Carbon Pulse Daily Summary: February 24, 2025 Highlights Global Developments in Climate Policy and Carbon Markets

## CP Daily: Monday, February 24, 2025

Published 04:58 on February 25, 2025 / Last updated at 05:01 on February 25, 2025

TOP STORY

LEAK: Brussels Set to Postpone CBAM Fees and Trim Reporting Rules
The European Commission is planning to delay the financial obligations for companies under the Carbon Border Adjustment Mechanism (CBAM) to 2027, up from the previously scheduled 2026. They also intend to raise the emission threshold for goods subject to the fee, according to a leaked draft amendment obtained by Carbon Pulse on Saturday.

EMEA BRIEFING

EU’s Clean Industry Push Lacks ‘Game-Changer’ on Energy, Critics Say
Critics, including EU steelmakers and trade unions, argue that the European Commission’s upcoming Clean Industrial Deal initiative, set to be announced on Wednesday, lacks transformative measures to lower energy prices, such as reforming the marginal pricing system for electricity.

EU Giving Away Too Many Free Carbon Permits to Heavy Industry, Says Report
A report from environmental groups indicates that the EU is excessively distributing free carbon permits to heavy industry, effectively subsidizing some of the bloc’s most emissions-intensive sectors.

Ukraine Approves Roadmap for National ETS
Ukraine has approved a roadmap for establishing a national emissions trading system (ETS). However, the system will not be fully operational until the country’s economy recovers from the ongoing conflict, as announced by the Environment Minister.

FEATURE: Oil Majors Promote CCS as Sole Option to Decarbonize the UK’s Hard-to-Abate Industries
According to oil majors involved in CCS clusters in England, a clear UK strategy for developing carbon capture and storage (CCS) projects is urgently needed to decarbonize hard-to-abate industries and meet the 2030 clean power goal.

Euro Markets: EUAs Stage Gas-Inspired Afternoon Rally
European carbon prices nearly recovered all of their morning losses of 2.4% on Monday afternoon. After an initial boost from Germany’s general election result, EUAs resumed their close correlation with natural gas prices, with TTF prices also rallying to end the day only slightly lower.

AMERICAS

California Democrats Reintroduce Bills to Claim Damages from Fossil Fuel Companies
California Democrats have reintroduced two joint bills in the state Senate and Assembly aimed at seeking compensation for alleged climate damages caused by fossil fuel companies.

RGGI Market: Easing Winter Demand Pushes RGAs Below $22
RGGI allowance prices fell over the week, with the benchmark dropping below $22 on Monday as winter weather forecasts normalized and traders positioned themselves ahead of next month’s first quarterly permit sale.

Delaware Bill Aims to Redirect RGGI Proceeds
A Delaware lawmaker has introduced a bill to allocate RGGI revenues to new and existing funds designed to help low-income households pay their electric bills.

US EPA Confirms Year-Round E15 Use in Eight Midwest States
The US Environmental Protection Agency reaffirmed on Friday that it will allow year-round sales of E15—gasoline blended with 15% ethanol—across eight states starting late April.

Washington State Republicans Motion for Less Stringent Clean Truck Rules
A group of more than a dozen Republican senators in Washington State has sponsored a bill to prevent the state from adopting California’s Advanced Clean Trucks regulation, favoring federal EPA standards instead.

Bills Against CO2 Pipelines Gain Traction in South Dakota
As a major CO2 pipeline developer waits for a construction permit in South Dakota, state legislators have advanced efforts to halt such initiatives until federal regulations are established.

LATAM Roundup

Breakthrough in Paraguay as Government Moves to Create Carbon Hub
A long-awaited regulation to implement Paraguay’s 2023 law and support the creation of a domestic carbon trading hub was launched last week, while Chile received late-stage approval for its own standard, and Brazilian biofuels face scrutiny from US tariffs.

Brazilian Forest Restoration Finance Coalition Gains New Members
A Brazilian coalition for nature restoration and bioeconomy finance, established last year with the goal of reducing CO2 emissions by 1 gigatonne by 2050, welcomed two new members last week.

ASIA PACIFIC

Australia’s Woodside Doubles Volume of Carbon Credits Retired in 2024
Woodside Energy, an Australian oil and gas company, reported that it doubled the volume of carbon credits it retired in 2024, despite criticism regarding its climate strategy.

UNEP to Support Pakistan Article 6 Pilot Project
The United Nations Environment Programme (UNEP) will provide technical assistance to Pakistan for a methane offsetting project in Punjab province, helping the country earn carbon credits under Article 6.

Fiji Looks to Launch National Registry This Year
Fiji is aiming to establish a public registry for its carbon projects by late 2025 to transparently document free, prior, and informed consent processes.

Australian Agency Warns Coalition’s Nuclear Plan Could Emit 2 Billion Tonnes of CO2
According to the Climate Change Authority, the Australian conservative Coalition’s energy policy could lead to an additional 2 billion tonnes of cumulative CO2 emissions due to delays in renewable energy rollout and prolonged reliance on coal.

VOLUNTARY

VCM Report: Significant Volume of REDD Carbon Credits Retired by Oil Major
An oil and gas major has retired a substantial number of REDD carbon credits to maintain market activity, while the Voluntary Carbon Markets Integrity Initiative (VCMI) indicated a shift in direction to encourage broader market participation.

Large-Scale BECCS Unviable Due to Environmental Limits, Analysis Shows
A new study indicates that large-scale bioenergy with carbon capture and storage (BECCS) is not viable outside agricultural land due to severe environmental constraints.

Scientists Develop Solar-Driven DAC Breakthrough
Researchers have created a solar-powered system that captures CO2 from the air and converts it into synthetic fuel, marking a potential breakthrough in carbon capture and utilization technologies.

Simple Expert Advice Can Impact Voluntary Climate Action
Recent research found that the public is more willing to follow expert climate advice, even if it contradicts their prior beliefs, suggesting potential for more effective voluntary climate action.

INTERNATIONAL

Singapore, Bhutan to Sign Article 6 Implementation Agreement This Week
On February 28, Bhutan will sign an Article 6.2 implementation agreement with Singapore, becoming the third nation to formalize the deal with the city-state.

Lack of Global Standards for GHG Reporting Leads to Underreported Methane Emissions
A study reveals that the absence of standardized greenhouse gas reporting has resulted in significant underestimations of corporate methane emissions, potentially distorting climate policies and risk assessments.

AVIATION BRIEFING

Path to SAF Uptake Lined with Taxes on Fossil Jet Fuel
Analysts predict that surcharges on flights to account for the cost of sustainable aviation fuel will become common practice by 2030, with potential taxes on fossil jet fuel also being considered to narrow the cost gap between traditional and clean methods.

BIODIVERSITY (FREE TO READ)

Brazil’s National Biodiversity Commission (Conabio) has outlined targets for the National Biodiversity Strategy and Action Plan, focusing on halting deforestation, reducing harmful subsidies, and increasing public funding.

Scottish government proposals giving politicians the power to modify key environmental legislation have raised concerns among market actors regarding biodiversity credits.

A study led by the EU Commission’s Joint Research Centre highlighted gaps in research on the impacts of chemical pollution on biodiversity.

EVENTS

Carbon Forward Asia – March 4-5, Singapore
Our third annual Asian conference will once again be held in Singapore, bringing together experts to discuss ASEAN markets, regional opportunities, and developments in local and global carbon pricing.

Carbon Removal Day – February 27, Ottawa
Join Carbon Removal Canada for a conference dedicated to exploring opportunities and challenges in advancing Canada’s carbon removal sector.

EVision 2025 – March 5-6, Brussels
Eurelectric and EY will quantify the potential of electric vehicles for Europe’s energy system, discussing benefits to the power sector and consumer savings.

North American Carbon World (NACW) – March 25-27, Los Angeles
This annual conference addresses critical issues in climate policy and carbon markets, offering premier networking opportunities with climate professionals.

European Climate Summit – April 1-3, Lisbon
IETA welcomes delegates to the flagship European Climate Summit, focusing on the evolving political landscape and the future of carbon markets.

JOB LISTINGS THIS WEEK

• (Senior) Quantitative Carbon Market Analyst EU ETS, Veyt – Oslo/London
• Carbon NBS Specialist/Project Manager, NatureCo – India/Southeast Asia/Indonesia/Brazil/Australia
• Nature and Biodiversity Correspondent, Carbon Pulse – Remote
• Sales Strategy Consultant, AlliedOffsets – London
• Project Finance (Climate Finance), Senior Analyst, EcoSecurities – Portugal/Netherlands
• Senior Market Monitor (Financial Examiner 4) (In-Training), Washington State Department of Ecology – Lacey
• Cap-and-Invest Industrial Decarbonization Specialist (Environmental Planner 5), Washington State Department of Ecology – Lacey

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BITE-SIZED UPDATES FROM AROUND THE WORLD

EMEA
– Russia Sanctions: The EU has adopted its 16th round of sanctions against Russia, targeting the oil and gas sector, including a ban on temporary storage of Russian crude oil in EU ports.
– Green Growth: The UK’s net-zero sector is growing three times faster than the overall economy, with net-zero businesses employing nearly a million people.
– Not on EU’s Watch: The Copernicus Atmosphere Monitoring Service has launched a Methane Hotspot Explorer app to monitor methane emissions.
– Sustainability Demoted: Major global banks have downgraded sustainability roles due to slower climate action and backlash from US political dynamics.
– Drax’s New Plans: Drax has unveiled a sustainability strategy committing to nature targets and a net-zero goal by 2040.

Grangemouth Lifeline: The UK’s National Wealth Fund will invest £200 million to support opportunities at the Grangemouth oil refinery site, ensuring its long-term future in clean energy.

Hydrogen Clusters: Spain’s Ministry for Ecological Transition has allocated €1,214 million to support seven renewable hydrogen clusters, aiming to install 4 GW of green hydrogen by 2030.

ASIA PACIFIC ACCU Estimates: Ampol announced it expects to surrender 58,000 Australian Carbon Credit Units (ACCUs) for FY 2024.

Setting Up Shop: Energy Dome is establishing its APAC headquarters in Melbourne, aiming to utilize its patented CO2 battery technology for energy storage.

Sovereign Green Bonds: China is preparing to issue its first RMB-denominated sovereign green bond to attract global investment for its green development initiatives.

SAF Bonds: Idemitsu’s sustainable aviation fuel project has been selected to earn GX Economic Transition Bonds, with production set to start in 2028.

AMERICAS

Nothing About Us Without Us: California’s carbon market watchdog published its final 2024 annual report, addressing key issues amid changing climate policies.

New Rules: Colorado’s Air Quality Control Commission approved new regulations to reduce methane emissions from the oil and gas industry.

Renewables Sale: National Grid has agreed to sell its US onshore renewables business to Brookfield Asset Management for $1.7 billion.

Tree-mendous Upgrade: AiDash launched CRIS 2.0, aimed at reducing wildfire risks through proactive vegetation management using satellite data and AI.

Power Couples: A Rocky Mountain Institute report outlines a strategy to pair large electricity consumers with new clean energy resources.

Data Dispute: A lawsuit challenges the USDA’s removal of climate-related policies and datasets, seeking restoration of the content.

Ratio Reporting: A coalition of investors is urging Canada’s largest financial institutions to disclose their Energy Finance Ratio to improve transparency.

SAF Success: XCF Global Capital announced the start of commercial SAF production, selling over 3 million gallons to a third-party buyer.

From Waste to Wood: Cambium launched Carbon Smart Wood, a CLT product made from salvaged wood, aiming to provide a more sustainable building material.

Tit-for-Tariff-Tat: British Columbia’s Conservative opposition leader proposed a retaliatory carbon tax on US thermal coal shipments amidst ongoing trade tensions.

CFOs Still GAF About CSO Mandates: A survey found that 44% of CFOs would increase investments in sustainability under the current administration.

Dismissed: A criminal case against major Democrat donor Ibrahim AlHusseini was dismissed, raising questions about political influence.

In Mint Condition: Brazil’s MIDR partnered with the Brazilian Mint to establish a national carbon credit certification service.

AND FINALLY…

Shelling Out More: Rising temperatures linked to climate change are affecting egg production in Paraguay, leading to a 27% price increase. The president of the Paraguayan Poultry Farmers Association attributed the loss of 180,000 eggs daily to extreme heat, exacerbated by a lack of modern cooling facilities. Prices are unlikely to stabilize until after Easter, as demand peaks during this period.

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