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.
Industry mulls Asian readiness on regional, hourly RECs
Industry mulls Asian readiness on regional, hourly RECs
Singapore, 20 April (Argus) — Asia's power industry can adopt nascent granular renewable energy certificates (RECs) with infrastructure upgrades, although the extent of time-matching would depend on each country's generation mix, participants said at the Argus Asia Carbon conference. Cross-border transfers could help expand options and there are early trials to learn from, but the industry will also need to tackle regulatory uncertainties, they added. Granular RECs — able to track renewables generation on an hourly basis or in even finer detail — would involve higher costs, given the need for more sophisticated data tracking. "For project developers and grid operators lacking the infrastructure for granular tracking, the upfront costs are significant. These include replacing or upgrading inverters, cloud-based monitoring platforms, and legacy grids to enable hourly tracking," said Nesa Albeper, head of sustainability and corporate strategy at Malaysian clean energy firm Cenergi. Customers will also need to pay a premium, she added. Momentum for granular RECs has been growing globally. The European Union's Carbon Border Adjustment Mechanism requires importers to submit hourly-matched power contracts if they are to be used as proof for lower embedded emissions. Industry standard-setter Greenhouse Gas Protocol has also been consulting on requiring granular matching of RECs with power consumption. "Malaysia, Singapore, China, and to some extent Taiwan, are well-positioned to transition toward time-matched, granular certificates," Albeper said. Granular RECs have been trialled in China, Taiwan and Singapore. Malaysia's power regulator already tracks generation and consumption in 30-minute intervals, though energy certificates are still generally tracked by vintage years. While some industry participants have communicated 100pc hourly matching aspirations, actual feasible levels could differ by geography. It would to be challenging to conduct time-based RECs matching in Singapore because the only renewable energy source is solar power, said managing director of Singapore-based Asia Green Capital Edgare Kerkwijk. "Between 12-2pm the RECs price could be lower, but in periods when there is less solar energy generation, such as 8-10am or 3-5pm, supply will drop and RECs prices will go up," Kerkwijk said. There is some battery storage but regulators are hesitant to install more in the system, he added. It is easier to match at a higher percentage in countries with biogas, hydro, wind, solar and more batteries, Kerkwijk said. Singapore's ambition to import renewable energy from southeast Asian countries could expand the types of technology available. Some of these projects include wind energy form Vietnam, hydropower from Malaysia and solar from Indonesia. In addition to that, Singapore's work on a cross-border RECs framework also mentions the possibility of hourly tracking. A 50MW renewable energy trade from Malaysia to Singapore, via Malaysia's Enegem programme, was conducted on the I-Track registry and involves power dispatch on a half-hourly basis, Albeper noted. "This transaction offers many valuable lessons for future implementations," she said. Still, there are open questions on the ownership of RECs from cross-border transactions in Southeast Asia. "If we import solar from say Batam, Indonesia, would those certificates come to Singapore? Or would the Indonesian government say, 'these certificates are ours, we will sell you electrons but not renewables?'" said Kerkwijk. By Liang Lei Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Malaysia to raise biodiesel blend target to 15pc
Malaysia to raise biodiesel blend target to 15pc
Singapore, 17 April (Argus) — Malaysia will raise its biodiesel-fossil diesel blending target up to 15pc (B15) from the current B10, the country's economic affairs minister Akmal Nasir said this week. The country will first start with a B12 blend, which will use existing blending infrastructure without requiring additional investments, Nasir said. Malaysia's biodiesel production capacity for 2025 stands at 2.36mn t, while actual production for the year was less than half at 975,200t, he said. No timeline was laid out for a move towards the higher B15 blending target. The higher B12 blend ratio should start next month, a biodiesel producer said, adding that they were awaiting further details from blenders. Another already received a request to deliver higher volumes of biodiesel. Nasir visited PS Pipeline — a joint venture between Petronas Dagangan Berhad and Shell Malaysia Trading — at the Klang Valley Distribution Terminal earlier this week to ascertain the infrastructure's capability to store and distribute biodiesel blends. The government will also hold meetings with the oil industry technical committee to ensure implementation runs smoothly, Nasir said. Malaysia previously highlighted plans to upgrade depots in phases to supply biodiesel blends up to B20-30, under the 13th Malaysia plan released in July 2025, along with preparations for a B30 mandate for the commercial and public transport sectors. The Malaysian Biodiesel Association earlier this month urged the government to speed up rolling out higher biodiesel blends to strengthen energy security, in light of supply disruptions and price volatility for conventional fuels due to the ongoing war in the Middle East. By Malcolm Goh Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Brazil soy demand for biodiesel may rise by 72pc
Brazil soy demand for biodiesel may rise by 72pc
Sao Paulo, 16 April (Argus) — Demand for soybeans used to produce biodiesel in Brazil may increase by 72pc to 74mn metric tonnes (t) by 2035 on the back of slated gains in the country's biodiesel blending mandate, according to the soybean and corn producers' association of Mato Grosso state, Aprosoja-MT. Aprosoja-MT forecasts Brazil's biodiesel output will rise to 18mn t in 2035 from 10mn t in 2026, in large part due to the planned increase of the biodiesel blending mandate in the fuel of the future law to 24pc by 2035 from the current 15pc. Considering soybean oil represents around 70pc of the feedstocks used for biodiesel production in Brazil, according to hydrocarbons regulator ANP, demand for soy oil in 2035 would reach 12.3mn t. That means it would be necessary to crush 74mn t of soybeans to produce around 12.3mn t of oil by 2035 from 7.2mn t in 2025. Aprosoja-MT estimates Brazil's consumption of diesel, including biodiesel, of 1.4mn b/d in the 2026-35 period. In 2025, Brazil consumed an average 1.2mn b/d of diesel. The fuel of the future law establishes targets for the increase in biofuels blending in Brazil. It sets that the biodiesel blending mandate should grow by 1 percentage point/yr until 2030, which could be extended until 2035. But the increase of the blending mandate to 15pc from 14pc was delayed by six months in 2025, and the increase to 16pc — scheduled for March 2026 — has not been implemented yet because the government is still running the necessary feasibility tests . According to mines and energy ministry MME, the final report covering blends of 16-20pc is expected to be approved by late March 2027 if tests confirm these levels are feasible. That means the increase of the blending mandate to 16pc will have to wait at least until April 2027. Brazil's biodiesel demand is expected to reach 365,000 b/d in 2035, according to the association of vegetable oil industries Abiove. That would be more than double from 170,000 b/d in 2025, which reflected a 14.2pc average blending rate, according to ANP. Brazil's industrial sector would have to invest R52.2bn ($10.4bn) in new soybean crushers and biodiesel plants to be able to meet that demand, according to Abiove. By João Marinho Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Rotterdam 1Q bunker sales fall sharply
Rotterdam 1Q bunker sales fall sharply
London, 16 April (Argus) — Demand for conventional marine fuels in Rotterdam fell by 28pc on the year in the first quarter of 2026, after the Netherlands implemented the EU's revised Renewable Energy Directive (RED III) at its ports. The decline also reflects disruption linked to the US-Iran war. Market participants reported a drop in Rotterdam bunker demand even before the war, as some shipowners shifted fuelling to neighbouring ports to avoid price premiums created by the Netherlands' unilateral transposition of RED III marine mandates from 1 January. Sales of very-low sulphur fuel oil (VLSFO) fell most sharply, down by 44pc from a year earlier to about 440,000t in the first quarter. High-sulphur fuel oil (HSFO) volumes dropped by 25pc to about 619,000t, while ultra-low sulphur fuel oil (ULSFO) sales fell by 13pc. Marine gasoil (MGO) and marine diesel oil (MDO) demand declined by 8pc on the year to around 361,000t. Some shipowners instead opted to bunker in neighbouring Antwerp, which forms part of the ARA hub and offers lower conventional bunker prices without requiring route changes. Others prioritised bunkering at Gothenburg in Sweden or ports in Germany, market participants said. Price differentials supported the shift. Between early February and the end of March, MGO dob Rotterdam prices averaged $12.75/t higher than the Antwerp equivalent, while VLSFO dob Rotterdam held an average premium of roughly $14.50/t over the same period. Tighter global supply has added further pressure. The effective closure of the strait of Hormuz sharply reduced bunker availability in Singapore, increasing competition for VLSFO and MGO cargoes that would otherwise be exported to the ARA hub. After the start of the US-Iran war, Rotterdam MGO prices rose by 75pc to an average of about $1,186/t in March, while VLSFO prices climbed by 57pc to an average of $710.50/t. By Gabriel Tassi Lara and Hussein Al-Khalisy Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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