Scorching hot summer and droughts followed by torrential rain in the winter and floods could cost the UK up to £260 billion a year by mid-century because the world is failing the Paris Agreement, warns the UK Climate Change Committee (CCC) on Wednesday.

The Paris Agreement's Article 6 mechanism could help channel more investment into carbon removal (CDR) projects in the Global South, but slow domestic implementation and uneven demand signals are still limiting its impact, developers said Tuesday.

The UN’s aviation offsetting scheme CORSIA does not meet the EU’s conditions for keeping its Emissions Trading System (ETS) exemption for international flights, according to an analysis of EU legislation and market conditions.

The additional 40 million EUAs to be auctioned this year from June through to December will come from volumes that would otherwise have been allocated for free, a European Commission official has confirmed to Carbon Pulse.

European carbon prices slid by 0.8% on Tuesday but held close to an important psychological level, as the market recoiled from Monday's initial surge towards the upper end of the current well-defined price channel, while energy markets recovered slightly from the previous session's drop as traders waited for signs of progress over the stand-off in the Strait of Hormuz.

A carbon removal marketplace has announced an exclusive deal to distribute biochar produced by an India-based developer, with 10,000 credits available this year.

Carbon project growth - Tanzania has registered 99 carbon projects as the country opens its carbon trading sector more widely to citizens, companies, and institutions, local news outlet The Citizen reported. Deo Shirima, director of measurement, verification, registration, and assessment of greenhouse gases at the National Carbon Monitoring Centre (NCMC), said several companies had completed registration while others were in the final stages, reflecting growing interest as Tanzania seeks to expand its role in global carbon markets.

As the aviation industry prepares for the next phase of the UN's Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) in 2027, a new legal analysis has warned that the long-anticipated surge in global demand for carbon credits may fall far short of expectations due to weak national implementation and inconsistent enforcement.

Companies aiming for net zero should begin to classify their emissions from fastest and easiest to cut through to hardest-to-abate, in order to overcome the challenge of pinpointing the residual emissions that will need to be removed to hit the 'net', according to researchers.

The European Commission has no plans “yet” to exempt fertilisers from the Carbon Border Adjustment Mechanism (CBAM), but sees the upcoming review of the EU Emissions Trading System (ETS) as a chance to “carefully assess” ways to support the sector’s decarbonisation, officials said on Tuesday as they launched a Fertiliser Action Plan.

Gold Standard launched a consultation on Tuesday, introducing a new voluntary reporting pathway for project developers which it said could reduce the risk of double counting co-benefit and certified contributions to the UN’s Sustainable Development Goals (SDGs).

A Tanzania-based forest carbon project developer channelled $4.5 million in carbon revenue to local communities in 2025, while preparing to transition two REDD+ projects to Verra’s VM0048 methodology and scale its portfolio, according to its annual report.

A major carbon finance consultancy has closed its Japanese legal entity as part of an administrative simplification process, but will continue serving clients in the country through other Asian hubs, the company told Carbon Pulse.

The European Commission will relaunch its €1 billion Innovation Fund heat auction later this year, after the pilot round drew lower-than-expected demand but still backed dozens of industrial decarbonisation projects aimed at cutting emissions from process heat.

While India has been an active participant in international carbon markets, the introduction of its compliance ETS and the EU’s Carbon Border Adjustment Mechanism (CBAM) is shifting the carbon value to domestic companies, found a report.

Growth engine - The World Bank Group is planning to double guarantees for Africa to catalyse investment and create jobs as the continent's working-age population grows, stated a press release. The World Bank Group Guarantee Platform, housed at the Multilateral Investment Guarantee Agency (MIGA), aims to more than double its annual issuance of guarantees in Africa to $6.4 bln by 2030, aiming to improve the lives of around 190 mln people over the next four years alone. With up to 12 mln young people expected to enter the workforce annually, guarantees will play a key role in attracting private capital into sectors such as agribusiness, energy, healthcare, and finance - supporting Africa's growth ambitions. New guarantees over the next four years are expected to mobilise $23 bln in private capital for Africa via numerous initiatives including AgriConnect, an initiative to transform smallholder farming. They will also support people by providing electricity access, improving financial inclusion, and improving internet access.

Rare earth dependence –  G7 finance chiefs are under mounting pressure to accelerate efforts to cut their dependence on Chinese rare earths, German Finance Minister and Vice Chancellor Lars Klingbeil warned on Monday. Speaking after a G7 meeting in Paris, Klingbeil said governments “have no time to lose” and must improve procurement and expand production of critical minerals essential for clean technologies and defence systems. He also urged the introduction of recycling quotas to boost recovery and reuse of critical raw materials, stressing the need to avoid “the next dependency” as the Iran and Ukraine wars expose fossil fuel and gas vulnerabilities. (Reuters)

The German government has started the privatisation of Uniper, the giant gas company it rescued almost four years ago after Russia’s invasion of Ukraine, amid a spike in gas prices triggered by the ongoing war in the Middle East.

EU steel protection – The European Parliament has voted through a new safeguard regulation to shield EU steelmakers from global overcapacity by sharply tightening import limits from mid‑2026. Annual tariff-free quotas will be cut to 18.3 million tonnes, 47% below 2024 levels, with a higher 50% duty levied on out‑of‑quota and uncovered products. A new “melt and pour” rule will determine origin at the initial melting and casting stage to curb circumvention and guide quota allocation. Lawmakers also flagged Ukraine’s special status and welcomed that exemptions for Russian steel slabs will not be prolonged. The regulation takes effect on 1 July 2026, pending sign‑off by the Council of EU member states.

The pace of Europe's transition to circular plastics production has slowed significantly, as industry battles high energy and feedstock prices as well as emissions costs and increased global competition, a trade association has warned.

An EU-backed buyers’ club for carbon removal (CDR) credits has emerged as the leading option to unlock private finance for the sector, with experts converging around a corporate‑led platform focused on near‑commercial projects in Europe.

Europe’s carbon market risks drifting into dangerous oversupply territory if policymakers weaken emissions trading rules by releasing more allowances into the system, according to new analysis that warns the EU may be on the cusp of undermining its own 2040 climate target.

The UK ETS Authority should expand the scope of the UK's cap-and-trade scheme to cover more maritime voyages and a greater share of vessels, a think tank said in a blog post published on Tuesday.

A dispute over the eligibility of Zimbabwe's carbon credits for the aviation offsetting scheme CORSIA could serve as a cautionary tale for upcoming national carbon registries – even as Zimbabwe continues to fight for a solution that clears the emission reduction units for take-off.

Several Latin American countries are poised to benefit from the European Commission's newly published rules for recognising domestic carbon prices, including carbon credits, paid before products are exported and subject to the EU's Carbon Border Adjustment Mechanism (CBAM). 

Fuel protests - Kenya has reduced the price of diesel by 7% following deadly protests on Monday over surging fuel costs called by owners of minibus taxis critical to the country's mass-transit system. Meetings between the public transport lobbies and the energy ministry ended in a stalemate later that day. At least four people died in the protests, and the shutdown continued for a second day on Tuesday, with gangs blocking some key roads into Nairobi. Rising fuel costs driven by the Iran war have intensified pressure on Kenya's import-dependent economy, and protests there are the first visible signs of broader pressures that African nations face due to the Iran war. The govt lowered VAT on fuel last month to 8% from double that previously, and authorities have drawn on a fuel-stabilisation fund to subsidise costs, but such measures only go so far to fully offset the impact of higher global prices on consumers, according to Oxford Economics. (Bloomberg)

The global buildings sector is now 3.5 billion tonnes of CO2 off the trajectory needed to meet international net zero targets, with decarbonisation momentum “stalled”, according to a United Nations report released on Tuesday.

Companies see carbon removal (CDR) as essential to reaching net zero but are waiting to see how policy and reporting rules materialise before they invest, according to a survey of senior executives across Fortune 1000+ companies.