California Carbon Allowance (CCA) futures fell below the $33 mark on Thursday after the market has remained relatively subdued amid a wait for developments on rulemaking procedures.

Canada’s federal, provincial, and territorial leaders agreed Thursday to target finalising an updated national carbon pricing benchmark by the end of 2026, as well as to establish a working group to explore linking industrial carbon markets across the country.

RFS rethink - US Sen. Jeff Merkley (D), Sen. Cindy Hyde-Smith (R), Rep. Cliff Bentz (R) and Rep. Bennie Thompson (D) have introduced the Wildfire Reduction Market Expansion Act to modernise the definition for renewable biomass under the Renewable Fuel Standard (RFS) to include woody biomass generated through forest management activities. This would apply to both federal lands and private/non-federal lands. The bill also aims to boost wildfire resiliency.

Allied offering - AlliedOffsets announced on Thursday the launch of AlliedCredits, an open marketplace for the public to view both spot and forward prices and listings. According to the market intelligence provider, price discovery is challenging for new entrants to the carbon market, or for forward-planning. While coverage of spot transactions is more accessible, forward carbon credits remain more opaque and yet, forward sales can also attract early-stage funding. Buyers and sellers can enter and browse spot and forward offers for their credits, and the data will also be available via API.

Brazilian carbon observatory – Brazil’s Securities and Exchange Commission (CVM) and the NGO Climate and Society Institute (iCS) are discussing the creation and operation of the Brazilian Carbon Markets Observatory (OBCarbono). The proposed public-interest initiative would serve as a hub for generating and systematising technical knowledge, building capacity, fostering institutional cooperation, and promoting public understanding of carbon markets. CVM Chair Otto Lobo and iCS Executive Director Maria Netto Schneider met on Wednesday to discuss the proposal.

Narrow EV miss - Think tank Canadian Climate Institute (CCI) said in an analysis that passenger vehicle emissions intensities have been declining due to EVs and better fuel efficiency standards in Canada, but EV adoption must accelerate to meet federal goals. In order to fall from the Q1 2026 fleet average of 131.6 gCO2e per mile to the proposed standard of 74 g CO2e/mi by 2035, fleet emissions intensity would need to decline by roughly 5.9 g CO2e/mi each year. Over the past year, fleet emissions intensity declined by 5.6 g CO2e/mi, suggesting manufacturers are currently close to the pace needed to meet the standard, according to the analysis.

Wastewater CDR - International non-profit Carbon to Sea will award $225,000 to a team of scientists, engineers, and industry professionals to evaluate opportunities for ocean alkalinity enhancement (OAE) in municipal wastewater treatment plants, the organisation announced on Thursday. It is estimated that between 3-7% of global GHG emissions come from municipal wastewater treatment systems due to nutrient and chemical discharges, Carbon to Sea said. The funding will support the team - from the likes of the Universities of Delaware and Maryland, the Carbon Removal Standards Initiative, DC Water - to develop an exploratory technical report on OAE opportunities in wastewater treatment plants.

The Climate Action Reserve (CAR) published on Thursday a request for comments on its draft modular mine methane protocol, as well as a US-specific module for the project sector.

Nearly all of the allowances planned to be made available under California's Manufacturing Decarbonization Incentive (MDI) are expected to be used as uptake peaks in 2031, even as initial uncertainty tempers early utilisation, analysts said during a Wednesday webinar.

European carbon prices gave up most of the previous session's 4.1% leap on Thursday as the initial burst of speculative buying early in the week did not appear to trigger any wider demand, while traders fretted that EUA prices above €80.00 risked further complaints from EU member states and industry, particularly at a time when energy prices are surging.

A number of lawmakers have said Brussels' plan to extend the phaseout of free carbon allowances for industrial sectors under the Carbon Border Adjustment Mechanism (CBAM) until 2038 goes too far, while industry has criticized the European Commission for not including targeted support for CBAM exports.

The UK's response to a review of its entry into the carbon removal space signalled notable support for biochar, as well as an open door to credits from overseas direct air capture plants, according to an expert.

Azerbaijan’s government on Wednesday published a draft climate law that would establish the legal framework for a domestic emissions trading system (ETS), carbon tax, national carbon registry, and five-year carbon budgets.

The EU should pair its planned ETS carbon removal procurement mechanism with stringent certificate eligibility rules and consider technology-specific quotas, according to a German government-commissioned report released this month.

Catalytic deal - Johnson Matthey (JM) has completed the acquisition of US-based Cormetech, which makes catalysts to clean up industrial emissions. Cormetech's particular expertise in gas turbines and module designs will enable JM to offer customised catalysts and systems for a range of energy platforms, said the press release. There is strong demand for these solutions in the US due to data centre growth. It's expected the acquisition will help JM benefit from the growing market for emission control catalysts.

Australia is pursuing a “flawed hedge” by providing four times as much support to fossil fuels as renewables, even as it faces an erosion in demand for its polluting exports to Asian customers, WWF-Australia said in a report on Friday.

Strategic move - Germany's govt aims to strengthen the development of nuclear fusion and innovative battery technologies through a new startup and scale-up strategy. The approach includes more than 150 measures aimed at making it simpler to set up businesses in the country by reducing bureaucracy and digitalising processes and mobilising venture capital. The strategy's main focus areas are AI, security, and defence, but it also includes measures to support companies developing fusion technologies, with Germany aiming to build the world's first viable fusion reactor. Separately, as part of a 'scaling centre', companies working in the area of sustainable consumption such as batteries will be provided support to turn prototypes into marketable products through access to lab facilities, expertise, IP and patent support, and networking. The share of green startups as a proportion of all new startups in Germany fell from a peak of 17% in 2022 to 9% last year.

A carbon removal procurement service is offering portfolios aligned with compliance ready markets, it announced Thursday.

Total carbon - French energy company TotalEnergies cut Scope 1 and 2 emissions by 8% year-on over the first six months of the year, results showed Thursday. Emissions fell to 15. 1 Mt of CO2 between January and July, down from 16.4 Mt a year earlier. Methane emissions fell to 8 Mt over the same period, down from 11 Mt a year earlier. First half Scope 3 CO2 equivalent emission (category 11) were estimated at 163 Mt. TotalEnergies’ adjusted net income jumped by 68% from a year earlier to $6 bln for Q2 2026 as the jump in oil prices amid the conflict in the Middle East, and higher refining margins, boosted earnings and cash flows.

CO2 in space - A review of the technologies available to remove and recycle metabolically produced CO2 in microgravity environments, including at space stations, on space vehicles, and in space suits has been published on nature.com. It covers the breathable air requirements for astronauts, supply requirements for missions, carbon removal technologies, and synthetic and biological conversion routes from CO2 to fuels, sugars, foods, pharmaceuticals, and materials. The carbon removal technologies explored include solid amine systems, ionic liquid sorbent systems, and metal organic frameworks.

Companies complying with the Science Based Targets initiative's (SBTi) new Ongoing Emissions Responsibility (OER) framework could face dramatically different bills for identical emissions trajectories, depending on the type of gases they release, according to new research from a financial services firm.

An environmental campaign group has filed a petition in a Dutch court seeking to force the world’s largest meat company to disclose information on its planned $6 billion expansion, almost half of which is earmarked for Nigeria, the group said.

The European Parliament’s lead lawmaker on the EU Emissions Trading System (ETS) reform, Peter Liese, has backed the European Commission’s push to attach tougher conditions to free carbon allowances, insisting that support must be tied to concrete investments at plant level and directly linked to job preservation.

Two of the UK's existing nuclear power stations will remain online for an extra two years, prolonging the supply of clean electricity to early 2030, the operators announced this week.

Rural green drive - India's National Bank for Agriculture and Rural Development and state government entity Mahatma Phule Renewable Energy have partnered up to finance renewable energy and climate‑resilient rural infrastructure in India, starting with the western state of Maharashtra, they announced in a press release. The partnership aims to promote sustainable infrastructure in villages through initiatives such as solar-powered public institutions, bioenergy, village-level cold storage, and other sustainable development.

Electric pushback - Major carmakers have been lobbying the UK govt to allow new fully internal combustion vehicles to remain on sale after 2035, according to private correspondence obtained by The Fast Charge. Ford, Nissan, BMW, and Toyota have all been lobbying to that effect, while trade body SMMT has been "threatening job losses and deindustrialisation without an urgent trajectory review", the EV newsletter reported. The companies are calling for full combustion-powered vehicles that are 'efficient' or use 'sustainable' materials to be able to stay on sale after the current cut-off date of 2035, when only new electric cars will be able to be bought under the UK's Zero Emission Vehicle (ZEV) mandate.

The economy of Georgia will be only modestly affected in the near term by the EU's Carbon Border Adjustment Mechanism (CBAM), with projected GDP impact below 0.02% this year, according to a report that urges the country to internalise carbon costs in order to reduce the negative effects.

China has released a five-year roadmap that guides the development of the country's rapidly expanding renewable energy sector.

Countries are widely divided around traditional fault lines in talks on what a new UN initiative to strengthen climate efforts should look like, with developing countries prioritising finance, wealthier nations encouraging greater policy action, and business groups advocating wider deployment of climate technologies.

Voluntary carbon markets could deliver up to $12.6 billion a year to support agrifood decarbonisation in Southeast Asia, yet researchers caution that the region’s funding shortfall remains severe.

India and China are in a paradoxical climate relationship, with Beijing dominating solar, battery, and mineral supply chains amid New Delhi's reliance on Chinese technology and capital to meet its clean energy goals, but geopolitical tensions will keep cooperation narrow, a study said.

The European Commission has published detailed guidance spelling out how governments must integrate sustainability and resilience criteria into public tenders and renewable energy auctions under the EU’s Net Zero Industry Act (NZIA), in a move expected to reshape demand for clean-tech manufacturing and reduce over‑reliance on China.

The Australian Labor government’s policy platform has been amended, giving it more flexibility to cut the diesel fuel rebate for large miners, local media reported Thursday.

A Tokyo-headquartered climate tech company has raised $87 million in Series D funding as it continues its global expansion and eyes decarbonisation potential in manufacturing supply chains.  

Green steel permit filed – French low-carbon iron start-up GravitHy has filed construction and environmental permit applications for its planned direct reduced iron plant in Fos-sur-Mer, marking a key step towards a final investment decision, the company announced on Thursday. The project, located in the port-industrial zone, is designed to produce 2 million tonnes per year of hot briquetted iron using on-site low-carbon hydrogen, which the company says could cut steelmakers’ emissions by more than 90% and avoid up to 4 million tonnes of CO2 annually compared to conventional blast furnaces. GravitHy expects to create at least 500 direct jobs.

An Asian investment management firm has raised $48 million in blended finance to fund climate-smart land-use practices in Indonesia.

The climate committee of South Korea's national legislature has approved an amendment to the country's carbon neutrality act, which sets out preliminary emissions reduction targets through 2045.

A gigawatt of solar built in one part of Indonesia could displace nearly 1.8 million tonnes of annual CO2 emissions from coal generation elsewhere as power grids become more interconnected, according to an analysis.

New Zealand political opposition and business groups have said the Climate Change Commission's (CCC) latest warnings about the country being increasingly off track from its emissions reduction targets are a "significant wake-up call" and will be a major challenge for future governments. 

CO2 emissions from electricity generation are forecast to increase globally by around 1% in 2026 before flattening out in 2027 amid a surge in renewables, according to the International Energy Agency (IEA).

Carbon voyage - Kochi Water Metro in the Indian state of  Kerala has become the first of its kind to generate carbon credits after signing a revenue‑sharing agreement with advisory firm Kosher Climate, according to The New Indian Express. The agency will handle certification, studies, documentation, and international approvals. Under the deal, 71% of revenue from carbon credit trading will go to Kochi Water Metro, creating a new non‑fare income stream.

Pacific Islands are shifting how they approach UN climate talks, from a moral appeal to a legal duty, bolstered by an international court's opinion clarifying governments’ climate change obligations, a Fijian government official said on Thursday.

SEA green hydrogen - A subholding of Indonesia’s state-owned power utility and a newly launched Singapore-based low-carbon fuel production company signed a memorandum of understanding (MoU) on Tuesday to explore the development of a cross-border green hydrogen supply chain. Under the MoU, PT PLN Energi Primer Indonesia (PLN EPI) and eFUELS SEA will assess potential production and distribution channels, storage infrastructure, and business models for green hydrogen and electrofuels for between the two countries. 

Maritime CCUS – CO2 from a pilot onboard carbon capture and storage project, orchestrated by the Singapore-based Global Centre for Maritime Decarbonisation (GMCD), has been formally recognised for compliance under the EU ETS. The verified tonnage of captured CO2 can be accepted as a deduction against vessel emissions which require the surrender of EUAs. The pilot project captured and stored 25.4 tCO2 en route from Malaysia to China, offloaded the liquefied CO2 via a ship-to-ship operation, then transported the CO2 overland recycle steel slag for utilisation and produce post-carbonated slag and precipitated calcium carbonate. GCMD received in-principle support from the IMO to recognise carbon mineralisation as a form of permanent storage.

Data stake – Gentailer Mercury Energy has taken a NZ$53 mln ($30 mln) stake in Datagrid, the company building a 280-MW data centre in Southland that is poised to be New Zealand’s second-largest power consumer. This follows the signing of a long-term power purchase option agreement for Mercury – which is 51% state-owned – to supply the data centre 140 MW in March. Mercury said its investment would help the company to understand better the development of large-scale AI and data centre demand, helping to guide renewable energy investment, and also positions it better for future offtake agreements.

CBAM, please - Indian manufacturing conglomerate Jindal Steel International has called on the Australian government to impose a carbon border adjustment on low emissions steel, as it bids to take over the faltering Whyalla steelworks in South Australia. Director Harssha Shetty said the company was prepared to invest significant sums of money to convert the steelworks to low emissions production, but said there should be adequate tariff and non-tariff barriers for imports, referring to the EU Carbon Border Adjustment Mechanism (CBAM) as an example. Australia will consider a CBAM as part of its upcoming review of the Safeguard Mechanism, with an earlier review finding such a scheme would encourage low emissions technology rollout and protect against carbon leakage. (Australian Financial Review)

In limbo – The first ballot to register exotic forestry on marginal land in the NZ ETS has now closed, the Ministry for Primary Industries (MPI) said on Thursday. Successful applicants will be notified once the ballot has been drawn, it added. The move to a ballot follows legislative changes to restrict the amount of farm-to-forest conversions for the carbon market, with two such lotteries taking place to allocate permits to 15,000 ha of LUC 6 land each year. MPI said it would announce the date for this year’s second draw once it has been confirmed.

Australia’s most populous state has made progress, but will still miss its 2030 and 2035 emissions reduction targets, the Net Zero Commission warned Thursday.

Several proposals on what to do with Colombia’s carbon tax from designated ministers and the newly installed Congress have appeared this week, uncovering the first carbon governance challenges for the country’s incoming administration.