Canada issues draft forest offset protocol

Spanish Market: Emissions
26/06/23

Canada has published a draft protocol for improved forest management projects that can generate federal offset credits as part of the country's industrial carbon pricing program.

The draft includes requirements and methodologies that, once finalized, will be used to quantify and report greenhouse gas (GHG) emissions reductions for projects implemented under the protocol. Offset credits can be sold and used for compliance by facilities covered by the country's output-based pricing system (OBPS) or others who may use the credits to meet voluntary GHG targets.

Under the draft, companies can develop projects that boost carbon sequestration on private forestlands and that generate credits over a 25-year period. GHG emissions reductions can only result from improved forest management — which does not include afforestation, reforestation, and avoided conversions of forestlands — and can only take place on private or First Nation reserve lands.

Environment and Climate Change Canada (ECCC) had previously indicated that forestry-based projects would have 30-year initial crediting periods and did not immediately clarify its reasoning for the change.

According to the plan, forest landowners must provide "verifiable evidence" that emissions reductions are additional, meaning they would not have happened absent carbon offset financing. Potential sources of proof include an offer from a mill to contract harvest within the site or a forward-looking forest management plan for the site, the agency says.

ECCC is soliciting comments on the draft through 23 August and has scheduled informational webinars for 26 July.

The OBPS program covers industrial facilities, including refineries and power plants, that emit at least 50,000 metric tonnes/yr of CO2-equivalent, as well as smaller facilities that opt in. The facilities have to account for GHG emissions above a specified level, which varies for each industry.

Facilities under the OBPS can cover up to 75pc of their excess emissions by surrendering credits bought from other sources or carbon offsets. They can also pay an alternative compliance payment tied to the federal carbon price, which is currently C$65/t ($49.45/t) and will rise to C$170/t by 2030.

ECCC finalized its federal offset program and its first protocol, which involves landfill methane recovery, last year and its refrigeration offset protocol in February.

The agency is developing protocols for livestock feed management, direct air capture, efforts to enhance carbon storage in soil, and avoidance of manure methane emissions. It has also signaled it could start developing a protocol for improved forest management on public lands this autumn and could develop additional protocols, including bioenergy carbon capture and sequestration, in the future.

By Sure Ibukun

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29/09/26

EU methane delay not climate backtracking: Commissioner

Brussels, 29 September (Argus) — Delaying implementation of the EU's 2024 methane emissions regulation (MER) would not weaken the bloc's climate ambitions, the EU's energy commissioner Dan Jorgensen said today, arguing the law already positions Europe at the forefront of methane emissions reduction. The European Commission is assessing legal options to delay by one year key monitoring provisions for oil, gas and coal imports due to enter into force in 2027, an official source said yesterday. Any delay to the MER — which sets measurement, reporting and verification obligations for EU companies and will phase in requirements for importers — should be conditional, Jorgensen said today. "It needs to be on the condition that all member states then use that year to make sure that they are able to implement," he said, speaking at a meeting of EU energy ministers in Dublin. Citing concerns raised by a "big" majority of member states, Jorgensen said there was a need to remove uncertainty around implementation of the regulation. The European Commission is assessing legal options and is now expected to present a proposal before an EU leaders' meeting on 15 October. Any delay would require approval from both the European Parliament and EU member states before the end of the year. The change would push the start of key reporting obligations from 1 January 2027 to 1 January 2028. Spain remains opposed to reopening and delaying the methane regulation. Reopening would allow member states and parliament to seek broader amendments to any commission proposal than a one-year delay. "We don't want to postpone the methane regulation," said Spanish ecological transition minister Sara Aagesen, stressing the need for continued action to tackle global warming. Aagesen also repeated Spain's call for a permanent levy on the oil and gas sector to finance climate resilience measures. She said Madrid is still awaiting a response from the commission to a request by six member states to examine options for taxing windfall profits . Jorgensen reiterated the need to reduce Europe's dependence on fossil fuels, but said that a US ban on diesel exports would be in neither US nor EU interests. President Donald Trump has floated a ban on US diesel exports , but US energy secretary Chris Wright has downplayed the idea. Jorgensen said he welcomed Wright's comments. "Europe is one of the most exposed regions, if not the most exposed, when it comes to diesel," energy watchdog IEA executive director Fatih Birol said today in Dublin. Europe receives around half of its diesel imports from the US and is entering the winter heating season, Birol added. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

US rolls back strict fuel-economy standards

28/09/26

US rolls back strict fuel-economy standards

Washington, 28 September (Argus) — US president Donald Trump's administration on Monday, 29 September finalized a rule that weakens fuel-economy standards for cars and pickup trucks, further dismantling earlier policies that had supported sales of electric vehicles and hybrids. The new standards will require cars and trucks to achieve an average fuel economy of 34.9 miles/USG by model year 2031, down from a standard of 50.4 miles/USG that former-president Joe Biden had set in 2024. The US National Highway Traffic Safety Administration (NHTSA) said the revised standards will cut the price of a new vehicle by about $1,300. The prior standards would have "forced Americans into cars they never wanted, and wasted Billions on Chargers that were never built", Trump said in a social media post Sunday after giving final approval to the rollback. Despite the upfront savings on the vehicle price, drivers will end up paying an extra $1,300-$1,600 on fuel over the lifespan of the vehicles sold through model year 2031 because of the rollback, according to NHTSA, translating to 738mn bl of additional fuel consumption. Democrats said weakening existing rules will mean higher fuel prices in the future. "Gas prices are at near-record highs and Trump's response is to force you to get fewer miles out of every tank of gas," California governor Gavin Newsom (D) said in a social media post over the weekend. The Republican-led US Congress had already effectively nullified NHTSA's fuel-economy standards last year, when they voted to eliminate all non-compliance penalties on automakers. Congress in the same law also repealed a $7,500 tax credit for electric vehicles. Separately, the Trump administration earlier this year repealed all climate regulations for cars and trucks, while blocking California's ability to enforce clean car standards that would have encouraged a switch to electric vehicles. Critics say those combined policies could allow Chinese automakers to take market share from the US on the production of electric vehicles. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

EU plans one-year delay to methane law for oil, gas

28/09/26

EU plans one-year delay to methane law for oil, gas

Brussels, 28 September (Argus) — The European Commission is assessing legal options to delay by one year key monitoring provisions in its 2024 methane emissions regulation (MER) for oil, gas and coal imports due to enter into force in 2027, according to an official source. EU energy commissioner Dan Jorgensen is expected to present the proposal before an EU leaders' meeting on 15 October. A Commission official said Brussels is examining whether to postpone "some" parts of the MER. "That is now ongoing at technical level," the official said today. The moves comes after French president Emmanuel Macron last week called for a one-year postponement . The Commission at the time said it would examine Macron's proposal. But energy spokesperson Anna-Kaisa Itkonen had said that Brussels would consider additional measures only if it identified risks to energy security or supply. Under the MER, oil, gas and coal importers must show that the fossil fuels coming to the EU were produced in a jurisdiction with monitoring, reporting and verification requirements equivalent to those applied in the bloc. The rule was due to apply to all contracts signed or renewed after 4 August 2024. The Commission in July had already put forward formal recommendations that member states refrain from imposing penalties for non-compliance with the MER between 2027 and 2029. But the oil and gas industry continued to ask for a three-year delay to the regulation. The Commission official today said that, in the absence of an energy supply emergency, the Commission is unlikely to use emergency legislative powers. The EU last used such powers in 2022 to cap power market revenues at €180/MWh and impose a temporary solidarity contribution on excess profits in the oil, gas, coal and refining sectors. The official said a delay would have the greatest short-term political impact compared to energy demand saving and other measures because the regulation's reporting obligations are due to take effect on 1 January 2027. EU energy ministers are expected to discuss the methane regulation and energy security issues at an informal meeting in Dublin on 29 September. But no decisions are expected. More than 10 member states earlier this year said they were considering backing an initiative led by the Czech Republic government calling on the Commission to review the regulation and delay its implementation. The regulation has also been a major point of contention between the EU and the US in recent months. And both European LNG buyers and US exporters have repeatedly complained that uncertainty over how to comply with this regulation is holding back the signing of long-term LNG deals. In a letter to ministers, Jorgensen said EU gas storage is exceptionally low but there are "currently no immediate risks to security of supply". He also urged EU states to make use of flexibility in the gas storage regulation by reducing the filling target to 80pc to alleviate immediate pressure on refilling costs. But he also noted governments should consider taking or continuing to take measures that can sustain injections or reduce gas and electricity demand. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

EEA includes EU CBAM in agreement

28/09/26

EEA includes EU CBAM in agreement

London, 28 September (Argus) — The European Economic Area (EEA) committee has now included the EU's carbon border adjustment mechanism (CBAM) in the EEA agreement, enabling the scheme to apply in Norway and Iceland, the Norwegian government said. "CBAM is one step closer to coming into force in Norway," climate and environment minister Sigrun Aasland said. The country's parliament in June adopted legislation to introduce CBAM. Norway aims to apply CBAM "in full" from 2027, it said, which would require importers to submit their first declarations in 2028 for goods imported in 2027. The Icelandic parliament must still approve the incorporation before CBAM can take effect there. The measure is being taken as "quickly as possible", the government said, adding that it is in close contact with Iceland's authorities. The EU fully launched CBAM at the start of this year. The mechanism imposes a carbon price on certain goods imported to the bloc in the cement, aluminium, fertiliser, iron and steel, hydrogen and electricity sectors. It aims to tackle carbon leakage, whereby firms relocate to avoid carbon costs or more carbon-intensive imports displace EU products. Norway, along with fellow EEA countries Iceland and Liechtenstein, is subject to carbon costs in CBAM sectors under the EU emissions trading system. By Kiara Campagne Nieva Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Cop: Article 6 activity mounts but key gaps remain

25/09/26

Cop: Article 6 activity mounts but key gaps remain

London, 25 September (Argus) — Countries are increasingly engaging in the carbon market mechanisms established under Article 6 of the Paris climate agreement. But two years after its rulebook was agreed, the number of buyer countries remains limited, developing nations hosting emissions-saving projects have reservations about participating, and disagreements rumble on over some underpinning standards, writes Victoria Hatherick The Article 6 rulebook was eventually finalised at the UN Cop 29 climate conference in Baku, Azerbaijan, in 2024, nine years after negotiations began. But the promised centralised UN-regulated carbon market under Article 6.4 — the Paris agreement crediting mechanism (Pacm) — has not yet materialised, with its registry expected to launch in the fourth quarter of this year. And only seven countries have so far traded so-called internationally traded mitigation outcomes (Itmos) under the Article 6.2 mechanism, according to UN Environment Programme (Unep) data, a system which allows countries to exchange emissions savings bilaterally to be counted towards their nationally determined contributions (NDCs) to the Paris Agreement. There are so far 10 buyer countries under Article 6.2, Unep data show. Japan has signed 32 agreements under the mechanism, followed by Singapore at 28, Switzerland at 20, South Korea at 14 and Norway at nine. Norway recently indicated its intention to deepen its engagement with Article 6 going forward. "At the next Cop we want to contribute to building infrastructure, including registries," deputy director-general of the Norwegian climate ministry's climate change department Guri Storaas told delegates at the Nordic Climate Finance Summit in Oslo earlier this month. The country also expects to sign more Article 6 agreements, she said. Article 6 is a "priority" for Norway because of its role in reducing the risk of Norway not meeting its climate targets solely through collaboration with the EU, and its cost effectiveness, Storaas said. And Norway "wants to make it work", she said, which is why the country is deliberately positioning itself as an early mover under the mechanism. It has set aside a 15bn Norwegian krone ($1.6bn) "buying envelope" for Article 6 credits. Norway's bilateral agreement signed last year with Switzerland on carbon removals also sends an important signal that Article 6 is not just relevant for developing countries, Storaas said. Switzerland signed a similar agreement in May with Sweden, which itself has a further six bilateral agreements. Sweden is hoping to sign another Article 6 agreement by the end of the month, fund manager for the Swedish Article 6 climate co-operation fund at the Global Green Growth Institute Ash Sharma told delegates at the summit in Oslo. Singapore this month advanced its tender for at least 12mn Itmos, following a first tender for 2.17mn Itmos last year. Project host countries are higher in number. A total of 55 have signed bilateral agreements under Article 6.2 across the Americas, Africa, Europe, Australasia and Asia. Kenya and Ghana have signed the most, at five each, followed by Zambia, Senegal, Mongolia and Indonesia with four each, according to Unep data. And 58 countries are listed by Unep as having approved activities under Pacm, led by Brazil with 92 activities, followed by Chile with 30 and Vietnam with 23. Hurdles to participation But project host countries must strike a delicate balance between trading emissions savings to raise climate finance without damaging their ability to meet their own NDCs, a factor that has been limiting some countries' engagement with Article 6. Kenya did a "good job standing up for its needs to meet its NDC" in the case of clean cookstove developer Koko, Sharma said at the Oslo conference. The company shut down earlier this year after failing to obtain a letter of authorisation from the Kenyan government to sell credits generated by its projects internationally, a result of the government's uncertainty about its capacity to retain sufficient emissions reductions to meet its targets. Countries also need people engaging with the mechanism full time, and not many have the capacity to do so, Charlotte Streck of consultancy Climate Focus said at an online event this week. It is therefore important for like-minded groups to come together to avoid being overwhelmed by complexity, she said. Private sector on the sidelines Private-sector interest in Article 6 has been dampened by the perceived complexities of the mechanism, the head of special funds at international financial institution the Nordic Environment Finance Corporation (Nefco), Dennis Hamro-Drotz, told delegates at the conference in Oslo. They are engaging a bit later than governments, he said. Nordic companies are more likely to participate by exporting their technology solutions first, before becoming credit offtakers later, Hamro-Drotz said. Nefco is "looking at re-engaging in carbon markets", he added, having been involved in the Paris Agreement's predecessor the Kyoto Protocol. Governments also stepped up first under the Kyoto Protocol, Sharma said, but linking that framework's so-called certified emission reduction credits with the EU emissions trading system brought lots of other actors into the market. "I am sure we will see this again," he said. The European Commission in July proposed using up to 260mn international credits underpinned by Article 6.4 standards over 2036-40 to count towards its 2040 climate target. But the commission as it stands will not review whether there are sufficient high-integrity credits available to justify the approach until 2033. This is "way too late" to provide the necessary demand signals to the market, International Emissions Trading Association international policy director Andrea Bonzanni told Argus . Underpinning standards edge forward In the meantime, parties to the Paris deal continue to disagree on the standards themselves. So far only three methodologies governing project activities under Pacm have been adopted, relating to flaring or use of landfill gas, N2O abatement from nitric acid production, and electricity generation from renewable sources connected to an electricity system. Experts tasked to work on the methodologies indicated last week that they are sticking to their controversial decision to require clean cooking activities to contribute some of the credits they generate to a buffer for reversals, a debate that has held up agreement on clean cooking standards. Scant progress on getting Pacm up and running has also left many in the wider carbon credit market in limbo. Demand in the voluntary carbon market has seen a marked shift lately to credits linked with compliance mechanisms, after a series of environmental integrity concerns in recent years undermined confidence in purely voluntary approaches. But developers hoping to set up projects that will issue credits remain constricted by a lack of clarity on which standards they should adhere to, and uncertainty as to whether countries will give them the approval they need to sell generated units internationally. The Article 6.4 supervisory body will meet in Germany in the first week of October, where it is scheduled to discuss a range of issues including methodologies. But debate on the mechanism's approach to certain activities is likely to spill over once again into the UN climate conference, with Cop 31 to be held in Antalya, Turkey in November. Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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