institutional investors across pension plans to family offices, would look to advance commercial solutions that deliver greater efficiency, resilience, and long-term value. It backs companies primarily in North America and Europe that can improve efficiency across the core systems that power the world’s economy, from energy infrastructure and maritime transport to agricultural inputs and industrial electrification.

Double-edged - Canada may host favourable policy for clean tech development, but large investors don’t necessarily take said incentives into account when underwriting projects, according to a panel at the ClimateGlobal conference in Vancouver this week. According to Ajay Bawa, COO and co-founder of low-emissions hydrogen company Thiozen, investors have required the company to demonstrate project economics without Canadian carbon incentives such as the federal suite of investment tax credits and those offered provincially in Alberta. Panellists widely agreed that Canada is competitive for greenfield projects on the basis of its regulations, but major investors are also wary, particularly given volatility in carbon policy through the tenure of the Carney government.

Verra has launched a new label for forest carbon credits generated by projects located on lands with a forest management certification.

The US EPA has proposed to delay tailpipe emissions compliance for passenger vehicles by two years, according to a Thursday announcement.

Wildfire watch - London-based carbon insurance and climate risk modelling firm Artio projected more than 130 square km of wildfire exposure across Yosemite, Sequoia, Kings Canyon, and the Great Smoky Mountains through the end of August 2026, with Sequoia facing the highest proportional risk among the parks assessed. The analysis, based on MODIS satellite fire data, climate variables, and a cellular automata fire-spread model across multiple Shared Socioeconomic Pathway scenarios, found projected exposure above five-year historical averages at Sequoia, Kings Canyon, and the Great Smoky Mountains, while Yosemite was forecast below its recent baseline. Kings Canyon’s projected exposure rises from 0.34% historically to 1.04%, the Great Smoky Mountains from 0.04% to 0.46%, and Sequoia from 1.43% to 1.74%, according to the modelling, which cited low Sierra Nevada snowpack, early snowmelt, and potential El Nino conditions as factors that could increase fire risk.

Keep shining - The US Energy Information Administration (EIA) forecasts solar generation in the Electric Reliability Council of Texas (ERCOT) will exceed coal on an annual basis for the first time in 2026, with utility-scale solar expected to generate 78 billion KWh compared with 60 bln KWh from coal. Solar’s share of ERCOT generation rose from 4% in 2021 to 12% in 2025, while coal’s share fell from 19% to 13%, as new solar capacity helped meet rising electricity demand. EIA said about 40% of US solar capacity additions in 2026, or 14 bln KWh, are expected in Texas, while no new coal plants are planned in ERCOT. Solar first exceeded coal on a monthly basis in March 2025 and is forecast to remain ahead for most months in 2026 and 2027, as demand grows from cryptocurrency mining, data centres, industrial activity, and oil and gas-related operations.

A developer of carbon transport and storage infrastructure in the US has secured a key validation milestone for its biomass carbon removal project and expanded a forward sales agreement for future CDR credits, as interest in engineered removals continues to build among corporate buyers.

Canada would amend its Clean Electricity Regulations (CER) to allow greater flexibility for the energy sector via emissions offsets in a national pledge to double grid capacity by 2050, the federal government announced Thursday.

A wastewater treatment technology company has raised $25 million to expand deployments of a process that it says can lower utility costs while delivering verified carbon removal (CDR), it announced Thursday.

Verra now has three new vetted third-party data providers to supply benchmark data for projects using its afforestation, reforestation, and revegetation (ARR) methodology, it announced Thursday.

A Brazilian project developer has generated its first tranche of afforestation, reforestation, and revegetation (ARR) carbon credits in the Atlantic Forest to be delivered to Microsoft, the company announced on Thursday.

The US House of Representatives passed legislation Wednesday to allow nationwide year-round sales of E15 gasoline, advancing a long-sought priority for ethanol producers and corn-state lawmakers despite opposition from environmental groups and parts of the biofuels sector.

World oil demand is falling sharply due to the effective closure of the Strait of Hormuz, which is depleting global stocks at a record pace, the International Energy Agency (IEA) said Thursday.

A long-planned Midwest CO2 pipeline project is being reworked after legal and permitting setbacks, with its developer cutting hundreds of miles from its Iowa route and shifting the planned storage component to Wyoming.

A carbon removal registry published a protocol for hydrofluorocarbons and ozone-depleting substances on Thursday, following comments from a company official that companies might stack superpollutant credits with longer-term removals.

An easier path - The Science Based Targets initiative (SBTi) has updated the methodology companies use to set absolute emissions reduction targets as part of its Corporate Net-Zero Standard Version 2, set to be published this summer. Now, 2030 targets require a significantly less steep trajectory across all three scopes, with reductions spread more consistently out to 2050 rather than overly concentrated in the near term, it said. Under the previous framework, companies needed to cut total GHG emissions by a fixed percentage (translating to c. 42%) by 2030, regardless of how much progress a company had already made. Now, for companies setting a new five-year near-term target from 2025 to 2030, the minimum reductions equate to around 21% for Scope 1, 33% for Scope 2, and 21% for Scope 3. (edie.net)

Heat stress at 2026 FIFA World Cup - Climate change is expected to increase heat stress risks during the upcoming FIFA World Cup, with around 26 games likely to be played in conditions requiring cooling breaks under player-union guidance, according to a report published Thursday. That' compared with around 21 under 1994 climate conditions. The analysis, by World Weather Attribution, found that five games could face conditions that global players’ union FIFPRO considers unsafe for play, with Miami, Kansas City, Philadelphia, New York/New Jersey, Dallas, and Houston among the most exposed host cities. Hot events reaching or exceeding WBGT thresholds of 26C, 28C, and 32C are now substantially more likely during the World Cup period than they were in 1994, the report said.

A province in South America expects it will soon be issued millions of CORSIA Eligible Emissions Units (EEUs) and is arranging to sell most or all of these to a regional airline at just over $23 per unit, local media has reported.

Fertiliser reform - The UK government is considering introducing new regulation to tackle fertiliser pollution, which would ease market adoption of innovative products less detrimental to the environment. The Department for Environment Food and Rural Affairs (Defra) has extended the deadline to respond to a consultation on fertiliser regulation reforms, from May 13 to June 10. The reforms are intended to give farmers access to a wider range of fertilisers, including recycled nutrient products and alternative technologies to support more sustainable farming. It's also hoped that a more flexible support could curb reliance on the volatile global fertiliser market. The proposals come at a time of surging agricultural input inflation, which has surged to 8.4%. (FarmingUK)

The government of the Democratic Republic of Congo (DRC) is about to transfer 847,818 hectares of rainforest to Indigenous Peoples and Local Communities (IPLCs).

The European Commission is preparing emergency support for farmers and possible relief for fertiliser producers under the EU Emissions Trading System (ETS), as a renewed surge in fertiliser prices linked to conflict in the Middle East raises fears over food production.

Oman has launched a new regulatory framework for carbon markets, through which it plans to convert its emissions reduction targets into verified and tradeable carbon credits, according to media reports.

CBAM exemption for Ukraine - Members of the European Parliament's environment committee have called on the European Commission to reconsider Ukraine's request for special treatment under CBAM, according to Steel Orbis. The CBAM's current provisions for force majeure are insufficient to reflect the realities of Ukraine's war with Russia, given that Ukraine cannot put in place decarbonisation measures in line with the border carbon price, said S&D MEP Mohammed Chahim, lead for the CBAM file.

UK cleans up its capacity market - The UK government will move ahead with proposed changes to bring a wider, cleaner mix of electricity technologies into its capacity market system, based on responses to recent public consultations, it said on Thursday. The changes will include allowing electricity generators that receive contract for difference subsidies to also prequalify for the capacity market, which supports back-up power capacity, as long as the benefits don't overlap.

Event emissions cut - Sunkonnect, a Singapore‑based renewable energy consulting firm, today announced a 5% carbon footprint reduction target for India’s $14.3 billion event and exhibition industry through its newly launched suite of tailored net zero solutions and retirement of high‑quality carbon credits over the next five years. It aims to mitigate up to 960,000 tonnes of CO2 annually, directly addressing an industry responsible for 12-18 mtCO2 in large event emissions each year.    

European carbon traders kept up their arm wrestle around the €75 mark, with the price moving up by a single cent amid extremely low liquidity, while the UK government was rocked by a key minister resigning, in what many consider to be the start of a push to oust sitting Prime Minister Keir Starmer, which could add risk to talks around linking the UK and EU carbon markets.

Clients of a large US bank are keen but struggling to enter the carbon market because they find it too "mystifying" and in need of standardisation through blockchain-based banking, a finance expert said at a conference, adding that this would finally attract the necessary large-scale capital. 

UN climate chief Simon Stiell on Thursday lauded China as a global climate leader and called on Beijing to help its region in phasing out coal amid mounting energy security challenges.

Preparing for the worst - The EU faces no immediate threat to jet fuel supplies, but the possibility of longer-term shortage can't be ruled out, according to the EU's energy commissioner Dan Jorgensen. Any shortage will depend on how the Middle East conflict play out, as well as how airlines react, he said. Germany's Lufthansa recently cancelled a large number of flights, for example. Jorgensen said the bloc's executive arm will start talks with member states about how best to address any potential jet fuel shortage, adding that the crisis underlines the need to transition away from fossil fuels. Over the long term, the EU is speaking with Gulf nations about how to restore the flow of energy from the region after a negotiated peace deal is in place, said Jorgensen. (the Independent)

A Spanish lender has launched a carbon credit trading platform aimed at helping corporate clients and small businesses offset their CO2 emissions, expanding the bank’s push into sustainable finance and voluntary carbon markets.

Speed is of the essence - Deutsche Bank has attributed its decision to postpone by two years, to end-2027, its measures to encourage customers to move away from coal due to in part to the slow pace of the energy transition. Its recent announcement that it would delay the measures also cited the "increasing complexity" of regulations as playing a part. In 2023, the bank required its clients to submit "credible transition plans" by the end of 2025 in order to access financing, but the deadline has now been pushed back by two years, at which point its clients will also have to ensure that less than half of their revenue comes from coal. New entrants however must already meet these requirements to obtain financing, and DB also maintains that it will continue to prohibit financing for new or expanded coal-fired power plants, as well as mining projects. Its credit commitments to coal mining remained stable at €1.2 bln at end-2025. The European coal phaseout target remains set for 2050. (BFM Business)

Isometric on Wednesday released its Spring 2026 update addressing 17 carbon crediting protocols and 10 accounting modules, including changes to align protocols with existing buffer pool rules and broaden the application of its GHG Accounting Module.

Clean energy investment across the Asia-Pacific region continues to fall behind fossil fuels, as banks and investors direct huge sums towards conventional energy supply, according to a report.

An Australian carbon services firm has launched the nation’s largest environmental carbon planting project, expected to generate about 3.2 million Australian Carbon Credit Units (ACCUs) over its lifetime, as demand for high‑integrity credits increases.

Green tides - India’s major ports are projected to raise renewable electricity use to nearly 66% by 2030 from 15.5% in 2024 under a broad maritime decarbonisation push, according to a government-backed report, which outlined the first detailed port-by-port transition roadmap, including targets for shore power, electrification, green hydrogen, and renewable energy deployment. It said shore-to-ship power supply would be rolled out in phases, extending to foreign vessels by 2030, while four ports have been selected for pilot studies. The report also warned that two big ports were unlikely to meet the target of sourcing more than 60% of power from renewables by 2030 due to land and cost constraints.

Homes tap carbon credits - Japan’s ByWill has launched a J‑Credit creation and sales scheme via home heat pumps, in partnership with appliance retailer Edion. The “Hipo Lab” project aggregates small household CO2 reductions into tradable carbon credits, supporting decarbonisation, and easing subsidy compliance under the Hot Water Supply Energy Conservation 2026 programme. Customers incur no membership fees, while ByWill manages registration, certification, and sales under a contingency model.

Need to step up - Indian banks are failing to integrate climate risks into their business models despite worsening heatwaves and growing regulatory pressure, according to a report by Bengaluru-based think tank Climate Risk Horizons. The report assessed 35 Indian banks with a combined market capitalisation of around $600 bln and found that most climate-related action was compliance-driven rather than strategic. While 92% of banks now disclose Scope 1 and 2 emissions and 63% obtain third-party verification, only five banks disclose financed emissions, which account for the majority of banks’ climate impact. Only two banks have published explicit coal phase-out commitments, while just six of the 35 banks have set net zero targets. The report said climate stress testing remained “nascent and opaque”, with 14 banks conducting scenario analysis but none disclosing impacts on capital, asset quality, or portfolio performance.

Gold Standard has partnered with a digital infrastructure provider to upgrade one of its registries, in a move aimed at improving links with national registries, marketplaces, and exchanges, it announced Thursday.

California regulator ARB issued fewer than 44,000 compliance-grade offsets over the past three weeks, the second-lowest issuance so far this year, according to data released on Wednesday.

New Zealand’s gas reserves have fallen to record lows, with the government saying this supports its decisions to build an LNG import terminal and permit new offshore oil and gas exploration.

Japan’s nascent carbon market has the potential to drive private sector demand for Article 6-aligned credits via the country’s Joint Crediting Mechanism (JCM), depending on future allowance allocation decisions, a report has found.

Prices in the New Zealand Emissions Trading Scheme (NZ ETS) have softened over the past week, under pressure from sellers who came to the market as it rallied at the start of May.