The European Commission plans to recommend that member states suspend some of the penalties for fossil fuel importers that breach the EU Methane Regulation for up to three years, according to a leaked draft – in a move that is drawing sharp criticism from climate advocates. 

The EU’s Carbon Border Adjustment Mechanism (CBAM) is changing how EU importers select which products to buy, with emissions data transparency becoming as core of an issue as price, the CEO of a major European distributor of stainless steel products told a conference on Thursday.

A new guide released on Thursday by a New York-based advisory firm set out criteria for buyers sourcing agricultural residues for biomass-based carbon removals (CDR), citing the need for safeguards around soil health, livelihoods, and credit integrity.

A Canada-headquartered carbon project financier expects its Vietnam household devices programme to secure an governmental Article 6 Letter of Authorisation (LOA) before year-end, potentially positioning the initiative among the first projects approved under the Southeast Asian country’s new international carbon trading framework.

The EU is falling behind its 2030 target of reaching 50 million tonnes per year of CO2 injection capacity, with the European Commission warning oil and gas firms to accelerate their plans as 19 of them have launched legal challenges against their storage obligation.

A UK-based data centre developer has launched what it described as the world’s first integrated carbon removal platform tailored to the data centre sector, seeking to bundle biochar production, credit generation, certification, monitoring, and financing into a single infrastructure-grade offering aimed at hyperscalers and institutional buyers.

CBAM blame - An official from the UN Economic Commission for Africa (UNECA) has criticised the EU’s CBAM, arguing that African countries were largely excluded from the policy’s design and implementation discussions. Speaking at the annual meeting of the African Development Bank, UNECA Deputy Executive Secretary Hanan Morsi said African governments were neither adequately consulted nor engaged during the development of the EU measure. She warned that climate-related trade measures risk undermining Africa’s industrialisation ambitions and reflect a broader shift towards using climate policy as a tool for trade, industrial competitiveness, and protectionism. Morsi stressed that Africa contributes only a small share of GHG gas emissions, yet could still face adverse impacts from the CBAM, particularly in export-oriented sectors. While the overall macroeconomic effect is expected to be limited - with CBAM-covered products accounting for around 6% of Africa’s exports, and only 2% going to the EU - certain countries and industries are considered vulnerable. The African Development Bank highlighted risks for aluminium and steel producers, especially in North Africa, due to higher compliance costs tied to exports to Europe. Mozambique was identified as particularly exposed because most of its aluminium production is exported to the EU. The bank also warned that the mechanism could eventually affect downstream manufacturing sectors. Morsi suggested African governments may eventually consider introducing their own carbon-related taxes on domestic producers. The comments also echoed earlier criticism from South Africa, which previously argued that proposed UK CBAM-style measures could breach WTO rules. (African Business)

The world is on course for record-breaking average temperatures in excess of the Paris Agreement's goals over the next five years, and 2027 could be the hottest, a UN agency has warned.

Burn-ing desire - The Kenyan government is working closely with cookstove developer Burn Manufacturing to advance its projects and bridge a gap between "manufacturing excellence" and climate action, the Office of Kenya's Special Envoy for Climate Change posted on LinkedIn on Thursday, following a meeting between the special envoy, Ali Mohammed, and Burn CEO Peter Scott. Burn has six projects at varying stages of design and implementation, of which four have received Letters of No Objection, and one a Letter of Authorisation. The other two are still under Kenya' review. Kenya is also preparing to host an IEA Summit on Clean Cooking in Africa, on July 9-10 in Nairobi.

Save our dishwashers – Italian enterprise minister Adolfo Urso met this morning with his French, German, and Polish counterparts to promote a paper urging the European Commission to recognise the household appliance sector as strategic, on par with automotive. The proposal includes a European plan to support investment, innovation, competitiveness, and reciprocity with non-EU firms, alongside action on CBAM, ETS, and demand measures. Urso said Italy is working on “constructive proposals” together with other producing countries to defend what he described as “a strategic supply chain” and create better conditions for investing and producing in Europe.

Slovakia and Estonia have joined a group of four EU member states calling for freezing the benchmarks that determine the number of free allowances under the EU Emissions Trading System (ETS), while France and Spain voiced disappointment with the European Commission’s draft during an EU ministerial meeting on Thursday.

A clean cooking project developer operating in multiple Latin American countries has already obtained one Article 6 Letter of Authorisation (LoA) and is hoping to gain more, while keeping up with market trends toward high integrity, representatives told Carbon Pulse in Peru.

Runaway solar - The UK added a record number of solar panels in 2025, and the boom looks set to continue this year, according to the Department for Energy Security and Net Zero.  Data published today shows that 269,000 installations were completed across the country. Around 255,000 of these were rooftop solar - meaning at least 95% of all new solar was installed on homes, businesses and other buildings. Demand has continued amid the recent spike in oil prices, with April this year seeing 23,000 new solar installations added. In March, the UK passed the 2 million total solar installations milestone.

The rise in the number of cases brought by fossil fuel companies against governments, using Investor-State Dispute Settlement (ISDS), is stalling the energy transition and causing governments to hold back on more effective climate policy, despite growing awareness of the topic, say experts.

The Italian energy regulator appears to be limiting the extent to which gas-fired power operators will be able to recoup compliance costs from the EU's Emissions Trading System (ETS), likely in an effort to quell concerns from Brussels, according to new analysis.

Aid for French farmers – The European Commission greenlighted a €15 mln State aid scheme to support agricultural and aquaculture companies in France facing the energy crisis. The scheme was approved under the Middle East Crisis Temporary State Aid Framework (METSAF). It will run until the end of the year and take the form of direct grants based on the volume of fuel purchased. Companies can receive €0.0386 per litre of GNR purchased from 1 to 30 Apr. 2026. The aid will cover up to 70% of the additional costs resulting from fuel prizes' surge.

EU funds – The EU Commission has called the bloc's 27 member states and regions to do more for spending the €19.7 bln Just Transition Fund (JTF), scheduled for 2021-27 which focuses on reskilling workers and shielding local economies from deindustrialisation. After a mid-term review of regional policy led to the reallocation of funds towards the EU’s strategic priorities, Cohesion Commissioner Raffaele Fitto sent a letter on Thursday to the EU ministers urging them to undertake a reprogramming effort with a focus on energy. Moreover, up to €160bln could be redeployed to ease Europe's energy crisis, Fitto wrote. Local authorities, however, have been complaining that bureaucratic bottlenecks make access to the money still too complex.

European carbon prices surpassed €80 for the first time since February while oil and gas futures seesawed as markets continued to wait for an expected agreement between Tehran and Washington to reopen the Straight of Hormuz. 

Kick polluters out - People are rallying in a global 'kick polluters out' week of action across Africa, Europe, and Latin America, with nearly 70 actions in 20 countries to demand that TotalEnergies and other polluting companies cease operations and fix past damage. This coincides with TotalEnergies AGM on Friday, during which it's expected to highlight a big jump in profits on the the back of the Iran war. The French oil major reported $5.4 bln in profits over the first three months of 2026, a 29% increase compared to the same period in 2025. Advocacy events will highlight the impact of TotalEnergies' East African Crude Oil Pipeline (EACOP), Mozambique LNG Export Terminal, and more. (Oil Change International)

A UK firm is launching a platform to sell up to 100,000 carbon-removal credits a year to cloud-computing providers. 

Worldwide investment in oil will decline for a third consecutive year in 2026, while the shift to renewables and nuclear could accelerate after the US-Israeli war against Iran triggered a focus on energy security, the International Energy Agency (IEA) said Thursday.

The European Union could link its two emissions trading systems over time by introducing an explicit “exchange rate” for allowances, helping to avoid sudden price shocks, according to a new academic study on gradual market integration.

Ethiopia's carbon market law - Ethiopia’s Council of Ministers has approved a draft carbon market proclamation to establish rules for carbon trading and attract green investment, local news outlet The Reporter said Tuesday. The draft legislation, which will now go to Parliament, seeks to operationalise the country’s carbon market strategy, define procedures for carbon trading, support climate finance access, and set safeguards for communities and ecosystems affected by carbon projects. It would also create mechanisms for sharing carbon trading revenues among the government, project developers, local communities, and other stakeholders, the outlet reported.

An emerging risk that many corporate net zero goals will not be met could push through greater pragmatism when outlining targets, as well as a more flexible approach across standard-setters, according to experts, even as the number of companies announcing science-aligned climate ambitions continues to grow.

A carbon removal (CDR) registry launched on Thursday a tool seeking to centralise audit scheduling and shorten the time to issuance.

New cohort – The UK-funded Climate Finance Accelerator (CFA) Vietnam has selected 13 companies for its 2026 programme, representing around $352 mln in low-carbon projects across sectors including clean energy, electric mobility, circular economy, and sustainable agriculture, VIR reported. The companies were chosen from 81 applicants based on their potential climate impact, scalability, and contribution to jobs and economic growth, organisers said. PwC Vietnam, which implements the programme locally, will provide technical and financial advisory support to help projects secure investment. The selected businesses will later participate in investor matchmaking sessions scheduled for October.