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TOP STORY
Brussels unveils post-2030 EU carbon market overhaul, with softer emissions cuts and limited role for international credits
The European Commission on Friday proposed long-awaited reforms to the EU Emissions Trading System (ETS), as well as the supply-balancing Market Stability Reserve (MSR), aiming to ease concerns over rising production costs by slowing annual CO2 cuts, incorporating carbon removals and international credits over the next decade, and allocating billions of euros’ worth of additional free permits to industry.
DAILY NEWS TICKER
CP Daily News Ticker: 17-19 July 2026
The CP Daily News Ticker is a running list of all our news updated in real-time throughout the day. This is also the home to our ‘Bite-sized updates from around the world’, which previously featured in our CP Daily newsletter.
EMEA
ANALYSIS: EU ETS reform proposals “materially bearish”, to add hundreds of millions to post-2030 carbon allowance budget
The European Commission’s proposed EU ETS reforms are bearish for long-term carbon prices in the bloc and could add as many as 450 million additional permits to the market’s carbon budget between 2031-40, as a looser emissions cap and allowances for carbon removals more than offset tighter Market Stability Reserve (MSR) rules, analysts have said.
EU proposes extending ETS coverage to long-haul flights as CORSIA falls short
The European Commission has proposed extending the EU Emissions Trading System (ETS) to cover more international flights from 2029, after concluding that ICAO’s global carbon offsetting scheme CORSIA had failed to deliver.
Commission’s EU ETS reforms seek to balance emission cuts with fairness and price stability
Brussels has opted for an EU Emissions Trading System (ETS) reform that would strengthen the market’s effectiveness while maintaining regulatory certainty, fairness across sectors, competition safeguards, and a more stable carbon price trajectory.
Brussels to hand out 80 mln more free EU ETS permits pre-2030 to “fallback” industries
The European Commission has proposed handing out an additional 80 million free carbon allowances to industrial installations before 2030 covered by the general “fallback” benchmark categories in the bloc’s Emissions Trading System (ETS), it announced on Friday as part of a broader EU carbon market review.
EU moves to close loopholes for ships trying to avoid carbon market fees
Brussels is ramping up action against ships trying to avoid paying EU ETS fees, extending the market’s scope to smaller vessels, changing the definition of an “evasive” port, and classifying offshore worksites as “ports of call”, as part of a broader carbon market reform published on Friday.
EU proposes phased entry of waste into ETS, with opt-outs and carbon capture support
The European Commission on Friday proposed bringing municipal waste incineration into the EU Emissions Trading System (ETS) from 2031 under a gradual and more flexible approach than previously expected, combining a delayed phase-in with temporary national opt-outs and new financial support.
European Parliament aims to vote on EU ETS reform by end 2026
The European Parliament aims to adopt its position on the EU Emissions Trading System (ETS) reform by the end of the year, the MEP who will lead it confirmed on Friday after the European Commission presented its proposal to amend the bloc’s carbon market.
“Such a thing as a free lunch” – EU ETS reform proposal draws heavy fire from climate advocates
The European Commission’s proposed reforms of the EU Emissions Trading System (ETS) did not land well with climate campaigners and experts on Friday, drawing heavy criticism for loosening a crucial incentive for emission reductions just as it’s beginning to do its job.
Euro Markets: EUAs recover to end day flat after initial fall with Commission ETS reforms largely “priced in” to benchmark
European carbon saw heavy early selling after long-awaited EU ETS reforms were presented by the European Commission on Friday morning, before a short-lived rally pushed the benchmark recover back towards €80, as prices ended the day largely flat after traders said any bearish changes had largely been priced into the market prior to the announcement.
EU Commission plans to align electricity and gas taxes in new Electrification Action Plan
The European Commission set a first-ever goal on Friday to boost the EU’s electrification to 46% by 2040, and introduced rules underpinning the target, including to align national power and gas taxation, and steer energy use and investment through changes to the grid.
EU consults on applying its ‘do no significant harm’ environmental principle under next budget
The European Commission has opened a consultation seeking input on how it might apply the ‘do no significant harm’ (DNSH) to the environment principle under the bloc’s next long-term budget.
UK government recommits to carbon removals, but leaves policy details to later
The UK has reaffirmed its vision to build demand for engineered removals through its Emissions Trading Scheme (ETS) and voluntary carbon markets, but delayed decisions on specifics, in its official response to an independent review.
EU set to recommend three-year methane penalty reprieve next week -media
The European Commission is expected next week to recommend that member states refrain from applying certain penalties to fossil fuel importers between 2027 and 2029, except in cases of large-scale fraud, according to a draft document seen by Bloomberg.
EU issues blueprint for carbon contracts to speed industrial decarbonisation
The European Commission on Friday published new guidance to help EU member states design carbon contracts for difference (CCfDs), seeking to accelerate investment in industrial decarbonisation while ensuring national support schemes comply with EU state aid rules.
UAE sets out host country rules for Article 6.4 carbon credit projects
The United Arab Emirates has published its host party requirements for the Paris Agreement’s Article 6.4 crediting mechanism, listing types of carbon projects the Gulf state is prepared to approve.
Cement takes lion’s share of Spain’s €500 million decarbonisation fund
Spain’s Ministry of Industry and Tourism awarded more than €500 million to cut industrial carbon emissions in sectors including cement, aluminium, paper, and chemicals.
AMERICAS
Washington to host first ECR auction in September
Washington will offer a number of Vintage 2023 allowances during its first Emissions Containment Reserve (ECR) auction scheduled for September, according to a notice issued by the state’s Department of Ecology (ECY) on Friday.
Northeast states, California to sue Trump administration over most recent offshore wind cancellation deals
Top lawyers for RGGI-involved states and California intend to sue the Trump administration for its alleged unlawful buyouts of major wind projects which were set to bolster their state grids.
CFTC: Producers reach net short in CCA futures only market, build RGAs
Emitters reduced their California Carbon Allowance (CCA) net holdings, creating a net short in the futures only market, while narrowing their RGGI Allowance (RGA) net short, according to the latest US Commodity Futures Trading Commission (CFTC) data.
Climate-informed planning could prevent fivefold rise in New England power shortfalls -study
Climate change could make power supply shortfalls five times more frequent in a deeply decarbonised New England grid by mid-century, but targeted solar, storage, and transmission investment could largely offset the risk at a modest cost increase, according to a new study.
CFTC could use anti-fraud powers to police voluntary carbon credit spot market -analysis
The US Commodity Futures Trading Commission (CFTC) could use its anti-fraud powers and case law from virtual currency markets to police voluntary carbon market (VCM) credits beyond derivatives, according to new legal analysis.
US Democrats warn of alleged illegal misappropriation of carbon capture funds to support coal
Two US Democratic lawmakers have asked the DOE to halt the obligation of funds previously earmarked for carbon capture programmes that are now planned to be driven towards the coal industry.
US forestry policy needs bipartisan collaboration and management redesign – NGO report
A US NGO is arguing for bipartisan cooperation in forest management policy in the face of increasing climate-related risks and market pressures threatening forest health.
ASIA PACIFIC
BRIEFING: Familiar battlelines drawn over Safeguard Mechanism issues, reform options
Researchers and conservation groups have called on the government to use the imminent Safeguard Mechanism review to limit the use of carbon credits, while others fear the review could see the scheme weakened in the face of government inaction.
South Korean electronics giant looks to generate carbon credits from refrigerant recovery
A South Korean maker of electronics plans to generate carbon credits from refrigerant recovery projects while using offsets meeting “internationally credible standards” for residual emissions, according to its latest sustainability report.
CN Markets: CEAs touch 17-month high, volumes remain stable
Permits in China’s national emissions market hit the RMB 90 ($13.29) mark over the past week, their highest level since Feb. 2025, as the world’s largest compliance carbon market celebrated its fifth anniversary.
Taiwan releases rules for climate tech subsidies
Following the launch of its carbon fee programme, Taiwan has introduced rules for allocating subsidies to support technologies that contribute to the island’s climate targets, including carbon capture, utilisation, and storage (CCUS).
INTERNATIONAL
UN issues extreme heat warning for FIFA World Cup as fan travel emissions soar
Extreme heat has drastically changed football during the 2026 World Cup, the UNFCCC has warned, as research from the University of Cambridge urged FIFA to tackle vast volumes of fan transport emissions with ‘green travel’ rebates.
BRIEFING: Working group to explore central bank mandates and fiscal policy role in energy transition
Central banks and monetary policy are key to the transition away from fossil fuels but will have differing respective government mandates and fiscal capacities across jurisdictions, spokespeople said on a webinar Thursday.
VOLUNTARY
How 10 Gt/year became climate policy’s default carbon removal target – and why one researcher says it’s wrong
A widely cited benchmark calling for around 10 billion tonnes of durable CO2 removal (CDR) annually by 2050 has become detached from the scientific evidence on which it is purportedly based, according to a new study that argues climate policy should place greater emphasis on emissions reductions and present CDR requirements alongside the mitigation pathways that generate them.
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