Brazil Initiates Consultation to Regulate Payments for Environmental Services and REDD+

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The Brazilian Ministry of Environment and Climate Change (MMA) has initiated a public consultation to regulate a 2021 law concerning payments for environmental services (PSA).

### Interview: Urgent Need for CCS Regulation in Brazil
A southeastern Brazilian state must expedite the development of local regulations for carbon capture and storage (CCS) to facilitate a pilot hub led by ArcelorMittal and Petrobras, according to an executive from the state’s industry federation.

### EU Parliament Proposes Changes to Corporate Reporting Laws
The lead negotiator in the European Parliament for a proposal aimed at simplifying corporate reporting laws has suggested eliminating the requirement for companies to submit climate transition plans under the EU’s Corporate Sustainability Reporting Directive (CSRD).

### US Senate Committee Preserves Forest Conservation Funding
A recent budget reconciliation bill from the US Senate Agriculture Committee has managed to preserve over $100 million in funding intended to assist US landowners in conserving forests, despite potential budget cuts.

### Venezuelan Farmers Turn to Carbon Market Amid Crisis
In light of Venezuela’s ongoing economic crisis, agricultural producers are increasingly looking to the voluntary carbon market (VCM) as a viable means of securing much-needed hard currency and financing, according to the president of a national association.

### US EPA Proposes Record Renewable Fuel Volumes
The US Environmental Protection Agency (EPA) has announced a proposal prioritizing domestic biofuels by reducing Renewable Identification Number (RIN) values for imported fuels, while also setting ambitious renewable fuel volume obligations for biomass-based diesel under the federal Renewable Fuel Standard (RFS).

### EU Official Discusses CBAM Expansion
A European Commission official indicated that if the EU’s Carbon Border Adjustment Mechanism (CBAM) is to be expanded to new industrial sectors or downstream supply chains within already covered sectors, it should be implemented all at once rather than in phases.

### Upcoming Climate Negotiations in Bonn
Intersessional climate talks scheduled to start next Monday in Bonn are expected to be a pivotal moment leading up to COP30 in November, although progress may be hindered by a lack of commitment amid diplomatic challenges.

### Focus on Capacity Building for Article 6 Implementation
As the implementation of Article 6 gains momentum following last November’s historic COP29 decision, significant efforts are still required in capacity building across host countries, many of which need to finalize essential carbon market regulations before they can fully engage.

### UK-EU Agreement Impacts UKA Price Outlook
The recent agreement between the UK and the EU to commence negotiations on linking their respective emissions trading systems has significantly altered the outlook for UK Allowances, prompting analysts to raise their price forecasts for the latter half of the year.

### $1 Billion Industry Decarbonization Initiative
A new $1 billion concessional finance initiative aimed at decarbonizing industry in emerging economies has announced its first country participants.

### Netherlands Proposes Negative Emissions Auctioning Scheme
The Netherlands has advocated for carbon removal (CDR) incentives that are distinctly separate from the EU’s Emissions Trading Scheme (ETS), emphasizing that the carbon market should focus on emission reductions to avoid deterring mitigation efforts.

### CFTC Reports Trader Activity in Carbon Markets
Recent data from the US Commodity Futures Trading Commission (CFTC) indicates that both emitters and investors have increased their net holdings of California Carbon Allowances (CCA) in the futures-only market, while also building short positions in Regional Greenhouse Gas Initiative (RGGI) Allowances following the Q2 auction.

### EU Nuclear Investment Needs for Net Zero by 2050
The European Commission has stated that achieving the EU-27’s nuclear power ambitions will require investments approaching a quarter of a trillion euros by mid-century.

### Eastern EU Countries Lag in ETS2 Social Climate Plans
As the deadline approaches, Eastern EU countries are falling behind in submitting their national Social Climate Plans for the EU’s new carbon market for heating and transport fuels (ETS2), which could unlock substantial green finance for lower-income households.
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