The Washington Department of Ecology (ECY) published a regulatory proposal on Monday to enable the state’s cap-and-invest programme to link with the Western Climate Initiative (WCI).

The type of engine installed on an LNG carrier is becoming the defining factor in its future competitiveness under tightening maritime emissions rules, with older vessel classes facing mounting carbon compliance costs that could accelerate their exit from the market, according to new analysis.

Methane milestone - Calgary-based oilfield services company Kathairos announced Monday it has eliminate 1 MtCO2e to-date via the application of its nitrogen systems to oil and gas operations to reduce methane output. Currently, the company's technology is eliminating more than 1,250 tCO2e daily through its 3,000 liquid nitrogen systems deployed across over 70 facilities across North America. According to Kathairos, the advantage of its technology is its simplicity, which it said requires no external power, no moving parts, and no disruption to existing operations, but through which nitrogen simply power devices previously actuated by natural gas.

Ecuador's Ministry of Environment and Energy (MAE) has approved new rules governing the authorisation, registration, traceability, and transfer of mitigation outcomes under Article 6, creating the country's first dedicated framework for participating in international carbon markets despite longstanding legal uncertainty surrounding carbon credit trading.

RGGI Allowance (RGA) futures retreated to the lower half of the $40s over recent days, ahead of Wednesday's Q2 auction, after a surge higher amid the expiration of the May-26 contract, traders said.

Rule of thumb – A study on machine learning published in the journal Sustainability last week covering 195 countries found governance quality to be the strongest predictor of CO2 emissions, ahead of energy structure, human development, and macroeconomic factors. Using a coarse decision tree model on data from 1996 onwards, researchers identified strong nonlinear and threshold effects across governance, social, economic, and energy indicators. They said improvements in institutional quality and energy systems could significantly reduce emissions beyond critical thresholds.

Global wildfire activity in 2025 produced the second-lowest burned area and third-lowest CO2 emissions since satellite records began in 2002, but a growing concentration of destructive fires in populated and carbon-rich regions continued to generate severe human and economic impacts, according to a review published this week.

Brazil’s securities regulator has reversed a 2026 mandatory sustainability reporting requirement for publicly traded companies, replacing it with a voluntary framework for International Sustainability Standards Board (ISSB)-based disclosures.

A forest restoration initiative in Brazil has secured new public financing from Brazil's national development bank to rehabilitate Atlantic Forest ecosystems while generating carbon credits and biodiversity benefits.

Chip shot – Greenpeace activists confronted Nvidia CEO Jensen Huang in Taipei last week, urging the company to extend its renewable energy targets across its manufacturing supply chain amid concerns over rising emissions linked to AI chip production. The environmental group said Huang signed a model cake carrying the message "AI Needs Renewable Energy" after responding positively when asked whether Nvidia could invest in renewable energy alongside its suppliers in Taiwan. Greenpeace said Nvidia's supply chain emissions more than doubled between 2023-25, and arguing that Taiwan's fossil fuel-reliant power system is under increasing strain from rising AI-related manufacturing demand.

CORSIA prices failed to rebound last week, with price assessments for eligible units down by more than 12% week-on-week and benchmark ICE futures dipping below $10/tonne amid higher jet fuel prices, even as market executives expressed hope for resurgence in demand once the Middle East conflict ends.

European carbon allowance prices dropped back below an important psychological level on Monday amid a welter of profit taking after the market had risen to a nearly 16-week high on Friday, as daily auction volumes rose and are expected to increase further next month, while fading hopes for a quick ceasefire agreement in the Strait of Hormuz also added to bearish pressure.

European Commission officials have detailed a seven-step process for carbon registries to obtain recognition under the EU’s Carbon Removals and Carbon Farming (CRCF) regulation, saying the procedure will typically take about six months.

The conservative European People’s Party (EPP), the Parliament's largest group, is divided over whether to restrict, delete, or broaden a tool that would allow the European Commission to temporarily suspend the EU's Carbon Border Adjustment Mechanism (CBAM).

Vietnam’s environment ministry has launched a blue carbon partnership to help mobilise finance for the sustainable management of coastal and marine ecosystems, in collaboration with the UN and UK government. 

At a standstill - GHG emissions in Norway subject to quotas from industry and aviation decreased by 0.03 mln tonnes of CO2e. in 2025, equating to a decrease of about 0.1% compared to the previous year, according to the Norwegian Environment Agency. Total emissions were 21.7 Mt of CO2e. last year, with land-based industry emissions having decreased slightly (by 0.2%), while offshore emissions increased somewhat (by 0.6%). Despite offshore emissions increasing, emissions from gas terminals dropped by 10% largely due to the closure of Hammerfest LNG. There were less emissions from short and medium-haul flights, while emissions from international flights increased by 18% from 2024 to 2025, from 379,000 to 446,000 tonnes of CO2. For ship operators reporting emissions for 2025, those reported so far total around 5.8 Mt CO2e. While estimates for fuel operators covered by ETS2 show that 2025 emissions will be around 9.9 Mt CO2.

A Thai state agency and an agribusiness and food conglomerate announed last week they have launched a rubber plantation project that aims to generate up to 1 million carbon credits across 80,000 hectares in northeastern Thailand.

Runway ready – Russia’s application for accreditation under CORSIA has entered the final stage of review by ICAO, with a decision expected in August, according to the country’s economic development minister. Interfax reported last week that Maxim Reshetnikov said Russia’s application had successfully passed all previous assessment stages and described it as “fairly strong”, adding that any negative outcome could result in a request for revisions rather than outright rejection. Accreditation could provide a boost to Russia’s voluntary carbon market by allowing airlines to use domestically issued carbon credits for future CORSIA compliance, observers said.

Denmark deal – Danish financial institution Nykredit has entered a four-year partnership with carbon removals platform Klimate to purchase CDR credits and support the development of carbon capture and storage technologies in Denmark, it was announced last week. The agreement will help Nykredit to advance its target to cut emissions from operations by 85% by 2030, the partners said. As part of the deal, Klimate has facilitated an investment in CDR credits generated by Danish biogas company Bigadan, which captures and permanently stores biogenic CO2. The companies added that this collaboration will support the development and scaling of high-integrity CDR solutions in Denmark.

ESG support – Brazilian bank Banco do Brasil (BB) and climate consultancy WayCarbon are preparing to launch an ESG advisory service next month to help 100 small and medium-sized Brazilian municipalities develop climate mitigation and adaptation projects. The Municipal Climate Management service, announced on May 20, developed with support from Brazil’s National Treasury Secretariat, is currently in testing and expected to become available in June. It will use artificial intelligence, monitoring technology, territorial diagnostics, and financial management tools to help local governments identify climate vulnerabilities, design adaptation measures, and structure projects suitable for fundraising. The service will be offered free of charge to participating municipalities, using resources provided under National Treasury Normative Ordinance STN/MF No. 808, BB said in a press release.

An Australian biochar developer has begun harvesting and pyrolysis trials at a project in North Queensland that aims to convert invasive woody biomass into biochar-based carbon removals (CDR).

The developer of the world’s largest direct air capture (DAC) facility has received backing to develop a new plant in North America alongside a mix of other carbon removal (CDR) projects.

The right rewards - The European Commission is reportedly looking to make investments in domestic industries a requirement under its proposals to reform the EU ETS, according to German business daily Handelsblatt. The reform would see companies already invested in decarbonisation being rewarded and those yet to do so to receive adequate protection, said EU climate commissioner Wopke Hoekstra. “This means flexibility, but it is subject to conditions and requires investment to be made here in Europe,” he added. The Commission is set to present its ETS proposals on July 15. Key points of debate so far include extending the system by several years to give industry more time to decarbonise, and altering the planned phaseout of free allowances.

Carbon credit registry and certification body Isometric has certified Version 2.1 of its standard, introducing a more streamlined validation process designed to accelerate the issuance of carbon removal credits.

A US-based land management company has secured just over $4 million from the sale of carbon credits generated from an improved forest management (IFM) project in Tennessee, it announced last week.

Sweden’s Environmental Protection Agency has called for the EU Emissions Trading System (EU ETS) to maintain a strong and predictable carbon reduction pathway after 2030, warning that excessive flexibility could weaken incentives for industry to invest in the green transition.

A French carbon standard last week opened a public consultation on a new module that would allow carbon credits to be issued from the use of bio-oil as a lower-carbon substitute for fossil-based asphalt binder.

Blue shift – A mangrove conservation project in Mexico developed by MarVivo has been archived on the US carbon offset platform Wren’s registry after its proponents shifted priorities away from carbon and towards community-driven educational efforts. The project description said the initiative aimed to protect nearly 15,000 hectares of mangrove forest in Baja California Sur, Mexico, through a proposed conservation arrangement intended to prevent activities such as aquaculture and mining in the area. Under a REDD+ framework, the project aimed to mobilise carbon finance to strengthen forest governance, support conservation activities, and fund community initiatives, following the guidelines set out by VM0007 - REDD+ Methodology Framework (REDD+ MF), v1.6.

Biomass-based carbon removal could help build the feedstock supply chains needed to scale sustainable aviation fuel (SAF) production, rather than competing with biofuels for limited resources, according to a paper released last week.

Shield the ETS - Weakening the EU ETS would not solve Europe's competitiveness problem on the global stage, according to former Arsenal player and French international footballer Mathieu Flamini, who is now the CEO of GF Biochemicals. The France-based company turns agricultural waste into bio-based chemicals used in everyday items like cosmetics and paint. In an interview with Politico, Flamini said the EU should double its efforts to move away from fossil fuels and that destroying the bloc's environmental policies would be a mistake. “The reality is, if we believe we’re going to remove the carbon tax in Europe and suddenly we’re gonna be competitive with China or other [regions], we’re lying to ourselves,” Flamini said.

Australia's plans to keep pumping out gas while reaching net zero emissions rely on unrealistic assumptions about the future availability of carbon removals, hydrogen, and carbon capture technologies, according to a new report.

A Thailand-based digital services firm last week announced plans to issue a digital token in the third quarter of 2026, raising up to THB 480 million ($14.7 mln) for a mangrove reforestation project tied to 400,000 carbon credits.

Car incentives – Two-thirds of EU member states fail to provide adequate tax incentives for companies to switch from fossil-fuel to electric vehicles, risking prolonged oil dependency, according to Transport & Environment analysis released on May 31. In 18 of 27 member states, the tax gap between EVs and fossil-fuel cars does not offset the €10,650 EV price premium recorded in 2025, T&E found. Company cars represent 59% of new car registrations and 78% of oil imports consumed by new vehicles. Belgium and France have successfully reformed their systems, with corporate EV registrations reaching 54.2% and 41.3% respectively, while Germany, Spain, Italy and Poland have yet to implement adequate reforms, T&E said.

The Global Environment Facility (GEF) trust fund has approved $144.3 million for 16 climate and nature-positive projects around the world that are expected to mobilise more than $828 mln in co-financing.

Oil's ups and downs – Goldman Sachs thinks global oil demand may have fallen more than expected from the price spike caused by the US-Israeli war against Iran. The investment bank sees two-sided risks to oil prices going forward, according to the Financial Post, quoting Bloomberg. April oil sales data from China and Western Europe jointly imply about 2 million barrels a day of downside risk to the bank’s “already low” demand estimates for the month, analysts said in a note dated May 31. That adds about $10 a barrel of downside risk to a forecast of Brent crude prices of $90 a barrel in the fourth quarter. But there is still "significant" risks of prices spiking higher if flows of oil continue to be interrupted in the Straits of Hormuz, the analyst said.

Chile’s efforts to reduce emissions from deforestation and forest degradation have received a positive assessment from UN climate experts, who concluded that the country’s reported forest-sector emissions reductions are largely transparent, consistent, and in line with international reporting requirements.

A nature intelligence startup is working with Angolan land stewards to develop large-scale agroforestry initiatives in the country, using its technology to screen potential projects and reduce the risk of early-stage investment, just as the government begins building its carbon market framework.

Nearly three-quarters of low- and middle-income countries include clean cooking or wider household energy measures in their national climate plans, according to a new public tracker launched last week by a US-based non-profit.

The Shanghai municipal government is scheduled to auction off permits under its emissions trading scheme at the end of this month to help regulated companies acquire sufficient permits for compliance.

Renewables acquisition - The UK's Drax Group has agreed to buy Bluefield Solar Income Fund (BSIF) in a deal valuing the renewable energy-focussed investment company at about £561 mln. The deal will allow Drax to expand its renewables portfolio as it grapples with rising challenges in the energy sector and aims to hit govt targets on clean energy. Renewables have risen in popularity on the back of higher energy prices driven by the ongoing blockade in the Strait of Hormuz. Shares in ​Drax, which intends to fund the cash element of the deal ‌through £1.1 ⁠bln in bridge financing, were up 0.8% by 0730 UK time after falling 1.8% initially. (Reuters)

A UAE law on corporate GHG reporting, planning, and management entered its compliance phase on May 30, but businesses are still largely unprepared, according to the chief executive of a Dubai-based sustainability consultancy speaking with Carbon Pulse.

Poor projection - The New Zealand government has flagged it doesn't expect any allowances to be sold this year at ETS auction events, according to budget papers released last week. Auctions have failed to clear in recent years due to poor market sentiment, low carbon prices, and compliance entities being well-supplied. This year's auctions have a minimum floor price of NZ$71 ($42.37), compared to Monday's closing price of NZ$52.30. The second auction of the year will take place on June 9.

For now, technology-driven activities dominate Latin America’s Article 6.2 Letters of Authorisation (LoAs), in a departure from the REDD-heavy profile of the local voluntary market (VCM) – but jurisdictional REDD+ (J-REDD+) is poised to flood both systems, Carbon Pulse has reported.

Shanghai version of MSR - China's Hwabao Trust has established a carbon trust for permits issued under Shanghai's emissions trading scheme, as part of the municipal government's carbon market reforms. The trust will shortly begin to regulate the market through paid auctions in accordance with the local trading rules, according to a recent statement by Shanghai Environment and Energy Exchange (SEEE). By leveraging a trust mechanism to orderly allocate surplus allowances, a reserve pool similar to the Market Stability Reserve (MSR) under the EU ETS will then be established for the megacity's carbon market, SEEE said.  

Malaysia is set to surpass its renewable energy capacity target by 2031, according to a report, amid growing electricity demand across the nation.

The EU’s Carbon Border Adjustment Mechanism (CBAM) could drive a significant expansion of carbon pricing beyond Europe, with countries including Canada, Japan, South Korea, and Taiwan likely to introduce their own schemes to avoid paying the bloc’s import fee, according to a new study led by the Potsdam Institute for Climate Impact Research (PIK).

BESS boost - Six new projects will more than double South Australia’s large-scale battery storage capacity, according to the state's department for energy and mining. Under the state’s Firm Energy Reliability Mechanism (FERM), new tenders for long-duration capacity have been awarded, accelerating private investment in large-scale battery energy storage systems (BESS). This will increase the state’s total battery storage from 1.1 GW to 2.5 GW, providing over 517 MW of dispatchable power - enough to supply more than 300,000 average households for up to eight hours.  

High-level visit - Hong Kong is set to strengthen its economic ties with Central Asia as Chief Executive John Lee prepares to lead a delegation to Kazakhstan and Uzbekistan this month. The visit aims to establish new trade routes and deepen cooperation between the world city and the two nations, according to the Standard. One of the areas of potential cooperation will be green development, as Hong Kong offers a robust green economic ecosystem to help the region accelerate its progress toward carbon neutrality.

Funding opportunities - The South Korean government is seeking to help small and medium-sized enterprises with carbon reduction technologies attract investment, Seoul Economic Daily reported. The Korea Technology Finance Corporation (KOTEC) and the Korea SMEs and Startups Agency (KOSME) recently organised an event to expand investment opportunities for promising SMEs in the climate field. It followed the signing of a business agreement between KOTEC and the Korea Development Bank, under which KOTEC will support financing through preferential guarantees, including ones for climate response and green technology projects.