Key Developments in Carbon Markets and Climate Policy: CP Daily Summary for March 2, 2025

## CP Daily: Sunday, March 2, 2025

Published 01:28 on March 3, 2025 / Last updated at 01:28 on March 3, 2025 / Asia Pacific, Australia

Welcome to CP Daily, Carbon Pulse’s free newsletter providing a daily summary of our news along with bite-sized updates from around the globe.

TOP STORIES

COP16: Countries Reach Last-Minute Agreement on Nature Finance

At the resumed COP16 UN biodiversity summit held late Thursday, nations successfully negotiated a crucial agreement aimed at mobilizing financial resources for nature. This decision concludes months of tension but delays essential measures needed to address the current funding gap by the end of the decade, according to observers. All articles related to nature and biodiversity are available for free, although access now requires a Carbon Pulse login. To obtain a login, you can sign up for a free trial.

Carbon Pulse Expands Reporting Teams with New Hires and Promotions

Carbon Pulse is enhancing its team of carbon market, nature, and biodiversity reporters through a series of new hires and promotions.

AVIATION ANALYSIS: Uncertainty Surrounds CORSIA Participation, Leaving EU in a Dilemma

Recent analysis from Carbon Pulse indicates that growing uncertainty regarding the participation of major aviation demand centers in CORSIA may complicate the EU’s efforts to enforce decarbonization in the sector to meet its climate objectives.

EMEA: Investment Funds Exhibit Strong EUA Price Forecasting Skills

A new study reveals that investment funds and other financial institutions have demonstrated a remarkable ability to predict long-term price trends in the European carbon market, despite holding only a small percentage of total long and short positions.

Ghana to Auction 24 Million Article 6 Credits

President John Mahama announced in his State of the Nation Address that Ghana plans to auction 24 million carbon credits under Article 6 of the Paris Agreement, aimed at financing sustainable development while reducing emissions.

Cookstoves Consortium Secures €4 Million for Carbon Credits Project in Zambia

A development group based in London, along with a Belgian management company, has invested €4 million to scale a clean cookstoves project under Article 6.2 in Zambia.

EU’s Clean Industrial Deal Criticized by Steelmakers for Lacking Necessary “Radical Change”

Steel association Eurofer expressed that although the European Commission’s recent Clean Industrial Deal proposal contains commendable initiatives, it falls short of providing the “structural solutions” needed for challenges such as trade, high energy prices, and the EU’s Carbon Border Adjustment Mechanism (CBAM).

Experts Advocate for Climate Dividend Schemes Amid Pressure on ETS Revenue Spending

European climate policy advocates are urging EU member states to implement environmental dividend schemes as a socially equitable method for distributing revenues generated by the bloc’s Emissions Trading System (ETS), highlighting notable deficiencies in Italy.

Dutch Climate Fund Secures €150 Million for Green Hydrogen Initiatives

A fund based in the Netherlands announced the establishment of a green hydrogen blended finance fund, having secured an initial €150 million from European donors.

Euro Markets: EUAs Experience Largest February Drop in Nine Years

European carbon prices recorded their worst February performance in nine years, nearing their lowest point of the year as market trends followed the decline in natural gas prices, which fell throughout the day following a 10% increase on Thursday.

AMERICAS ANALYSIS

Trump’s Tariffs Threaten US-Canada Energy Relationship

Upcoming tariffs under President Donald Trump may jeopardize the vital energy relationship between the US and Canada, potentially creating uncertainty in the closely connected Northeast energy markets.

US Senate Bill Aims to Revoke Federal Vehicle Emissions Regulations

Earlier this week, a new bill was introduced in the US Senate seeking to overhaul transportation options for consumers and amend vehicle emissions standards.

Alberta Anticipates Deficit Amid US Tariff Concerns

In light of potential US energy tariffs, Alberta’s new budget leaves room for their implementation, while revenues from its carbon market are expected to plummet by approximately 50%.

Alberta Addresses “Zero-Emitting” Facilities Issue

During an annual stakeholder workshop, Alberta’s environment ministry discussed the status of “zero-emitting” facilities under its program targeting industrial GHG emissions.

BRIEFING: Advocates Challenge California ARB’s Staffing Boost Request

California environmental groups are contesting a funding request from the state’s regulator, ARB, which claims the funds would be used to increase staffing and develop the state’s carbon management deployment strategy.

Washington Lawmakers Propose Solidifying Farm Fuel Exemption Requirements Under CCA

A bipartisan group of legislators in Washington has introduced a bill directing the state’s Department of Energy to establish reporting requirements for the sale of exempt fuels utilized in agriculture under the Climate Commitment Act.

Washington’s SAF Bill Would Halt WCFS Rulemaking

A bipartisan bill in Washington State promoting sustainable aviation fuel production would require regulators to pause the current rulemaking process under the Washington Clean Fuel Standard.

US Federal Policy Must Support Carbon Management for Global Competitiveness – Report

A recent report indicates that the US carbon management industry requires a comprehensive set of federal policies to unlock its global potential.

CFTC: Legislative Certainty Drives CCA, WCA, and LFS Futures and Options Holdings

Recent figures from the US Commodity Futures Trading Commission reveal that a combination of legislative certainty and regulatory uncertainty influenced investor sentiment across California Carbon Allowance, Washington Carbon Allowance, and Low Carbon Fuel Standard futures and options.

US RNG Industry Calls for Stronger Federal Tax Incentives

Industry experts argue that current tax incentives for clean fuels and hydrogen production in the US are inadequate to support the growth of Renewable Natural Gas (RNG).

Minnesota Introduces Bill to Repeal Clean Vehicle Regulations

This month, the Minnesota House of Representatives introduced legislation to repeal certain clean vehicle rules under the state’s environmental regulations.

ASIA PACIFIC

CN Markets: CEAs Drop to Six-Month Low as Traders Remain Cautious

Permit prices in China’s national emissions market fell below 90 yuan ($12.35) over the past week, reaching their lowest point in six months, with analysts predicting a continuation of this bearish sentiment into March.

Australian Emissions Decline as Power Demand Remains Steady, Regulator Reports

According to data released by the Australian regulator, emissions from nearly 70% of sectors covered by the country’s greenhouse gas reporting requirements have been decreasing since 2019 and fell again in 2024.

Clean Energy Regulator Predicts Significant Increase in Excess Safeguard Mechanism Emissions

The Clean Energy Regulator of Australia expects that facilities under the Safeguard Mechanism will emit over 9 million tonnes of CO2e above their baselines in 2023-24.

Australian Market Oversight Body Reviews Soil Carbon Methodology

Australia’s Emission Reduction Assurance Committee is seeking feedback on its 2021 soil organic carbon method to ensure it meets the scheme’s offset integrity standards.

Proposed Forestry Project in Malaysia Faces Backlash from Activists and Local Communities

A proposed deforestation avoidance and plantation project in Malaysia has drawn criticism from activists and Indigenous communities for failing to secure free, prior, and informed consent.

Thailand Launches German-Backed €118 Million ‘Climate-Smart’ Rice Project to Reduce Emissions

Thailand is starting a German-backed initiative worth €118 million aimed at promoting ‘climate-smart’ rice farming, with goals to support over 253,000 farmers and cut carbon emissions by 2.44 million tonnes of CO2e by 2028.

VOLUNTARY

Cookstove Credits Could Become Major Supply Source for CORSIA – Industry Insight

Cookstove credits could be a significant supply source under ICAO’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), especially in its initial phase, offering airlines a cost-effective option to offset emissions.

C-Quest Capital Files for Chapter 7 Bankruptcy

C-Quest Capital, a carbon project developer, filed for Chapter 7 bankruptcy in a Delaware court this week, citing financial difficulties and a lack of sufficient capital to continue operations.

New Blockchain-Based Voluntary Carbon Credit Aims to Reduce Methane Emissions from Organic Waste

A climate technology firm has introduced a new blockchain-based voluntary carbon credit designed to lower methane emissions by diverting organic waste from landfills for composting.

New Online Tool Launched to Calculate Net CO2 Removals from DAC

A US-based non-profit has launched an online tool to assess net CO2 removals achieved by direct air capture (DAC) facilities, providing a detailed lifecycle emissions analysis for this emerging carbon dioxide removal technology.

Voluntary Carbon Market Faces Integrity and Transparency Challenges Despite Growth Prospects – Report

A recent report highlights that the voluntary carbon market (VCM) is grappling with issues of credibility amid concerns regarding transparency, integrity, and regulatory inconsistencies.

INTERNATIONAL

Domestic Cross-Border CCS Adoption Hindered by Political, Economic, and Regulatory Challenges – Report

A report released Friday indicates that carbon capture and storage (CCS) projects in China and the US are facing governance issues, with regional interests, local protectionism, and fragmented regulations obstructing CO2 transport and storage across domestic boundaries.

NEW REPORT

Supercritical’s 2025 Novel CDR Supply Briefing – To achieve net zero by 2050, the carbon removal market must scale 14,000-fold. We cannot rely on a single method; multiple solutions at gigatonne scale are needed. Explore the state of cutting-edge carbon removal methods, including DACCS, BECCS, mineralization, and biomass storage in Supercritical’s latest supply briefing.

EVENTS

Carbon Forward Asia – Mar. 4-5, Singapore

Join us for the third annual Asian conference in Singapore, where we will bring together experts from the Asia Pacific region to discuss ASEAN markets, regional opportunities, and developments in carbon pricing.

EVision 2025 – Mar. 5-6, Brussels

Electric vehicles represent a great source of flexibility for Europe’s energy system during its transition to net zero. Join us at EVision 2025 to quantify the benefits of EVs for the power sector and the potential savings for consumers.

North American Carbon World (NACW) – Mar. 25-27, Los Angeles

NACW 2025 will address vital issues in climate policy and carbon markets, bringing together climate professionals across North America for discussions and networking opportunities that will shape the future of carbon markets and climate solutions.

European Climate Summit – Apr. 1-3, Lisbon

IETA invites delegates to our flagship European Climate Summit 2025, where discussions will focus on the evolving geopolitical landscape and the maturation of carbon markets in the EU and globally.

Premium Job Listings

• (Senior) Quantitative Carbon Market Analyst EU ETS2, Veyt – Oslo/London
• Carbon NBS Specialist/Project Manager, NatureCo – India/Southeast Asia/Indonesia/Brazil/Australia
• Nature and Biodiversity Correspondent, Carbon Pulse – Remote

See all listings or post a job.

ADVERTISE WITH US

Carbon Pulse has published its 2025 advertising brochure and media pack, featuring updated offerings and prices. Bookings are now open for advertising on our website and in our newsletters.

BITE-SIZED UPDATES FROM AROUND THE WORLD

Absent Seats at IPCC Meeting in Hangzhou

The absence of US representatives at a critical meeting of the Intergovernmental Panel on Climate Change (IPCC) in Hangzhou, China, has raised concerns among scientists about the impact on the upcoming seventh iteration of its landmark report.

Energy Transition Partnership

Malaysia’s national oil company Petronas has formed a partnership with the UK-based Energy Institute to collaborate on advancing the energy transition through decarbonization initiatives.

EMEA Industries in Need of Support

The Greek government has reallocated a significant portion of EU ETS revenues away from renewable energy subsidies to support energy-intensive industries, raising concerns about the impact on renewable energy targets.

Chemicals Outlook

BASF anticipates slight growth in adjusted operating income this year, even as it aims to reduce costs amidst slow global demand.

Countdown for UK Nuclear Projects

The UK government has initiated the final selection process for its Small Modular Reactor (SMR) program, with decisions expected soon.

Localized Funding for Hydrogen Projects

Baden-Wurttemberg, a state in southwest Germany, has launched a €100 million funding initiative to support regional hydrogen production projects.

Agrivoltaics Benefits

Research suggests that combining solar panels with agriculture (agrivoltaics) can significantly contribute to the UK’s solar energy goals without sacrificing farmland.

Cote d’Ivoire Strengthens Cooperation on Carbon Credits

During the International Agricultural Show in Paris, Cote d’Ivoire’s Minister of Water and Forests met with developers to reinforce collaboration on carbon credits as part of the country’s forestry policy.

Saudi Aramco Awards CCS Hub Contract

Saudi Aramco has awarded a $1.5 billion contract for the first phase of its CCS hub in Jubail, which aims to capture 9 million tonnes of CO2 annually as part of Saudi Arabia’s net zero strategy.

Partnership on Carbon Sequestration in Mangroves

Yadgreen is partnering with Saudi Arabia’s National Centre for Vegetative Cover Development to assess carbon sequestration in mangrove forests.

ASIA PACIFIC

Offshore Wind Project Licenses Awarded in Australia

The Australian government has granted feasibility licenses for two offshore wind projects, allowing developers to engage in detailed consultations as they move towards construction.

China’s Belt and Road Initiative Sees Record Engagement

A report indicates that China’s Belt and Road Initiative achieved its highest engagement level last year, with significant investments in energy-related activities.

Japan and Malaysia Enhance Strategic Cooperation

Japan and Malaysia have reaffirmed their commitment to enhance cooperation on carbon capture, utilization, and storage (CCUS) projects.

ByWill Partners with Gifu Prefecture for Environmental Value Creation

ByWill is collaborating with local government and banking institutions in Japan to generate environmental value through carbon credits.

Singapore Signs Article 6.2 Agreement with Bhutan

Singapore has finalized an implementation agreement with Bhutan to cooperate on carbon credits, marking its third such agreement under the Paris Agreement.

AMERICAS

Uncertainty Surrounds DAC Hubs Programme in the US

The Biden administration’s Direct Air Capture Hubs programme is facing challenges following layoffs at the Department of Energy, causing disruptions in project funding and communication.

Climate Change Center Closure

The US Department of Transportation has closed the Climate Change Center, which provided support for climate-related projects.

Lawsuits Filed Against US EPA Regulations

Two lawsuits have been filed against the US EPA regulations under the Clean Air Act, challenging the agency’s authority.

Wells Fargo Pauses Sector-Specific Emissions Targets

Wells Fargo has announced the discontinuation of its sector-specific 2030 interim financed emissions targets, citing external challenges.

Refinery Hardship Relief Petitions Filed

Calumet Shreveport Refining and Calumet Montana Refining have filed petitions challenging US EPA decisions regarding small refinery hardship relief.

Collaboration on Lignocellulosic Biomass Refining

Comstock has partnered with Marathon Petroleum Corporation to advance the refining of lignocellulosic biomass.

Approval for Bison Low Carbon Ventures’ CCS Project

Bison Low Carbon Ventures has received approval for its carbon capture and storage project in Alberta, allowing it to move forward with commercial operations.

First Verra-Registered Regenerative Livestock Project in Argentina

Argentina hosts its first Verra-registered regenerative livestock project, focusing on sustainable grazing practices.

Funding for Ecological Restoration in Brazil

Brazil’s National Bank for Social and Economic Development has announced funding for several ecological restoration projects.

Crown Energy Increases Loan Facility for NbS Solutions

Crown Energy has tripled its loan facility to Kaya Climate Solutions, which focuses on nature-based solutions in sub-Saharan Africa.

Study on Biochar in Mediterranean Vineyards

An Italian government-backed study is exploring the use of biochar in vineyards to enhance soil health and resilience.

Carbon Done Right Reports Net Loss

Carbon Done Right reported a net loss for the year ended December 31, 2024, primarily due to the termination of a lease in Guyana.

Credits Issued from Turkey’s Landfill Gas-to-Energy Project

Anthesis has issued carbon credits from its landfill gas-to-energy project in Turkey, generating clean energy and reducing methane emissions.

Carnival Collaboration for CO2 Offsetting

Galo da Madrugada, the largest street Carnival block in Brazil, has partnered with Ambipar to offset CO2 emissions from its upcoming celebration.

Got a tip? How about some feedback? Email us at news@carbon-pulse.com. This page is intended for online viewing and may not be printed. As per our terms and conditions, republication or redistribution of Carbon Pulse content can lead to the suspension or termination of your subscription.