Canadian Prime Minister Mark Carney on Thursday unveiled the first set of projects to be reviewed for advancement by Canada’s new Major Projects Office (MPO), including LNG production and carbon capture, utilisation, and storage (CCUS) projects.

Several countries in Latin America will seek an extension in the timeline to transition projects to Article 6.4 of the Paris Agreement from the Kyoto-era Clean Development Mechanism (CDM), an expert told Carbon Pulse.

Mexico will be heavily relying on decarbonising its transportation sector in its effort to reach its 2030 nationally determined contribution (NDC), which may prompt crediting registries to create new methodologies tailor made for the sector.

Colombia-based BioCarbon Standard opened a public consultation on Tuesday for version 4.0 of its methodology for carbon credits generated in high mountain ecosystems.

Prominent lawmakers from the European Parliament's largest political party have recommended including international carbon credits in the EU's Emission Trading System (ETS) from 2031 to help meet the 2040 emissions target – in a stark difference from the European Commission's proposal.

In the first half of 2025 over 35% of credits came from higher rated projects, up from 25% in 2022, according to new analysis. 

The EU looks increasingly unlikely to meet a September UN deadline for its updated 2035 climate target, with only 31 countries out of 197 currently on-track to meet the deadline.

An expert panel, working to shape the new Paris Agreement Crediting Mechanism (PACM), has moved to tighten safeguards against the permanence risk of mitigation activities, publishing a new draft standard on Thursday that narrows the definition of what would be a negligible risk of reversal, but the market remains unhappy.

EU carbon prices slipped lower early on Thursday as traders indicated a degree of 'bullish exhaustion' after the market had climbed €5 over the previous eight sessions, before falling sharply to a technical support level after reports that Germany is seeking to slow the pace at which free allocation is reduced.

A new global shipping carbon pricing scheme must channel part of its revenues beyond the maritime sector if it is to avoid worsening inequality and help vulnerable nations, according to new research.

Methane mutiny - US Energy Secretary Chris Wright and Interior Secretary Doug Burgum are urging the EU to roll back its forthcoming methane emissions rules on energy imports, warning that the regulation, set to take effect in 2027, could jeopardise a new trade framework committing $250 bln in American LNG exports to Europe, E&E News reported. The Trump administration is pressing its case during visits to Milan’s Gastech conference and Brussels this week, arguing the rules act as “non-tariff barriers” that US producers cannot meet. The American Petroleum Institute has also criticised the regulation as “ill-conceived”, while European campaigners warn against weakening the law under US pressure. The debate comes as Europe seeks to reduce reliance on Russian gas while US suppliers race to secure long-term contracts, with analysts split over whether American exporters can comply with the stricter methane standards.

European centrist MEPs have sounded the alarm over the potential loss of the Just Transition Fund (JTF) in the EU's next budget, and called for a "JTF 2.0" centred on local communities and economic growth.

European Union plans to extend its flagship Carbon Border Adjustment Mechanism (CBAM) to chemicals could leave 50-60% of the emissions unpriced unless the policy is significantly strengthened to account for greenhouse gases embedded in fossil feedstocks and refinery products, according to new research.

Blue carbon - Indonesia’s fisheries ministry is preparing 17 sites to be designated as national strategic areas for blue carbon reserves, Antara reported Thursday. An official said restoration will focus on mangroves and seagrasses along Central and East Java’s northern coasts, with plans also covering city clusters such as Greater Jakarta and Surabaya’s Gerbangkertosusila. But the official also warned that regulations are still needed to establish a standard methodology for measuring carbon in seagrass.

Climate-smart rice for ITMOs - An inception meeting has been held on a climate-smart rice programme in Ghana by the United Nations Development Programme (UNDP) and partners. The convening saw stakeholders align on the project's aims, roles, workplace, safeguards, and monitoring and brought together government, research, and supply chain partners to discuss the national programme to promote alternate wetting and drying (AWD) irrigation in rice cultivation. It's expected to help farmers reduce water use and methane emissions whilst sustaining incomes and yields. The programme falls within Ghana and Switzerland's Article 6 bilateral agreement, and will therefore be authorised for Internationally Transferred Mitigation Outcome (ITMO) units. By 2030, it's expected to yield about 1.2 mln tonnes of CO2 eq. emissions reductions. (Ghana News Agency)

A free shop window of carbon removal (CDR) forward issuance is being created by a New York stock exchange in conjunction with a standard body.

The Tswalu Rewilding Project in South Africa is boosting carbon storage through the sustainable management of wildlife and livestock, as well as regenerative grazing, rather than reforestation, which the developers argue can ecologically damage historic grasslands.

Higher coal burn helped drive a 9.5% increase in CO2 emissions from power generation in the Netherlands in Q2 this year compared to 2024, Dutch institutes reported on Wednesday.

A German direct air capture (DAC) company has Wednesday confirmed the construction of a demonstration facility in Berlin scheduled for the second half of 2026.

Dangerous allies - The UK's far right-leaning Reform Party is being advised by the Heartland Institute think tank, which denies climate change science and claims the government wants to use electric vehicles to control its citizens. The Heartland Institute told Politico this week it's conversed with Reform policymakers. Earlier this year the institute backed US President Donald Trump's decision to exit the Paris Agreement and roll back Biden-era clean energy projects. Its president has denied we're facing a climate crisis, and its UK and Europe director has warned against EVs as being remotely controlled and thus being a presented as a government tool to reduce civil liberty. Reform has pledged to scrap the UK's net zero target, saying doing so will bring down record household energy bills.

Electricity network operators have started using AI tools to forecast wind production or market prices, but more ambitious automated systems that could help accelerate grid decarbonisation and support EU climate goals have been stopped in their tracks due to safety and cybersecurity concerns, experts say.

Europe's energy efficiency - More than 350,000 European companies are to receive energy efficiency support under a €17.5 bln pledge from the European Investment Bank (EIB). The commitment is to nearly double the bank's financing in this area this year and also sees it team up with non-profit Solar Impulse Foundation to promote energy efficiency as a service. The initiative announced Thursday in Brussels aims to help small- and medium-sized businesses lower their energy bills and boost their resilience.

A US company developing renewable-powered organic nitrogen fertiliser technology has raised $50 million to expand its operations across the US and into Europe, it announced Wednesday.

Global oil markets are still heading towards a glut of over-supply in the near term, the International Energy Agency (IEA) said Thursday, though reports have surfaced claiming the Paris-based agency is about to admit oil and gas demand could rise until 2050.

The World Bank has approved a $212.6 million blue carbon programme to help protect coastal ecosystems in India’s southern states of Tamil Nadu and Karnataka, the lender said this week.

A Greenland-based enhanced rock weathering startup announced Monday it has raised €6.1 million ($7.1 mln) in seed funding backed by the Danish government and other investors.

Ireland's Social Climate Plan - Irish Climate, Energy, and Environment Minister Darragh O'Brien launched the first of two public consultations on Thursday on the development of the country's Social Climate Plan, covering 2026-32. Ireland could recoup up to 75% of the cost of eligible measures within the plan - as much as €663 mln - under the EU's Social Climate Fund, which the bloc is launching to help vulnerable households cope with the new ETS2 for road transport and heating fuels. The Social Climate Plan, which all EU countries are due to submit, should set out how Ireland plans to use those funds. The first consultation runs until Oct. 23. The second consultation is planned for November.

Milestone - China's first offshore CCS pilot, operated by state-owned power group CNOOC, has reached a milestone with the injection of over 100 mln cubic metres of CO2 into an oilfield in the Pearl River Mouth Basin, China Daily reported. The project helped reduce carbon emissions equivalent to planting 2.2 mln trees, and the Enping 15-1 oilfield is expected to inject over 1 mln tonnes of CO2 over the next decade. CNOOC also plans to establish CO2 enhanced oil recovery facilities in the northern and southern regions of China.  

Singapore risk - Carbon insurer Oka, which operates through Lloyd’s Syndicate 1922, has expanded into the Singapore market, offering corporates and financial institutions in the island state policies aimed at reducing invalidation, reversal, delivery, and political risks across the voluntary and compliance carbon markets, as well as credit cover for climate transition projects and green financing agreements. Singapore is rapidly emerging as a hub for carbon and nature markets, bolstered by Article 6 trading frameworks, domestic tax regimes, and a regional role as a financial centre.

CCS demand - Industry demand for subsea carbon storage off the UK was larger than expected in the North Sea Transition Authority's (NSTA) call for nominations in its second UK offshore carbon storage licensing round. In 2023, the NSTA completed the world's first carbon storage licensing round, and has also issued carbon storage permits to Eni and a BP and Equinor-led JV in Teesside and northwest England. But with projects in Scotland and the Humber also progressing, it expects to eventually issue more licenses for further CCS projects. By 2050, it expects rates of 100 mln tonnes per annum will likely be needed just to meet domestic requirements. The agency is now considering where new areas will be opened up to storage applications and on what time line. (Energy Voice)

Prawn CO2cktail - Researchers at the University of Sharjah in the UAE have developed a novel method to convert shrimp waste into high-performance activated carbon capable of capturing CO2. The process uses discarded parts such as shells, heads, and guts - waste that contributes to the estimated 8 mln tonnes of global shellfish waste annually. After cleaning and drying, the waste undergoes pyrolysis, acid treatment, chemical activation, and ball milling to produce a stable and reusable carbon material. The resulting activated carbon has strong potential for use in industrial carbon capture, particularly in sectors such as power generation, cement, steel, and petrochemicals. Beyond CO2 capture, it could also be applied in air and water purification, solvent recovery, gold extraction, and medical uses. The researchers describe the innovation as a cost-effective, scalable, and sustainable approach that exemplifies circular economy principles by turning problematic waste into a valuable climate mitigation tool. Their findings were published earlier this year in the journal Nanoscale.

A whale of a hypocrite - President Donald Trump, who has cited whale protection as justification for blocking offshore wind projects, is now backing a $44 bln fossil fuel development in Alaska that could harm an endangered whale species. The Alaska LNG project includes an export terminal and an 800-mile pipeline, and requires federal approval to disturb the Cook Inlet beluga whale - a critically endangered population of just 330 animals. Despite previously blaming wind energy for whale deaths on the East Coast without evidence, Trump’s administration is now preparing to authorise “Level A or Level B harassment” of marine mammals, which can disrupt feeding, migration, or breeding behaviours. (E&E News)

Worth the heat - US Interior Secretary Doug Burgum has argued that the race to develop AI poses a greater existential threat than climate change, justifying an expansion of fossil fuel use to power energy-hungry data centres. Speaking at the Gastech natural gas conference in Italy, Burgum said that a 1C rise in climate change is an acceptable trade-off for ensuring the US does not lose the AI arms race, echoing broader Trump administration messaging that downplays the risks of global warming while promoting coal and natural gas. The administration has simultaneously advanced fossil fuel projects and halted major clean energy initiatives — including offshore wind farms and a $20 bln fund for renewable deployment in low-income communities — while citing the need for reliable, abundant power to compete with China in AI development. Critics say this strategy undermines the country’s energy resilience and contradicts the very goals it claims to support. They warn that the US risks losing both the AI and energy races by sidelining clean technologies, especially as renewables made up over 80% of new power capacity in 2024 and are projected to maintain that trajectory in 2025. Industry leaders have also raised concerns that excluding renewables will exacerbate energy shortages as demand surges. Meanwhile, China is tying its AI development to low-carbon power, requiring new data centres to source 80% of their electricity from clean energy. Global temperatures have already risen by more than 1C since pre-industrial times, and are on track to exceed the Paris Agreement's below-2C target. (E&E News)

Tanzania carbon - The Rubeho Mountains carbon project in Tanzania has been named among four African initiatives selected for support under the UK-backed Carbon Accelerator Programme for the Environment (CAPE). This is a technical assistance programme designed to catalyse investment in nature-based carbon and biodiversity projects across Africa. It aims to increase investment into projects tackling climate change and biodiversity loss, and to build confidence in Africa's nature-based markets. It will leverage both carbon credits and biodiversity improvements to demonstrate a viable commercial business case for investors and is delivered in partnership with Finance Earth, an investment advisory firm. (The Citizen)

Natural hydrogen exploration - Viridien, a digital Earth data company, has formed a strategic partnership with Mantle8, a French geoscience company focused on natural hydrogen exploration, they announced in a release Thursday. The two will work together to accelerate hydrogen exploration across EMEA, underpinned by Viridien securing a strategic investment in Mantle8. The partnership gives Mantle8 access to GeoVerse, Viridien’s geological database, to support natural hydrogen exploration in EMEA. It will also help Mantle8 to image subsurface hydrogen-generating systems with greater precision and efficiency.

South Korea is planning to tighten its emissions market in the coming few years, as a lasting glut of carbon allowances could hamper the country's climate actions, according to a draft plan proposed by the government. 

A Malaysian bank with $100 billion in total assets said Thursday it will engage with carbon markets and biodiversity finance as it takes a portfolio-wide view to embed nature risks into its strategy and financing rules.

New shores - Carbon insurance company Oka on Thursday said its offerings will now be available in Singapore, as it expands in new markets to cover reversal, delivery, and political risks across the voluntary and compliance carbon markets. Last month, the London-based company entered into the green credit insurance market.

CCS industry pushback – The Carbon Capture Coalition pushed back Wednesday against media coverage of a new study on CCS published in the journal Nature, saying it mischaracterises the role of the technology in addressing climate change. Jessie Stolark, the Coalition’s executive director, said carbon capture and removal have never been promoted as a ‘total solution’ but as one tool among many required to meet climate targets. She noted both the IEA and IPCC identify carbon management as essential, though not exclusive, to cutting emissions. Stolark emphasised the U.S. has sufficient geologic storage capacity and rejected framing climate strategies as competing rather than complementary.

Better transparency - AlliedOffsets has launched a Quality-Weighted Carbon Price Index with ratings agency Sylvera, the data provider announced on LinkedIn. The new market intelligence tool integrates weekly pricing data based on trading data with scientifically-backed project quality assessments, which is designed to boost carbon market transparency. Fundamentally, the AlliedOffsets-Sylvera Index correlates price movements with rigorous quality metrics, which they say addresses a key market need.

Lead by example - The Nordic countries are positioning themselves as leaders in international carbon market cooperation under Article 6 of the Paris Agreement, finds a new regional summary report, commissioned by the Nordic Initiative for Cooperative Approaches (NICA) and developed by the Nordic countries and Nefco. While EU members Finland, Sweden, and Denmark cannot use international credits toward EU targets, they are exploring ITMOs for national goals. Norway and Iceland, outside the EU, have greater flexibility and plan to use ITMOs to meet climate neutrality. Nordic governments are forging bilateral agreements with countries such as Ghana, Kenya, and Switzerland, while also engaging in World Bank- and UN-led platforms. Officials see Article 6 as a tool to mobilise finance, foster sustainable development, and raise global ambition. All countries are looking to achieve climate neutrality before 2050, the report also highlighted.

Japan-Ghana partnership – Tokyo Gas has entered a partnership with Kansai Electric Power and Three Trees Private Limited to develop a carbon offset project in southern Ghana. The initiative will involve reforestation of degraded land and restoration of primary forests over 40 years, aiming to produce 1.2 mln high-quality carbon credits aligned with the Core Carbon Principles of the ICVCM. Beyond carbon sequestration, the project seeks to enhance biodiversity, create employment opportunities, and improve local infrastructure, thereby delivering significant co-benefits to the community, the gas company said.

Businesses in New Zealand are contending with increasingly stringent climate change commitments abroad, while simultaneously downplaying these efforts domestically to avoid crossing wires with the National-led coalition's recalcitrant stance on climate change, experts at a climate change conference said this week.

France has approved a new version of the boisement methodology under the 'low-carbon label', but pressure from foresters and project developers led to a partial rollback of recent changes.

Ready to tax – Botswana is advancing towards implementing a carbon tax, with the Ministry of Environment and Tourism developing a framework to guide its introduction, according to media outlet Mmegi Online. Balisi Gopolang, climate change officer at the ministry, confirmed that while no legislation currently exists, the government is actively working on opening up Botswana to the carbon market alongside introducing a carbon tax. The proposed tax aims to impose a fee on fossil fuel combustion based on CO2 emissions.

South Korea's latest monthly CO2 permit auction was again oversubscribed with an increase in the clearing price, but market participants are expected to continue to take a wait-and-see approach in the absence of confirmed policy updates.

India’s nascent Carbon Credit Trading Scheme (CCTS) could generate around $500 billion in revenues by 2050 if the coal-heavy power sector is brought under its ambit, according to a report released this week.

Scaled back - Australia is looking to host a scaled back version of the COP31 talks, if it is successful in its bid, the Australian Financial Review reported. Documents published about the event by the government said it expected to host some 52,000 people, including delegations, media, and observers, however, government sources said Australia is opting for a much lower number at some 30,000 people, with little desire to host similarly large events as the UAE and Azerbaijan. A spokesperson for the Department of Climate Change, Energy Environment, and Water said the COP would be smaller, delivered at value for money, and focused on outcomes. Australia has yet to secure the talks, as Turkiye is still pursuing its own bid.

Expertise needed - The the Methodologies Expert Panel (MEP) for the new PACM has agreed to seek input from stakeholders on the following draft methodology and methodological tools:

• Draft Methodology: Flaring or use of landfill gas
• Draft Tool: Emissions from solid waste disposal sites
• Draft Tool: Project emissions from flaring
• Draft Tool: Mass flow of a greenhouse gas in a gaseous stream
• Draft Tool: Investment Analysis

Input received will be considered by the body at its next meeting on Oct. 13-14. The calls for input were launched this week and will be live for three weeks, the UNFCCC confirmed. A review of last week's latest MEP meeting can be found here.

Guidance - Hong Kong's stock exchange this week published a buyer's guide for carbon credit purchases, as it aims to help corporates shortlist carbon projects and make more informed decisions for their needs. HKEX, which launched Hong Kong’s carbon marketplace Core Climate in 2022, said companies can select carbon projects that not only support their emissions targets, but also reflect their wider sustainability ethos, such as biodiversity and relevance to their supply chain. The guide also noted that corporates should consider neutralising residual emissions through highly durable carbon removal credits in the long term.  

One of Japan's largest securities groups is seeking to source carbon credits from both domestic and international projects amid rising demand from clients, a company official told Carbon Pulse.

Hot air – New Zealand’s climate minister, Simon Watts, has said the dairy industry should shoulder the blame for not having done enough to reduce its emissions, Newsroom reported on Wednesday. Ahead of the government’s decision regarding its biogenic methane target, which it is widely expected to weaken, Watts said that dairy giant Fonterra has more power to effect emissions reductions than even the government. New Zealand has a legislated target to cut biogenic methane emissions to 24-47% below 2017 levels by 2050, and a 2030 goal of 10%; as of the end of 2023, it had achieved a 4.5% cut. However, the government last year scrapped plans for agriculture to enter the country’s ETS, and controversially appointed an independent panel to review the country's methane science and targets. The panel said the country could lower its methane reduction ambitions – with a 14-15% reduction sufficient to meet a “no additional warming” condition, far below the 35-47% reduction that the Climate Change Commission advised is needed. Scientists in June warned Prime Minister Christopher Luxon that changing how the country accounts for biogenic methane emissions risks jeopardising its Paris Agreement commitments.

Leaders attending the Pacific Islands Forum (PIF) summit in Honiara on Wednesday signed a treaty to establish the first Pacific-owned and -led climate finance vehicle, Carbon Pulse learned.

Voluntary carbon credit retirements in the Australian registry climbed upwards in August, but are still well-below previous trends, Clean Energy Regulator data shows.

Brazil will present a plan next week to establish a new forum for international discussions on the intersection of climate and trade, an international media outlet reported Wednesday.

Hot record – Geothermal energy produced a record 2,471 GWh of electricity in New Zealand in Q2, government data published on Thursday showed. This offset a near-7% drop in hydropower, compared with the same period in 2024, although it did produce 10% more electricity than in the first three months of this year, at 5,449 GWh – the most from any source. Coal and gas output were both fractionally higher quarter-on-quarter, but down on 2024 – with coal seeing a 38% drop year-on-year. The government also noted that Methanex, the country’s largest industrial user of gas, paused operations during the period to free up gas for electricity generation, amid an ongoing gas supply crunch. In total, renewable energy accounted for 84.1% of electricity in the quarter, up 0.9 percentage points QoQ. Power sector emissions are covered under the NZ ETS, and the energy sector overall reported an increase in covered emissions in the latest system data. Methanex is also covered by the scheme, with the methanol producer receiving the second-largest batch of NZUs via free allocation arrangements.

Relinquished – An Australian carbon project developer has voluntarily relinquished 651 Kyoto Australian Carbon Credit Units (ACCUs), according to a registry update. Greenfleet Australia gave up the ACCUs as part of its work to withdraw its Wallamba-Bulahdelah Revegetation project, under s29 of the CFI Rule, a Clean Energy Regulator spokesperson told Carbon Pulse this week. The project was first registered in 2015 and was issued the ACCUs in 2019-20. Two other environmental plantings projects have relinquished ACCUs in the scheme's history, according to the register.

The US DOE has told a Massachusetts court that it has dissolved the Climate Working Group (CWG), which produced a controversial report cited by the US EPA in its proposal to repeal the 2009 endangerment finding.

Pipeline peril – A new coalition of California residents, environmental groups, and health advocates has launched a campaign opposing the proposed Montezuma Carbon Hub, which would include a 45-mile (72 km) CO2 pipeline and underground injection well near the Suisun Marsh. The Communities Against Carbon Transport & Injection (CACTI) rallied in Solano County, warning that CO2 pipelines pose risks such as leaks, corrosion, and threats to public health and drinking water. The launch comes as state lawmakers consider lifting California’s moratorium on CO2 pipelines, which campaigners argued would open the door to “carbon dumping projects” that subsidise fossil fuel companies while endangering communities.

A US oversight body voted Wednesday to rescind the charter of two committees dedicated to studying and analysing climate-related financial risk at a systemic level.

Charging up – The Australian Renewable Energy Agency (ARENA) has committed A$12.3 mln ($8.1 mln) to Mondo Power to develop, build, and operate an electric truck charging hub in Melbourne's west to demonstrate the technical and commercial feasibility of fleet electrification, it announced on Thursday. Based in Laverton North, the hub will consist of 14 dual plug EV chargers and will be purpose built for heavy battery electric vehicle (BEV) trucks. The cash will support the installation of fit-for-purpose truck charging infrastructure, and partially offset the total cost of ownership for 20 heavy BEV trucks, the agency said. Transportation is Australia's fastest-growing source of emissions.

Buying offsets is not associated with faster decarbonisation or stronger climate targets among large emitters in aviation, oil and gas, and autos, according to a new study.