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TOP STORY
Euro Markets: Benchmark EUAs surge to new one-year high as funds amass biggest long position since 2021
Front-December European carbon prices rose to their highest in just over a year on Wednesday as an opening spike amid reports of Russian attacks on Ukrainian energy infrastructure was sustained by healthy buying, after Commitment of Traders data that showed investment funds now hold their largest total long position in EUAs in more than three years.
EMEA
Carbon credit rating agency BeZero secures $32 mln to push total funding past $100 mln
BeZero Carbon has secured $32 million in fresh funding to help expand its rating coverage to Article 6 credits, the international aviation emission scheme CORSIA, and the voluntary sector.
South Africa’s net zero transition risks leaving coal-reliant provinces behind -report
South Africa’s wealthiest cities are leading the charge toward a net zero future, but coal-dependent provinces remain at risk of being left behind unless targeted support is provided, according to new research released on Wednesday.
Germany urged to adopt EU ETS reform before February election
The German government must transpose the latest reform of the EU’s Emissions Trading Scheme (EU ETS) now, maintain a fixed price on CO2 for an extra year on its national carbon market, and defer a decision on the inclusion of waste incinerators to the EU, a public hearing at Germany’s lower house of Parliament heard on Wednesday.
Bottom-contact fishing activities continued in EU despite closures, study finds
Bottom-contact fishing activities, considered harmful to marine ecosystems, continued in EU waters between 2022 and 2023 even after the European Commission’s decision to limit the practice, a study has found.
Nord Stream methane leak found to be nearly double initial estimates
Methane emitted from the Nord Stream pipeline leak in 2022 has been found to be nearly double the initial estimates, according to academic researchers.
France, Czechia propose ETS2 changes to improve social acceptability
France and Czechia support a reform of the Market Stability Reserve (MSR) to prevent price spikes on the EU’s incoming Emissions Trading System for road transport and heating fuels (ETS2), with Prague going a step further by calling to delay the scheme by one year, Carbon Pulse has learned.
Germany records biggest ever emissions drop, as forests become net emitter
Total greenhouse gas emissions in Germany dropped by a record 10.3% in 2023, even as new data showed forests have flipped from net sink to emitter, reported the German environment agency (UBA) on Wednesday.
Equinor retracts key carbon capture claim after data discrepancy revealed -report
Norwegian energy giant Equinor has revised a key claim about its flagship carbon capture and storage (CCS) project after official figures revealed discrepancies with the company’s public statements, an investigative journalism project has found.
Ex-Polish minister proposes massive EU fund to sustain clean industries
The EU should create a new fund to stave off the existential threat of Chinese and American competition while moving closer to the bloc’s climate neutrality objectives, according to former Polish Climate Minister Marcin Korolec.
New Finnish law pushes low-carbon construction by promoting carbon ‘handprints’
A new Finnish law aims to push the construction industry to take into account both the positive and negative impacts of a new building’s entire life cycle, as part of an effort to push the sector to reduce emissions and boost circularity.
AMERICAS
BRIEFING: California’s LCFS credit values could near $100 this year -panellists
Credit prices under California’s Low Carbon Fuel Standard (LCFS) could approach $100 by the end of 2025, panellists said at a conference Wednesday.
California regulator anticipates LCFS changes effective April barring lawsuit injunctions
Recently approved amendments to California’s Low Clean Fuel Standard (LCFS) could be finalised by April, ARB staff told a conference Wednesday, barring potential complications from three ongoing lawsuits.
BRIEFING: LCFS lawsuits could punt programme back to regulator without interruption -panellists
Changes to the state’s Low Carbon Fuel Standard (LCFS) face legal challenges from industry and environmental groups, but revisions from California’s regulator could enable the programme to continue without interruption, panellists said in a technical conference on Wednesday.
BRIEFING: Changing policy landscape could cloud California’s LCFS outlook
Potential shifts in emissions policies anticipated in part under the new incoming US federal administration, could impact longer term results of California’s Low Carbon Fuel Standard (LCFS) scheme, market observers said at a conference Wednesday, while near-term litigation looms large.
California withdraws waiver request for advanced clean fleets regulation
California regulators have officially withdrawn their waiver request for the Heavy-Duty Advanced Clean Fleets (HD ACF) regulation under the Clean Air Act (CAA), marking a significant development in the state’s clean energy policy efforts.
US regulator publishes updated CO2 pipeline rules
A new proposal by a US regulator means CO2 pipelines could face new regulatory requirements as the industry prepares for nationwide expansion.
US DOE rushes out funding awards ahead of government turnover, $100 mln to carbon conversion
The US DOE announced $100 million in available federal funding on Wednesday to develop technologies that convert CO2 emissions from industrial operations and power generation into usable products.
USDA invests $180 mln in biofuels, clean energy projects
The US Department of Agriculture (USDA) announced $180 million in funding on Wednesday for nearly 600 projects to support rural low-emission energy projects and expand access to biofuels.
US CDR company delivers second tranche of ERW credits to buyers club
A US CO2 removal (CDR) company announced delivery of 420 credits from enhanced rock weathering (ERW) projects to a carbon buyers club.
US forest project developer releases 400k carbon credits under ACR
An Arkansas-based forest project developer has verified the release of over 400,000 carbon credits under the American Carbon Registry (ACR), it announced on Tuesday.
ASIA PACIFIC
Glut of Safeguard Mechanism Credits forces Macquarie to cut ACCU price outlook by 10%
The larger than expected supply of Safeguard Mechanism Credits (SMC) has led to Macquarie lowering its long-term price forecast for Australian Carbon Credit Units (ACCUs) by 10%.
New Zealand carbon permit stockpile shrinks by almost 10 mln in 2024
The number of carbon allowances for the New Zealand emissions trading scheme in the country’s registry shrank by almost 10 million last year as the several failed quarterly auctions meant the permits used for compliance were not fully replaced.
China’s Hunan releases rules for local forest carbon scheme
Landlocked Hunan province has become the latest region in China to announce guidelines for the development of its own forest carbon credit scheme.
Researchers say they may have cracked the blue hydrogen code
Korean researchers believe they may have found a lower cost approach to make hydrogen from natural gas and then liquefy it for export with the same carbon profile than hydrogen made from water and renewable energy.
INTERNATIONAL
Iraq, UK sign cooperation deal on carbon markets, energy transition
Iraq signed a memorandum of understanding (MOU) with the British government on Tuesday that would support carbon market development, among other decarbonisation aims, according to the Iraqi Prime Minister’s Office.
Bullish year for major compliance markets this year, forecasts bank
Prices for Californian credit allowances (CCAs) and EU ETS allowances will rally 19-20% this year, despite surpluses in the former and balanced fundamentals in the latter, a bank predicted on Wednesday.
VOLUNTARY
80% of corporate climate leaders also tie executive pay to goals -report
Four-fifths of companies that are on track to meet their climate targets also tie their executive pay to meeting green objectives, new research has found.
Iceland-based carbon registry partners with sustainability software firm
An Iceland-based carbon registry on Wednesday announced it has partnered with a sustainability software provider to integrate its carbon offsets into the firm’s corporate platform.
CDR purchase programmes must grow comfortable with inherent risks -webinar
A CO2 removal (CDR) lead at a US tech companies shed light Tuesday on how the company makes its carbon credit purchasing decisions, saying that the best way to nurture early-stage removal pathways is to understand and become comfortable with certain levels of risk.
AVIATION/SHIPPING
FEATURE: Trump return adds uncertainty to CORSIA future as next phase approaches
US President-elect Donald Trump’s return to the White House and an upcoming EU review are raising uncertainty about whether the UN Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) will be implemented by enough countries to take a bite out of the sector’s rising emissions.
BIODIVERSITY (FREE TO READ)
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Climate crisis, biodiversity loss top long-term global concerns, WEF says
The consequences of the climate crisis and biodiversity loss are seen as the greatest global risks over the next decade among experts across the private and public sectors, according to a report released Wednesday by the World Economic Forum (WEF).
English nutrient credit reform proposals could work, consultancy says
An ecological consultancy has endorsed the English government’s proposals for centralising its nutrient credits scheme, while highlighting potential risks with its approach regarding the impact on species.
Researchers flag gaps in nature-related disclosures in Asia-Pacific
A study on corporate reporting in the Asia-Pacific region has found that only a quarter of surveyed companies believe biodiversity issues impact their business, with South Korea, Vietnam, and China among the countries with the biggest gaps in nature-related disclosures.
NGOs outline priority actions in run-up to UN Ocean Conference
The programme of the UN Ocean Conference is missing three crucial points on industrial fishing, fossil fuels, and protected areas, a group of NGOs has said.
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EVENTS
Carbon Forward Middle East – Jan. 16-17, Abu Dhabi – Announcing Carbon Forward Middle East in Abu Dhabi, a great new event to explore carbon markets in the MENA region. Coinciding with Abu Dhabi Sustainability Week and kicking off the day after IETA’s MENA Carbon Market Dialogue, we’re bringing together regional and international carbon markets experts to discuss opportunities and risks within MENA. The two-day event will be a must-attend for anyone working in, or wishing to explore, carbon markets in the region. Last chance to register
Calyx Webinar: 5 Ways to Minimize Environmental and Social Risk – Jan. 29 – As a carbon credit buyer you want to maximize your impact and minimize your risk. Join sustainable development experts as they share strategies for decreasing environmental and social risks in carbon projects so you can make informed purchasing decisions and investments. Register now!
Carbon Forward Asia – Mar. 4-5, Singapore – Our third annual Asian conference will once again be held in Singapore. Like at our past events, we’re excited to bring together experts from Asia Pacific to talk ASEAN markets, regional opportunities, developments in local and global carbon pricing, and all the topics you need to hear about across a stimulating two days. Register here
North American Carbon World (NACW) – Mar. 25-27, Los Angeles – The annual NACW conference addresses the most pressing issues in climate policy and carbon markets to the largest gathering of climate professionals in North America. NACW 2025 will dive into major new policies and developments that will shape and scale carbon markets and climate solutions with integrity and ambition. In addition to outstanding speakers, discussions, and insights, NACW provides premier networking opportunities with an active and engaged audience of carbon professionals. Join us for the content, community, and connections for successfully navigating the low-carbon landscape and advancing market-based climate solutions. www.nacwconference.com
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Premium job listings
- Forest Carbon Sales Manager, Manulife Investment Management Timberland And Agriculture – Boston/Remote
- Assistant Director, Carbon Markets, Asia Society Policy Institute (ASPI) – Washington DC/at Asia Society Centers in US, India, Korea, Japan, Australia, France, or Switzerland
- Senior Program Officer, Carbon Markets, Asia Society Policy Institute (ASPI) – Washington DC/at Asia Society Centers in US, India, Korea, Japan, Australia, France, or Switzerland
See all listings or post a job
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ADVERTISING BROCHURE
Carbon Pulse has published its 2025 advertising brochure and media pack, featuring updated offerings and prices. With that, bookings are now open for advertising on our website and in our newsletters.
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BITE-SIZED UPDATES FROM AROUND THE WORLD
EMEA
SAF burst – Portugal’s government is advancing tenders for the production of sustainable aviation fuel (SAF) and has already received expressions of interest from several companies, Euractiv reported. The country has the right conditions for renewable energy, which are needed to produce SAF, Energy Minister Maria da Graça Carvalho said. Several companies interested in carrying out SAF production projects in Portugal have been contacted, and the government is considering launching specific tenders. Part of this support will come from the new rules approved by the Cabinet in Oct. 2024, which provide for the transfer of part of the carbon tax to a maximum of €40 mln for “decarbonisation measures or activities in the civil aviation sector”. The amount will be allocated from the revenue generated by the Environmental Fund through the Aviation Emissions Trading Scheme (ETS) and the carbon tax, and is intended to contribute to decarbonising the sector. Portugal’s Climate Agency will be managing the SAF production tenders and following the agency’s launch in January or February, this will be one of its priorities, Carvalho said. The goal is to put Portugal ahead in the race to produce SAF as mandates on SAF start cropping up, such as those in the EU and UK.
Battery backlog – Large-scale battery projects with a combined capacity of 226 GW are lining up to be connected to Germany’s transmission grid, spurring industry speculation that the country’s electricity system could be facing a “battery tsunami,” reported pv magazine. Transmission grid operators had received 650 connection requests for large battery storage systems by the start of January, but many of these are at an early planning stage, complicating predictions about how many will be realised. The latest figures represent an increase of around 40% versus three months earlier, when requests totalled only around 161 GW. The storage boom is being driven by fast falling battery prices and the potential to use them to profit from electricity price fluctuations. The impacts on Germany’s power system could be huge however: even if only half the projects are realised, the storage capacity could supply more than 30 million households for a day. Germany is now becoming a testbed for storage tech given its rapidly rising share of renewables. Only 262 battery storage systems with capacity exceeding 1 MW and a total capacity of around 1.75 GW were in operation in Germany at the start of the year, while applications for future projects therefore exceed systems currently operating by a factor of around 130. Most of the applications expect the project to come online before 2030, with some as early as 2025.
Environmental inheritance – Four in five parents (80%) say it’s equally (58%) or more (23%) important for their children to inherit environmental wealth like clean air, clean waterways, and a stable climate than financial wealth like money and property, according to a new poll by Parents for Future UK, a UK-based parent climate movement, in a release Wednesday. Nearly two thirds of parents (63%) say they are concerned about the impact of climate change on their kids, and when asked about the most important things to their children’s future, environmental factors like tackling climate change and biodiversity loss were seen by parents to be as important as a good education. The worry about climate change is shared by children, with three in four (75%) parents saying their kids have shared concerns about climate change, particularly those aged 8-11 (87% expressed a concern). Top on the list of children’s climate concerns are: Extreme weather events (49%), food shortages (33%), poorer air quality (32%), rising sea levels and coastal erosion (31%), and biodiversity loss (23%).
Turkish capture – UK-based Cool Planet Technologies said Wednesday that it had signed consortium and grant agreements for €4.5 mln of funding from the EU’s Horizon project, which it will use to build a CO2 capture plant in Turkiye. The project, at the Tupras Izmit oil refinery, is expected to start up in 2027 and have capacity to capture 10,000 tonnes of CO2 per year. The CO2 will be delivered to companies that will convert it into valuable commercial feedstock for their different operations, Cool Planet said. This will be the first project to use Cool Planet’s fourth generation membrane module for capturing CO2, which the company said will have twice the capacity of the previous generation and be optimised for automated mass production.
Join the queue – New projects seeking to join the queue to connect to the UK power grid will be met with a pause, starting Jan. 29, as the National Energy Systems Operator (NESO) works to implement a more efficient system to add capacity. The reforms will prioritize projects which are ready to progress, and which are needed to deliver clean power by 2030, said NESO. Long wait times to grid connect are a key blocker to the country’s plans for 95% clean power by 2030. The backlog has continued to grow — with more power supply waiting to connect than likely to be needed in the coming decades. Under efforts to reform the connections process, projects will be able to apply for permissions to link to the grid only during specific time periods, and applicants will need to also meet certain progress criteria, ensuring only viable projects remain in the pipeline. However, exceptions will be made for projects seen as critical for economic growth. (Bloomberg)
CHP deficit – Combined heat and power (CHP)’s market share is stagnating in Germany, even though it should play a key role in closing a 17-21 GW capacity gap left by the closure of coal and nuclear plants, reported a new study by Frontier Economics on Wednesday. It was commissioned by gas, hydrogen and CHP trade associations. They called on the German government to urgently extend a national CHP Act (KWKG), support the industry through a capacity market, and ensure the availability of biomethane and low-carbon and renewable hydrogen for climate-friendly firing. The CHP Act extension has been pending for a year and the sector still runs 46% on natural gas. Emissions have come down by 34% since 2003 mainly due to the phase-out of coal. CHP plants can be cleaner than the uncoupled generation of electricity and heat from heat pumps, depending on the electricity mix, the study suggested.
ASIA PACIFIC
Not optimistic – Hyundai Motor’s rising emissions in India and other key markets are endangering the South Korean automaker’s carbon neutrality targets, according to a new report from Greenpeace East Asia. Between 2018 and 2023, total emissions from brands under the group – including Hyundai and Kia – increased by 70.5% in India, reaching the equivalent of New Zealand’s annual emissions. The researchers attributed the noticeable increase to the automaker’s minimal electrification progress in the developing country and the increased sales of larger vehicles.
Welcome to the club – Australian-based carbon aggregator Tasman Environmental Markets (TEM) has joined the International Air Transport Association’s (IATA) Strategic Partnerships Program, it announced, saying this would strengthen its relationships with the aviation sector. TEM said it wanted to advance its aviation solutions across both calculation and securing supply of CORSIA-eligible credits from the market and through its pipeline of project developments. This includes its registered cookstove project in Papua New Guinea, which it said was “currently finalising eligibility”. Joining the Strategic Partnerships Program will provide TEM with access to valuable industry insights and formalise opportunities to collaborate with airlines, TEM CEO Adrian Enright said in a statement. The programme was first established in 1990, and now has over 480 members.
Hydrogen project – Korean oil company GS Caltex plans to push forward with a full-scale hydrogen hub construction project as it aims to create a decarbonisation and clean hydrogen ecosystem in the Gwangyang Bay area, local media reported. Currently, the company produces more than 400,000 tonnes of hydrogen annually. GS Caltex plans to expand its clean energy business to domestic and overseas markets.
Seaweeds – Toppan Digital, a subsidiary of Japan’s Toppan Group, and its partners have obtained J Blue Credit certification for 21.7 tonnes of emissions reductions from their seaweed conservation project, the company announced Wednesday. Toppan Digital has been working with the government of Okinawa’s Uruma city and a local fisheries cooperative to promote environment-friendly aquaculture practices and digital solutions to cultivate seaweed beds.
More natural hydrogen hopes – One of the Australian states most hostile to onshore natural gas development has collaborated with Geoscience Australia for a series of gas samples to prove the probability of subsurface hydrogen systems that could be developed as a clean energy source. New South Wales said this week the work had found elevated levels of hydrogen and helium throughout the state via soil gas sampling work. The longer term hope is that the collaboration will kick off the kind of frontier exploration needed to find larger amounts of natural hydrogen at deeper levels, ultimately paving the way for it to be burned for clean energy. The received wisdom is that hydrogen does not occur naturally on the planet, but an unexpected discovery in Mali last decade changed that opinion. However, small explorers like Australia’s Gold Hydrogen have made strides in finding natural hydrogen in South Australia, using data from 1930s well logs kept by the state government.
Hanoi turns back to nuclear – Vietnam has made a firm turn back to nuclear, close to nine years after jettisoning plans to build nuclear power plants, after signing on with Russia’s Rosatom this week. The deal was made during Russian Prime Minister Mikhail Mishustin’s two-day visit to Hanoi. Hanoi has toyed with the idea of nuclear power in the past and signed Memoranda of Understanding with Japan and Russia in 2010 to develop plants before finally abandoning plans in 2016 over cost and security concerns. But to meet its emissions reduction commitments, it will need more clean energy than its large renewables fleet can provide as hydropower ages out of the system. Russia and Vietnam’s scientific collaborations go back decades, and Moscow is a major arms supplier to the nation.
Laos plans satellite data collection – Laos is planning a project certification for its carbon market by the third quarter of this year, according to the Vientiane Times. It plans to employ satellite remote sensing technology to calculate carbon stocks in nine forest areas covering 170,556 hectares. The funds can be channelled into community development, biodiversity conservation, and improved forest management practices, the newspaper said.
AMERICAS
The Plug-eye State – Zefiro Methane Corp’s subsidiary Plants & Goodwin has been awarded eight projects by the Ohio state government to plug 50 oil and gas wells across the state, mitigating potential public health and environmental risks. The team has already plugged 20% of the wells, with four full-sized rigs actively working to complete the project. The US has millions of unplugged wells that can emit methane, including approximately 19,000 orphan wells identified by the Ohio Department of Natural Resources (ODNR). The ODNR has access to $634 mln in potential funding to address these wells through 2035. This initiative is part of Zefiro’s broader operational expansion, including a new facility in West Virginia, acquisitions in Ohio and Pennsylvania, and collaborations with entities such as the US National Park Service and other government agencies across North America.
Across the finish line – The US Department of Treasury released rules for the Clean Electricity Production and Investment Tax Credits, also known as 45Y and 48E in the tax code. Under 45Y, qualifying technologies are eligible for a base tax credit rate of 0.3 cents per kilowatt hour of electricity produced. The 48E tax credit provides qualified technologies with 30% of the investment. According to the department’s guidance, eligible facilities or technology category includes wind, hydropower, marine and hydrokinetic, solar, geothermal, nuclear fission, fusion energy, and waste energy recovery. The department released the guidelines days before the start of President-elect Donald Trump’s second term after racing to finalize the rules in recent weeks.
Corn with a side of climate goals – The outgoing Biden administration released interim rules Wednesday detailing how biofuel crops such as corn and soybeans can be grown to reduce GHG greenhouse gas emissions, E&E reports. The interim rules, which will fall under the upcoming administration under President-elect Donald Trump, support a clean energy tax credit. The tax credit, which took effect Jan. 1, aims to reward producers of biofuels for aviation and transportation. The recently-released rules outline practices such as reduced tillage and controlled-release fertilisers and propose tools such as a ‘carbon feedstock intensity calculator’ to measure farm-level impacts.
Rock-solid risks – Verra has unveiled its new Geological Carbon Storage Non-Permanence Risk Tool (NPRT), now available on the Verra Project Hub. The digital tool aims to simplify risk assessments for carbon storage projects, automating calculations, standardising reports, and enabling real-time document sharing. Part of Verra’s ongoing and multiyear digitalisation efforts, the NPRT seeks to boost transparency, streamline processes, and scale operations to make carbon management more efficient and accessible.
Call for input – Puro.earth is evaluating Ocean-based Biomass Storage (OSB) as a method for carbon removal. OSB involves depositing carbon-rich biomass, such as seaweed or agricultural residues, into the deep ocean to isolate carbon for extended periods. According to Puro.Earth, the goal of the method is to create a stable, long-term carbon storage solution that mimics natural conservation processes in the deep sea. Stakeholders are invited to contribute their ideas and expertise until Feb. 5 to shape Puro.Earth’s carbon removal pathway.
Greeting the new GREET – The US DOE has finalised another key component to the Inflation Reduction Act – an update to the Greenhouse gases, Regulated Emissions, and Energy use in Technologies (GREET) life cycle assessment model. Originally designed in 1994 by the Argonne National Laboratory, the GREET model was designed to estimate the lifecycle emissions and environmental impacts of various technologies or products. For any given energy system or vehicle, GREET can calculate: total energy consumption, fossil fuel energy use, GHG emissions, air pollutant emissions, and water consumption. The updated model helps the federal government determine which fuels or technologies qualify for tax credits.
VOLUNTARY
SME emissions reduction – Emitwise and Equipoise have partnered with the SME Climate Hub to provide emissions measurement tools to small and medium-sized enterprises (SMEs), they said in a release Wednesday. These new tools will help SMEs to measure both their operational and supply chain emissions to inform their emissions reduction strategies. Emitwise’s intuitive online Scope 3 calculator helps businesses analyse supply chain emissions through procurement data, set reduction targets, and develop decarbonization roadmaps, while Equipoise’s advanced business carbon calculator is a carbon measurement tool to help with analysing emissions across business operations and supply chains. The SME Climate Hub is an initiative of the We Mean Business Coalition, the global nonprofit catalyzing business and policy action to halve global emissions by 2030.
AND FINALLY…
Next one on the moon – The island of St Helena has installed the world’s most remote public EV charger in its capital, Jamestown, as part of a trial conducted by Norwegian charging company Easee and Japanese car brand Subaru to promote EV adoption and reduce reliance on expensive fossil fuel imports for the British Overseas Territory. The government hopes that improving infrastructure will incentivise residents to switch from petrol and diesel vehicles to EVs, despite the island currently having very few EVs. As part of its green transition strategy, St Helena aims to increase wind and solar power generation significantly over the next four years, with a vision of eventually running the entire island on renewable energy. (Euronews)
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