Cali cap-and-invest - California regulator ARB will conduct a public hearing on its proposed changes to its cap-and-invest programme, formerly known as cap-and-trade, according to a notice circulated Tuesday. The hearing will take place on May 28 at 0900 PST (1700 GMT).

The UK government is launching a £15 billion plan to help warm up millions of homes with clean and energy efficient upgrades – in an effort to tackle one of the country's biggest emitting sectors, it announced on Tuesday.

AI accounting – An AI impact calculator aimed at quantifying the energy, water, and emissions footprint of major generative models was launched on Tuesday by ESG.AI. The publicly accessible tool allows users to compare models including ChatGPT, Gemini, Claude, Grok, Perplexity, and Mistral by inputting usage levels and geographic location, with outputs covering electricity consumption, water use, emissions, and operating costs over monthly to annual timeframes. ESG.AI said the calculator is already being used by organisations facing environmental disclosure requirements and is intended to inform procurement, policy, and investment decisions as scrutiny of AI infrastructure grows.

Warming-driven emissions from thawing permafrost, boreal wildfires and tropical wetlands could shorten the timeline to exceed Paris Agreement temperature thresholds by 20-25% by mid-century, even under ambitious emissions-cutting scenarios, according to a study.

RGGI Allowance (RGA) futures dropped last week into the US holiday Monday, though prices began to recover on Tuesday.

An accelerated adoption of electric vehicles (EVs) in Brazil could mean savings of up to R$1.39 trillion by 2050 ($250 billion), according to a report published on Tuesday.

A new study quantified the upper bound of additional climate mitigation achievable through optimised forest management, finding gains of 9.2-10.2 tonnes of CO2 per hectare by 2100 once all major carbon effects are accounted for.

The European Commission has postponed its proposal for boosting the EU's clean tech industry and reducing strategic dependencies by nearly a month, to late February, according to its revised agenda published on Tuesday.

BECCUS balancing act - A recently published study has found that bioenergy with carbon capture, utilisation, and storage (BECCUS) could support climate mitigation while creating trade-offs for other UN sustainable development goals (SDGs). Assessing the full BECCUS value chain, the authors concluded the technology affects 53 of the UN’s 169 SDG targets and 15 of the 17 goals overall, with the strongest positive impact linked to climate action through long-term CO2 removal. However, the analysis also identified risks related to land use, water demand, infrastructure costs, and unequal access to technology between developed and developing countries, and suggested policy safeguards would be needed to ensure BECCUS deployment aligns with broader sustainability objectives.

Conversations on risk could be an ideal vehicle for bringing nature and biodiversity into the corporate consciousness, a panel heard during the World Economic Forum’s annual meeting in Davos on Tuesday.

SAF purchase - Trafigura has signed a six-year deal for sustainable aviation fuel (SAF) offtake from SP Developments Uruguay (Syzygy)'s first commercial facility, the commodities group announced on Tuesday. The agreement covers all of the production volume from the Uruguay flagship plant, which will produce SAF from biogas using renewable electricity, and gives Trafigura the option to purchase additional volumes from Syzygy's future projects. The companies aim to make the first deliveries in 2028. Syzygy's technology has received ISCC pre-certification to produce RFNBO- and advanced bioSAF-compliant fuels, which means it could help to meet rising SAF mandates in the EU, UK, and elsewhere.

Slovak Prime Minister Robert Fico has urged European Commission President Ursula von der Leyen to freeze the EU Emissions Trading System (EU ETS), arguing that high carbon prices are destroying Europe’s industrial competitiveness.

Retrofitting carbon capture and storage (CCS) systems at US pulp and paper mills could convert the facilities from net emitters into carbon sinks, though reported removal rates depend heavily on how emissions boundaries are defined, according to a study published this month.

EU carbon prices extended selling for a second day, driven to a five-week low by the busiest-ever day for front-December futures on the ICE Endex exchange, as long-positioned speculative traders continued to slash holdings in a sell-off that participants said was a reaction to many months of steadily increasing prices, while natural gas continued to recover after Monday morning's sharp drop.

Turkiye's Emissions Trading System (ETS) pilot phase did not launch on Jan. 1 as expected, with the start date now likely postponed to mid-2026 or even the start of 2027, several sources told Carbon Pulse.

Border battles - The UK's plan to introduce a new carbon border tax next year will accelerate the decline of its industry, warned the steel, chemical, and cement sectors. Industry groups say the UK Treasury has failed to heed their concerns and as currently stands, the UK policy will favour overseas competitors over domestic producers. The UK's Carbon Border Adjustment Mechanism (CBAM) is set for entry in Jan. 2027, following this month's introduction of the EU's CBAM, both intended to prevent so-called carbon leakage. Legislation is currently passing through parliament to implement the UK CBAM and industry groups have warned time is running out to change what they say are major flaws. The policy as it stands risk under-reporting some import emissions, according to the Mineral Products Association, because the Treasury plans to apply a single rate to each sector covered by the CBAM, calculated on average emissions values, rather than differentiating by product type and country of origin, as the EU scheme does. Industry has also warned the UK CBAM would leave UK exporters exposed, and the one-year time lag between the EU and UK CBAM entry is already leading to products being dumped in Britain to avoid the EU import tax.  (FT)

The Science Based Targets initiative's (SBTi) updated Corporate Net-Zero Standard is set to recognise companies using carbon credits to compensate for their ongoing emissions as they transition towards net zero.

CDR collab - Carbon removal portfolio manager ClimeFi is working with Raisin to help the financial services provider explore and implement climate action. The Raisin platform allows savers and financial institutions to connect - driving better returns and stable retail deposit funding. By engaging with the carbon removal platform, Raisin therefore aims to contribute to climate solutions beyond its own value chain.

A Calgary-based carbon offset provider has secured C$25 million ($18.1 mln) to scale its platform.

A carbon removal standard has issued the world’s first certified carbon removal credits from river alkalinity enhancement (RAE), they announced Tuesday.

Gold Standard has risked creating “serious operational bottlenecks” that could undermine investor confidence after it said fresh vintage credits must be Paris-aligned, warns a lobby group for project developers.

Carbon crediting rules for enhanced rock weathering (ERW) on farmland may be relying on flawed monitoring approaches and should focus on tracking weathering-derived cations rather than carbon flows in soils, according to a recent academic review.

A major European investor has secured $690 million in commitments for a newly launched blended finance fund aimed at supporting climate-related investments in emerging markets.

While the US move to withdraw from the UN Framework Convention on Climate Change (UNFCCC) has reopened unresolved constitutional questions over presidential authority, legal experts say the decision is unlikely to materially weaken domestic climate litigation or existing legal obligations.

The UK government has announced a £43 million funding package to accelerate green aviation technologies, support high-skilled jobs and cut the environmental impact of flying.

EU plans to produce 35 billion cubic metres (bcm) of biomethane by 2030 risk being stymied by falling natural gas prices unless the 27 members states co-ordinate on strategy, warns a new research paper.

The UK’s new corporate sustainability reporting standards should focus on asking for the most relevant information – rather than following the EU example of demanding a “laundry list” of disclosures, according to experts. 

A local infrastructure firm has committed C$10 million ($7.2 mln) to support the development of a biocarbon facility in Northern Ontario, which aims to produce up to 50,000 tonnes annually, the project’s developer said.

Data delivery - Chloris Geospatial is partnering with re.green, a developer of ecological restoration projects in the Amazon and Mata Atlantica, as announced on LinkedIn. By joining forces, the two aim to combine large-scale ecological restoration with advanced, space-borne data to make scaling nature-based projects more accurate, transparent, and reliable. It will see Chloris provide above-ground biomass data to re.green to support robust, high-quality dynamic baselines, aligned with recent carbon methodology requirements.    

A carbon crediting body has launched a public consultation on a draft methodology aimed at measuring emission reductions from renewable energy projects that supply electricity directly to third-party consumers.

Solar build - Indonesian renewable energy company PT Kencana Energi Lestari has secured a $25 mln contract from state utility PT Perusahaan Listrik Negara (Persero) to build and operate a solar-plus-storage project, IDN Financials reported. The deal covers a 10-MW solar plant with 8.4 MWh of battery storage, with electricity sold to PLN under a 20-year power purchase agreement. Kencana expects to earn $13.8 mln from construction and about $1.6 mln annually from power generation, with construction starting in 2026 and commercial operations targeted for the first quarter of 2027.

A California-headquartered and Alberta-incorporated carbon management firm and a UAE-based investment platform have launched a jointly governed vehicle aimed at investing up to $100 million in decarbonisation and energy transition projects by end-2027, they announced Tuesday.

The total number of companies that have climate targets validated by the Science Based Targets initiative (SBTi) rose to nearly 10,000 corporates in 2025, up 40% year-on-year, data published by the organisation and tracked by Carbon Pulse indicates.

Vietnam has issued a decree laying out the legal and operational framework for a domestic carbon trading exchange, nearly 10 months after an initial draft was released, clarifying governance roles while leaving key aspects of trading mechanics to future regulations.

Indian companies are increasing climate-related disclosures, but most still lack credible transition plans aligned with global best practices, according to an assessment of corporate climate reporting released Tuesday.

Resubmission - Japan’s Inpex said it will resubmit an environmental plan for its proposed 8 Mtpa Bonaparte CCS project off the north coast of Australia after withdrawing the original submission from the public comment portal while awaiting details of updated Australian environmental laws. The company said it remains fully committed to progressing the offshore CCS development and will consult with Australia’s environment department before re-filing, although it has not set a timeline for resubmission. Inpex has already lodged a separate referral with the Northern Territory government for the project’s onshore components, and the Bonaparte project began preliminary engineering in April and was granted major project status in July 2025. (Reuters)

First climate roadmap - E-commerce giant eBay last week released its inaugural Climate Transition Plan, setting out a science-based pathway to net zero emissions by 2045 and aligning its operations with long-term climate goals. The plan includes validated targets under the Science Based Targets initiative (SBTi), including a 90% cut in full value chain emissions by 2045, and a 27.5% reduction in Scope 3 emissions from downstream transport and distribution by 2030. The strategy also integrates climate risk into financial planning and governance, and outlines actions to scale sustainable commerce through its circular marketplace model. Measures include low-emission logistics partnerships, supplier engagement, local delivery incentives, and a commitment to neutralise any remaining emissions through durable CDR by 2045. The company said it had already reduced Scope 1 and 2 emissions by 92% from 2019 levels and achieved 100% renewable electricity across its operations.

WWF Singapore has launched a blue carbon initiative with support from the Singapore Economic Development Board (EDB) to advance the development of nature-based solutions (NbS) projects in Asia.

Mission accomplished - A new study conducted by a team of French researchers and published in Ecological Economics has concluded that EU ETS significantly reduced CO2 emissions in the power sector across 24 member states from 2005 to 2020, the period covering the first three phases of the scheme. To isolate the ETS’s causal impact from overlapping climate policies and weather influences, the authors use a Bayesian structural time series model to create counterfactual emissions estimates - what would have happened without the ETS - and compare them with actual emissions. The results show no statistically significant reduction in power sector emissions during Phase 1 (2005–07) but clear, statistically significant reductions in Phase 2 (2008–12) and Phase 3 (2013–20), reflecting the policy’s growing effectiveness over time. The paper highlighted the power sector’s central role in EU decarbonisation and contributes a novel methodological approach for evaluating carbon market impacts on sectoral emissions.

There are at least two viable ways to couple sovereign debt relief with carbon markets, rewarding measurable mitigation outcomes, according to the lead author of a discussion paper published Tuesday by an environmental non-profit and a think tank.

CCB credits - Over 250,000 Climate, Community and Biodiversity labelled credits have been issued by project developer TASC for a grassland restoration project in South Africa, it announced on Tuesday. The credits will be issued under Verra’s updated VM0042 methodology. The project covers over 95,000 hectares of South African grasslands and will employ almost 300 people, TASC said in a statement.  

Steaks, burgers, and other meat should be taxed more in the EU to help change people’s diets and cut related greenhouse gas emissions around the world, according to a new study.

Steel collapse case - The government of France is seeking €95 mln in damages from Greybull, declaring the UK private equity group was responsible for the loss of over 500 jobs at the Novasco steelmaker it previously owned. Greybull acquired Novasco in July 2024 and pledged to invest €90 mln to keep the company afloat, but the attempt failed and put hundreds of roles at risk. France is saying Greybull spent just €1.5 mln of the €90 mln it had committed, which ultimately led to Novasco's Hagondange plant in northeast France and some smaller sites to close down. The French state injected €85 mln into the plants but alleges Greybull didn't stand by its buyout agreement. The case comes as the European steel sector battles increasing competition from China and governments strive to prop the industry up in a bid to save jobs and industrial security. The first hearings in this legal case will start on May 7. (FT)

Entitlement supply is a significant factor contributing to carbon price volatility in New Zealand's emissions market, while demand-side factors exert only limited and short-lived effects on carbon price fluctuations, a new study has found.

The Climate Fund Initiative, which calls for a substantial increase in public funding for climate protection, should be rejected when it heads to a public vote in March, both the Federal Council and Parliament said Tuesday.

More of the blue - Fiji has launched a 10-year national Blue Economy Framework (2025-35) setting out policy direction for sustainable ocean-based development while protecting marine ecosystems. The framework aligns with Fiji’s National Development Plan, National Ocean Policy, and the Paris Agreement commitments, and aims to sustainably manage 100% of the country’s oceans while fully protecting at least 30% by 2030. It prioritises sustainable fisheries and aquaculture, climate-resilient marine tourism, renewable ocean energy, low-emission maritime transport, and conservation-led enterprise, and positions communities, women, youth, and small enterprises as central to implementation.

Oversight - Indonesia plans to rehabilitate around 12 mln ha of degraded forests by 2034, Ministry of Forestry said on Tuesday. Deputy Minister Rohmat Marzuki told a parliamentary hearing that forest cover spans about 119.7 mln ha, or 62.5% of Southeast Asia’s largest economy's land area. Deforestation, meanwhile, fell to 166,450 ha by the third quarter of 2025 from 175,437 ha in 2024, driven by stronger monitoring and law enforcement, the ministry said. The government is also promoting social forestry, targeting 1.1 mln ha across more than 3,000 villages to support food, energy, and water security. Authorities meanwhile have revoked 40 underperforming forest-use permits covering 1.5 mln ha and reclaimed areas affected by illegal palm oil planting and mining. The ministry also plans to establish 35 regional forestry coordination centres to improve oversight.

Indonesia needs a better assessment framework for seagrass carbon emission factors (EFs), considering noticeable regional differences across the country, according to a study.

Science Based Targets initiative’s (SBTi) proposal to use only removals, and not high-integrity reductions, for corporate climate action is “misaligned with the Paris Agreement” and risks slowing decarbonisation efforts, according to a note from an investment platform.

The Clean Energy Regulator finished the year issuing a lower volume of Australian Carbon Credit Units (ACCUs), according to its latest update, but has brought total 2025 issuance well within its forecast range.

Green light - The Western Australian government's EPA has recommended approval for Black Mountain Energy's controversial plan to frack up to 20 gas wells in the Kimberly Region of the state, Boiling Cold reports. Federal scientific advisers and the environment department have criticised the company’s environmental risk assessment as inadequate and raised concerns about potential impacts on water resources and threatened species. The final decision now rests with the state environment minister, and if the exploratory project proves successful, it could lead to many more wells and major infrastructure, such as a long pipeline to export facilities like Woodside Energy's North West Shelf LNG facility.

New method - Researchers from Australia's Monash University have developed a method they claim can recover high-purity nickel, cobalt, manganese, and lithium from spent lithium-ion batteries (LIBs) using a mild, sustainable solvent. Globally, around 500,000 tonnes of spent LIBs have already accumulated, and only about 10% of spent batteries are fully recycled in Australia, the university said in a release. The Monash team said its new approach achieves more than 95% recovery of nickel, cobalt, manganese, and lithium, and offers a safer and more environmentally friendly alternative to traditional methods.

Asia’s first - Grow Indigo’s soil carbon project has become the first in Asia to receive issuance under Verra’s VM0042 soil carbon methodology, the company announced, describing it as a major milestone for high-integrity agricultural carbon markets. The Aadi project, covering about 30,000 acres across India’s Punjab and Haryana, has generated more than 50,000 carbon credits tied to regenerative farming practices and will see 75% of proceeds flow directly to smallholder farmers, boosting income while improving soil health and resilience, the company said.

Partnership - South Korea and Sweden this week signed a MoU to strengthen their collaboration on energy transition, the Korean climate ministry announced. The partnership aims to expand the supply of renewable energy, improve the stability of the power grid, and cooperate in nuclear solutions like small modular reactors (SMRs). The two countries plan to combine Korea's industrial and infrastructure development capabilities with Sweden's policy and institutional experience.

Let us know - The Joint Crediting Mechanism (JCM) Secretariat between Thailand and Japan are seeking feedback on draft documents for a proposed project, which aims to introduce a 2.6MW rooftop solar power system to a semiconductor factory owned by Sony Device Technology, according to a recent notice. Those intending to submit their comments on the draft project design document(PDD) and sustainable development and safeguards assessment report (SDSAR) are required to do so by Feb. 18.