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.
Brazil waste oil mandate could raise biodiesel costs
Brazil waste oil mandate could raise biodiesel costs
Sao Paulo, 11 June (Argus) — The mandatory use of waste oils and fats (WOFs) in the production of biodiesel in Brazil is likely to raise product costs, considering the limited supply of these raw materials and competition from products with higher added value, such as sustainable aviation fuel (SAF) and hydrotreated vegetable oil (HVO). In May, Brazil's mines and energy ministry MME published a decree mandating the use of 1pc WOFs in the production of biodiesel, SAF and HVO starting 1 January 2028. Until then, the use of these raw materials is voluntary. Per the decree, the minimum percentage of WOFs will be reviewed every three years, based on factors such as the available quantity of the raw material, advances in traceability mechanisms, the expansion of collection infrastructure and increased pretreatment capacity. In Brazil, the market for used cooking oil (UCO) — one of the main types of WOFs — remains unregulated and lacks consolidated official data. Estimates of collection levels in the coming years vary widely, with projections ranging from 500,000 metric tonnes (t)/y to 2mn t/y, according to market participants. In 2025, biodiesel production used approximately 100,000t of UCO. When soybean oil prices are high, WOFs serve as an important alternative feedstock for biodiesel production, especially for non-vertically integrated plants. In 2025, for example, the average price of UCO fob Sao Paulo, with 3.5pc acidity was R5,438($1.051)/t. The price of soybean oil cif Sao Paulo stood at R5,808/t during the same period, according to Argus indicators. The mandatory use of WOFs may alter this trend, with increased demand from the biodiesel, SAF and HVO industries driving up the price of UCO and, consequently, the final product. The use of WOFs in biodiesel production is also expected to impact the glycerin market, which, because some countries accept only the byproduct derived from virgin vegetable oils, will need to diversify its consumer base. The Brazilian biofuels industry considers the deadline for the mandatory adoption of 1pc OGRs in biodiesel production to be insufficient, given the necessary adaptations required at plants that currently operate exclusively with virgin vegetable oils. A major biodiesel producer that acquired existing WOF plants in the Brazilian market told Argus that it has been involved for over three years in projects to adapt these industrial units. It considers it unfeasible for small-scale plants to complete all the required adjustments in just over a year and a half. The MME stated that the measure takes into account the sector's varying technological realities. The gradual implementation is specifically intended to allow for industrial adaptation and the expansion of processing capacity for these raw materials. Traceability initiatives Brazil's UCO market is maturing but, to date, lacks consolidated traceability projects. According to the MME, the period of voluntary use of WOFs was structured to allow for the sector's gradual adaptation, the development of collection and processing chains and the advancement of traceability mechanisms. In this context, Brazil's animal recycling association Abra is working to create a specific national classification of economic activities (CNAE) for UCO. The organization is also developing an app designed to record information on the collection and movement of the raw material, with the aim of reducing traceability gaps and increasing transparency throughout the production chain. Meanwhile, Brazil's state-controlled oil company Petrobras recently announced an investment of R23mn in initiatives for the collection of animal by-products intended for the production of biofuel. The funds will be directed toward projects by non-profit organizations to improve the logistics and infrastructure of collection points, including the provision of equipment for filtering and temporary storage of the product. By Natalia Dalle Cort Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
N Zealand may need billions to meet NDCs
N Zealand may need billions to meet NDCs
Beijing, 11 June (Argus) — New Zealand may need to pay up to 5bn New Zealand dollars ($2.89bn) to purchase international carbon credits to meet its climate targets under the Paris Agreement. This is because domestic emissions reductions will likely fall short of its Nationally Determined Contributions (NDCs) commitments, a Treasury paper published on 11 June found. The country's targets under economy-wide NDCs covering 2021–30 and 2031–35, which the Treasury referred to as NDC1 and NDC2, respectively, are not fully aligned with domestic emissions budgets for respective periods. New Zealand may, therefore, rely on offshore mitigation — through purchases of verified emissions reductions or removals from other countries — to bridge the shortfall. New Zealand faces the highest potential cost exposure for NDC1, which targets a 50pc reduction in net emissions below 2005 gross levels. The target corresponds to an emissions limit of 575mn t CO2 equivalent (CO2e) in 2021–30. The Treasury's modelling suggests offshore mitigation towards meeting commitments for this first period may cost around NZ$4.4bn-5.0bn. This suggests the Treasury estimates the average cost of international credits around NZ$7.65-8.70/t CO2e ($4.42-5.03/t CO2e). By contrast, NDC2 "closely aligns" with the corresponding domestic emissions budget, implying a smaller potential gap. Estimated offshore mitigation costs for achieving the NDC2 target are NZ$0.2bn-1.6bn, depending on which side of the commitment range — 51pc-55pc — the country is going to achieve, the Treasury said. The report highlights substantial uncertainty around these cost estimates and the Treasury said although the information was provided to "support transparency over possible future costs, it does not reflect government decisions or intentions regarding offshore mitigation". Domestic policy decisions will directly affect emissions outcomes and, in turn, the volume of offshore mitigation required. Limited liquidity in the international voluntary carbon markets, procurement strategies — including decisions on credit types, sourcing and price limits — will be key drivers for cost. The government will not spend billions of dollars overseas to meet its climate commitments, prime minister Christopher Luxon said, according to Radio New Zealand. Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Global warming set to exceed 1.5°C by 2030: Scientists
Global warming set to exceed 1.5°C by 2030: Scientists
London, 11 June (Argus) — The rise in global temperature is projected to surpass 1.5°C above pre-industrial levels — the limit sought by the Paris climate agreement — "in about four years", an international team of more than 70 scientists said today. "Human-induced warming reached 1.37°C" in 2025, compared with the 1850-1900 average, the latest Indicators of Global Climate Change report found. The Paris agreement seeks to curb the global rise in temperature to "well below" 2°C above pre-industrial levels, and pursues a 1.5°C limit. "The rate at which heat is accumulating in the earth system suggests high levels of future warming", the report found. "The rate of human-induced warming remains at the all-time high of around 0.27°C per decade, driven primarily by record-high greenhouse gas levels." It estimated the remaining global carbon budget — the amount of CO2 that can still be emitted before the 1.5°C threshold is exceeded — is 130bn t/CO2, from the start of 2026. This estimate, which is a central one, "will be exhausted in around three years at current levels of CO2 emissions", the report found. Global greenhouse gas emissions reached a record high 56.8bn t/CO2 equivalent (CO2e) in 2024, according to the report, "mainly from the burning of fossil fuels." "Although we still have record high levels of emissions, the growth of those CO2 emissions is slowing," the EU Copernicus programme's strategic lead for climate Samantha Burgess said today. "That doesn't mean we're on track yet, but it does mean that policy, technology, and societal choices are starting to bend the curve." Burgess was speaking at climate talks underway in Bonn, Germany, hosted by UN climate body the UNFCCC. El Nino weather conditions have now developed in the tropical Pacific, the US National Oceanic and Atmospheric Administration (NOAA) confirmed today. The weather pattern, which is naturally-occurring, typically leads to higher global temperatures. Current forecasting suggest it is "likely to be a very strong event", the UK's Met Office said today. Some forecasts suggest "values that would be of record strength", the Met Office said. "It is also highly likely that the El Nino will cause a temporary spike in global annual temperature with the residual heat potentially making next year the hottest in the global series from 1850", Met Office head of long-range forecasting Adam Scaife said. The hottest year on record to date is 2024. The past three years, 2023-25, are the hottest three years recorded. The average temperature across 2023-25 was 1.48°C above pre-industrial levels — with a margin of uncertainty of 0.13°C — data consolidated by the World Meteorological Organisation show. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Meta, CleanMax partner on 900MW renewables in India
Meta, CleanMax partner on 900MW renewables in India
Mumbai, 11 June (Argus) — Indian renewable energy developer CleanMax and technology firm Meta have agreed to partner on the development of 837MW of wind and solar projects in India, in addition to previously announced projects. The companies will develop 837MW of new solar and wind capacity across the states of Rajasthan and Karnataka, CleanMax announced on 10 June. The expansion builds on an existing partnership, taking their total renewable capacity development to above 900MW, including earlier projects. Under the agreement, CleanMax will develop and operate the projects, while Meta will purchase 100pc of the environmental attributes generated by the facilities. CleanMax's renewable energy projects support Meta's efforts to add new generation to the grid, CleanMax said. The projects will also support Meta's goal of matching its electricity consumption with renewable energy, as well as reducing emissions associated with its operations and value chain. The agreement represents progress toward the company's renewable energy goals in the region and will help bring new renewable energy capacity into India's power system, Meta's head of clean and renewable energy Amanda Yang said. Details on project timelines, capacity breakdown and commercial arrangements remain unclear. CleanMax declined to answer when asked for details on the projects' offtake structure and whether Meta will procure electricity directly, or only their environmental attributes. Technology firms are accelerating renewable energy procurement globally to meet growing power requirements from data centres and artificial intelligence-related infrastructure. India has emerged as a key market for such investments because of its expanding renewable energy capacity and corporate clean power procurement frameworks. US technology giants are increasingly investing in India's renewable energy sector. Google signed an agreement with renewable energy company ReNew in 2025 covering the environmental attributes from a 150MW solar project in Rajasthan, and Microsoft signed a 437.6MW green attribute contract with the company in 2024. The deal also reflects the increasing importance of data centres as a source of renewable power demand in India. Data centre and AI infrastructure customers accounted for 42pc of CleanMax's contracted renewable power sales portfolio in the 2025-26 fiscal year, according to the company. Its contracted renewable energy portfolio reached 5.7GW in the April 2025-March 2026 fiscal year. India's renewable capacity reached 274GW as of March, with over 150GW coming from solar, according to data from India's Ministry of New and Renewable Energy. By Keertiman Upadhyay Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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