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TOP STORY
FEATURE: As US investors quit climate alliances, attention turns to shareholders
US financial institutions say they will stick with their climate commitments despite quitting international net-zero alliances — but the loss of oversight and transparency provided by the alliances puts more pressure on policymakers and shareholders to ensure that promises are fulfilled.
CARBON FORWARD MIDDLE EAST
Arab League, voluntary carbon standard to sign Article 6 MoU -executive
The Arab League will next week sign a memorandum of understanding (MoU) with a voluntary carbon standard to build capacity for Paris Agreement carbon markets, an executive told Carbon Forward Middle East in Abu Dhabi on Thursday.
Voluntary carbon market faces fresh risk in light of “woke” label in US
A new political landscape for climate policy in the US, set to dominate following President-elect Donald Trump’s inauguration next week, could jeopardise the revival of the voluntary carbon market (VCM) in 2025, a conference heard Thursday.
Financial, data rules “key building blocks” for MENA carbon markets -exchange
Middle Eastern and North African (MENA) countries need clarity on asset classes and information security – not just environmental regulations – to attract investment in carbon markets, the director of a carbon credit exchange told Carbon Forward Middle East in Abu Dhabi on Thursday.
EMEA
EU carbon prices to average in the €90s on policy-induced supply squeeze, analysts predict
Benchmark European carbon prices could average €92 this year due to EU ETS policy changes, gas-to-coal switching, and the bloc’s 2040 emission target announcement, analysts said on Thursday.
“Electrification first”: Ribera hints at EU’s new top priority on energy
Europe’s short-term answer to high energy prices and declining competitiveness will reside in electrification, energy savings, and accelerating the buildout of renewables to meet the EU’s 2030 climate goals, said Teresa Ribera, the European Commission’s first executive vice-president, on Thursday.
EU carbon price to slump towards €50 in Trump-inflicted recession scenario -analysts
Benchmark European carbon prices could slump below €50 in the event of a regional recession brought on by US tariffs that may be introduced by President-elect Donald Trump, according to a scenario modelled by analysts.
EU Commission scrambles to submit overdue 2040 climate target, says “unlikely” next month
The European Commission is facing mounting pressure to deliver on its promise of an ambitious new 2040 climate goal this year, after EU climate chief Wopke Hoekstra admitted it is “unlikely” to meet the UN’s February deadline.
IETA, Abu Dhabi’s GCFC join forces to support carbon market development in MENA region
Carbon trading association IETA and Abu Dhabi’s Global Climate Finance Centre (GCFC) have formalised a strategic partnership to advance climate ambition and promote the development of market mechanisms across the Middle East and North Africa (MENA) region.
Asset manager launches ETC tracking cap-and-trade carbon allowances
A US asset management firm has cross-listed a carbon exchange-traded commodity (ETC), which includes a broad coverage of cap-and-trade carbon allowances, on the London Stock Exchange.
Nigeria crafts roadmap to protect carbon-rich mangroves, access $4 bln fund -media
Nigeria is developing a national roadmap to protect its carbon-rich mangroves and secure grants from the $4 billion Mangrove Breakthrough Alliance, according to local media reports.
Switzerland commits millions for carbon removal projects
Switzerland has opened a funding round worth CHF 100 million (€106 mln) to develop carbon removal projects in the country, the government announced Thursday.
UK pledges £410 mln to kick start rapid nuclear fusion development
The UK government pledged Thursday a record £410 million investment in nuclear fusion research and development over the next two years to kickstart the rapid deployment of the clear energy sector.
On-farm biochar provider launches consultation on Biochar Carbon Code
A provider of on-farm biochar solutions in the UK launched a public consultation Thursday on its new Biochar Carbon Code, aiming to set the benchmark for high-quality biochar carbon removal.
French firm launches drone-based AI tool to monitor reforestation carbon projects
A Paris-based startup has introduced a drone-based artificial intelligence tool to monitor and manage reforestation carbon projects.
Insurance agency to offset UK emissions from repairs
An international insurance agency and claims manager has introduced a carbon-neutral repairs initiative in the UK, which it said will set a new benchmark for sustainability in insurance repairs.
Euro Markets: EUAs post sixth daily gain in a row even as energy weakens, while UKAs near record low
European carbon allowances were modestly firmer at the end of trading on Thursday, after an attempt to breach Wednesday’s one-year high was beaten back to leave prices in a relatively narrow channel, while UKAs extended their fall to the least in one year, leaving the market close to its record low.
AMERICAS
BRIEFING: Political turmoil, US tax incentives threaten Canada’s CFR
The ongoing political transition in Canada and federal biofuels tax credits in the US could jeopardise Canadian clean fuel programmes, panellists at a conference said Thursday.
BRIEFING: LCFS changes, harmonisation between programmes top US biofuel industry wish list -panellists
Looking at the year ahead, the biofuels industry will be balancing programmes across different states and federal jurisdictions, with new sustainability guardrails in California’s Low Carbon Fuel Standard (LCFS), panellists said at a technical conference in California.
Liberal leadership hopeful Freeland pledges to scrap Canada’s carbon tax -media
Chrystia Freeland, Canada’s former finance minister, is expected to pledge to scrap the country’s carbon tax when she announces her candidacy for federal Liberal Party leader, according to local media.
Environmental group drops lawsuit over $1 bln DOE loan to California nuclear plant
An environmental group suing the US DOE over a $1 billion loan to a nuclear plant voluntarily dropped the case Wednesday, saying that recent legislation by the state of California rendered the case moot.
Toyota’s US subsidiary settles falsified emissions testing lawsuit for $1.6 bln
A Toyota subsidiary agreed to plead guilty to charges of emissions fraud, resulting in a $1.6 billion settlement, the US Department of Justice (DOJ) said Wednesday.
US DOE churns near $14 mln funding for products from chemical, refinery CO2 emissions
The US DOE announced $13.7 million in available federal funding on Thursday to advance CO2 conversion from chemicals production and petroleum refining into usable products, adding to a string of awards since the start of the year.
US DOE awards $6 mln towards methane emission reduction technology
Two energy industry companies have been awarded nearly $6 million from the US DOE to scale up technology aimed at reducing methane emissions.
WCI Markets: Aftershocks of ETS rulemaking delay keep CCA volatility high
Another delay to highly anticipated cap-and-trade rulemaking jolted California Carbon Allowances (CCA) prices in the secondary market briefly to three-year lows on Tuesday, with volatility driving up option prices.
ASIA PACIFIC
Indian biochar firm sells credits to Google in “world’s biggest biochar deal”
An Indian biochar firm has agreed to sell 100,000 carbon dioxide removals (CDR) credits to technology giant Google, in what it dubbed the “world’s largest industrial biochar offtake agreement” in an announcement on Thursday.
Google inks second 100k biochar carbon removal deal
Google signed a second large biochar carbon removal deal Thursday, buying 100,000 tonnes of CO2 through 2030 from a California-based developer.
New Forests closes A$600 mln Australian, NZ landscape and forestry fund
Global forestry investment manager New Forests has announced the final close of its fund focussing on Australian and New Zealand forestry and landscapes, successfully raising A$600 million ($372 mln).
Australian voluntary carbon credit cancellations sink in 2024
Voluntary cancellations of Kyoto-era carbon credits in Australia’s national accounts fell by around 45% in 2024, according to recently published data from the Clean Energy Regulator (CER).
Thai bourse to operate carbon market, SEC chief says
Thailand’s Securities and Exchange Commission (SEC) chief said this week that the nation’s bourse will introduce carbon trading in a bid to gain experience and boost liquidity.
South Korea to back methane reduction projects in Southeast Asia
A Seoul-headquartered intergovernmental organisation has initiated a $20 million methane mitigation programme to drive down emissions in Southeast Asia.
INTERNATIONAL
UN opens consultation on REDD+ strategy for 2026-30, aiming to halt deforestation by 2030
The flagship UN programme on Reducing Emissions from Deforestation and forest Degradation (REDD) and boost forest carbon stocks has opened a public consultation for its 2026-30 strategy.
Nuclear resurgence locked and loaded as SMRs lead the way to a new finance era -IEA
Nuclear energy is set to see a resurgence for a complex conflagration of drivers including decarbonisation plans coupled with the need for reliable baseload power, new electricity demand from the computing sector, nations’ interest in energy self-sufficiency, and a projected fall in costs for new types of nuclear energy like small modular reactors (SMRs), according to the International Energy Agency (IEA).
Climate and environmental risk could halve GDP by end of the century -UK actuary body
Global GDP could be halved between 2070 and 2090 due to risks posed by the climate crisis currently unaccounted for in climate policies, a new report by the UK actuary professional body revealed on Thursday.
Inaugural $500-mln bond for climate action hugely oversubscribed
An inaugural bond for climate action has raised $500 million from largely EMEA-based investors in a round that was over six times oversubscribed.
VOLUNTARY
Developing different types of CDR can help cut costs for net zero emissions -report
Expanding carbon removal (CDR) portfolios to include a variety of technologies and nature-based solutions can cut costs, reduce reliance on land-intensive methods, and address energy and logistical challenges, a new study has found.
SHIPPING
FEATURE: More IMO member states align behind proposed GHG levy for shipping
The prospect of a global emissions levy on shipping is getting closer to reality, according to a recent briefing and document from the UN’s International Maritime Organization (IMO).
BIODIVERSITY (FREE TO READ)
All our nature and biodiversity articles remain free to read (no subscription required). However, we now require that all readers have a Carbon Pulse login to access this content in full. To get a login, sign up for a free trial of our news. If you’ve already had a trial, then you already have a login.
INTERVIEW: Reckless use of AI in biodiversity could lead to “undesirable” outcomes
The current lack of attention to the downsides of artificial intelligence (AI) in nature conservation and its broader implications could result in undesirable consequences, including the development of a biased biodiversity credit market, an expert told Carbon Pulse.
IUCN releases guidance to strengthen global OECM network
The International Union for Conservation of Nature (IUCN) has released guidance to identify, monitor, and strengthen Other Effective area-based Conservation Measures (OECMs), stressing the need to ramp up private financing in order to improve their management.
African Natural Capital Alliance reveals fellowship members
The African Natural Capital Alliance (ANCA) has revealed 22 members of its fellowship programme, which seeks to raise biodiversity finance, including executives from several large financiers.
UK conservation podcast secures backing from property consultancy
A UK natural capital portfolio has secured sponsorship from a rural property consultancy to continue its podcast, which discusses conservation, rural land management, and the natural capital economy.
Biodiversity Pulse: Thursday January 16, 2025
A twice-weekly summary of our biodiversity news plus bite-sized updates from around the world. All articles in this edition are free to read (no subscription required).
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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
Greener maritime – The UK has announced £30 mln of new government funding to decarbonise sea travel in a bid to cement the country’s status as a clean energy superpower. As part of the government’s Plan for Change, the funding comes from the latest round of the Clean Maritime Demonstration Competition (CMDC6), launched Jan. 16, 2025, which aims to support clean maritime technologies including electric, hydrogen, ammonia, methanol, and wind power. Previous rounds of the competition have seen funding delivered to over 300 organisations, bringing in more than £100 mln of private investment across the UK. Projects have included the installation of Britain’s first electric chargepoint network across ports in the South West, the largest ever retrofit of a hydrogen research vessel in Wales, and the installation of a carbon capture system on a vessel. Innovate UK will open the sixth round of the CMDC on Jan. 24, with applications closing on April 16, 2025. CMDC funding comes from the £236 mln UK Shipping Office for Reducing Emissions (UK SHORE) programme, focused on decarbonising UK maritime through R&D.
ASIA PACIFIC
Embedding carbon – Australia’s Clean Energy Finance Corporation (CEFC) has invested A$100 mln ($62 mln) in a new affordable build-to-rent strategy managed by investment manager AXA IM Alts, which aims to build 3,000 apartments that will be highly energy efficient, fully electric, and capable of being powered by renewables while driving reductions in embodied carbon, it announced. Future projects will target a minimum 5-star Green Star Building certification and a minimum average 7.5 star NatHERs home energy rating. Residential buildings are responsible for around 24% of overall electricity use and more than 10% of total carbon emissions in Australia.
BP bio stand down – BP has stood down workers from its planned clean energy hub south of Perth, Western Australia, according to Boiling Cold. The site in the industrial suburb of Kwinana was home to one of only four oil refineries in the nation until BP announced an unexpected closure in late 2020. It later told the government it would turn the site into a renewable liquid fuel hub to make clean aviation fuel and diesel from biomass, and then later green hydrogen. Boiling Cold said Thursday construction and design contractors from its Kwinana Renewables Fuel (KRF) project in recent weeks had been stood down, citing unnamed sources not authorised to talk to the media. The multi-million dollar clean fuel hub is in the same district as Woodside Energy’s own planned hydrogen development and a planned electric smelter to turn local iron ore into green steel, with partners BlueScope, Rio Tinto, BHP, and Woodside due for a 2028 start-up.
Nuclear expansion – The US and Singaporean governments on Thursday signed an MoU to cooperate on civil nuclear issues, according to the latter’s Ministry of Trade and Industry (MTI). The MoU is expected to strengthen and expand strategic ties between the US and Singapore and create an aligned approach to non-proliferation on civil nuclear issues and for engagements between experts. The agreement will also further enhance the two countries’ cooperation on energy security, and promoting the development of zero-carbon baseload power in support of Singapore’s climate goals, MTI said.
Light up – Financial firm Tokyo Century Corporation has started a J-Credit offset project with its domestic partners to reduce CO2 emissions by updating traditional lighting equipment to LED products, it announced Thursday. Tokyo Century will lease the LED lighting, create a project plan for the creation of J-Credits, and handle administrative tasks, while Iris Ohyama will install the LED lighting and provide relevant data. The initiative is expected to generate 372 J-Credits.
AMERICAS
Scrapped deal – Swedish steelmaker SSAB has pulled out of talks with the US to build a green steel plant there, as President-elect Donald Trump is expected to dismantle policies for decarbonisation. In March, the Biden administration awarded the company as much as $500 mln for a facility to make the alloy using 100% hydrogen in Mississippi, but SSAB now says it is no longer negotiating with the DOE’s Office of Clean Energy Demonstrations for completion of a co-operative agreement. The company said it would be continuing with technical development of decarbonisation projects in the US. Under the Inflation Reduction Act, the Biden administration awarded about $6 bln overall in grants to help cut emissions from metals, chemicals, and other hard-to-decarbonise industries, but the incoming president has signaled he wishes to repeal the 2022 climate law, while other Republicans have indicated they would take a more targeted approach to rolling back some of the initiatives. (Bloomberg)
Running on fumes – Maryland’s climate targets are under threat due to a $3 bln budget deficit, rising energy costs, and grid bottlenecks delaying new power sources, E&E reported. The state aims for net-zero emissions by 2045 and 100% clean electricity by 2035, but with 40% of its electricity imported—largely from fossil fuels—and coal plants retiring faster than replacements come online, progress has allegedly been stalled. At hearings featuring House Speaker Adrienne Jones, officials criticised grid operator PJM Interconnection for a backlog of generation projects and inefficiencies that exacerbate energy shortfalls. While nuclear energy is considered crucial to meeting the state’s targets, lawmakers expressed skepticism about feasibility of any new capacity.
Pipeline vs. public hearing – Yesterday, hundreds of residents filled Southeast Technical College auditorium in Sioux Falls, Iowa for a Public Utilities Commission hearing on Summit Carbon Solutions’ second attempt to secure a permit for a proposed CO2 pipeline. The proposed $9 bln, 2,500-mile project aims to transport CO2 from 57 ethanol plants across five states, including eastern South Dakota, to North Dakota for underground storage, leveraging federal tax credits for emissions reduction. The commission previously rejected the permit in 2023 due to route conflicts with local ordinances. Further hearings are scheduled this week.
Brazil tackles backlog – The Government of Tocantins announced on Monday that it has allocated R$5.5 mln ($910,000) from carbon credit sales under the REDD+ program to modernise the Rural Environmental Registry (CAR) and Environmental Regularization Program analysis systems. The investment aims to address a backlog of 1,300 CAR processes, expediting environmental regulation for rural properties. The new automated systems, developed in partnership with commodity trading house Mercuria, promise to enhance processing capacity while improving databases, infrastructure, and team training. In a press release, Governor Wanderlei Barbosa highlighted the initiative’s role in positioning Tocantins as a global carbon market leader.
LA fires up new momentum – The LA wildfires are bringing attention to a bill filed in the US House that addresses forest health and wildfire resiliency. The bill HR 8790, called Fix Our Forests Act, was introduced last year by House Natural Resources Chair Bruce Westerman (R-AK). E&E News reported Thursday that Westerman said he expects the House to act on the bill as soon as next week as the LA wildfires continue burning and bringing fresh attention to the issue. A version of the bill passed the House last September despite pushback from environmental groups who opposed the legislation for loosening environmental reviews of forest thinning and related work.
Svante/Tenaska partnership – Svante, a carbon capture and storage (CCS) technology developer out of British Columbia, is partnering with Omaha, Nebraska-based Tenaska, who provides CO2 transportation and sequestration, on industrial CCS. Svante announced Thursday, with the new deal with Tenaska, the companies would combine their services to provide end-to-end CCS solutions to select customers. Svante will facilitate carbon capture while Tenaska provides regional planning, transportation and storage. Tenaska is advancing a platform of mid- and early-stage projects across the US, with Class VI permit applications filed for nearly 20 injection wells across multiple states, including Alabama.
Quebec checked it twice – The Quebec environment ministry (MELCCFP) published a list of new or used motor vehicles that are eligible to generate credits under its proposed zero-emission vehicle credit-trading system. The 11-page list of vehicle models, published by MELCCFP on Thursday, only lists vehicles from the following automakers: Ford, BMW, GM, Honda, Hyundai, Jaguar, Kia, Mazda, Mercedes-Benz, Nissan, Porsche, Rivian, Stellantis, Subaru, Tesla, Toyota, Volkswagen, and Volvo. The province will ban the sale and lease of internal combustion engine vehicles by 2035.
VOLUNTARY
Open for comment – International Carbon Registry (ICR) and CarbonSpaceTech have partnered to develop the M-ICR009: Atmospheric carbon monitoring methodology for land use management projects. This methodology introduces the concept of Net Ecosystem Exchange (NEE), a metric which represents the net carbon in the atmosphere, as a comprehensive approach to quantifying carbon benefits from ecosystem management projects. Key features of the NEE-based approach include ecosystem-level measurement, whereby carbon is assessed at the ecosystem level without the need for separate carbon pools, use of remote sensing, and primary data from ground stations. It’s applicable to practices like afforestation, soil conservation, and sustainable grassland management. The methodology is now open for public consultation from Jan. 16 – Feb. 15, 2025.
Beyond value chain action – A joint letter has been signed by a number of non-profits, companies, and academic institutions to support the credible funding of high-quality climate action by companies beyond their value chain. The letter calls for companies to prioritise their own decarbonisation in line with a 1.5C trajectory, and to take the following steps: 1) to calculate and disclose its GHG footprint including Scopes 1-3 of emissions, 2) to determine a budget to allocate to beyond value chain climate action, 3) to undertake due diligence on its beyond value chain climate portfolio, 4) to finance the identified initiatives, and 5) to publicly communicate each of these four steps. Organisations to sign the letter include Gold Standard, Milkwire, WWF International, University of Oxford, and Actionnaires pour le climat.
Soil carbon on the list – The AgreenaCarbon Project has become the first large-scale agricultural cropland project registered under Verra’s Verified Carbon Standard (VCS) VM0042 methodology, the developer announced in a release Thursday. The project is pan-European and covers millions of hectares of arable farmland. Achieving registration took several years of rigorous and independent assessment, it said. Agreena works with farmers across Europe to deliver soil carbon removals through implementing regenerative farming practices. It expects issuance of Verra-certified carbon credits in 2025 and is currently accepting pre-orders for its reductions and removals inventory.
Seeking feedback – Carbon removal standard body Puro.earth has opened a public consultation on its new Ocean Storage of Biomass (OSB) methodology. The methodology focuses on depositing sustainable biomass into permanently oxygen-depleted (anoxic) ocean basins where natural seafloor conditions allow for durable CO2 storage. These anoxic marine zones are characterized by dense, stratified water layers that effectively seal carbon-containing biomass in deep, oxygen-depleted bottom layer. The process is limited to lignin-rich terrestrial biomass—plant materials that naturally resist decomposition in low-oxygen conditions. By placing these materials in scientifically verified storage sites within national maritime jurisdictions, carbon can be sequestered for 1,000+ years. The public consultation will be open Jan. 15 to Feb. 15.
Tech takeover – Large purchases of carbon credits made by large tech companies are becoming a norm within the voluntary carbon market, according to Nan Pond, VP of nature-based research and monitoring at carbon project developer Rubicon Carbon. Speaking during a webinar on forest carbon markets, Pond said that the most common types of deals are those where large corporations choose one or two projects, do deep diligence on them, then sign long-term offtake agreements. “I think that’s the model we’re in right now, where the buyers that are choosing to engage in this market at doing it at that level,” Pond said. Her remarks echo comments made earlier this week by a CDR lead at Google, who explained how the company evaluates and purchases long-term carbon removal credits.
AND FINALLY…
They see me rolling – In the US, Michigan State Police has introduced its first EV, a 2024 Ford Mustang Mach-E, to be used by the State Security Operations Section for patrolling state-owned and leased facilities, Wood TV reports. The initiative will allow real-time research on the performance and potential cost savings of EVs in a patrol setting. The police’s Precision Driving Unit, which has been evaluating EVs since 2022, aims to explore broader applicability of EVs within their fleet.
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