Peru’s carbon market should be self-sustaining instead of relying excessively on foreign aid, without necessarily replacing international funds, officials and institutional partners told Carbon Pulse this week at the Peru Carbon Forum in Lima.

WCI RFP - Market administrator WCI Inc., which administers the California-Quebec and Washington carbon markets, issued a RFP on Friday for financial services for auction and reserve sales. Proposers' questions and initial responses are due, respectively, by June 26 and July 24.

California regulator ARB approved long-awaited updates to the state's Cap-and-Invest Program during a Friday hearing.

Emitters and financial players moved in opposite directions with their California Carbon Allowance (CCA) and RGGI Allowance (RGA) holdings during the most recent US Commodity Futures Trading Commission (CFTC) reference period.

An afforestation project in eastern Colombia has completed its first verified issuance after seven years under development, with backers aiming to expand the planted area and bring additional volumes to market.

Seaweed-based carbon removal (CDR) could be far less effective than some global models suggest, as iron limitation and competition with phytoplankton reduce both cultivation potential and net ocean carbon uptake, according to a new modelling study.

What's in a name - Cielo Waste Solutions Corp. has renamed its sustainable aviation fuel (SAF) and carbon capture project in British Columbia Project Nahoonai, from Project Nexus. Street Insider reported the new name comes following consultation with the Lheidli T’enneh First Nation, upon whose traditional territory the facility is being built.

NYCI pushback - New York Gov. Kathy Hochul (D) has officially signed the state’s 2027 budget, pushing back climate regulations and targets, according to ESGtoday. The state’s Department of Environmental Conservation now has until 2028 to issue regulations to meet emissions requirements, including for its cap-and-invest programme, dubbed NYCI. It also sets a new interim target of 60% emission reductions by 2040.

Fast food, slow progress - McDonald's will miss its 2030 emissions targets, reported ESG News. The fast food giant cited energy systems, logistics, agriculture, and global supply chain disruption for the gap. The company also confirmed that it fell short of a key packaging goal, which looked to use only renewable, recycled, or certified materials in its packaging by the end of 2025.  

The US Securities and Exchange Commission (SEC) proposed on Friday to rescind its climate-related disclosure rules in full, arguing the requirements exceeded its statutory authority and would impose costs on public companies not justified by the resulting information provided to some investors.

Building better – A built environment industry group launched a framework this week, aimed at supporting developers to cut carbon across the whole lifecycle of their projects. The UK Green Building Council (UKGBC) set out four general principles and a further four delivery principles which suggested would help the building sector to cut emissions at each stage of a development project. The framework is linked to the UKGBC’s net zero definition framework, launched in 2019, with the council recommending industry stakeholders use both documents in tandem.

Total protest - Climate activists demonstrated outside the headquarters of TotalEnergies on Friday to protest the state's accumulation of a ‌1.33% stake worth $2.8 bln in the oil major, making it the group's 10th-largest shareholder, various media have reported. The gathering was organised by the StopEACOP (East African Crude Oil Pipeline) Campaign and joined by several other climate justice organisations. The protest was timed to take place ahead of ​TotalEnergies' annual shareholders' meeting on the same day. The government stake was not publicly ​announced in France but was disclosed in a February filing with the US Securities and Exchange Commission, detailing major holdings ​of US-listed companies. Total cross-listed its shares in New York in December. The French ​government stake in TotalEnergies is held via the Caisse des Depots et Consignements (CDC), the state's financial arm handling regulated ​savings accounts that guarantee citizens a rate of return.

Penalties suspended - Brazil’s Federal Court of Accounts (TCU) has temporarily suspended penalties imposed during 2024 on fuel distributors that failed to meet targets under the RenovaBio programme, which establishes a decarbonisation credit (CBIO) market for the country’s biofuel sector. Around 20% of the 2024 targets remained unmet, leading to legal disputes involving an estimated R$1 bln in unfulfilled obligations. While the court suspended sanctions related to compliance cycles closed by Dec. 31, 2024, it upheld the mandatory purchase targets for CBIOs in the current and future cycles. (Folha de S. Paulo)

Texas takeoff – Houston based KBR said on Thursday that Baltic sustainable aviation fuel (SAF) producer NorSAF has selected its PureSAF technology for a project it described as Northern Europe’s largest planned SAF and e-SAF production facility. The technology provider will license the process, originally developed by Swedish Biofuels AB, for a Latvian plant expected to produce 100,000 tonnes of SAF and e-SAF annually from 2030. The project is backed by Avia Solutions Group and is intended to supply aviation customers across the Baltics, Northern Europe, and other European markets. The announcement comes as the EU's ReFuelEU Aviation regulation mandates increasing SAF use, with minimum blending requirements set at 6% by 2030 and rising to 70% by 2050.

LNG lifeline – Ksi Lisims LNG and Germany's SEFE announced a long-term supply agreement under which the European energy company will purchase one mln tonnes per annum (Mtpa) of LNG for up to 20 years, according to the Canadian government. The deal represents the first long-term supply of Canadian LNG to a European buyer and forms part of Ottawa's push to diversify exports beyond the US. Once fully electrified, the government said Ksi Lisims LNG is expected to be one of the world's lowest-emission LNG operations, with emissions projected to be 94% below the global average.

Most of the ministers of the Brazilian Supreme Federal Court (STF) voted to strike down the mandate for insurance companies to invest in carbon credits.

A shrinking surplus of EU Allowances will see the bloc's Market Stability Reserve (MSR) absorb 85 million fewer permits over the next year, according to figures published by the European Commission late Friday that showed the market surplus dropping below a key threshold for the first time.

European carbon posted further gains on Friday, after a week that saw the benchmark contract increase by nearly 5%, with UK carbon prices up nearly 10% for the week, as news emerged that the US and Iran have reached a preliminary agreement to extend the ceasefire by 60 days, bringing hope that blockade of the Strait of Hormuz would come to an end, which led to European gas prices sliding marginally.

The European Commission has cleared Spain’s plan to spend up to €9 billion over ten years on a capacity mechanism to safeguard electricity security, a move campaigners say will be a key test of whether Madrid backs clean flexibility or prolongs gas-fired power after a major blackout last year.

Bulgaria and Romania are seeking €342 million from the EU’s Modernisation Fund to finance seven gas pipeline projects, an NGO analysis has found.

Most EU importers are already passing on expected costs from the Carbon Border Adjustment Mechanism (CBAM) to their customers, importers and consultants said at a conference this week.

Just three of 23 assessed dairy and coffee companies have published methane reduction targets for 2030, according to a report released this week.

ICE Futures Europe has launched a new liquidity provider programme for its CORSIA carbon market contracts, in a move aimed at supporting trading activity across both current and future compliance periods of the UN aviation offsetting scheme.

The European Union should adopt a hybrid approach when considering the quality of international credits that could count towards its 2040 emission reduction target, using self-set principles to assess against the Paris Agreement Crediting Mechanism (PACM) and other quality benchmarks, two non-profits said this week.

Germany, France, Spain, and Estonia have urged the European Commission to address concerns about fallback benchmark values that determine the volume of free CO2 permits distributed under the EU Emissions Trading System (ETS), warning that current plans could push some factories to shut down and relocate abroad.

Indonesia’s mangrove financing has grown more complex, backed by public budgets, international partnerships, and market mechanisms, but scaling up will depend on making projects transaction ready, a report said.

Strong response - The 2025 Innovation Fund Net-Zero Technologies call attracted strong interest from European industry with a total of 358 project applications from 27 countries, requesting a total of €17.5 bln in support - six times the earmarked budget of €2.9 bln, said a European Commission press release. Taken together, these projects could avoid some 1.1 bln tonnes of CO2e. over their first 10 years. By distribution, large-scale projects received received 104 (or 29%) of total proposals, medium-scale projects received 74 (or 21%) of the total, small-scale projects received 51 (or 14%), clean tech manufacturing received 50 (or 14%), and pilots received 79 (or 22%). By area of decarbonisation, energy-intensive industries attracted 158 proposals, industrial carbon management attracted 28, renewable energy saw 70, energy storage received 52, and mobility plus buildings garnered 50. Aviation, road transport, and buildings all saw more applications compared to last year. The proposals will now be evaluated by external experts, with results expected by October, and grant agreements signed thereafter. The Innovation Fund is set up to decarbonise European industry and is financed with revenues from the EU ETS.

Survivability - Indonesian developer Fairatmos has signed an MoU with conservation group Yayasan Konservasi Pesisir Indonesia to strengthen mangrove restoration and blue carbon development in the country, it announced. The partnership will focus on smart nursery development, joint research and academic publications, and exploring future blue carbon project opportunities. The organisations said the tie-up aims to improve long-term tree survivability and support science-based, scalable coastal restoration efforts.

A US oil major this week retired an estimated $250 million in avoided deforestation credits generated as a byproduct of one of the largest oil discoveries in decades, a project that has since sparked a multi-billion dollar legal battle.

Poland is projected to have around 45 million tonnes of carbon removal (CDR) potential in 2050 under a high-ambition scenario, led by ecosystem enhancement such as afforestation and peatland restoration, while its abundant biomass resources could support pathways like biochar, according to a climate non-profit.

A European ports association has called on the European Commission to address business and carbon leakage risks in its upcoming revision of the EU Emissions Trading System (ETS), warning that the carbon market's maritime rules are weakening EU ports and short-sea shipping.

Trading volumes in China's national emissions market improved over the past week, but permit prices remained stagnant in the absence of fresh policy updates.

Warsaw has issued a stark warning against low-carbon criteria in the new public procurement regime proposed under the Industrial Accelerator Act (IAA), saying it risks disadvantaging countries like Poland with high-carbon energy mixes, and dividing the EU between green leaders and laggards.

A group of environmental non-profits has appealed a lower EU court ruling on the bloc’s sustainable finance taxonomy, arguing the decision allows climate-damaging forestry and bioenergy activities to be labelled as green.

Intertwined challenges - A high-level meeting to explore the links between climate resilience, security, and defence was hosted earlier this week by the European Commission and the European External Action Service. On Tuesday, the roundtable convened senior representatives from EU institutions, national authorities, the military, industry, and research, said the press release. They discussed how climate change affects the defence sector and how to enhance its resilience, and how climate change impacts European security and what can be done to manage related risks. Talks noted how climate considerations are still not consistently embedded across defence procurement, capability planning, budget processes, and national risk assessments. There was also consensus that Europe must build climate resilience by addressing both physical risks, and also digital threats arising from disinformation. The discussions will be used as input to developing the  EU's Integrated Framework for Climate Resilience, planned by end-2026, and will also help prepare for a high-level event on defence, energy, and climate later this year.

Funding secured -  Japan's environment ministry has selected a new project under the bilateral Joint Crediting Mechanism (JCM) for government subsidies during FY2025-27. The proposed JCM project, initiated by Settsu Warehouse, aims to establish an integrated, renewables-based cold chain in Sri Lanka. It is expected to help cut around 3,700 tonnes of emissions per year. As of May, Japan has subsidised 276 JCM projects as part of its approach to securing Article 6-aligned carbon credits.      

Healthy mangrove ecosystems across India’s Mumbai Metropolitan Region, the country’s largest urban agglomeration, could generate six to ten carbon credits per hectare annually, with high‑integrity blue‑carbon credits fetching $20-50 and biodiversity‑linked credits up to $150, according to a white paper submitted to India’s Prime Minister’s Office.

Australia's greenhouse gas emissions fell 2.1% in 2025, driven by record renewable energy generation and lower emissions from the fossil fuel sector, government data showed on Friday.

Last week’s UN General Assembly vote to adopt a resolution endorsing the International Court of Justice’s (ICJ) advisory opinion on states obligations on climate change is a boost for multilateralism and international climate frameworks, including the Paris Agreement, experts told Carbon Pulse.

Sri Lanka - Deloitte pact - Deloitte South Asia has partnered with the UN Global Compact Network Sri Lanka to accelerate corporate climate action. The initiative will guide firms on Science-Based targets, decarbonisation pathways, and emissions-reduction strategies, aiming to turn sustainability commitments into credible and measurable results.

Cracking the whip – The European Commission launched infringement proceedings on Thursday against 20 EU countries for failing to fully transpose the new directive on empowering consumers for the green transition by the March 27, 2026 deadline. The law aims to improve the reliability and transparency of green claims and sustainability labels, tackle greenwashing and early obsolescence. Crucially, the new directive squarely bans any claims that a product has a “neutral”, “reduced”, or “positive” impact on the environment if they rely on carbon offsetting schemes, like tree-planting or renewable energy projects that compensate for the emissions. The 20 capitals now have two months to respond and notify full transposition measures, after which the Commission may issue reasoned opinions if replies are unsatisfactory.

Spanish fertiliser aid – The European Commission on Thursday approved a €500 million Spanish state aid scheme to support agricultural companies facing increased fertiliser prices due to the Middle East crisis. The scheme, approved under the Middle East Crisis Temporary State Aid Framework (METSAF) and running until Dec. 31, will provide direct grants to companies active in primary production of agricultural products. Farmers can receive €22 per hectare for dryland and €55 per hectare for irrigated land, with a maximum of 300 hectares per beneficiary. The aid will cover up to 70% of additional fertiliser costs resulting from the crisis. The Commission found the scheme "necessary, appropriate and proportionate" under EU state aid rules.

Lagging - The Bezos Earth Fund, a $10 bln climate philanthropy launched by tech giant Amazon's founder Jeff Bezos, has allocated only 28% of its pledged funding despite a commitment to spend the full amount by 2030, Bloomberg reported. The fund has disbursed around $2.8 bln so far, leaving more than $7 bln to be deployed over the next four years. Annual spending fell to $183 mln in 2025 before rising to at least $400 mln in the first four months of 2026. Fund executives told Bloomberg that they remain committed to the 2030 target and are prioritising long-term impact over the pace of grantmaking, while assessing whether funding is reaching the most effective organisations.

Teach em young - Pertamina New & Renewable Energy, the renewables arm of Indonesia's state‑owned energy giant Pertamina, introduced carbon trading to students at the Bandung Institute of Technology during its Pertamina Goes to Campus 2026 program. The initiative seeks to raise awareness among the younger generation about carbon trading’s role in cutting emissions and supporting Indonesia’s low‑carbon economic development. The event featured an interactive booth and discussions on the implementation of carbon trading, highlighting opportunities for student involvement in the national energy transition.

Carbon market standard Verra will decide whether to permanently integrate insurance- and fund-based alternatives to traditional buffer pools post-pilot, depending in part on whether credits issued under the approaches can qualify for integrity labels such as the Core Carbon Principles (CCP), according to a programme manager.