Carbon markets
Overview
Carbon markets are developing as a crucial economic lever in the challenge of reversing the accumulation of greenhouse gases in the Earth’s atmosphere, while CO2 remains a key factor in a range of industrial sectors.
National governments are embracing carbon markets, with a proliferation of carbon pricing policies worldwide. The private sector is channelling finance into projects that generate carbon emissions reductions and removals to mitigate their hard-to-abate emissions.
And the United Nations is making progress in building a global marketplace for carbon emissions reductions that will facilitate nations’ attempts to meet their obligations under the Paris Agreement.
Industrial sectors remain a key source of CO2 emissions and consumption, with innovation looking towards sustainable methods of production and utilisation.
Argus is setting the stage for an extended period of growth, evolution and interconnection of carbon market participants and initiatives.
Latest carbon markets news
Browse the latest market moving news on carbon markets.
China's climate influence faces coal test
China's climate influence faces coal test
Expectations of greater Chinese climate leadership may run ahead of Beijing's own ambitions Beijing, 24 October (Argus) — China's growing dominance in clean-energy manufacturing and deployment is increasing its influence over the global energy transition. But its expanding coal-fired power fleet sits at odds with expectations that Beijing could assume a larger leadership role at future UN climate conferences. The US' Paris agreement exit and concerns about economic growth in Europe have put the spotlight on China, with global climate goals in peril. Global renewable capacity more than doubled between 2016 and 2025, while renewable generation rose by 67pc, according to the International Renewable Energy Agency. China accounted for more than half of global solar capacity and nearly half of global wind capacity in 2025 — its solar capacity reached 1,202GW and wind capacity 641GW — underscoring its central role in the energy transition. China's climate contribution extends beyond its emissions trajectory. Its firms are central to supply chains for solar modules, batteries, electric vehicles and renewable fuels, and its manufacturing scale has helped lower the cost of clean tech. But it also operates the world's largest coal-fired power fleet and critics argue that industrial influence alone is not enough. Climate leadership ultimately requires a credible pathway to reducing fossil fuel use and emissions, observers say. But Beijing has shown little desire for a larger political role in climate governance. While speculation over a bid to host a future Cop has surfaced, China's official messaging still emphasises its developing-country status and the principle of common but differentiated responsibilities. The key test for China is whether clean power growth is sufficient to displace fossil fuel-based generation rather than simply meeting rising energy demand, UK-based think-tank Ember says. Clean energy met all China's incremental power demand in 2025 and coal-fired output fell, according to the Finland-based Centre for Research on Energy and Clean Air and US-based Global Energy Monitor. But China still added the most coal capacity in a decade, and the expansion continued in 2026, with 30GW commissioned in January-June, up by 43pc on the year. Work began on another 25.4GW, while just 2.7GW was retired, according to the two organisations. But rapidly retiring coal assets would create economic and reliability challenges. Beijing's path Beijing's response is not to pursue a European-style coal-retirement strategy. Instead, policymakers are looking to retain a substantial coal fleet while expanding renewables, storage and grid infrastructure. China's 2025-27 coal-fired power upgrade plan calls for greater flexibility to accommodate renewables, and another low-carbon transformation plan promotes biomass and ammonia co-firing and carbon capture, utilisation and storage. Questions remain over whether this pathway is a credible route to decarbonisation, as some analysts warn that ammonia co-firing and other retrofits could prolong the life of coal assets. Rather than pursuing leadership through international rule-setting or a fossil fuel phase-out agenda, China has sought to shape the transition through investment, industrial capacity and technology deployment. But for some western governments and climate groups, leadership is increasingly measured by political commitments, fossil fuel policies and international diplomacy. These competing visions in an era where technology deployment, industrial capability and diplomatic ambition do not always move at the same pace may help explain China's lack of enthusiasm for a greater political part. As China's role in the transition expands, the question may not be whether it can become a climate leader without a coal phase-out, but whether it is actually seeking the kind of climate leadership that much of the world increasingly expects it to assume. Top 5 solar producers 2025 Top 5 wind energy producers 2025 Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Energy security backs stalled fossil fuel shift
Energy security backs stalled fossil fuel shift
The Hormuz crisis has sparked interest in quick wins that could also have long-term benefits, writes Caroline Varin Edinburgh, 23 October (Argus) — Talks on transitioning from fossil fuels are unlikely to progress in official UN Cop 31 summit negotiations in Antalya, Turkey. But energy security concerns resulting from the US-Iran war are keeping the topic firmly on the international agenda. Initiatives such as a global roadmap to move away from fossil fuels, which the Brazilian UN Cop 30 presidency will present at this year's Cop 31 summit, will largely be dealt with outside of negotiations where decisions are taken by consensus. Major fossil fuel producers, which pushed back on the topic in Brazil last year, argue the transition was sufficiently addressed at Cop 28 in 2023 and that negotiations should focus on cutting emissions and not their sources. Discussions have stalled since Cop 28 concluded with a historic agreement on fossil fuels . This year may not be the time for transition discussions to be included in official Cop negotiations, International Institute for Sustainable Development (IISD) senior policy advisor Natalie Jones says. Such talks would "toxify" agenda items and probably result in more deadlock, she says. "That is not to say that formal negotiations are devalued, but it's a realistic assessment of where we are at." Phasing out fossil fuels remains critical and will be discussed at Cop 31, Dutch climate minister Stientje van Veldhoven said, adding that more countries will announce plans in Antalya. But this will happen as part of the informal summit's action agenda, where stakeholders meet to advance implementation. Turkey and Australia — presiding over Cop 31 — highlighted the importance of transitioning away from fossil fuels, but have yet to lead by example. Australia is the world's second-largest coal exporter after Indonesia, while Turkey is the seventh-largest coal importer, according to the IEA. "It makes sense to strategically start to plan to overcome the issue of demand decline," IISD's Jones says. "Turkey and Australia could help to show the way. If there are no leaders that step up in this regard, I think it's going to be a real problem." Umit Sahin, head of climate change studies at the Istanbul Policy Centre, does not expect a push from Turkey towards major producers on the question of transitioning away from fossil fuels. "Turkey appears to have decided that [the topic] itself is not a place to go in the formal Cop negotiations and has decided to approach it through electrification — from an end-use point of view," he said. Energy crisis/opportunity But the energy security crisis stemming from the US-Iran war is supporting clean energy development because this field offers quick solutions that will ultimately benefit climate action, IEA executive director Fatih Birol says. Economies reliant on Middle East oil and gas scrambled to secure supplies and implement measures to mitigate disruption — energy conservation, direct subsidies and tax cuts, for example. The crisis has also sharpened political focus on electrification. The crisis is a lesson for consuming countries , and the resulting shift towards electrification will affect oil demand, TotalEnergies chief executive Patrick Pouyanne has said. The IEA puts the global demand reduction since the start of the conflict at more than 1bn bl, driven by steep declines in China . There will be no more turning back from clean energy, utility EDF UK's non-executive chair, Alex Chisholm, told the FT Energy Transition Summit earlier this month. This will not be enough to meet the Paris goals, Birol warned, although he said he is hopeful about an agreement on electrification at Cop 31. Turkey set a goal for its action agenda to increase electricity's share of final energy demand worldwide to 35pc by 2035 . But the call sits outside of formal negotiations. Arab countries have signalled that they see no need for a "universal" agreement under the informal action agenda. Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Key Australian hydro project hit by cost rise, delay
Key Australian hydro project hit by cost rise, delay
Sydney, 23 October (Argus) — Australia's long delayed and over-budget 2.2GW Snowy 2.0 pumped hydropower project is expected to start one year later than previously estimated and cost up to A$25bn ($17.5bn), doubling from just three years ago, according to an update published today. The target completion date for the flagship project in New South Wales (NSW) is now late 2029, a year later than the previous December 2028 estimate announced in August 2023, while the updated target cost to complete Snowy 2.0 is A$22.2bn, with an allowance for a cost scenario of A$25bn, state-owned utility Snowy Hydro said on 23 October. Estimated costs to build the project had already doubled to A$12bn in 2023 from A$5.9bn previously. Construction started in 2019, with commissioning originally expected for 2025. The latest update comes after a cost reassessment by the principal contractor Future Generation Joint Venture (FGJV), which identified construction complexities and global cost escalation for equipment, services and labour as some of the main reasons for the "disappointing" increased project cost, Snowy Hydro chief executive Dennis Barnes said. The project includes a new pumped hydroelectric power station 800m underground and 27km of tunnels linking the Tantangara and Talbingo reservoirs. It will expand the existing 4.1GW Snowy Mountains hydropower scheme across the eastern states of NSW and Victoria. "Completing Snowy 2.0 remains the responsible course. With tunnelling now 65pc complete, compared with 19pc at cost reset in 2023, abandoning the project would undermine grid reliability, scrap 5,000 jobs and lead to higher bills," climate change and energy minister Chris Bowen said today. The project started in 2017 under the Coalition government led by former prime minister Malcolm Turnbull. By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Q&A: JetBio to produce renewable diesel from ethanol
Q&A: JetBio to produce renewable diesel from ethanol
Sao Paulo, 22 October (Argus) — Sustainable aviation fuel (SAF) producer JetBio has redesigned its first planned plant, to be built in Paulinia, in Brazil's southeastern Sao Paulo state, to include renewable diesel production from ethanol. The company's chief executive, William Moore, said the project will be the first facility in the world capable of producing renewable diesel from ethanol at a commercial scale. The project will use Honeywell UOP's technology to convert ethanol into those two renewable fuels. The new model will allow the plant to switch from maximum sustainable aviation fuel (SAF) production to maximum renewable diesel production, both with no co-products, and the switch can be made within a few hours, according to Moore. At maximum SAF output, the facility would produce close to 770,000 metric tonnes (t)/yr from approximately 1.4mn t of ethanol (31,068 b/d). In maximum renewable diesel mode, output would be closer to 700,000 t/yr. JetBio plans to invest $2bn in the project, with a final investment decision expected in the first quarter of 2027 and start-up potentially from mid-2030. Edited highlights from the interview follow. Is JetBio planning to direct renewable diesel output primarily to Brazil's domestic market, or is it also eyeing international markets? We are applying to create a ZPE (Brazilian free-trade zone) and the requirement is 80pc of our product has to be exported. We are going to be living within those constraints, but even in that 20pc for both SAF and renewable diesel, we think there is strong demand in Brazil for both. The beauty of renewable diesel, while it may be a little bit more expensive, you can still get to greater than 66pc GHG reduction all the way down to 95pc-100pc, depending on what ethanol we are sourcing and if we are using biomethane instead of natural gas for heat and hydrogen. It offers the decarbonization benefits to the local market in Brazil without those companies having to make big capital investments to change over their fleets to burn ethanol or change over their bunkering infrastructure or their fueling infrastructure in order to utilize it. So far, we have seen strong interest from maritime — that would be bunkering in Santos and Paranagua —, from mining, heavy on-road transportation and agriculture. Brazil imports fossil diesel, and there is a strong argument that why would Brazil want to import all that fossil diesel when they could use locally produced renewable diesel that has a much lower carbon footprint? Now it all comes down to price, but our goal is to be the lowest-cost producer of SAF and now renewable diesel in the world at the lowest carbon intensity that has access to Brazilian markets and export markets. When we are in service, we think that Brazilian ethanol will be the most competitive green molecule in the world. And we're just converting it into two other products that can be utilized by hard-to-abate industries. Have ethanol producers shown interest in this part of the project? One thing that we are talking to ethanol producers about is would they be interested in a tolling model where they would supply the ethanol to our plant in Paulina, and for an upgrading fee we would deliver back to them renewable diesel or sustainable maritime fuel that they could sell directly to consumers that they have already established a relationship with. It has just been transformed into a much more energy-dense and pure drop-in fuel that does not require any blending and does not have storage limitations. It is a perfect replacement for the fossil diesel that they are already consuming. Is this technology adaptation driven by a change in the outlook for the SAF market? Are you seeing any bottlenecks in that market? Our view has not changed on the SAF market. We are just excited that we can access the renewable diesel market as well. We see the world being structurally short of SAF, especially non-HEFA SAF, in 2030 and beyond. I think what you have to remember here is this is the largest biorefinery of its kind that is going to be built anytime soon. From an addressable market standpoint, this just gives us an additional optionality that we can provide. By Maria Lígia Barros Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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