Carbon Market News

Market Updates

Carbon Credit ETFs Surge on Coal Power Expansion Outlook

Carbon credit ETFs were among the best-performing commodity funds in May, supported by rising carbon prices and expectations of stronger demand for emissions allowances. The HANARO Global Carbon Emission Rights Futures ETF gained 12.28% over the past month, while the SOL Global Carbon Emission Rights Futures ETF rose 10.40%. Analysts attribute the rally to higher oil and natural gas prices following geopolitical tensions in the Middle East, which may encourage greater coal-fired power generation and increase demand for carbon credits. At the same time, the European Union continues tightening allowance supply under its Fit for 55 framework. Market participants also expect summer electricity demand to further support carbon credit prices in the coming months.
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#CarbonMarket #EUETS #EUA #CarbonPricing #CarbonETF #FitFor55 #CoalPower

India among biggest new carbon markets as global carbon pricing covers 29 per cent of emissions

India has emerged as one of the world’s largest new carbon markets following the launch of its Carbon Credit Trading Scheme (CCTS) in 2026, according to the World Bank’s State and Trends of Carbon Pricing 2026 report. The new emissions trading system covers seven sectors and around 490 industries, representing approximately 477 million tCO2e. Built on India’s existing Perform Achieve and Trade (PAT) energy efficiency framework, the system assigns annual emissions intensity targets and allows overperforming companies to generate tradable Carbon Credit Certificates. The report identifies India’s future expansion into the iron and steel sector as a major driver that could significantly increase global carbon pricing coverage by 2030. India is also recognized as one of the world’s largest voluntary carbon markets.
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#CarbonPricing #ETS #CarbonTax #India #CBAM #CORSIA #WorldBank #VCM #CarbonMarkets #Article6 #PACM #NetZero

Global carbon emissions pricing raised record $107 billion in 2025

Global carbon pricing revenues reached a record US$107 billion in 2025, according to a World Bank report released on May 20. The report said more than 80 carbon pricing mechanisms, including emissions trading systems (ETS) and carbon taxes, are now operating worldwide and cover around 24% of global greenhouse gas emissions. Rising carbon prices, expanded sector coverage, and higher ETS auction revenues contributed to the increase. The World Bank noted that governments are increasingly using carbon pricing to drive emissions reductions, support low-carbon investment, and fund energy transitions. However, the report also warned that most global carbon prices remain below levels needed to achieve Paris Agreement climate goals, while significant differences persist across national carbon pricing systems.
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#CarbonPricing #ETS #CarbonTax #WorldBank #CarbonLeakage

Airlines Get Payment Breathing Room In New Carbon Credit Financing Push

A new financing mechanism launched on the IATA Aviation Carbon Exchange (ACE), in partnership with Xpansiv and supported by Mercuria, allows airlines to secure CORSIA-eligible carbon credits while deferring payment until as late as December 2027. The structure enables airlines to lock in current prices, receive emissions units into escrow, and reduce near-term cash flow pressure. The initiative comes as airlines face growing compliance obligations under ICAO’s CORSIA framework, alongside volatile carbon markets and limited supply of eligible credits. Industry observers note that upfront purchases of carbon credits have become increasingly challenging for airlines amid fuel cost inflation and uneven recovery in aviation demand.
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#CORSIA #ICAO #IATA #ACE #Mercuria #CEEUs #Aviation

Engineered Carbon Removal Was Supposed to Be Getting Cheaper. Prices Are Going Up.

Prices for engineered carbon removal credits are rising instead of falling, challenging earlier expectations that scale and technological progress would rapidly reduce costs. Market data shows biochar carbon removal prices have increased around 10%, while direct air capture (DAC) prices rose approximately 11%. Industry participants say early pricing was overly optimistic and heavily supported by venture capital, while current projects now require commercially viable returns and face rising operational costs. Strong demand for high-quality removals and limited supply from proven projects are also contributing to higher prices. Market observers note that future cost reductions may depend less on scale alone and more on integrated industrial systems, byproduct monetization, and broader carbon, energy, and materials ecosystems.
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#CDR #CarbonRemoval #DAC #Biochar #CarbonPricing #VCM

South Korea builds voluntary carbon market, lacks domestic verifiers

South Korea is preparing legislation to launch a “Korean-style” voluntary carbon market aimed at expanding participation beyond large corporations to small and midsize businesses and startups. However, the country currently lacks domestic validation and verification bodies (VVBs) with sufficient experience, forcing reliance on overseas evaluators. Government officials said Korea plans to cooperate with foreign institutions in the short term while developing local verification capacity over time. The article contrasts Japan’s domestically tailored verification system, which has helped expand participation, with Singapore’s reliance on foreign verifiers, where high certification costs and lengthy procedures have limited access for smaller companies. Market participants say credible MRV and evaluation systems are essential for scaling high-integrity carbon markets.
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#VCM #VVB #MRV #CarbonCredit #SouthKorea #Japan

Paraguay expects over US$1 billion in Singapore carbon credit investments

Paraguay expects carbon credit investments from Singapore to exceed $1 billion, following a bilateral cooperation framework under Article 6 of the Paris Agreement. The partnership enables cross‑border credit transfers with safeguards against double counting and includes revenue sharing for climate adaptation. Singapore has already procured credits from Paraguayan nature‑based projects and views the country as a key supplier. The deal supports Paraguay’s ambition to scale its carbon market while positioning Singapore as a regional carbon trading hub amid rising carbon prices.
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#CarbonCredits, #Article6, #ParisAgreement, #CarbonMarket, #NatureBasedSolutions, #CorrespondingAdjustments, #ClimateFinance

Q1 2026 Carbon Data Snapshot

Sylvera’s Q1 2026 carbon market data reveals the volume vs. value dynamic intensifying: retirements fell 8% to 51 million while average price per credit rose to $5.69 from $5.60. Investment-grade credits (BBB+) now command on average $20.10 per credit (up from $18.10), accounting for 30% of new rated issuances and 62% of total rated market value. CORSIA-eligible* credits represent nearly 50% of new issuances for the first time, with CCP accreditation growing to 18% from under 3% in 2023. Project type shifts show cookstoves growing to 26% of issuances, REDD+ recovering to 25% retirement share, and waste management reaching record 10%. Regional dynamics see North America leading quality supply with 57% of rated issuances BBB+.
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#CarbonMarket, #Sylvera, #CarbonCredits, #CORSIA, #ICVCM, #CCP, #REDD, #Cookstoves, #VCM, #CarbonPricing

Africa’s $100B Carbon Opportunity: How Sovereign Markets Could Lead the World

Africa’s carbon markets are gaining momentum, with estimates suggesting the sector could reach $100 billion by 2030 if supported by strong policies and credible market systems. The Africa Carbon Markets Initiative (ACMI) targets production of 300 million credits annually by 2030, scaling to 1.5 billion by 2050, driven largely by nature‑based solutions. Sovereign carbon market frameworks in countries such as Ghana, Nigeria, and Kenya aim to retain value locally, attract private investment, and align credits with national climate goals, positioning Africa as a major global carbon supplier.
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#CarbonMarket, #ACMI, #CarbonCredits, #NatureBasedSolutions, #Ghana, #Nigeria, #Kenya, #ClimateFinance, #NDC

Carbon-Removal Credits Licensed by EU Get Nasdaq Backing

EU-licensed carbon removal credits are attracting growing investor interest, highlighting rising demand for high-integrity, policy-aligned carbon assets. Nasdaq and Dutch payments provider Adyen are among the buyers of credits from a Stockholm-based project operated by Stockholm Exergi. The facility uses bioenergy with carbon capture and storage (BECCS), converting agricultural and woody residues into energy while capturing and storing CO₂ deep beneath the North Sea, where it mineralizes over time. The development reflects increasing participation from both corporate and financial buyers and signals that EU-aligned removal credits are emerging as a premium segment in carbon markets, with strong implications for future pricing and capital allocation.
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#EU #CarbonRemoval #BECCS #Nasdaq #TBS #ClimeFi