GCC, South Korea partner on carbon market

Spanish Market: Emissions
04/09/26

The Global Carbon Council (GCC) has signed a memorandum of understanding (MoU) with South Korea's planning and budget ministry (MPB) and the Korea Chamber of Commerce and Industry (KCCI) to support the development of the country's voluntary carbon market (VCM).

The agreement, signed in Seoul on 3 September, will focus on developing digital monitoring, reporting and verification (DMRV) systems, registry interoperability and international market connectivity. South Korea's VCM is scheduled to launch on the Korea Exchange (KRX) by the end of 2026.

The parties will also work to align South Korea's VCM framework with Article 6.2 of the Paris Agreement, the Carbon Offsetting and Reduction Scheme for International Aviation (Corsia) and the Integrity Council for the Voluntary Carbon Market's (ICVCM) Core Carbon Principles (CCP).

A key element of the co-operation is the planned interoperability between South Korea's consolidated carbon registry and GCC's registry infrastructure, which would support carbon project registration, credit issuance, tracking and potential integration with KRX, GCC said.

GCC will provide technical expertise across the carbon crediting value chain, including methodologies, validation and verification, registration and issuance processes, as well as eligibility mapping for Corsia and Article 6 mechanisms and the ICVCM's CCP label. The standard will also support the development of domestic certification capacity and DMRV expertise in South Korea.

The parties plan to establish a joint working group within 30 days to develop a detailed implementation roadmap covering registry architecture, international alignment, capacity building and engagement with stakeholders, including KRX.

By Shribalaji Shenbagaraj

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03/09/26

UK to loan $541mn to tropical forest preservation fund

London, 3 September (Argus) — The UK plans to loan £400mn ($541mn) to the Tropical Forests Forever Facility (TFFF) — a fund to preserve tropical forests, launched by Brazil at the UN Cop 30 climate summit in November. The UK government "is seeking participation in the relevant fund oversight mechanisms" as a condition of the loan, it said today. The final funding remains subject to due diligence, including a review of the facility's final size, it added. TFFF aims to preserve tropical global forests , and help pay around 80 developing countries $4/hectare (ha) for preserved tropical forests. The goal is to raise $125bn for the fund to protect 1bn ha (10mn km²) of tropical forests globally. "Forest countries will not be expected to repay this funding", the UK government said. The TFFF is "designed to generate investment returns from its performance-based model, enabling it to both repay investors and reward countries that successfully protect tropical forests", it added. Mature tropical forests are key natural carbon sinks, as well as crucial for biodiversity and regulating regional and local climate. Tropical forest loss declined in 2025 , albeit from a record high level in 2024. The fund drew financial commitments from several countries at Cop 30, which took place in Belem, Brazil. Germany pledged €1bn ($1.2bn), Brazil and Indonesia $1bn each, France €500mn and Colombia $250mn. Norway pledged up to 30bn Norwegian kroner ($3.2bn) over 10 years, based on several conditions. Portugal and the Netherlands made smaller contributions, of €1mn and €5mn respectively, to cover the fund's operational costs, and Luxembourg earlier this year committed €50mn. The UK's TFFF loan "demonstrates the UK's new approach to climate finance, acting as an investor instead of a donor", the government said. UK prime minister Andy Burnham, who took power in July, has placed his focus on reducing living costs , including the cost of energy for households and businesses. The UK government confirmed earlier this year that it met its climate finance spending target of at least £11.6bn over the financial years from 2021-22 to 2025-26. Over this timeframe, 89pc was delivered as grants, member of parliament Stephen Doughty told parliament earlier this year. The UK will provide £6.7bn ($8.8bn) in public finance from the 2026-27 to 2028-29 financial years. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Participation in CO₂ Auction Declines

02/09/26

Participation in CO₂ Auction Declines

Hamburg, 2 September (Argus) — The number of participants and the bidding volume both declined at the tenth auction of national emissions certificates (nEZ) today, 2 September, mainly because of the low allocation rate combined with high financing costs. A total of 108 participants submitted bids for 508,183,972 national emissions certificates (nEZ). In each of the previous two weeks, 112 participants had taken part in the auctions. The total bid volume fell by around 4pc compared with the previous week. As was the case at the eighth and ninth auction dates, the €65 rule was again not applied, meaning the allocation rate remained at just under 2pc. Market participants said that, given the very low allocation rate, participation in the auctions is becoming increasingly uneconomic because of the associated financing costs. This may explain the decline in the number of auction participants. For example, a bidder seeking to acquire 100,000 nEZ through the auction must bid the maximum price of €65/nEZ. Otherwise, the bidder would be unlikely to secure any allocation. But because the allocation rate is now predictably around 2pc, the bidder would need to submit bids for a total of 5,000,000 nEZ. At the clearing price of €65/nEZ, this requires financing of €325mn. Interest costs accrue on this amount for the period during which the funds must be deposited. As a result, some market participants are withdrawing from the auctions and instead plan to purchase additional nEZ from November onwards at the fixed price of €68/nEZ, plus any applicable fees. By Johannes Guhlke Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Texas center plans alternative for EPA's GHG data

02/09/26

Texas center plans alternative for EPA's GHG data

Washington, 2 September (Argus) — A research unit at the University of Texas at Austin is preparing to launch a voluntary program, backed by the oil sector and environmentalists, that would replicate parts of a federally run greenhouse gas (GHG) reporting program that President Donald Trump's administration wants to eliminate. The university-led program, dubbed openGHGRP, is meant to serve as a "bridge" for continuing to collect a trove of key emissions data that would no longer be available if the US Environmental Protection Agency (EPA) moves forward with a repeal proposal it is likely to finalize soon. The University of Texas at Austin's Center for Energy and Environmental Systems Analysis (CEESA) plans to launch the program in the coming months. Initial financial support will come from the oil and gas groups the American Petroleum Institute, the American Exploration & Production Council and the American Gas Association, as well as Chevron and the nonprofit group the Environmental Defense Fund. About 8,000 industrial facilities report their annual emissions under the existing EPA program, which started collecting data in 2010. The Trump administration has sought to end the program over the objections of oil groups and manufacturers, who see the program as the most effective way to track their GHG emissions, comply with potential carbon-based import fees and claim federal tax credits. There are "Swiss cheese holes of need" for the emissions data everywhere, said openGHGRP's principal investigator Erin Tullos, who is also a professor at the University of Texas at Austin's chemical engineering department. "Rather than plugging each of those business use cases individually, people are like, 'Maybe it would be better if we just kept this intact.'" Those involved with openGHGRP said they want to replicate the existing EPA program as closely as possible, including using the same rules for emissions reporting and creating an online dashboard for the public to access the data. The program will launch initially to collect data from "subpart C" and "subpart W" sources, which primarily cover the oil and gas sector. CEESA is attempting to add more categories if it is able to secure enough financial support to cover the cost of collecting and processing additional data. API said last year that if EPA went through with repealing its reporting program, the industry would try to retain reporting voluntarily by finding a third-party alternative. The openGHGRP initiative has attracted broad support, API said. But it would be up to individual companies to decide whether to submit data. "The US oil and natural gas industry has a longstanding commitment to transparent, accurate GHG emissions reporting — and a consistent, accessible database of this information helps measure progress, inform sound policy and support American competitiveness in global markets," API vice president of corporate policy Aaron Padilla said. 'Not a substitute' Environmentalists not involved in the initiative see it as a positive that openGHGRP is working to replicate the EPA program, in a way that would make data accessible to the public. But they note it would not fulfill the same role as EPA's program, which was able to track nationwide emission trends, and not exclusively from companies willing to self-report. "It's going to be self-selecting within the (oil and gas) industry, and it's not going to include the other industries, so it's not a substitute for what we have under the regulations and under the law," Natural Resources Defense Council senior attorney David Doniger said. "If and when EPA promulgates the proposed repeal, it can expect to be challenged by the NRDC and others." Those working on openGHGRP said the effort is not meant to be a permanent replacement to EPA's program. It would instead offer a mechanism to continue to collect data in one location, avoiding data fragmentation and maintaining reporting capacity in participating companies. Those contributing a minimum amount of funding to openGHGRP will have a vote on a steering committee that will decide how to prioritize the build-out of information technology, but governance will include stakeholders from industry, non-profits and other groups. "Governance is set in these four corners, and no matter how much money you contribute doesn't change it," Tullos said. Other universities have already stepped in to replicate other climate programs the Trump administration has dismantled. Earlier this year, the University of Maryland's Center for Global Sustainability began publishing a national inventory for GHG emissions for the US, replicating data that EPA had compiled for 1990-2024 before it halted publication of the annual report last year. EPA, asked for comment on openGHGRP, said it was reviewing comments on its proposal to end greenhouse gas reporting. EPA released the proposed rule nearly a year ago. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

World to exceed 1.5°C rise in ‘next few years’: UN

02/09/26

World to exceed 1.5°C rise in ‘next few years’: UN

London, 2 September (Argus) — Global action to curb emissions has not been enough to avoid a rise in temperature exceeding 1.5°C above pre-industrial levels "in the next few years", and governments must plan for an "overshoot, peak and decline pathway", the UN Environment Programme (Unep) said today. "The policy challenge has shifted from avoiding overshoot to navigating it", Unep said in its Limiting overshoot report. The Paris climate agreement seeks to curb the global rise in temperature to "well below" 2°C above the pre-industrial era and pursues a 1.5°C limit. This remains the "central benchmark for climate ambition", Unep said. Under current policies, the world is on track for a rise in temperature of 2.6°C above pre-industrial levels by 2100, and has already warmed by around 1.4°C. The most optimistic scenario, which would require full implementation of all countries' climate plans, and meeting additional net-zero targets, puts an expected peak temperature increase at 1.8°C, Unep said. Despite the "inevitable" overshoot of the 1.5°C target, "the goal remains limiting warming to this level… the goal must now be approached from above while the world adapts to intensifying climate impacts", Unep executive director Inger Andersen said. If "unprecedented action" was taken globally, it would be possible to return to a 1.5°C limit, the report found. An overshoot, peak and decline pathway would require immediate and sustained cuts to greenhouse gas (GHG) emissions and the use of carbon removals to offset remaining GHGs. Alongside this, action to adjust to current and expected effects of climate change — known as adaptation — would be needed, Unep said. "Net-zero is a necessary milestone to returning below 1.5°C", the report found. Governments and businesses should avoid "carbon lock-in" such as power and transport reliant on fossil fuels, and ramp up renewables, it said. Carbon dioxide removals (CDR) will be needed as well as emissions reductions, but the technology has limits, the report noted. CDR "can only contribute credibly to a return to below 1.5°C within the 21st century if peak warming remains well below 2°C", it found. Climate change will curb CO2 removal and retention rates for some nature-based forms of CDR. And "even optimistic CDR scaling is unlikely to deliver a temperature reversal beyond a few tenths of a degree this century", Unep said. Some impacts will continue, even if temperatures are stabilised, and some will be irreversible, Unep said. "Sea levels will continue to rise for centuries in response to past warming. Overshoot pathways commit the world to long-term increases in coastal water levels", the report found. Reversing global warming is possible but the pace is uncertain and constrained by earth system responses, Unep said. These include tipping points — a critical threshold beyond which a system reorganises. Extreme weather is intensifying and "limits to adaptation are being reached", it said. Governments and institutions should also take into account that many existing planning assumptions "no longer hold", the report found. But "limiting the magnitude, duration and consequences of overshoot, while preserving the possibility of bringing temperatures back down, is the best remaining option", Andersen said. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Irish EU council presidency eyes ETS deal by end-2026

01/09/26

Irish EU council presidency eyes ETS deal by end-2026

Brussels, 1 September (Argus) — Dublin's objective is to reach agreement on the reform of the EU emissions trading system (ETS) among member states by December, which could enable negotiations between the states and parliament from early 2027, Irish climate minister Darragh O'Brien has told the European Parliament's environment committee. "It's ambitious but it's doable," said O'Brien, adding that the Irish presidency will also begin discussions among EU member states on the implementation package for the 2040 climate and energy targets, as well as the post-2030 framework. There will also be a significant focus on "strengthening" the EU's international environmental leadership, O'Brien said. The UN Cop 31 climate conference in Antalya, Turkey, in November is an important opportunity for the EU to strengthen its climate leadership on the global stage, he said. German MEP Peter Liese of the centre-right EPP parliamentary group, the draftsman on ETS reform, noted a "huge" responsibility for the Irish presidency. "We have three and a half months to solve many of the open questions in Europe," he said. He committed to "trying" to accommodate the "ambitious" timeline set by Ireland's EU presidency, with parliament also reaching internal agreement on its position by the end of the year. The commission's reform proposal for the ETS will be the basis for discussions in parliament, Liese said. "The devil is in the detail," he said. "Many in parliament like the idea of conditionality for the free allowances," he added, albeit hinting at the need to start more carefully and become more ambitious over time in terms of ETS ambition. The commission's wide-ranging ETS reform proposals include making some free allocations conditional on the implementation by recipient companies of decarbonisation plans. The centre-left S&D parliamentary group's Tiemo Wolken questioned how Ireland can "credibly" push other member states to increase climate ambition when the country is currently projected to miss its 2030 climate targets. Ireland's Environmental Protection Agency (EPA) in May projected that the country will achieve a reduction of up to 25pc in total greenhouse gas (GHG) emissions by 2030, well short of a national target of 51pc. "Different countries are on different trajectories," O'Brien said, underlining the potential for Ireland to use renewable energy to "catch up" in the post-2030 period. Parliamentary Greens member Marie Toussaint countered that the commission's proposal lowers the bloc's emissions reductions. "The council is weakening it even more, parliament as well," she said, adding that the ETS supply cap could reach zero in 2048 instead of 2039. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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