Carbon Market News

The UK has published a non-exhaustive list of carbon pricing schemes that may support Carbon Price Relief under its CBAM from 1 January 2027. Recognised systems include emissions trading schemes, carbon taxes in Chile, Serbia, Singapore and South Africa, Australia’s Safeguard Mechanism, Canada’s federal OBPS, India’s CCTS and Taiwan’s carbon fee. Recognition does not automatically exempt imports or credit the scheme’s headline price. Importers must calculate and verify the effective carbon price borne by the producing installation, accounting for covered emissions, free allowances, thresholds, removals, rebates and compensation. That effective price is applied only to embodied emissions covered by the qualifying scheme, converted into sterling and deducted from UK CBAM liability. The government will assess and add further schemes later.
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#UKCBAM #CarbonPriceRelief #CarbonTax #TaiwanCarbonFee #HMRC

German authorities have revoked carbon credits from 30 China-based upstream emissions reduction projects after investigations questioned whether the claimed reductions were delivered. The projects represented 2.1 million tonnes of CO2 reductions, equivalent to the emissions of roughly 500,000 cars. ExxonMobil was among the affected buyers: one project financed through its Belgian entity claimed nearly 96,000 tonnes, with credits valued at €4.2 million. A German Environment Agency report identified 45 suspicious projects, naming consultancy Beijing Karbon as the principal developer and alleging that deception created the appearance of legitimate projects. Three European auditing firms—TÜV Rheinland, Müller-BBM Cert and Verico SCE—had verified some of the questioned activities. Credits from the projects were sold in at least nine European countries. Companies holding revoked units must cover the resulting compliance shortfalls. Investigations remain ongoing: information concerning 24 invalidated projects was redacted, while revocation decisions for six projects are final.
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#Germany #China #ExxonMobil #CarbonCredits #CarbonMarketIntegrity #UER #ComplianceRisk

Germany’s Cabinet has approved draft amendments to the Fuel Emissions Trading Act that would retain the carbon price corridor at €55–€65 per tonne in 2027, matching the 2026 range. The change responds to the postponement of the EU ETS 2 for buildings and road transport until 2028 and would prevent Germany’s national price from becoming linked to the volatile EU ETS 1 price next year. The bill still requires parliamentary approval. BDEW welcomed changes reducing the maximum auction bid share from 50% to 20% and tightening allowance banking rules, including preventing 2026 allowances from meeting 2027 obligations. However, the association called for further revisions to top-up pricing and auction design, warning that the proposal may not deliver its price-stability objective.
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#Germany #BEHG #CarbonPricing #NationalETS #EUETS2

Kenya has capped carbon-credit exports at 10 million tonnes of CO₂ equivalent through 2030, equivalent to 1.67 million tonnes annually, to prevent overselling Article 6 credits and protect progress toward its own NDC. The framework will revise the three-stage No-Objection, Approval and Authorization process and initially prioritize renewable energy, transport and waste projects. Forest and other land-use activities remain excluded until stronger baselines and monitoring systems are established. While the government says the policy will improve predictability and attract investment, industry experts are seeking clearer rules on eligible projects, voluntary versus compliance-market allocation, quota distribution and government authorizations. Past delays in issuing authorization letters have reportedly created serious financial risks for project developers.
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#Kenya #Article6 #CarbonCredits #CorrespondingAdjustment #NDC #CarbonPolicy #Africa

The European Commission will withdraw additional carbon-credit quality criteria proposed for CORSIA Phase 1, as eligible supply remains far below expected airline demand. IATA estimates demand at 170–236 million tonnes, compared with around 40 million tonnes of labeled or pending-authorisation supply. The proposed rules could have excluded HFLD projects, including substantial Guyana supply, and restricted improved cookstove credits. However, the stricter requirements are expected to return in Phase 2 from 2027, potentially creating separate markets for EEA and non-European airlines. The decision eases immediate compliance pressure and may broaden Phase 1 supply, but uncertainty could delay airline purchasing. Continued Phase 2 constraints may produce significant price premiums for credits meeting Europe’s requirements.
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#EU #CORSIA #Aviation #CarbonCredits #Policy #Phase1 #Phase2