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.
Q&A: UK must accelerate on domestic SAF: Nova Pangaea
Q&A: UK must accelerate on domestic SAF: Nova Pangaea
London, 26 June (Argus) — The UK must accelerate support for sustainable aviation fuel (SAF) producers to unlock investment, meet its mandates, and boost energy security, according to Nova Pangaea chief commercial officer Jonathan Wood. The firm is developing a UK project to convert biomass residues into second-generation ethanol. That will fuel SAF production by LanzaJet, to supply International Airlines Group (IAG). Like many UK SAF proposals , Project Speedbird is behind its original timeline, not helped by policy delays. Argus spoke to Wood about energy security, policy asks, and carbon negative fuel. Edited highlights follow: Does recent jet fuel volatility strengthen the case for domestic SAF production? Jet fuel disruption and price spikes reinforce the case for diversifying energy supply. SAF is one way to achieve that, including domestic production. We should be realistic that some regions have more feedstock than others, but the UK can certainly increase production. But obviously, policies and investments made over the next 1-2 years will only bear fruit towards the end of the decade. I am not advocating for a domestic quota. It is about pace, so we should not complicate or change but rather focus on implementing already announced well set policy plans. Is your planned supply chain fully domestic? We have supply agreements for domestic woody biomass residue, so there is a strong domestic element. Biomass power generation is plateauing and may decline as support schemes fall away, creating feedstock headroom for SAF. We recognise the UK is not one of the largest biomass suppliers. We must also look at agricultural residues and nearby regions with ample biomass, like the Nordic region. Are current policies sufficient to support SAF? Policy must support both demand and supply. No single mechanism will create the tipping point. The UK is moving in the right direction. We have the SAF mandate, now the key is to move at pace on supply-side mechanisms such as the revenue certainty mechanism (RCM) to unlock final investment decisions (FIDs). Feedstocks for hydrotreated esters and fatty acids (HEFA) are limited, so we must ready production platforms to tap into other feedstocks as soon as possible. How many of the 10-15 UK SAF projects are actually near FID? Projects need to have completed front-end engineering and design to accurately understand capital costs and project economics, to have offtake agreements, and have the feedstock origination, and financing in place. These pieces are interlinked. You cannot sign offtake without clarity on costs and feedstock, and vice versa. Aligning that is challenging. Probably only a handful of projects could achieve that in the next 12 months. Is the delayed RCM slowing UK projects? There is a risk it could slow the projects that are most well progressed and closest to FID. The government talks about RCM legislation by the end of 2026, so the mechanism becomes available in early 2027. But then follows the selection process and contracting. It's unclear how long that will take but it won't be done by the first quarter of 2027. Given typical timelines of 2-3 years from FID to operation, we are now looking at FID in 2027–28 and operation around 2030. Given delays, how will the UK get advanced SAF in time for its 2027-HEFA cap? There's advanced SAF coming out of other regions, notably the US, and potentially China. There's nothing wrong with imports, but we also need local production for a diversified and resilient portfolio. Why has Nova Pangaea called this a critical moment for the SAF industry? If we do not move forward, doubts will grow around mandate delivery. That will increase pressure to dilute the mandates, which would destabilise the investment case. We should leverage this difficult jet fuel situation to get some FIDs over the next 12 months. We shouldn't waste a good crisis. HEFA has been led by traditional oil companies. But advanced SAF and e-fuels projects are typically developed by companies without the same balance sheets and therefore rely more on third-party finance to get through development and reach FID. There's billions of tonnes of biomass residue globally, creating an opportunity to boost SAF and income streams for rural and agricultural communities. But if we can't get FIDs over the next year, we'll risk not getting into that virtuous cycle that we need, of getting costs down as we scale up. What differentiates Nova Pangaea's technology? A key aspect is the biochar co-product when we make the ethanol. That is permanent carbon capture and enables carbon negative SAF — roughly twice the greenhouse gas (GHG) savings compared with 70-80pc typical for HEFA. The biochar will initially go into soil enhancement, compost, concrete, or asphalt. In coming years, it could also be used to aid water filtration or to make strong and lightweight materials, for example in aircraft. What is the longer-term opportunity for the technology? The UK project is our reference plant to show the technology works at commercial scale. The bigger opportunity is to deploy in regions with large volumes of biomass or agricultural residues, like North and South America, Asia, and parts of the global south. By Aidan Lea Nova Pangaea Project Overview Technology Pyrolysis of biomass to bioethanol for the alcohol-to-jet pathway Ethanol capacity (used for ATJ) 150,000t/yr FID target 2027-28 Production target year Circa 2030 Nova Pangaea Ethanol plant LanzaJet Manages alcohol-to-jet facility (80,000/yr SAF & 10,000t/yr renewable diesel) IAG Anchor customer for the ethanol and SAF finished product - Nova Pangaea Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
UK to set in law GHG cuts of 87pc over 1990-2042
UK to set in law GHG cuts of 87pc over 1990-2042
London, 25 June (Argus) — UK parliament has agreed on the country's seventh carbon budget, and will set into law greenhouse gas (GHG) emissions reductions of 87pc by 2042, from a 1990 baseline. The vote, which took place in the evening of 24 June, passed with 332 votes for and 94 against. The UK's Labour government has pursued ambitious decarbonisation policies since it won a landslide victory in July 2024. The government earlier this month set out its proposal for the emissions cuts, in line with recommendations from the parliamentary advisory Climate Change Committee (CCC). Carbon budgets, which are legally-binding in the UK, cap the total GHG emissions that the UK can emit over five-year periods. The seventh carbon budget, which covers 2038-42, will have a limit of 535mn t/CO2 equivalent (CO2e), including the UK's share of international aviation and shipping emissions. This is "consistent with the Paris Agreement" and its most ambitious target to curb the global rise in temperature to 1.5°C above pre-industrial levels, the government said. The CCC welcomed the results of yesterday's vote. It "provides the long-term certainty that businesses, investors, and communities need to accelerate the transition away from fossil fuels… this legislation will help unlock innovation, drive clean investment, and strengthen the UK's competitiveness in a low-carbon world", CCC chair Nigel Topping said. The UK is on track to meet its fourth and fifth carbon budgets, which cover 2023-27 and 2028-32, respectively, the CCC said this week in its annual assessment of government progress on climate targets . But the government must accelerate electrification to hit climate goals beyond that, the committee added. The UK met its first three carbon budgets, which covered 2008-2022 collectively, largely through power sector decarbonisation, including shutting coal-fired power generation. The country has a legally-binding target to reach net zero GHG emissions by 2050. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Japan's northeast hit by earthquake, energy sites safe
Japan's northeast hit by earthquake, energy sites safe
Tokyo, 25 June (Argus) — A 7.2-magnitude earthquake struck northeastern Japan today. No major damage to nuclear power plants or thermal power facilities and domestic refineries has been reported so far, according to industry sources contacted by Argus . The earthquake occurred off the coast of Iwate prefecture at 07:30 on 25 June Japan time (22:30 GMT on 24 June), according to the Japan Meteorological Agency. The quake registered an upper-6 seismic intensity — the second-highest level on Japan's shindo scale — in Aomori prefecture. There is no risk of a tsunami from the earthquake, the agency said. Japanese prime minister Sanae Takaichi also said there was no risk of a tsunami. The government would assess the damage and work to respond to the disaster, she added. The earthquake did not affect power generation facilities in the Tohoku area, with no damage reported to nuclear, thermal, hydroelectric, or renewable power plants, Tohoku Electric Power told Argus . Around 4.6GW of coal-fired capacity and 7.9GW of gas-fed capacity were available for operation in Tohoku as of 25 June, according to a power plant operational status notice by the Japan Electric Power Exchange. The 825MW Onagawa No.2 nuclear reactor in Miyagi, close to the earthquake's epicentre off the Iwate coast, continues to operate. No damage was reported at the Rokkasho nuclear fuel reprocessing plant in Aomori, which is scheduled to begin operations in the April 2027-March 2028 fiscal year. Two major biomass power plants in Tohoku — the 75MW unit at Ofunato in Iwate and a similar-sized plant at Hachinohe in Aomori — were also unaffected, sources told Argus . In Hokkaido, where the quake registered at 4 on Japan's seismic intensity scale in some areas, there was no damage to power generation facilities, a representative at Hokkaido Electric Power said. No nuclear reactors are currently operating in Hokkaido, with the 2,070MW Tomari nuclear plant remaining safely closed. Japanese refiner Eneos operates the 145,000 b/d Sendai refinery in Miyagi. But the earthquake had no impact on Eneos' facilities including refineries, the company said. By Fumito Nagase, Motoko Hasegawa, Kohei Yamamoto, Takeshi Maeda, Reina Maeda, Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Texas renewable diesel flows up as Calif. demand eases
Texas renewable diesel flows up as Calif. demand eases
Seattle, 24 June (Argus) — Renewable diesel producers along the US Gulf coast are increasingly selling into the Texas ultra-low sulphur diesel (ULSD) market as bulk demand slows across California — the largest R99 market in the country — in tandem with record-high US output of the fuel. Renewable diesel production at US biorefineries in May hit an all-time high of about 6.86mn bl, part of a steady increase since the beginning of the year following the implementation of record-high biofuels blending targets, according to the latest RIN generation data from the Environmental Protection Agency (EPA). Higher run rates through the second quarter, compounded by elevated and volatile diesel prices across the country, made California buyers hesitant to commit to high-volume R99 spot purchases as the market faced fresh supply. But Texas's 20¢/USG diesel excise tax abatement, applicable to renewable diesel, appears to have thrust the state — particularly Houston's fob truck spot market — into the spotlight as an attractive secondary supply outlet. Local market participants have cited R99 on offer from various Gulf coast producers throughout June, with the tax abatement now making renewable volume competitive with conventional ULSD in the region. Offers for R99 fob truck in Houston as recently as Wednesday morning were heard at July Nymex ULSD +9¢/USG, which a number of sources said represented about a 5¢/USG discount versus conventional ULSD once accounting for the excise tax abatement. Spot R99 via the pipeline in California by comparison last traded at double-digit discounts, 35¢/USG and 80¢/USG, respectively, to the corresponding Los Angeles and San Francisco CARB complexes (conventional in-state CARB diesel + attributes). By Jasmine Davis Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Spotlight carbon content
Browse the latest carbon insight produced by our global team of carbon experts




