Cap-and-Invest vote – California regulator ARB published a revised agenda on Wednesday for its upcoming board meeting, focusing on the proposed updates to the state's Cap-and-Invest Program. The Board will consider adopting changes to the programme outlined in the Initial Statement of Reasons (ISOR) and subsequent 15-day notice, beginning at 0900 PDT/1200 EDT (1600 GMT) on Thursday. The meeting may continue on May 29 to conclude any remaining business. The revision saw a struck item considering the revisions for the California Extreme Ozone Nonattainment Areas, based on federal actions in the last year.

Backing Brazilian SAF – The International Finance Corporation (IFC), the private investment branch of the World Bank Group, announced this week its participation in financing Acelen Renewable's Sustainable Aviation Fuel (SAF) plant in Brazil. The landmark Bahia project is one of the world's largest hydroprocessed esters and fatty acids (HEFA) biorefineries and the first commercial SAF project in Latin America. IFC invested an undisclosed amount of the $1.5 bln needed to construct the plant. The multilateral bank will co-coordinate financing with HSBC, it said.

Paraguay's potential - Paraguay could receive revenues of $500 mln per year from carbon credits if the South American country concretes 5-10 bilateral agreements under Article 6 of the Paris Agreement, Kiantar Betancourt, president of the local private-sector association, Capadeco, told Infonegocios. International emissions transfers would be mainly sourced from forestry and other nature-based projects, he said. Paraguay has already signed Article 6.2 MoUs with Taiwan and the UAE, and is in active conversations with South Korea, Japan, and Switzerland.

The California regulator issued fewer than 75,500 compliance-grade offsets over the most recent reporting period, with no direct environmental benefits (DEBs) to the state, according to data released on Wednesday.

Alberta is seeking public comment on proposed updates to its carbon capture and sequestration (CCS) quantification protocol that would let eligible direct air capture (DAC) projects account for low-carbon electricity, while clarifying how removal credits and storage reversals would be handled under its large-emitter system.

Disclosure demands - Senator Sheldon Whitehouse (D-RI) urged the Administrative Office of the US Courts to strengthen rules governing privately funded judicial seminars and press the Federal Judicial Center to reinstate a rescinded climate science chapter in its Reference Manual on Scientific Evidence, arguing that fossil fuel-linked funders and groups have sought to shape how federal judges assess climate science in court. In a May 19 letter to AO Director Robert Conrad, Whitehouse said existing disclosure and ethics rules are failing, citing reporting on a George Mason University Law & Economics Center symposium that he said promoted scepticism of climate liability and mass-tort claims while omitting fossil fuel-related funding ties. He also called for the centre to disclose any earmarked funding for judicial education, saying further steps may be needed if judges continue attending industry-funded seminars.

Getting ghosted - The US DOE has stopped communicating with two carbon capture and storage task forces created under the 2020 USE IT Act, according to members who said the committees have been inactive for months despite spending more than a year drafting recommendations on permitting, offshore CO2 storage, pipelines, and other issues, E&E News reported. The task forces, established to help accelerate carbon capture project development, were expected to meet in November and December to discuss and finalise a draft report, but those meetings did not take place, with some members saying they last heard from the DOE in September and one saying November.

Ireland’s data centres have already added an estimated €715 million to household electricity bills between 2015 and 2023 and are now consuming more than 22% of the country’s electricity — the highest share in the world – according to a report published on Thursday, ahead of an EU policy initiative on AI and energy.

Some survivors - Some elements of the US EPA’s greenhouse gas standards for coal- and gas-fired power plants, currently in the process of being repealed, could survive, E&E News reported Wednesday. One example could be the 2015 New Source Performance Standard, which requires coal-fired units to capture and store 40% of their CO2 emissions. A narrower, technology-focused rule on carbon capture and storage and co-firing of gas at coal plants appears to be the subject of focus at the White House Office of Management and Budget.

OH CSS - Ohio Senate has passed a bill authorising carbon capture and storage (CCS) activity in the state, according to Morning Ag Clips. The bill clarifies landowner rights in pore space and charges the state’s Natural Resources Department with development of a CCS regulator programme.

Cleaner data centres - Non-profit Elemental Impact launched of the Data Center Innovation Initiative (DCII) designed to test and validate critical technologies in data center environments or demonstration sites, creating potential pathways for future adoption across broader energy and industrial sectors. The DCII is backed by tech majors Amazon, Google, Meta, and Microsoft. Elemental CEO Dawn Lippert said the initiative would accelerate technologies that reduce emissions and deliver more positive impact for communities amid data centre buildout.

Fast track – The California Energy Commission on Tuesday approved a 400 MW battery storage project in Alameda County under its accelerated Opt-In Certification programme, marking the third major clean energy facility cleared through the pathway in the past year. CEC said Clearway Energy Group subsidiary Levy Alameda will build the Potentia-Viridi Battery Energy Storage System, capable of storing up to 3,200 MWh of electricity. The agency said the three projects approved under the programme since 2025 represent around 3,300 MW of clean energy capacity and more than $3 mln in community benefits.

Utility pivot – Puget Sound Energy (PSE) has launched a request for proposals seeking projects that can cut GHG emissions from its natural gas distribution systems. The US utility said it would consider any proposal meeting the RFP requirements, with bids due by July 15 and a final list of potential projects expected to be filed with Washington state regulators in Q3-Q4 2026. PSE has appointed consultancy Carbon Direct as independent evaluator for the process, while a virtual bidders’ conference is scheduled for June 8. Agreements for selected proposals are expected to be executed in Q4 2026-Q1 2027, following approval from the Washington Utilities and Transportation Commission.

Brazil's total area of native vegetation deforested remained below 1 million hectares in a single year for the first time since 2019, according to a new report.

Small island developing states (SIDS) are pushing for two emerging 1.5C implementation tools to become practical routes for faster finance and project delivery, as negotiators look to shape the initiatives ahead of the SB64 talks in Bonn, Germany.

Ardea ascends – Founder Marcos Almeida launched Ardea Climate this week, which is an environmental assets company specialising in the commercialisation of credits in the VCM. The new Sao Paulo-based firm said it will operate across sales, brokerage, and commercial advisory services, connecting selected climate projects with a global network of corporate buyers across REDD+, ARR, landfill gas, renewables, and I-RECs. Almeida previously led international sales and business development at Biofilica Ambipar Environment, and has also held roles at Bank ABC Brasil, Louis Dreyfus Company, ED&F Man, and PwC.

Regulating offshore energy – The Colombian Ministry of Environment and Sustainable Development (MADS) published a draft resolution guiding the preparation of environmental impact assessments (EIAs) for offshore wind energy projects. By adopting a set of terms of reference (ToR), this norm would standardise the technical and legal requirements for EIAs, reducing the uncertainty of offshore developers. Public consultation of the resolution runs from May 26 to June 2 on the official MADS portal.  

US policymakers should align voluntary and compliance carbon markets around common standards and infrastructure to improve market efficiency, a public policy group reported.

The Q2 California-Quebec carbon auction last week sold out above the 2026 price floor but a bit below the $29 mark, within the expectations of most market participants, according to a notice published Wednesday.

Peru will by June accredit new standards to its national RENAMI carbon registry and approve over a dozen Article 6 projects, just on the heels of its recent authorisation of a flagship clean cooking project under Article 6.2, according to a senior official.

As the incoming presidency of the Council of EU member states, Ireland intends to push renewables and ensure that carbon market cooperation with the UK benefits both sides, Minister of State Thomas Byrne said on Wednesday.

Pipeline pressure – Summit Carbon Solutions’ (SCS) supporters and opponents have urged Iowa regulators to act on the developer’s revised CO2 pipeline proposal, with industry groups requesting a hearing on Tuesday while some landowners called for the plan to be denied over eminent domain concerns, local media reported this week. The Iowa Renewable Fuels Association (IRFA) this week formally asked the Iowa Utilities Commission (IUC) to schedule a hearing on Summit’s revised route application, arguing delays are costing Iowa ethanol plants about $5.2 mln per day in forgone revenue. Summit unveiled the revised route on May 13, before affected landowners formally filed requests with the IUC on May 20 seeking denial of the updated proposal.

The EU could implement electrification policies to reduce reliance on imported fossil fuels while using carbon pricing to boost the competitiveness of some industrial sectors, according to a paper shared by three European think tanks on Wednesday.

A broad coalition including the US federal government, states, business groups, legal scholars, and tribal interests has urged the US Supreme Court (SCOTUS) to block a landmark climate damages lawsuit against two oil companies, arguing it would let local governments regulate GHG emissions through state tort law.

European carbon made an early run at the €80 mark on Wednesday as the surge in buying activity extended into a second day,  before profit-taking in the afternoon took the shine off the day, while UKA prices also posted a daily gain despite post-midday weakness as both markets continued to reflected greater optimism around regulatory and political changes to come.

Nature-based solutions (NbS) are key to economic stability, food security, and disaster risk reduction in the Philippines, according to a report shared with Carbon Pulse.

Temporary carbon removal (CDR) could have a scientifically valid role in compensating short-lived climate pollutants such as methane, but should not be used to offset CO2 emissions directly, according to a new study.

Local communities must be put at the heart of clean cooking projects for them to generate credible carbon credits and fulfil their potential as one of the only climate measures that can be deployed fast and at scale in displacement settings.

Renewables rising - Africa's next set of power generation projects is increasingly being built around solar, wind, and batteries, as governments turn away from coal and large hydropower in favour of cheaper and faster electricity. Of the 322 energy projects announced across the continent last year, 173 were solar projects, followed by hydropower at 46, wind at 34, gas at 22, and hybrid energy projects at 14, according to Electron Intelligence. Greater emphasis is now placed on deploying systems faster and expanding them gradually with flexible financing, and solar in minigrid systems is a rising trend. Africa added a record 11.3 GW of renewables last year - triple that of 2024, with South Africa, Egypt, and Ethiopia accounting for much of the growth, according to the IEA. Increasingly affordable technology is helping, and much of the growing is through distributed solar and battery systems installed directly in mines, factories, telecom towers, and homes. Investors also increasingly favour renewable projects due to the faster returns and lower exposure to fossil fuel shocks, while policy changes are accelerating the momentum. But big obstacles remains, such as African utilities' frequent financial trouble, leading lenders to be wary of long-term PPAs, and higher financing costs due to perceived country risk. (ABC News)

Peru will be looking to sell around 1 million forest carbon credits a year into the Singapore market under its bilateral Article 6.2 deal, a project developer told Carbon Pulse this week.

Ireland is still falling short of its legally binding goal to halve emissions by 2030, and needs to implement a wide range of policies to hit a projected reduction of 25%, the country's Environmental Protection Agency (EPA) said on Wednesday.

A Dutch carbon market standard setter has approved a new methodology for generating voluntary credits from crop residues transformed into long-lived biobased construction materials, in a move aimed at supporting circular building supply chains and scaling carbon storage in the built environment.

German chemicals giant BASF plans to buy back €12 billion of its own shares between 2025 and 2028, even as it complains about EU carbon compliance costs, according to a new paper warning against significantly weakening the EU’s Emissions Trading System (ETS).

African alliance - African leaders called for greater investment in energy, infrastructure, and climate finance, with Gabon's carbon framework also mentioned, during a presidential dialogue on Tuesday, at the start of the 2026 Annual Meetings of the African Development Bank Group (AFDB). The discussion featured the presidents of Gabon, Central African Republic, and Republic of Congo, as well as President of the AFDB. President Brice Oligui Nguema of Gabon said how his country sought to turn its environmental assets into economic growth through biodiversity finance, ecotourism, and by monetising forest conservation using its national carbon credit framework as well as an agency to market environmental credits internationally. He also called for greater global compensation for Congo Basin countries that preserve global forest ecosystems, while Congo’s President Nguesso stressed the importance of diversifying economies beyond hydrocarbons, said the AFDB press release.

Zimbabwe's dispute over the eligibility of its carbon credits for aviation offsetting scheme CORSIA highlights the persistent political uncertainties around Sub-Saharan Africa's race to enter international carbon markets – while scientific studies warn that carbon investments could be key to saving the continent's vital forest sinks.

Corporate buyers of legacy voluntary carbon credits could face growing audit, disclosure, and impairment risks as carbon accounting rules tighten, according to a recent guide by a US investment bank.

From CDM to PACM – Brazil has approved nine additional projects and programmes from the former Clean Development Mechanism (CDM) for inclusion in the Paris Agreement Crediting Mechanism (PACM), it announced on Tuesday. This adds to a previous round of approval for 80 projects. While most of the projects focus on renewable energy, the reforestation initiative Renewable Source of Wood Supplies for Industrial Use in Brazil stands out among them.

The Global Environment Facility (GEF) has committed $9.8 million to a UN-led nature-based climate resiliency initiative in Ethiopia, it announced this week.

A green shareholder activist group has claimed the firing of BP’s chairman on Tuesday is fixing a symptom, rather than the cause of the company’s broken governance, in a world where oil and gas profits may be squeezed in the future.

Market-based carbon and biodiversity mechanisms are one option that could help overcome key financial barriers to expanding primary forest protection in the EU, according to a study.

Short planning horizons among EU ETS participants and industrial investors, alongside limits on allowance banking and policy risk, could weaken carbon price signals, delay low-carbon investment, and push steelmakers towards less efficient transition technologies, a recent study has found.

A major Japanese oil refiner has partnered with a startup to establish a domestic supply chain for 100% sustainable aviation fuel (SAF) using alcohol-to-jet (ATJ) technology.

Gold Standard has opened a consultation on updates to a methodology that credits activities that tackle methane emissions during organic waste disposal, which will align with requirements set out under Article 6 of the Paris Agreement.

South Korea has launched a national research programme aimed at bolstering sustainable aviation fuel (SAF) supply, with a primary focus on converting spent coffee grounds and animal fats into viable fuels.

Wind shield – The chief executive of wind turbine maker Nordex has urged Brussels to restrict access to “non-western” manufacturers from the EU market, warning that Chinese technology threatens the bloc’s security and industrial base. Jose Luis Blanco said proposed EU rules that restrict “high-risk” suppliers and tie public support to EU-made equipment do not go far enough, and should apply to all new wind capacity connecting to European grids. He called for “non-western” manufacturers to be classed as high risk under cyber security rules. In response, the China Chamber of Commerce to the EU warned that a “discriminatory approach” would undermine fair competition. (Financial Times)

Only a third of EU ETS stakeholders are explicitly in favour of allowing the use of international carbon credits in the cap-and-trade market, whereas a strong majority backs the bloc's use of credits outside the scheme, data from the European Commission's call for evidence reveals.

Integration - Carbon infrastructure provider Xpansiv and environmental commodities exchange Enechain have begun real-time data integration between their platforms. This will allow users of Enechain's carbon marketplace, Japan Climate Exchange (JCEX), to view bids and place trades for environmental products directly on the JCEX screen without separate registration. The move also enables centralised management of domestic and global credits, expands liquidity, and improves price discovery. The firms had earlier struck a deal to link JCEX with Xpansiv’s infrastructure, giving Japanese companies access to high-quality voluntary credits, including CCP-aligned, CORSIA-eligible, and I-RECs.

India should build a national CO2 transport network alongside its existing natural gas pipelines to overcome land acquisition hurdles and boost carbon capture and storage deployment, according to a study.

ETS budget hole – Persistent failed auctions in the NZ ETS have left the country with a NZ$1.4 bln ($822 mln) fiscal hole, Greens co-leader Chloe Swarbrick said on Wednesday. She blamed the government’s tinkering with climate policies for undermining market confidence, with eight of the 10 auctions since the coalition government took office declining. Having endured changes which had been flagged, such as removing agriculture from the NZ ETS ahead of its planned 2025 entry, market sentiment dipped late last year. And prices plummeted amid unexpected government decisions to unwind key climate policies and continued oversupply. Budget 2026 is being released on Thursday.

One of New Zealand’s industrial emitters is set to resume operations, it announced on Wednesday, following an early stage agreement to power the site with renewable energy.

One of Australia’s largest project developers is seeking buyers for an at-least 50% stake in the business, according to media reports.

China effectively halved the growth in its CO2 emissions over the past five years by revising the way it measures key climate targets, a new analysis argued. 

Officials advised the New Zealand government against legislating to ban climate-related tort claims, newly released papers showed, while their analysis found that allowing courts to consider such claims against corporates could leave some with a higher standard than required under the country’s emissions trading scheme.