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.
Cop: Ethiopia on track to host Cop 32 in 2027
Cop: Ethiopia on track to host Cop 32 in 2027
Edinburgh, 12 November (Argus) — Ethiopia is on course to win its bid to host the UN Cop 32 climate summit in its capital Addis Ababa in 2027, after the African Group — a UN party grouping of 54 African countries — endorsed the nation. Ethiopia was running against Nigeria to host the 2027 summit — already dubbed "the Africa Cop". Nigeria is also part of the African Group. "My delegation would like to express its profound gratitude and appreciation to the African Group for endorsing for endorsing Ethiopia's bid to host Cop 32 in Addis Ababa," an Ethiopian delegate said on 11 November. "We are deeply grateful for the trust and confidence bestowed on Ethiopia's people and government", the delegate said, adding that the country looked forward to welcoming other delegations in 2027. The delegate also requested all other groups to support Ethiopia's bid. The upcoming decision at Cop 30 to pick Ethiopia for the 2027 summit should just be a formality. Meanwhile, Turkey and Australia remain in a tussle over the hosting of Cop 31 next year. The Umbrella Group, which includes Australia, New Zealand, Canada, Japan, the UK and Norway, on 11 November reiterated its support for Australia to host the summit in partnership with the Pacific islands. But Turkey also continued to express its desire to do so. "Our ambition is not limited to hosting Cop 31, we aim to leave Cop 31 as an inclusive, innovative and equitable climate action platform," a Turkish delegate said. By Caroline Varin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Age of electricity has arrived: IEA's Birol
Age of electricity has arrived: IEA's Birol
London, 12 November (Argus) — Global electricity demand grows much faster than overall energy use and renewables grow faster than any other major energy source in all scenarios of the latest World Energy Outlook (WEO) from energy watchdog the IEA. "Last year, we said the world was moving quickly into the age of electricity — and it's clear today that it has already arrived," said IEA executive director Fatih Birol. The rise in electricity demand stems from households, for mobility, for cooling, and "increasingly for data and AI-related services", the IEA said. It sees power demand rise by around 40pc to 2035, from current levels, in two scenarios and by more than 50pc in the same timeframe across its Net Zero Emissions (NZE) by 2050 scenario. The growth in renewable energy deployment in all scenarios is led by solar power, the IEA said, and it envisages "a revival of fortunes for nuclear energy" across all scenarios, for large plants and small modular reactors. The lift in power consumption "is no longer limited to emerging and developing economies", Birol said, as electricity demand, driven by data centres and AI, is rising in advanced economies. Birol said the IEA estimates global investment in data centres to reach $580bn in 2025, which "surpasses the $540bn being spent on global oil supply." The IEA sets out three scenarios in its 2025 WEO, none of which are a forecast. The Current Policies Scenario (CPS) is based on policies and regulations already in place, the Stated Policies Scenario (Steps) looks at "a broader range of policies" including some that have been proposed but not formally adopted. The NZE scenario considers a path to reach the 2050 goal, in line with the Paris climate agreement, "while recognising that each country will have its own route." Global investment in electricity generation has jumped by almost 70pc since 2015, the IEA said. But it said annual spending on grids has risen at less than half that pace, with relatively slow investment, "slow permitting" and "tight markets" for some components holding back grid projects. The watchdog also warned of the energy sector's "need to prepare for the security risks brought by higher temperatures." The global rise in temperature in all scenarios exceeds 1.5°C above pre-industrial levels "on a regular basis by around 2030", the IEA said. The Paris agreement seeks to limit the rise in temperature to "well below" 2°C above the pre-industrial average, and pursues a 1.5°C threshold. Annual global energy-related CO2 emissions reached a record high of 38bn t in 2024 and remain around this level to 2050 in the IEA's CPS. The 2050 emissions level is 10bn t lower than the last time the IEA modelled it in 2019, the organisation said. CPS and Steps indicate a temperature rise of nearly 3°C and 2.5°C, respectively, in 2100. In the NZE, global warming "peaks around 2050 at about 1.65°C and declines slowly after that, largely due to active measures to remove CO2 from the atmosphere," the IEA said. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Cop: US state efforts outweigh Trump stance - Newsom
Cop: US state efforts outweigh Trump stance - Newsom
Belem, 11 November (Argus) — President Donald Trump's antagonism toward climate change policy should not cloud how the rest of the world views the US because many states are filling the void, California governor Gavin Newsom (D) said on Tuesday at the UN Cop 30 climate summit. Even as the Trump administration seeks to roll back many US climate and clean energy policies, states are stepping up with their own initiatives, Newsom said, citing his state's "cap and invest" and Low Carbon Fuel Standard programs. "I'm here because I don't want the United States of America to be a footnote at this conference. And I want you to know that we recognize our responsibility, and we recognize our opportunity," he said. Other countries should focus on state efforts that contrast what happens in Washington, DC, according to Newsom. "I don't want that to shape your perception of my country," he said. The governor has been a leading voice among Democrats against the Trump administration and has indicated he could run for president in 2028. But to succeed in the next election, Democrats "have some work to do" in how they talk to voters about climate change, Newsom said. "We have to change our language. We have to talk in terms that people understand," he said. That means instead of discussing the need to limit global warming to 1.5°C, a measurement many American voters may not understand, Democrats should instead focus on the economic side of climate change. Newsom pointed to California's success in reducing greenhouse gas (GHG) emissions while still growing its economy, as well as estimates that the recent rollback of clean energy incentives enacted under former president Joe Biden will cost ratepayers more this year. "That's a kitchen table issue. That's a cost-of-living issue," he said. In terms of the global economy, the US is at risk of falling behind China in the clean energy and electric vehicle markets, according to Newsom. Trump "simply doesn't understand how enthusiastic President Xi [Jinping] is today that the Trump administration is nowhere to be found at Cop 30", he said. By Michael Ball Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Cop: Freight next step in Latin America's NDCs
Cop: Freight next step in Latin America's NDCs
Belem, 11 November (Argus) — Latin American and Caribbean countries have made strides in commitments to reduce emissions from the transport sector in their Nationally Determined Contributions (NDCs) but there is room to do more, especially on freight, panelists at a side event at the UN Cop 30 climate summit said. Vehicles carrying freight represent around 20pc of all modes of transport in Latin American and Caribbean cities', but they are responsible for around 40-50pc of emissions, panelist Felipe Ramirez, a director of urban mobility at the non-profit World Resources Institute, said on Tuesday. Road freight is responsible for moving around 70pc of Latin American and Caribbean countries' commodities, said Maruxa Cardama, the secretary general of Slocat, a global partnership that promotes sustainable, low-carbon transport. Ramirez laid out the main challenges to decarbonize freight in the region, such as replacinghigher-emitting older fleets and increasing electrification. He also called on future NDCs to address the decarbonization of ports and airports more directly. The Latin American and Caribbean countries' NDCs also lack clearer targets to decarbonize railways, Joo Hyun Ha, the head of advocacy at the International Union of Railways, said. The transport sector in general also needs to look beyond electrification, which would mean giving people more access to alternative modes of transport in cities, such as walking, biking and the public transit. But the main issue that looms is financing, Ramirez and Ha said. "That is still the question that none of us has an answer for," Ramirez said. "We know there is not a lot of money to go around." Financing for climate is one of the main issues to be discussed at Cop 30. But the topic was left off the initial agenda and will instead be discussed in presidency consultations . The climate finance topic is encompassed in a request from a group of developing countries to discuss the Paris climate agreement's Article 9.1. This section of the accord states that "developed country parties shall provide financial resources to assist developing country parties" — a topic that dominated Cop 29 , with many developing nations disappointed at the outcome. Cop 30 president Andre Correa do Lago said on the summit's sidelines that the topic was not left off the agenda, but rather "fit in in an original way". Delegates will discuss the issues not on the official agenda in a plenary on 12 November. Road before But some Latin American and Caribbean countries have shown some progress on reducing carbon dioxide emissions from the transport sector, panelists said. Most Latin American and Caribbean countries included transport in their latest NDCs, but approaches vary. Chile and Colombia, for example, are focused on electrification, with the first targeting 100pc of the public transport in the capital Santiago to be electric by 2035 and a nationwide fleet of 4,400 electric buses by 2026. Santiago had around 3,000 electric buses in 2024, according to a report by Agora Verkehrswende, an NGO focused on climate neutrality in transport. That represented 40pc of the city's fleet and was the largest in Latin America. Mexico also focuses on electrifying vehicle infrastructure, but also has plans to increase fuel efficiency. Brazil is eyeing the expansion of biofuels. It has one of the largest mandatory blending requirements of anhydrous ethanol in gasoline and for biodiesel in diesel in the region and is the world's second-largest biofuel producer, trailing only the US. Brazil also has $40bn mapped to expand its road infrastructure in the next 20 years, the undersecretary of sustainability for Brazil's transport ministry Cloves Benevides said. The country is also expecting to auction 15 highways in 2026, he added. Chile, Colombia and Mexico are early adopters of decarbonizing their transport sectors and "have strong policies, the right instruments and are working on the right direction", Reinaldo Fioravanti, the Inter-American Development Bank's infrastructure coordinator for Brazil said. Brazil is also trying to electrify the public transportation fleet in the Amazon region, but wording in general on transportation is limited in the current NDCs, Fioravanti said. By Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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