New Zealand Labour party pledges NZ ETS overhaul

Spanish Market: Emissions
09/09/26

New Zealand's opposition Labour party has pledged to urgently review and reform the country's Emissions Trading Scheme (ETS), arguing that carbon prices are too low to drive meaningful emissions reductions and that current settings have over-incentivised forestry offsets.

Labour leader Chris Hipkins said on 8 September that a future Labour government would prioritise repairing the ETS by conducting an urgent review of the scheme and moving quickly to implement any resulting changes. Labour is seeking to return to power in the upcoming 7 November national election after losing the 2023 election to a coalition led by the National party.

The review would examine ways to prioritise emissions reductions over offsets, reconsider the role of forestry in the scheme, align the ETS with New Zealand's Paris Agreement commitments, and develop new rules to prevent whole-farm forestry conversions. Labour also said that new forestry registrations into the ETS would be paused while the review is conducted.

The proposal comes as growing scrutiny of the NZ ETS from governing coalition partners ACT New Zealand and New Zealand First. Both parties have asked for changes to New Zealand's climate policies and have questioned the country's participation in the Paris Agreement. But prime minister Christopher Luxon has described remaining in the accord as a non-negotiable position.

Labour's call for reform comes after a prolonged period of weakness in the local carbon market. Spot New Zealand emissions units (NZUs) had been slowly moving down over the past month in the secondary market from mid-NZ$50s/t CO2 equivalent ($29.30/t CO2e) and fell sharply on 8 September to the mid-NZ$40s/t CO2e following Labour's announcement.

The announcement would in theory be bullish for prices, but some market participants have reacted negatively due to policy uncertainty, traders said.

Prices recovered slightly today, closing just above NZ$48/t CO2e.

Weak secondary market prices have contributed to a string of unsuccessful quarterly NZU auctions, with the latest auction attracting no bids on 8 September. The current auction price floor is NZ$71/t.

The government said in June that the market appeared "well supplied" and noted that none of the ETS auctions held in 2026 had cleared at that point. Despite the lack of auction demand, Wellington subsequently confirmed ETS settings through 2031 and retained the existing trajectory for auction price controls, with the auction floor set to rise from NZ$75/t in 2027 to NZ$93/t in 2031.

Forestry remains one area of debate within the NZ ETS as the government seeks to balance food production and its climate goals. The sector continues to play a dominant role within the ETS, with reported post-1989 forestry removals reaching 26.13mn t CO2e in the 2025-26 reporting year, while the number of forestry participants rose to 5,902 from 4,923 a year earlier.

By Lawrence Wen

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09/09/26

Australia's LNG export sector losing ground: Santos

Sydney, 9 September (Argus) — Australia is missing out on future earnings from its resources sector, Santos chief executive Kevin Gallagher said, urging the government rethink its regulatory and taxation regime in the wake of the US-Iran war and growing concerns about energy security in Asia. While Canada is striking ahead with plans to develop a west coast LNG sector targeting Asia-Pacific importers, Australia is now perceived by investors in Tokyo, Seoul and Kuala Lumpur as a riskier investment destination, Gallagher told the National Press Club in Canberra on 9 September. Four priority LNG projects are being developed in Canada as the country pivots towards Asia: the under-construction 3.3mn t/yr Cedar LNG and 2.1mn t/yr Woodfibre LNG, and the proposed 14mn t/yr LNG Canada phase 2 expansion and 12mn t/yr Ksi Lisims LNG, both of which are awaiting final investment decisions. Canada's first-ever LNG terminal, the 14mn t/yr LNG Canada Phase 1, began exports in July 2025. Gallagher criticised what he described as a public debate that too often focuses on blaming gas businesses for Australia's rising power prices or suggesting that major export industries such as LNG should be replaced by alternative sectors. In a wide-ranging speech, Gallagher said Australia's comparative advantage in resources, which accounts for two-thirds of national merchandise exports, should not be abandoned in the push for new critical minerals processing and renewable energy sectors. Gas supplies plentiful Data from Australia's energy market operator show the market remains well supplied through 2030, but also warn that new supply will be needed because of declining investment, Gallagher said. He blamed delays to the development of the Beetaloo subbasin and Narrabri projects on drilling moratoriums and other policy constraints from government. The Beetaloo could be a transformational region for Australia's economic future, but access to LNG markets is needed to make such developments financially viable, he said. A prospective reservation should be instituted to ensure Beetaloo meets domestic and LNG markets. LNG export joint ventures include multiple Asian partners that rely on Australia for energy security, meaning certainty and reliability are paramount to maintaining regional stability, Gallagher said. Setting annual rates of supply and conditions under Canberra's proposed domestic supply obligation would be like setting a new tax rate every year — no-one could invest on that basis, Gallagher said. A reservation policy must not oversupply the market and thereby remove the price signals needed to stimulate new investment. Santos believes a Western Australia-style model where gas volumes must be offered to domestic customers on commercial terms should instead be instituted. A draft of the proposed DSO laws is expected to be released by the government this month ahead of enforcement from 1 July next year. By Tom Major Australian gas prices A$/GJ Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Global GHG emissions reached fresh high in 2025: Report

08/09/26

Global GHG emissions reached fresh high in 2025: Report

London, 8 September (Argus) — Global greenhouse gas (GHG) emissions reached a record high of 55bn t/CO2 equivalent (CO2e) in 2025, up by 0.9pc on the year, data from the EU's independent emissions database for global atmospheric research (Edgar) show. These figures include the land use, land use change and forestry (LULUCF) sector — which can act either as a source of carbon or a carbon sink. Excluding LULUCF, global GHG emissions rose to 54.1bn t/CO2e in 2025, an increase of 0.7pc on the year, Edgar found. The highest-emitting countries in 2025 were China, the US and India, with shares of 29.5pc, 11.1pc and 8.3pc of the global total, respectively, Edgar data show. The EU, Russia and Indonesia were responsible for 5.8pc, 4.8pc and 2.5pc, respectively, of global GHG emissions in 2025. These six economies account for 50.1pc of global population, 62pc of global GHG emissions and 63pc of global fossil fuel consumption, Edgar said. Of the top six emitters, the US and Indonesia recorded the most substantial increases in emissions in 2024-5 — a rise of 2.2pc or 131.5mn t/CO2e for the US and one of 1.2pc or 16.1mn t/CO2e for Indonesia. "China and India maintained or reduced their emissions levels for the first time", in 2025, Edgar said. China's GHG emissions rose by just 0.1pc or 9.6mn t/CO2e from 2024 levels, while India's emissions fell by 0.2pc in the same timeframe, Edgar said. The EU and Russia also recorded "small decreases" on the year in GHG emissions in 2025, or 0.2pc and 0.1pc, respectively, Edgar data show. Elsewhere, Japan's emissions — 2pc of the global total — dropped by 1.4pc on the year in 2025 and Australia's by 1.3pc in the same timeframe. UN Cop 31 summit host Turkey's emissions — 1.1pc of the global total — rose by 4.2pc on the year in 2025, Edgar found. Global GHG emissions increased across all sectors in 2025, apart from the power sector, which recorded a drop in emissions of 0.3pc on the year — 51mn t/CO2e — Edgar found. But power remains the "dominant" single sector, responsible for nearly 30pc of global emissions, the report added. CO2, mostly from fossil fuel combustion, "remained the dominant component of global GHG emissions" in 2025, at 73.8pc of the total, Edgar said. Methane was responsible for 17.6pc, nitrogen oxides for 5.3pc and fluorinated gases — for uses such as refrigeration and air conditioning — for 3.3pc, Edgar said. The LULUCF sector globally was a net source of carbon in 2025 of around 900mn t/CO2e — equivalent to 1.6pc of global GHG emissions that year — in part owed to wildfires, Edgar said. Wildfires generated 2.2bn t/CO2e in 2025, which was below the long-term average of 2.9bn t/CO2e since 1990. But "regional spikes were observed", Edgar said. This includes in the EU, where wildfire emissions rose by 40pc from 2024-5. Globally, deforestation in 2025 released 3.7bn t/CO2e, "offsetting more than twice the amount removed by the LULUCF sink globally", Edgar found. Around 106 countries covering approximately 72pc of GHGs have net zero emissions targets in place, IEA data show. Net zero emissions — when GHG emissions are balanced by removals from the atmosphere — would halt further global temperature increases. The Paris climate agreement seeks to curb the rise in temperature to below 2°C above pre-industrial levels, and pursues a 1.5°C limit. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Climate finance critical for security: Cop 31 president

04/09/26

Climate finance critical for security: Cop 31 president

London, 4 September (Argus) — World leaders should put climate finance on par with defence spending as a strategic security priority, president-designate of the UN Cop 31 climate summit Murat Kurum said today. Kurum called on governments to commit greater resources "to clean energy, electrification, resilient cities and green industry." "Nato countries have embarked on a major transformation that will see defence-related investment rise to as much as 5pc of GDP," he said. "We expect to see ambition on a similar scale when it comes to climate security." Kurum, who is Turkey's environment minister, will oversee Cop 31 in November, in Antalya, Turkey. Finance is a key priority for Cop 31, the Turkish presidency said. "Our climate finance needs stand at between $7.5 trillion and $9 trillion. Yet the world currently invests only around $1.9 trillion", Kurum said. He described the disparity as a chasm. "We must all stop treating climate finance as a cost. We must recognise it for what it truly is: a strategic investment made today to avert far greater economic and social losses tomorrow," Kurum said. Several studies have found the cost of inaction on climate change substantially outweighs the alternative. Global climate finance was $2.01 trillion in 2024, and preliminary estimates indicate this rose to around $2.06 trillion in 2025, non-profit Climate Policy Initiative said in June . This includes global domestic and international climate finance, from public and private sources, and finance from household purchases of renewable technology. Climate finance, for global decarbonisation and adaptation to the effects of climate change, is often the central issue at Cop summits. UN climate body the UNFCCC works from a 1992 list of developed and developing countries, with the former expected to lead in mobilising climate finance for the latter. Many countries argue the designation is outdated, and UNFCCC-classified developing nations have in recent years publicised their own climate finance delivery. Almost 200 countries agreed in 2024 at Cop 29 on a goal that will see developed countries "take the lead" on providing at least $300 bn/yr in climate finance to developing nations by 2035. The Cop 31 presidency will launch an initiative that aims to speed finance deployment — dubbed Bridge — to help countries "turn their climate and development priorities into finance-ready portfolios of projects", it said. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Japan backs coal-led decarbonisation in SE Asia

04/09/26

Japan backs coal-led decarbonisation in SE Asia

Tokyo, 4 September (Argus) — Japan is keen to support "realistic" decarbonization efforts in Southeast Asia while continuing to use coal, delegates heard at the 35th Clean Coal Day International Symposium held in Tokyo on 3 September. Japan will accelerate working together with Southeast Asian countries to support the continued use of coal while reducing carbon emissions, including through ammonia co-firing projects in Malaysia, Takahiro Tajiri, director-general for international affairs at the Agency for Natural Resources and Energy under Japan's ministry of economy, trade and industry Meti, said in a speech at the symposium. Japan has achieved a 20pc of ammonia co-firing with coal during trial operations at the 1GW No.4 coal-fired unit at the Hekinan power plant and aims to raise the co-firing rate to 50pc in the future. Japan can leverage this technology to support Malaysia and other countries in the region, according to Tajiri. Maintaining coal use while reducing carbon emissions through co-firing with renewable fuels such as ammonia and biomass is a "realistic" pathway for many countries, including Japan and those in Southeast Asia, Tajiri said. Coal remains affordable and provides a stable source of energy supply, he added. Japan should help Southeast Asian countries balance energy security and decarbonization through coal-related technologies, including ammonia co-firing, Paul Baruya, director of strategy and sustainability at Future Coal Global Alliance, said at the symposium. Coal has proven to be an alternative fuel to natural gas in many Asian countries when the de facto closure of the strait of Hormuz caused a sudden and unexpected disruption to LNG supply , Yoshikazu Kobayashi, chief economist and director for research strategy and energy security at the Institute of Energy Economics, Japan (IEEJ), said in his speech. By Takeshi Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

GCC, South Korea partner on carbon market

04/09/26

GCC, South Korea partner on carbon market

Mumbai, 4 September (Argus) — 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 Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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