Get it together - Gevo announced a preliminary agreement with Ara Partners on Thursday to fund its previously announced North Dakota ethanol facility expansion plans. The company is planning startup of the carbon capture and ethanol production site in 2028. The company said 140,000 tCO2 of total carbon emissions reductions are attributable to the company's products through Q1 2026.

Project partnership secured - Canadian startup Carbon Lock Tech and the rural municipality of Ritchot, Manitoba, announced Wednesday a MoU to advance a municipal demonstration project located adjacent to the Mid-Canada landfill. This will demonstrate Carbon Lock Tech's patented pyrolytic reactor technology, which the startup said converts biomass and organic waste into stable biocarbon products for long-term carbon sequestration and beneficial use. The project is planned to break ground in early summer 2026, with testing and operations taking place through 2027. It also represents the first phase of a broader, two‑phase initiative that could ultimately lead to a permanent organic waste carbonisation facility in Ritchot.

Climate conundrum - A forthcoming Massachusetts Institute of Technology-authored study found AI’s current climate costs are immediate and measurable, while its potential emissions benefits remain uncertain and are likely to arrive later, creating what the authors called an AI 'carbon debt'. The paper said data centres account for roughly 1-1.5% of global emissions, with AI and data centre energy demand rising quickly, while projected AI-enabled emissions cuts vary widely and depend on policy, infrastructure, adoption, and rebound effects. It argued that AI could support emissions reductions through applications such as grid management, demand response, energy optimisation, electrification, materials discovery, and renewable integration, but also noted that the fossil fuel industry is using AI to lower exploration and production costs. The authors concluded that without complementary climate policies, including carbon pricing, efficiency standards, renewable energy deployment, and stronger disclosure rules, AI-driven efficiency gains could increase overall energy use and emissions rather than reduce them.

Premium pressure - Hawaii lawmakers plan to renew a push to let insurers sue major oil and gas companies for insurance-related damages, after a bill aimed at holding the fossil fuel industry responsible for rising homeowners insurance costs and declining availability stalled in the final minutes of the state’s legislative session, E&E News reported. The proposal, which came closer than any other US state effort to authorising such lawsuits, failed after a key lawmaker raised concerns that it could conflict with existing state law, including legal principles established after the 2023 Maui wildfires.

EPA map - The US EPA has launched an interactive map that identifies which regulatory agencies have the authority to issue permits covering all of EPA’s permitting programmes and environmental statutes. The federal agency said the map gives governments, local organisations, and the general public the ability to make a quick determination whether the permitting authority is with EPA or if there has been an approved delegation, primacy, or authorisation given to a state, territory, Tribal nation, or local agency.

California Carbon Allowance (CCA) futures continued to trade flat at prices a bit over the $29 mark as traders said the market could show some more signs of life up ahead with the Q2 auction and planned vote on programme updates later this month.

Greener cheers – Heineken Mexico has launched its first operational decarbonisation pilot in partnership with biotech startup Bioram. Developed under a “venture client” model, the brewer acts as the startup’s first strategic customer, enabling the validation of the technology in real operating conditions. The project will convert brewery by-products into agricultural biostimulants for barley cultivation, with the aim of reducing fertiliser use and cutting carbon emissions across Mexico’s agrifood sector. (Valor Compartido)

Restoration in Chile – Neya, a spin-off of Italian sustainable infrastructure and mobility company Mundys, has announced a new reforestation project in Chile. The company will invest in the restoration of 170 ha using native species from the Valdivian Forest. In the longer term, the project could be expanded to between 7,500-10,000 ha, with the potential removal of 55,556 tonnes of CO2e over 40 years, the company said. Verra was selected as the certifier.

Restoration initiative – Brazil’s National Bank for Economic and Social Development (BNDES) and the City Hall of Rio de Janeiro signed a partnership to invest R$10 mln in the restoration of the Atlantic Forest, they announced on Thursday. Each side will contribute half of the funding. Part of the Floresta Viva programme, the project is expected to be carried out over 48 months and is set to involve more than 330,000 plant seedlings in 93 ha. The initiative could involve the generation of carbon credits, according to a press release.

California's Low Carbon Fuel Standard (LCFS) recorded a net deficit of nearly 1.9 million credits in the fourth quarter of 2025, the programme's second quarterly shortfall in a row and only the second instance since early 2021, recent data from state regulator ARB showed.

Tensions between Canadian oil sands majors and leading clean energy groups are boiling over as each side battles to be heard before the ink dries on the Canada-Alberta energy deal.

California regulator ARB is considering long-term monitoring, reporting, and financial responsibility requirements for carbon capture, utilisation, and storage (CCUS) projects as part of draft concepts for a new state CCUS programme, according to a Thursday notice.

Brazil has approved the transition of 80 former Clean Development Mechanism (CDM) projects to the Paris Agreement Crediting Mechanism (PACM), the country's Ministry of Environment and Climate Change (MMA) announced Thursday, making it a leader among host countries to approve such requests.

The European Commission is considering broad new flexibilities that could allow fossil fuel companies to delay or avoid penalties under the EU Methane Regulation, according to a draft informal paper seen by Carbon Pulse, ahead of an experts’ meeting next Monday.

China’s emissions trading system (ETS) pilots pushed listed companies to raise green investment and shift more spending towards pollution prevention rather than end-of-pipe treatment, a new study has found.

Give us a break - Western Balkan countries including Montenegro, Serbia, Bosnia and Herzegovina, Kosovo, and North Macedonia have jointly called for targeted changes to the EU’s Carbon Border Adjustment Mechanism (CBAM) rules, arguing that current provisions are disrupting regional electricity markets and slowing integration with the EU. In a letter to the European Parliament Committee on Industry, Research and Energy, Montenegro’s energy minister said the introduction of CBAM charges on electricity exports to the EU has reduced demand from European buyers, even for renewable power. This effect has been particularly noticeable during periods of high clean energy output, such as strong hydropower seasons. The countries, working with the Energy Community Secretariat, are seeking “limited but targeted” refinements to the regulation, especially concerning electricity trade. They argue that current CBAM rules, including stricter conditions and tight timelines, could jeopardise efforts to couple their electricity markets with the EU. While emphasising their support for EU climate goals and noting progress in adopting EU electricity legislation, the group says some objectives—such as full market integration—may not be achievable under the current framework. Their proposals include:

• Allowing early exemption of electricity exports from CBAM once compliance is verified, potentially extending beyond the current 2030 deadline
• Letting the European Commission and candidate countries jointly set carbon pricing timelines and levels
• Recognising power purchase agreements and guarantees of origin as valid proof of electricity source

Overall, the countries are asking for adjustments that reflect the specific structure of their energy systems and prevent CBAM from undermining regional market development and EU integration efforts. (Balkan Green Energy News)

Some 154 million credits are likely to be insured and authorised in time for CORSIA’s Phase 1 deadline for meeting offsetting obligations, according to a data aggregator.

No sales - Acadian Timber this week reported no carbon credit sales in the first quarter of 2026, with its Environmental Solutions segment contributing no revenue during the period. The company said it is in the process of registering additional credits, with issuance expected in the second half of 2026. It flagged that demand and pricing in voluntary carbon markets are expected to remain stable, though the next tranche of credits from its existing Maine project has been delayed due to a transition to ACR’s updated Improved Forest Management protocol. The firm added that it is evaluating further project development opportunities, but remains focused on advancing its current project. Across its core timber business, Acadian posted Q1 sales of C$23.4 mln, down slightly from C$24.8 mln a year earlier, with broadly stable harvest volumes and pricing. Adjusted EBITDA rose marginally to C$4.8 mln, while net income slipped to C$3.5 mln. Free cash flow declined to C$2.5 mln, and the company declared dividends of C$5.3 mln for the quarter. Performance reflected steady demand for sawlogs, weaker pulpwood markets, and higher operating costs in Maine linked to the shift toward internal harvesting operations.

Sign of approval - Ratings agency BeZero Carbon has assigned a BBB rating to two of DelAgua's Rwanda improved cookstove projects - VCS3699 and VCS4150, the developer said in a press release Thursday. This places DelAgua’s programmes in the top 9% of rated cookstove carbon projects globally. The assessment found a very high likelihood of additionality for both projects, and also rated permanence risk as low, while recognising the conservative safeguards embedded in the carbon accounting methodology. Both projects hold Letters of Authorisation (LoAs) with Corresponding Adjustments under Art. 6.2 from Rwanda's govt, ensuring credited emission reductions contribute to the country's NDC.

The European Commission is considering creating a new body or agency to centralise the purchase of international carbon credits issued under the Paris Agreement and ensure they meet the EU’s extensive quality criteria.

The first meeting of the Open Coalition on Compliance Carbon Markets took place on Thursday, with the EU and Brazil's top climate officials telling Carbon Pulse the initiative aims to reduce fragmentation among emissions trading systems worldwide and boost the uptake of carbon pricing.

Climate risk and EU bank lending – European banks saw a short-lived lending spike but lasting credit losses after four major European floods between 2021 and 2024, according to a new working paper by the European Central Bank (ECB). Using loan-level data matched with Copernicus satellite flood maps, the authors find loans to inundated firms rose by about 3.5-5% in the quarter of the disaster, before contracting by a similar amount in the following quarter, leaving no net two-quarter effect on volumes or pricing. However, default rates on pre-existing loans increased persistently by around 0.7 percentage points, nearly doubling average annual defaults. The paper concludes that while banks extend roughly 10 percentage points more credit to hit firms, they simultaneously tighten collateral, pointing to local, not systemic, financial stability risks.

UK circular economy push – More than 50 UK companies and industry groups have urged Environment Secretary Emma Reynolds to fast-track the government’s promised Circular Economy Growth Plan, warning that delays risk stalling progress toward a more resource-efficient economy. In a letter dated 6 May, the groups say they “strongly support” the government’s circular ambitions but are “concerned at the ongoing delay”. They argue that a clear, ambitious strategy would boost resilience, productivity and new commercial opportunities while offering consumers more affordable options during a cost-of-living squeeze. Signatories include IKEA UK & Ireland, Veolia, Biffa, Virgin Media O2, and Solar Energy UK.

Europe’s energy shock – The latest energy shock shows Europe must accelerate its green transition to safeguard both price stability and growth, European Central Bank Executive Board member Piero Cipollone said in a speech on Wednesday. He warned that monetary and fiscal responses to supply shocks are “costly no matter how smartly and carefully engineered they may be”, and cannot substitute for reducing fossil fuel dependence. The ECB is using scenario analysis to calibrate future rate moves as war-driven oil and gas disruptions push inflation higher and sap sentiment. “Sustainability contributes to stability”, Cipollone said, urging Europe to deepen energy market integration and “stay the course” on decarbonisation.

European carbon prices eased lower in line with losses for European equities on Thursday, with traders noting that the market had entered a holding pattern as it waited for news to filter out about negotiations between the US and Iran to end the war in the Middle East.

The opening schedule for the world’s largest carbon removal (CDR) plant is under review after a facility-related issue was identified during commissioning, marking a further delay for a project once expected to start up in late 2024.

The European Commission's draft rules for certifying carbon farming work are weaker than the integrity principles in the voluntary carbon market, as well as requirements under the "already imperfect" Paris Agreement Article 6.4, according to a study released on Thursday.

The European Union’s Carbon Border Adjustment Mechanism (CBAM) is already reshaping fertiliser trade in 2026, according to new research, as importers and producers grapple with rising carbon costs, tightening supply chains, and geopolitical disruption linked to war in the Middle East.

The European Commission will introduce new rules this month detailing how it will recognise carbon prices paid in exporting countries, according to a senior official, making it possible for European importers to calculate deductions from their carbon border fees.  

Moves to boost integrity in REDD+ crediting in the voluntary carbon market (VCM) may be unintentionally locking smallholders and traditional communities out of climate finance, according to a new study applying a vulnerability-based avoided deforestation methodology in Brazil’s Amazon region.

Brazil is working on a draft regulation for Internationally Transferred Mitigation Outcomes (ITMOs) under Article 6 of the Paris Agreement, with the intention of finalising it by mid-2026, according to an official.

Voluntary carbon standard Verra has selected three data service providers to create deforestation risk maps for projects applying its REDD+ methodology and the associated module, it announced Thursday.

Shell is the latest energy giant to report a jump in first quarter profits amid the US-Israeli war with Iran, partly driven by a sudden boost from the renewables and energy solutions sector.

The European Commission has approved a €5 billion German state aid scheme aimed at cutting emissions from some of the country’s most carbon-intensive industries, backing the use of hydrogen, electrification, carbon capture, and other low-carbon technologies through long-term carbon contracts for difference.

A group of environmental organisations on Thursday proposed safeguards for marine carbon removal (mCDR) research, including environmental protections, transparency requirements, and community engagement measures.

The European Commission has opened a consultation on revised EU sustainability rules that it says will cut corporate reporting costs by more than 30% while preserving the bloc’s broader transparency goals under its flagship disclosure regime.

ETS ambition tracker – Climact and Carbon Market Watch presented a new data-driven modelling tool designed to assess the role of ETS1 in meeting the EU’s 2040 climate target, and to evaluate the impact of key policy options currently under consideration. The tool covers the period 2021-40. In a presentation on Thursday, they said that an “empty shell” configuration of ETS1 would keep the EU carbon market formally in place but strip it of its purpose and make the EU's 2040 target unattainable.

Big companies like Microsoft are turning their attention from renewable energy and carbon removal credits towards the up-and-coming technologies needed to decarbonise their own operations – yet they still need standardised measures to show exactly how they are shrinking their carbon intensity, according to a data provider working on the solution.

The European Commission on Thursday awarded more than €1 billion in public support to nine renewable hydrogen projects across Europe, in a move aimed at accelerating the bloc’s transition away from fossil fuels and strengthening its clean industrial base.

A possible EU crackdown on the use of certain carbon credits by the bloc's airlines could wipe out more than 90% of the cookstove offsets currently available to European buyers under the CORSIA global aviation emissions offsetting scheme, according to new analysis.

PwC, the professional services firm, has warned in a report that Malaysian companies should prepare for the carbon tax despite the government’s decision to delay its rollout, citing that the levy will reshape costs and competitiveness once implemented. 

ECT withdrawal continues – More European countries are moving to leave the Energy Charter Treaty (ECT), with Iceland, Moldova, Romania, Sweden, Bulgaria, and Ireland either exiting or launching withdrawal processes in 2026, further weakening the controversial pact after the EU’s own departure in 2024. The latest exits follow a January letter from the European Commission urging remaining EU-linked signatories to withdraw, though NGOs warned that the ECT’s “sunset clause” could still allow fossil fuel investors to bring claims for up to 20 years after countries leave the treaty. Campaigners say the treaty, which allows fossil fuel investors to sue governments over climate and energy policies, has become increasingly incompatible with Europe’s climate goals, with CAN Europe calling it “a fossil fuel industry weapon against climate action”.

South Korea should transform its ports into renewable energy hubs by leveraging surplus power for port and ocean shipping electrification, according to a new report.

Voluntary cancellations of Kyoto-era carbon credits in Australia fell sharply in April, with activity concentrated in fewer hands than the previous month, registry data showed.

A carbon removal marketplace has raised new capital in a funding round to support expansion of its project development work.

An Italian energy company has posted a strong year-on-year rise in gas-fired power in the first quarter of 2026, following a similar path to other European utilities. 

Climate risks drive trip choices – Climate concerns are now a driver of travel decisions, with 79% of Asia Pacific travellers considering the possibility of extreme weather when choosing both destinations and timing, and 44% having already changed or cancelled trips due to climate-related disruptions, data from online travel agency Booking.com’s Travel & Sustainability Report reveals. The survey of 32,500 travellers across 35 markets found that rising temperatures are prompting shifts in behaviour, with 42% avoiding crowded destinations, 40% travelling off‑peak and 28% seeking cooler locations.

Durable carbon removal (CDR) buyers increasingly anticipate per-unit prices will fall through to 2030, placing them at odds with suppliers across several methods that expect flat or rising prices, according to an industry survey.

PRF goes live – The Pacific Resilience Fund (PRF) Treaty officially entered into force on Wednesday, following its ratification by the governments of Australia and Fiji. First endorsed by Pacific Island Forum (PIF) leaders in 2023, the treaty was signed by 15 PIF leaders in Sep. 2025, and needed eight countries to ratify it to enter into force: Tonga, Nauru, the Marshall Islands, Solomon Islands, Tuvalu, Cook Islands, and New Zealand have already ratified it. The Tonga-hosted PRF is the first Pacific-owned and -led climate finance vehicle, designed to support projects in the region to address loss and damage, climate resilience, or social and community endeavours. To date, $172 mln has been pledged to the PRF, and it is aiming to raise $500 mln by the end of 2026. COP31 will include a session focused on climate finance needs of Small Island Developing States, which will act as a platform for pledges to the PRF. The treaty’s entry into force triggers the inaugural PRF Council meeting, which will be held immediately following the PIF economic ministers’ meeting in June. (PIF Secretariat)

At risk – Climate-related impacts pose a risk to New Zealand’s forests and their ability to store carbon, in turn threatening emissions reduction targets, the Climate Change Commission (CCC) said on Thursday in its 2026 national climate change risk assessment. The CCC called for adaptation planning to be embedded in forestry so that decision-making factors in climate risks such as wildfires and extreme weather events.

The New Zealand government has tapped CBL Markets Australia to run its emissions allowance auctions, it announced on Thursday.

Better reporting - Singapore-listed companies improved greenhouse gas emissions reporting rates between 2023-25 ahead of mandatory external assurance rules due in FY2029, the government said. Scope 1 emissions reporting rates rose from 50% to 87%, while Scope 2 reporting increased from 61% to 93%, according to a parliamentary reply by Deputy Prime Minister Gan Kim Yong. Singapore Exchange Regulation will continue monitoring disclosures and take follow-up action where breaches are identified, the government added.

Afforestation target – The South Korean government is promoting a nationwide afforestation plan as a measure to achieve its 2035 NDC. The Korea Forest Service (KFS) plans to plant a total of 36 mln trees across 18,000 ha this year through collaborations with the defence and environment ministries. In the second half of 2026, KFS said it will focus on strengthening the carbon absorption function of forests by actively identifying idle land under the jurisdiction of central government ministries and converting it into new carbon sinks.

Renewed partnership – The Multilateral Investment Guarantee Agency (MIGA), home of the World Bank Group Guarantee Platform, and the Asian Development Bank (ADB) have renewed their partnership to increase investment and jobs in developing countries across Asia Pacific, according to an emailed statement. This collaboration builds on a three-year cooperation agreement signed by MIGA and ADB in 2019. Since then, the organisations have partnered on two hydropower projects in the Solomon Islands and Nepal, with ADB providing loans and MIGA providing guarantees.

Private holdings of New Zealand emissions units inched up in April, ahead of the compliance deadline at the end of this month.

Senators sparred with the head of California regulator ARB on proposed changes to the state’s Cap-and-Invest Program in a legislative hearing on Wednesday, with lawmakers and stakeholders alike questioning the draft updates’ impacts on costs, revenues, affordability, and ambition under the programme.

Margin call - ICE Clear Europe has updated its risk model (IRM) margin parameters for its ICE futures US emissions contracts using ICE Risk Model 1 (IRM1), the exchange said Wednesday. The changes are effective from close of business May 7 and will be reflected in margin calls made on May 8.

Calling all carbon managers - The Washington Department of Ecology (ECY) is hosting a series of public meetings on carbon management under its cap-and-invest programme in the coming weeks. The kickoff is set to take place on May 21 at 1000 PST, where ECY will hear thoughts on carbon capture, utilisation, storage, and carbon dioxide removal within the compliance programme. Another meeting will take place on May 28 at 1000 to discuss the permanent sequestration emissions pathway in regulation. Written comments will also be accepted from May 21 to June 26.

Electrifying - ASX-listed Janus Electric has received firm commitments to raise A$4.5 mln ($3.2 mln) through a private placement that will go to expanding its operations converting conventional-fuel trucks to battery electric, it told the market. The placement received support from new and existing shareholders, including family offices, institutional investors, and high-net worth investors, it said. Janus said the funds would be used to activate battery supply, funding inventory for existing trucks in production, and conversion kit manufacturing, as well as building its sales capability.

Australia’s largest corporates have flagged the serious climate risks their operations face, but are doing little to address it, according to analysis, as questions around carbon credit disclosure are also raised.