Prices for Phase 1 CORSIA-eligible carbon credits continued to fall last week as uncertainty around the international aviation offsetting scheme and persistently high jet fuel prices weighed on market sentiment, pushing thoughts of future compliance lower down carriers’ list of priorities.

Morocco this month inked another bilateral Article 6.2 agreement, as the government is finally putting in place market infrastructure to support its ‘learning by doing’ approach, while Oman produced a concrete roadmap outlining its carbon market priorities.

Lawmakers in the European Parliament are poised to clash on whether to introduce additional climate conditions for European companies to access support from the Temporary Decarbonisation Fund (TDF).

The Congo Basin needs a boost of investment, strengthened governance, and coordinated action in order to ward off mounting pressure on its resources and remain a vital carbon sink, including through more forestry carbon crediting projects, a UN-backed panel of scientists warned on Tuesday. 

A Germany-based airline has announced that its customers contributed to climate protection projects covering more than 710,000 tonnes of CO2 in 2025, an increase of around one-fifth year-on-year.

The fertiliser crisis, driven by the Iran war and rising energy costs, makes clear that defenders of the EU's carbon pricing regime are increasingly isolated, and scarce – with Denmark alone in clearly backing the ETS and carbon border fee when agricultural ministers met on Tuesday.

Brunei Darussalam is set to tap its vast forest resources for international carbon markets, media reported.

Communications push - The Super Pollutant Action Alliance (SPAA), a project of US non-profit Multiplier, is seeking a consultant to test how policymakers, funders, journalists, scientists, and communicators respond to language around near-term warming and fast-acting climate mitigation. The work will cover methane, black carbon, hydrofluorocarbons, and tropospheric ozone, and include testing in the US, EU, China, India, and other geographies ahead of COP31. The contract, estimated at $325,000-475,000, will run from June to Oct. 2026, with proposals due June 5.

UN platform revamp - The UNFCCC secretariat has recommended repurposing the CDM voluntary cancellation platform to allow voluntary cancellation of Article 6.4 MCUs and eligible second commitment period CERs, while excluding authorised Article 6.4 emission reductions due to complexity and cost. The existing platform, launched in 2015, has facilitated the cancellation of around 16 mln CERs from almost 300 projects, but would need $265,000 in one-off development and software upgrades, plus $120,000 in annual maintenance, to integrate with the Article 6.4 mechanism registry and address security vulnerabilities. The CDM registry is due to close for transactions on Dec. 31, 2026, meaning the platform would be shut down unless a decision is taken, with the secretariat asking the Article 6.4 Supervisory Body to reach an agreed outcome by its twenty-second meeting in July.

First try - Japanese developer Green Carbon has signed a MoU with GIZ, an international development agency backed by the German government, to examine the applicability of enhanced rock weathering in Thailand's rice cultivation sector. Their work will focus on soil improvement, crop yield, environmental impact, and MRV approaches. Green Carbon said the partnership at the moment does not commit to the creation of carbon credits or the commercialisation of projects.

Indonesia’s development of its forest carbon market is running into concerns over export levies, taxation, regulatory uncertainty, and technical bottlenecks, according to experts and stakeholders.

A Japanese carbon project developer has secured a partnership to expand its presence in Laos, where it will pursue the creation of credits under the bilateral Joint Crediting Mechanism (JCM) through afforestation activities.

Annual demand for Article 6 carbon credits, generated by proposed rules to allow them to be deducted from EU Carbon Border Adjustment Mechanism (CBAM) fees, could theoretically rise to more than 17 million tonnes through 2040, analysts have said, but limitations imposed by Brussels mean that, at least in the near term, buying is likely to be a fraction of that potential volume.

Airline exposure - European airlines Lufthansa, British Airways parent IAG Group, and Air France-KLM, would each face additional costs of €1.8 bln, €1.7 bln, and €1.5 bln respectively in 2027 were Brussels to extend the EU ETS to flights leaving the bloc, according to projections by consultancy Transition Metrics. The extra costs would amount to about 44% of Lufthansa’s 2025 earnings, 23% for IAG Group, and 30% for Air France-KLM, which are "material" costs that complicate the companies' hedging of their 2027 compliance, the firm said. The estimates are based on the airlines’ current carbon emissions and a projected carbon price of €120/t, which Transition Metrics says are realistic if the full extension of the ETS were applied. Officials are considering extending the scheme that presently applies only to intra-EU flights to all flights departing the bloc, depending on their assessment of the effectiveness of international offset scheme CORSIA. (FT)

Vietnam has finalised rules governing forest carbon credit trading, paving the way for the Southeast Asian country’s first issuances later this year.