A large North American offset provider continued to grow its carbon credit trade revenue in late 2025, as its net losses narrowed from the previous quarter but remained higher year-on-year (YoY), it said Wednesday.

The Australian government is offering A$321 million ($224 mln) to trade-exposed companies covered under the Safeguard Mechanism to help them cut their emissions, it announced Thursday.

Chile has moved to update the targets of its national green hydrogen strategy, a sector prioritised under the country’s Article 6 framework, as it seeks to scale up production and unlock new sources of climate finance to support the industry’s next phase of development.

Some 3 million carbon credits have been issued to a northern Mexico grassland restoration project after achieving verification under Verra’s Improved Land Management (VM0042) methodology, according to an announcement Wednesday.

States planning to rely extensively on future carbon removal (CDR) to meet their climate targets risk falling short of international legal obligations under the Paris Agreement and customary international law, according to a peer-reviewed legal analysis published on Tuesday.

Brazil climate plan - Fifty days after being approved, the Brazilian Climate Plan has still not been published in the Official Gazette. The documents that will guide the national climate policy still have pending issues, Folha de S. Paulo reported. Although sectoral chapters were approved, the transversal strategies were open to public consultation by Dec. 25 and have not been validated until now. The Ministry of Environment and Climate (MMA) said that the validation is projected for the first quarter of 2026.

A new independent body has been set up to monitor the progress of Article 6 of the Paris Agreement, by a set of academics and civil society organisations, they announced on Wednesday.

The head of one of Canada’s leading carbon removal (CDR) non-profits said the country's CDR sector will likely see a turbulent few years as its market matures, making government support critical to continuing momentum and success.

Roads have been linked to forest degradation or loss across an area roughly twice the size of Mexico, equivalent to around 11% of global forest cover, with impacts concentrated in the Global South, according to a new preprint study.

Concern about climate-related disasters has intensified over the past year, even as economic and security anxieties dominate the political agenda, according to the European Parliament’s latest Eurobarometer survey, published on Wednesday.

A carbon removal standard has announced plans to comprehensively update its carbonated materials methodology as part of its regular review cycle, aiming to incorporate the latest scientific research and strengthen standards its projects.

A clean energy project developer has accused oil and gas major ExxonMobil of using its control over the only operating CO2 pipeline on the US Gulf Coast to cut off a rival blue ammonia project and benefit Exxon’s own competing ammonia plans, according to a lawsuit filed on Monday.

For many people working across global carbon markets, the surprising collapse of clean energy company and cookstove developer Koko Networks shows that, fundamentally, you can't count on government authorisation for the international sale of carbon credits until the approval has been fully stamped through.

After opening sharply lower on Wednesday amid follow-on selling from the previous session's late plunge, European carbon allowances climbed back towards Tuesday's settlement price as buyers came out in force to drive a steady rally.

Flailing foundries - The EU's carbon border fee threatens to halt production at Italian foundries unless urgent correct measures are taken, according to trade body Assofond, reported by Montel. The facilities rely on inputs such as pig iron, ferroalloys, and primary aluminium, which are subject to CBAM but produced in Europe only in small quantities. Since becoming operational on Jan. 1, the EU's Carbon Border Adjustment Mechanism (CBAM) has led to market paralysis, pricing uncertainty, and growing competitive distortions, Assofond said. This is because CBAM certificate prices are unknown until 2027, meaning buyers and suppliers are unable to fix prices currently, leading deals to stall. Further, non-EU competitors can use cheaper inputs and export finished products into the EU thus avoiding the carbon levy, leading to risk of delocalised production. Assofond is calling on the EU to broaden CBAM's scope to cover downstream foundry products.

The EU should continue advancing its diplomatic push for a global fossil fuel phaseout outside of the COP process, researchers from a leading German foreign policy think tank said Tuesday.

Hydrogen setbacks - Plans to develop low-carbon hydrogen in the UK are being hobbled by high costs and the complexity of coordinating numerous industries. The setbacks risk disrupting the decarbonisation of factories in the industrial area between Liverpool and northwest Wales, where salt caverns would be ideal to store hydrogen and depleted oil wells could store CO2. Companies hoping to access low-carbon hydrogen include Jaguar Land Rover and glassmaker Pilkington, but govt efforts to stimulate the sector are being hindered by high energy bills and strained public finances. The Labour govt's hydrogen strategy has been delayed to early this year, with the govt saying it will guarantee producer prices so they can sell to industry at a similar price to fossil fuels. In Dec. 2024, it said it would guarantee the first batch of electrolytic or green hydrogen projects, totalling about 125 MW of new capacity, a maximum average of £241/MWh over 15 years and has also said it would exempt electricity used to produce green hydrogen from a key climate levy. However, consumer goods company Unilever dismissed hydrogen after a trial, saying the infrastructure won't be in place for many years. (FT)    

Carbon pricing could provide a major source of funding for social protection in developing countries, a new report has found.

Despite improvements on previous drafts, the European Commission’s proposed EU-wide certification methodologies for permanent carbon removals still fails to address the climate impact of biomass extraction, campaigners have warned, saying they were considering legal action.

Restructuring - Biomass power producer Drax may cut more than 350 roles across the company as it adapts its organisational structure, according to a press release. The company is evolving its strategy to ensure future resilience, and is focused on driving growth in flexible generation as well as advancing future uses of sustainable biomass, the statement read. Drax Group's organisational structure shall be adapted as part of this work, with a UK consultation to be launched and employees to be briefed in North America. The changes will be implemented alongside trade unions and employee representatives, it said.

India last week announced an INR 12.2 trillion ($133 billion) infrastructure spending boost in its latest budget, with the build-out expected to see rising carbon compliance costs for steel, and to a lesser extent cement, according to experts.

Worker rights - The UK govt has introduced new rules to ensure fair working rights for employees in offshore wind. As of Wednesday, offshore wind companies seeking to participate in the Contracts for Difference (CfD) subsidy scheme and access the Clean Industry Bonus will be required to sign up to a new ‘Fair Work Charter’, to ensure that public funds deliver good, secure jobs in local communities. This charter will ensure workers access some of the benefits granted by the Employment Rights Act such as allowing trade unions better engagement with workers. The development follows a record offshore wind auction last month that contracted 8.4 GW, crowding in $3.4 bln of private investment.

Countries in the global 'sunbelt' can access zero-carbon power more cheaply than in northern Europe, provided costs of capital are reasonable, and are developing a growing number of clean industrial projects, said an energy transitions expert.

VC raise - Slate Venture Capital has secured a €132 mln first close for its inaugural growth fund focused on energy and circularity with investors including European Investment Fund (EIF), Bpifrance, and the Fonds National de Venture Industriel (FNVI). The Paris-based firm was founded in 2023 to invest in European companies developing climate technologies. It particularly targets companies where environmental performance is driven by superior economics  – through lower costs, improved productivity, and increased resilience for industrial customers. The fund plans to back 15-20 companies that are ready to expand globally. (EU-Startups)

The Malawian government will partner with a satellite data provider to monitor and verify carbon market projects, ministers announced Monday.

Public subsidies aimed at cutting carbon emissions could achieve the same climate impact at significantly lower cost if allocated more efficiently, according to a new study.

January retirements across the voluntary carbon market (VCM) fell by nine million year-on-year, while issuances also slipped to levels last seen five years ago - with one registry failing to record any new supply for the past three months.

WWF Singapore has announced the establishment of a regional nature finance facility targeting 12,000 hectares of restoration projects across Southeast Asia.

The UN body helping to shape the Paris Agreement’s Article 6.4 carbon market has released a draft methodological tool aimed at standardising how emission reductions from biomass-related climate projects are calculated, key for crediting cookstoves projects.

Energy group Equinor said on Wednesday it would scale back investments in renewables and low-emission energy and sharply reduce share buybacks after reporting a steep decline in fourth-quarter and full-year profits.

Suriname expects to carry out its first trades of Internationally Transferred Mitigation Outcomes (ITMOs) in the first quarter of this year, with the initial transaction structured as a pilot involving credits generated in 2021, government officials said on Monday.

EV tax breaks - Kenya has unveiled tax breaks for electric vehicle (EV) parts and charging stations to speed up the electrification of transport. The measures are part of a newly launched National Electric Mobility Policy, which aligns the transport sector with the country's climate goals, and include exemptions for VAT and excise duties beginning in July. They follow targeted incentives for the sector by Kenya in recent years, including and lower excise duties on selected EVs. The number of registered EVs in Kenya reached almost 25,000 last year, up from below 800 in 2022, largely driven by adoption in cities, with EV sales forecast to match those of gas- and diesel-fueled alternatives by 2042. The govt is considering road-use charges and possible electricity-based levies linked to charging stations to offset the decline in fuel tax income as the electric shift picks up a gear. (Greenwich Time)

Investment managers that collectively own $2.3 trillion of assets are supporting the relaunch of an initiative to convene their sector in the pursuit of strong climate commitments.

Vietnam, together with two UN agencies, has launched a $102.5 million climate investment initiative aimed at curbing deforestation and emissions in key coffee-producing regions, the project partners announced last week.

Heavy industries like chemicals, metals, and cement have called to freeze the EU carbon price, saying “severe pressure” from high energy bills and unfair foreign competition is causing factory closures and massive job losses.

New target - Japan's Sumitomo Corporation said it has updated its carbon neutrality target, in order to advance its efforts to address climate change issues. It previously aimed to reduce emissions by 50% by 2035 and achieve carbon neutrality by 2050, with 2019 as the base year. Now the trading company targets 30% emission reductions by 2035 from 2024 levels and carbon neutrality by 2050. The boundary of Scope 3 in its carbon neutrality target now also includes downstream leased assets and investments, as Sumitomo seeks to engage with the supply chain, the company said.

Trading activity on Indonesia’s carbon exchange slipped in January after a rebound in December, with volumes retreating as negotiated deals slowed, bourse data showed.

An Indian carbon removal developer on Wednesday announced it has raised $20 million in the first tranche of a roughly $45 mln Series B funding round led by a private equity firm.

The Australian government’s Net Zero Fund (NZF) will target investments with lower-rates of return than similar schemes in order to back emerging and novel decarbonisation technologies, Canberra announced Wednesday.

Still missing -  India said its next round of climate targets is still under internal consultations and awaiting formal clearance, offering an explanation for why the update has not been filed. The environment ministry told the parliament's upper house, in response to a question, that the revised Nationally Determined Contribution, including targets for 2031-35, will be submitted only after the process is completed and approved by the competent authority. It confirmed that India plans to declare an NDC extending to 2035, as flagged in its national statement at COP30 in Belem in November. No revised timeline for submission was given. Experts told Carbon Pulse last year that state elections and trade confrontations with Washington and Brussels had diverted the attention of senior officials.

More data - The Global Green Growth Institute has launched a request for proposals for consultancy services to design and implement a nationwide small and medium enterprise database in Papua New Guinea to increase access to climate capital, according to tender documents. The six-month project will be implemented under the Climate FIRST programme, funded by Australia’s Department of Foreign Affairs and Trade. The database is intended to consolidate information on both formal and informal businesses nationwide. The initiative aims to strengthen institutional coordination linked to PNG’s climate resilience and low-emissions transition, GGGI said. Tender submissions close on Mar. 3, 2026.

Buyout - Singapore-based private equity firm Affirma Capital said it has made the first investment from its Climate Transition Fund, agreeing to a full buyout of Indonesian renewables company Bright Nusantara Energy for about $35 mln. BNE operates 30 MW of hydro and solar assets, with 22 MW of near-term expansion, and 200 MW in the development pipeline. The deal marks the inaugural transaction for the KINETIK Affirma Capital Climate Transition Fund I, a dedicated Indonesia-focused climate fund targeting $200 mln. The fund is backed by Australia’s Department of Foreign Affairs and Trade, via the Private Infrastructure Development Group, alongside Standard Chartered Bank.

Debt settled - Australian coal mining company Fitzroy (CQ) has met its surrender obligations under the Safeguard Mechanism by surrendering 546,906 Australian Carbon Credit Units (ACCUs), the Clean Energy Regulator announced in its latest compliance update. The company entered into and enforceable undertaking arrangement last year after it was unable to meet its compliance obligations due to operational losses. The CER said the ACCU surrender volume represented Fitzroy's excess emissions position for the 2023-24 compliance period. The company has also conducted three feasibility studies to investigate carbon abatement opportunities, it added.

Green shoots - India's Ministry of Environment, Forest, and Climate Change, in response to a question asked in the parliament's upper house, said plantation and eco-restoration under the Green India Mission covered 36,572 ha over the past three years, backed by INR 3.5 bln ($38 mln) in central funding. Under another programme, launched in 2023, mangrove restoration has been approved over 4,536 ha of degraded coastal areas from FY 2024-25 onwards, the government said.

The Australian government’s green bank and an investment firm have announced A$81 million ($56 mln) to go towards a First Nations-led plantation project that is expected to generate some 5 mln Australian carbon credits.

We made it - The steelmaking unit of South Korea's Hyundai Motor has started mass production of low-carbon steel sheets that cut carbon emissions by around 20% compared with conventional blast furnace products. Hyundai Steel has successfully produced low-carbon steel sheets using a hybrid production process that blends molten metal from both electric arc furnaces and blast furnaces, which it claimed to be the first of its kind in the world. The carmaking group's two major brands, Hyundai Motor and Kia, plan to begin using low-carbon steel materials in some vehicles produced in South Korea and Europe starting this year, according to the Korea Herald.

Applications to submit land to the ETS have continued to fall in January, amid ongoing low confidence in the market, ministry data published this week showed.

Hoosiers take on CO2 - The Indiana General Assembly advanced two bills on carbon management with bicameral support on Monday. House Bill 1368 (HB 1368) would prompt the state’s Department of Natural Resources to pursue primacy rights over Class VI underground injection well permitting from the US EPA, as well as providing a mechanism and regulatory scheme for underground CO2 storage in Indiana. Referred to the state Senate at the end of January, HB 1368 was referred to the Senate Committee on Utilities. Senate Bill 7 (SB 7), which creates requirements for approval on transporting and storing CO2 outside of the county where it is generated and captured, was referred to the House Utilities, Energy, and Telecommunications Committee on Monday.

Double or nothing - California Governor Gavin Newsom (D) proposed a $200 million electric vehicle rebate programme requiring automakers to match state funds dollar-for-dollar, offering point-of-sale discounts rather than reimbursements, CalMatters reported. California regulator ARB would administer the programme with price caps at $55,000 for passenger cars, $80,000 for vans and trucks, and $25,000 for used vehicles, with no income restrictions. The proposal exempts the programme from standard rulemaking requirements for faster deployment following the Trump administration's elimination of federal EV tax credits. Critics argued the first-come first-served structure lacks equity provisions, while the $200 mln baseline would cover only 20% of last year's EV sales before manufacturer match funds.

Border carbon works - California's cap-and-invest programme increased renewable electricity capacity by 148.9 MW per county on average between 2012-19, representing a 6.71 percentage point rise in the state's renewable share, according to research published in Energy Economics. Using county-level data and difference-in-differences analysis, researchers found the carbon border adjustment mechanism triggered renewable expansion in Arizona and Nevada at 69.9 MW and 110.0 MW per county respectively as exporters sought to avoid border charges, but showed no effect in Oregon where hydroelectric capacity already exceeded 50%. Results remained robust when controlling for Renewable Portfolio Standards, suggesting cap-and-trade effects were additional to existing clean energy mandates.

Equity-focused cap - Oregon’s Department of Environmental Quality announced it will hold a Equity Advisors Committee meeting on Feb. 17 for its Climate Protection Program (CPP). The meeting will held between 14oo-1600 Pacific (2200-000 GMT) and will be open to the public. The committee will play an important role in determining what types of GHG emissions reductions projects will be supported by community climate investments and where those projects will be located, DEQ said.

Neck breaking RGGI speed - Virginia's House of Delegates approved HB 397 on Tuesday, mandating the Department of Environmental Quality (DEQ) to establish a RGGI-consistent market-based carbon trading regulation within 90 days of the bill's effective date. The bill passed 17 days after Governor Abigail Spanberger's (D) inauguration and four days after receiving its fiscal impact statement. The Senate companion bill (SB 802) received its fiscal impact statement Tuesday. The legislation requires the DEQ to complete regulatory action without further State Air Pollution Control Board (APCB) involvement, reinstating the CO2 cap-and-trade programme for electricity generating units that former Governor Glenn Youngkin (R) withdrew the state from in 2023. The final version includes an amendment defining "life-of-the-unit contractual arrangement" to encompass energy conversion or tolling agreements with 20-plus-year terms where purchasers deliver fuel and receive all nameplate capacity and generating capacity from the regulated unit, making such purchasers responsible for acquiring CO2 allowances.

Carbon tax increase - Colombia has increased its national carbon tax as of Feb. 1, in line with the annual inflation adjustment set out in existing regulation, the tax authority DIAN said in a resolution. The updated rate stands at COP 29,070.49 ($7.30) per tonne of CO2 equivalent, reflecting a 5.1% adjustment based on 2025 inflation. The new price remains below the statutory threshold of 3 UVT, under which the levy continues to apply at a fixed rate.

CITSS quarterly tally - California and Quebec entities transferred over 118.2 million allowances and offsets through the Compliance Instrument Tracking System Service (CITSS) during the 4Q of 2025, according to a recent report from California regulator ARB. Current vintage allowances (2013-2025) accounted for 78.4 million at a weighted average price of $31.04, while future vintage allowances (2026-2028) totaled an inch under 19.9 mln at $31.22. The linked cap-and-invest programmes saw over 19.8 mln offset credits change hands at a weighted average of $18.06, representing nearly a 42% discount to allowances. Forestry projects dominated offset credit transfers with 12 mln offsets, of which 70% were credits with direct benefits to California. Mine methane capture project credits were second in terms of offset transfers with over 6.7 mln credits split all from out of state projects. Quebec ozone depleting substances projects contributed 2,363 unpriced offset transfers. The transfers exclude allowance distributions, auction purchases, or jurisdictional authority transactions.

Battery backup plan - Ford and Tesla are repurposing electric vehicle battery production lines to manufacture grid-scale batteries for utilities and data centres after the Trump administration eliminated the $7,500 EV tax credit last year, shrinking the domestic car battery market, the New York Times reported. Ford announced plans in December to convert existing EV battery plants to build shipping-container-sized batteries for utility use. Tesla's energy and solar storage business has become its most profitable and fastest-growing segment, with large-scale battery production beginning at a Houston factory later this year. The pivot capitalises on tax incentives for grid-scale batteries that survived last summer's Republican rollback of Biden-era renewable energy credits while EV incentives were eliminated. Demand for grid-scale batteries is projected to exceed six times 2025 domestic production levels by 2030, the outlet reported.

Storage starts - Ontario began accepting applications on Monday for commercial-scale geologic carbon storage projects under its newly implemented regulatory framework, marking the first opening of the province to such developments. The government said the projects could help energy-intensive industries cut GHG emissions by 5-7 Mt a year, create more than 4,000 jobs, and reduce industry costs by nearly $1 bln. The move follows the passage of the Geologic Carbon Storage Act, 2025 after several years of research, public consultations, and stakeholder engagement, and establishes rules governing the injection and permanent underground storage of captured CO2, with most potential sites expected in Southwestern Ontario near major emitters.

A 20-year itch - New York Governor Kathy Hochul (D) may propose changing how the state counts methane emissions despite dropping the plan from her January budget proposal, state officials said Wednesday at a legislative hearing, per New York Focus reporting. The state currently uses a 20-year global warming potential metric making methane 80 times worse than CO2, while most jurisdictions use a 100-year metric at 30 times. Switching would show New York cut emissions 24% since 1990 rather than 15%, putting the state's 40% reduction target by 2030 within reach and potentially lowering future carbon pricing under any cap-and-invest programme. Hochul attempted the change in 2023 but dropped it after environmental group backlash.

EU-LATAM corridor - The port authorities of Valencia and Santos have signed an MoU to develop a green maritime corridor aimed at decarbonising shipping between Europe and South America, the ports announced last week. The agreement was signed on the sidelines of the Global Gateway Green Shipping Corridors and Hubs regional workshop for Latin America and the Caribbean. Under the MoU, the ports will coordinate actions to promote the use of low- and zero-emission fuels, shore-side electricity, terminal electrification, and digital solutions to improve logistics efficiency.

US carbon management legislation update - Illinois Senate Bill 2842 (SB 2842), which amends existing law so that CO2 pipeline project proponents cannot exercise eminent domain, on Tuesday was assigned to the Energy and Public Utilities Committee. Elsewhere, a hearing was held last week on Nebraska Legislature Bill 916 (LB 916) in the state's unicameral legislature's Natural Resources Committee. The bill similarly seeks to provide protections to landowners against the use of eminent domain for CO2 pipeline projects. Finally, New Hampshire House Bill 1205 (HB 1205) has seen floor date set for Thursday while it is due out of the Municipal and County Government Committee on Mar. 5. It would prohibit state- and county- owned lands from participating in carbon sequestration projects.

The 197th hour - FirstLight expanded its municipal utility power purchase agreement with Energy New England through 2040, supplying 197 gigawatt hour annually from Massachusetts hydroelectric facilities to 21 New England public power entities, Renewable Energy Magazine reported.

Ground truthing – A new study published in Scientific Reports found that incorporating spatial coordinates and open-source map information can significantly enhance property-level forest carbon stock estimates, supporting the implementation of REDD+ projects in the carbon credit market. The researchers said that large-scale maps improve estimates when calibrated using geolocated field plots, including where plot data are limited. The paper added that carbon stock estimates produced using this approach can approach the accuracy of those based on high-quality local remote sensing such as UAV-LiDAR, and that spatial coordinates serve as useful covariates for predictions within the same areas where field plots are located.

Subsurface H2 brewing - Vema Hydrogen announced it completed what it called the world's first pilot wells for Engineered Mineral Hydrogen technology in Quebec, producing hydrogen directly from subsurface rock formations without fracking. The California-based company drilled two wells to obtain core samples and begin subsurface analysis evaluating fluid movement and hydrogen production during testing, transitioning years of laboratory research into field deployment. The pilot aims to validate commercial-scale production for e-fuel and clean mobility industries serving shipping and air transport markets. CEO Pierre Levin said rock core samples matched expectations and show promise for hydrogen yields, marking progress toward gigawatt-scale baseload hydrogen supply supporting regional decarbonisation goals.

Sectors covered under New Zealand’s ETS will be forced to cut emissions harder and faster to make up for the government loosening pollution requirements in the agriculture sector, according to the Climate Change Commission (CCC).

The UK government has published its inaugural framework to stimulate investment in pioneering nuclear technology, with a new service to get projects off the ground faster.