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.
Japan's Eneos to buy Chevron's fuel, lube subsidiaries
Japan's Eneos to buy Chevron's fuel, lube subsidiaries
Tokyo, 14 May (Argus) — Japanese refiner Eneos plans to buy Chevron's downstream fuel and lubricant subsidiaries in Australia and southeast Asia, the company said today, aiming to tap growing overseas oil product demand while tackling shrinking domestic consumption. Eneos signed a share purchase agreement with Chevron to acquire a all of the shares in each of Chevron's subsidiaries — Chevron Singapore, Chevron Malaysia, Chevron Philippines, Chevron Australia Downstream and Chevron Oil Products Indonesia — for $2.17bn. Eneos and Chevron aim to complete the transactions in 2027. The purchase also includes Chevron's 50pc share in the largely export-based Singapore Refining Company's (SRC) 290,000 b/d refinery. SRC is also part-owned by the Singapore Petroleum Company, a fully owned subsidiary of Petrochina. The move comes against the backdrop of expectations of further oil product demand growth in these countries, compared with that of Japan. Eneos has attempted to improve the competitiveness of its refineries. The company set a goal to raise the operating rates of its refineries to 90pc by the April 2027-March 2028 fiscal year. It also decided to permanently shut one of its ethylene crackers at the Kawasaki refinery by the end of 2027-28 to optimise its petrochemical business. The cracker has an output capacity of 448,000 t/yr. Biofuels The acquisition of significant blending and storage infrastructure in Singapore will also allow Eneos to expand its biofuels trading book, including for marine biodiesel and sustainable aviation fuel (SAF). Chevron has been one of the key suppliers of marine biodiesel in Singapore in recent years, buying used cooking oil methyl ester (Ucome) volumes from China for blending and bunkering in Singapore. Bunkering of biofuel blends in the port hit a yearly high of 1.3mn t in 2025 , up by 25pc on the year. Eneos could also be positioned to blend and supply SAF to Changi airport to meet Singapore's 1pc blending target in jet fuel, which will now start in 2027 , having been pushed back from its original 2026 start date due to the war in the Middle East. The Singapore Sustainable Aviation Fuel Company (SAFCo), a non-profit company wholly owned by Singapore's civil aviation authority, will centrally procure SAF in the country. Sellers must be able to show ability to deliver fuel into Changi — either through membership of the Changi Airport Fuel Hydrant Installation (Cahfi), or by working with a member. Chevron is currently a Cahfi member. Regional storage assets would also enable Eneos to aggregate biofuel and feedstock supplies from throughout Asia before shipping to other regions to meet demand — an important logistical advantage when dealing with dispersed supplies of valuable waste feedstocks like used cooking oil and palm oil mill effluent. This could help cost-effectively source feedstock for Eneos' own biorefinery in Hawaii with Par Pacific and Mitsubishi , which started up in April, or their upcoming biorefinery conversion at former Wakayama refinery — again with Mitsubishi. By Nanami Oki and Lauren Moffitt Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
EU eyes deducting carbon credits under CBAM
EU eyes deducting carbon credits under CBAM
London, 13 May (Argus) — Domestic and Paris Agreement-aligned international carbon credits used to pay for emissions in non-EU countries could be counted towards a carbon price already paid on an import's emissions under the bloc's carbon border adjustment mechanism (CBAM), under proposals published by the European Commission today. Under the CBAM regulation, declarants can claim a reduction in the CBAM certificates they must surrender for emissions embedded in imported goods if a carbon price has already been paid in the country of origin. In a draft implementing act published for consultation today, the commission proposed including all forms of compliance options allowed in the relevant country in the calculation, including carbon credits. Claiming this reduction should be allowed "irrespective of whether the mitigation activities linked to the carbon credit takes place domestically or outside the domestic jurisdiction", according to the draft implementing regulation. But while domestic credits could be counted with no additional criteria, only international credits issued under Article 6 of the Paris Agreement should be counted, the commission proposed. "This criterion should promote the development of Article 6 credits and provide the quality assurance necessary to ensure the environmental integrity of CBAM," it said. Counting international credits as a carbon price already paid on CBAM goods should also be limited to 10pc of the reported emissions to incentivise domestic emissions cuts, the commission said. Any rebates or compensation received by installations covered by carbon pricing should also be factored in, the commission proposed, including free allowances or other exemptions. The carbon price could have been paid on direct, indirect or precursor emissions, under the draft. The commission may publish default carbon prices for relevant countries, it said. And it proposed publishing a yearly reference price for CBAM certificates to be used in the calculation of the deduction. The price paid in the non-EU country would be based on either a yearly average primary or secondary market price or individual records of payment, converted to euros based on yearly average exchange rates. The regulation would apply from 1 January this year. The consultation closes on 10 June. By Victoria Hatherick Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
EU must stay course on fossil fuels: Jorgensen
EU must stay course on fossil fuels: Jorgensen
Brussels, 13 May (Argus) — The EU must maintain course in transitioning away from fossil fuels, EU energy commissioner Dan Jorgensen told an informal meeting of EU energy ministers, which also discussed plans to boost domestic oil and gas production to strengthen the bloc's energy security. Jorgensen said the EU needs to accelerate and intensify efforts to move away from fossil fuels, and while security of supply concerns can be addressed, the climate crisis will not disappear, he said. The bloc also needs to stay on course with its methane regulation, Jorgensen added. "Although we are also committed to making sure that the implementation will be as pragmatic as possible," he said. "We have gas reserves. We just need to make sure that we use those gas reserves in the next few decades," Cypriot energy minister Michael Damianos said. Hosting the meeting in Lefkosia, Cyprus, Damianos added that natural gas is "greener" than anything else. "We do need fossil fuels," he said, even if European consumption will fall. A document prepared for the meeting notes that indigenous gas resources can strategically complement the EU's long-term security and decarbonisation goals by contributing to diversification and resilience targets. "We need more natural gas in Europe," Romanian secretary of state for energy Cristian-Silviu Busoi said, noting the role of gas in the transition, potentially even beyond 2050 if carbon capture and storage (CCS) technologies become sufficiently mature. EU standards, including under the methane regulation, are definitely higher than those in north Africa, the Middle East and the Caspian region, Busoi said. "Our main goal is how we can speed up the energy transition," Spanish ecological transition minister Sara Aagesen said. She highlighted Spain's favourable power price trend because of a greater share of renewables in the generation mix, with natural gas setting prices only 10pc of the time in 2026, compared with 75pc in 2018. Spain, together with Austria, Germany, Italy and Portugal, is also waiting for common EU measures to establish a tax on windfall profits. Aagesen said the tax should include refineries exporting outside the EU. Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
German government approves building modernisation law
German government approves building modernisation law
Hamburg, 13 May (Argus) — Germany's cabinet approved the building modernisation act on 13 May, sending it to parliament for further deliberation, with only minor changes from the original draft. The new act will remove the existing requirement that new heating systems run on at least 65pc renewable energy . Instead, owners will again be able to choose between technologies, including gas and oil boilers, heat pumps, district heating, biomass installations or hybrid systems. The core element of the reform remains the increasing quota for climate-neutral fuels, under which gas and oil boilers must gradually use more renewable or low-carbon energy from 2029. Minimum shares are set at 10pc in 2029, 15pc in 2030, 30pc from 2035 and 60pc from 2040. Most of the changes that were made apply to biomass, with rules on a hierarchy for use of wood scrapped following industry opposition. But a new limit was introduced on use of maize and grain in biogas plants. These feedstocks can now make up no more than 40pc for biogas units that became operational after 31 December 2023. Bioenergy industry representatives broadly welcomed the law, but still see shortcomings. Berlin-based lobby group Hauptstadtburo Bioenergie points to a possible loophole, as the new act applies to heating systems installed after it takes effect. Units added since the previous act took force would face no related obligations, leaving an estimated 900,000 oil and gas boilers to fall through the gap. Industry associations are also seeking annual adjustments to bio-targets, rather than steep jumps years apart, arguing this would support investment security and avoid sharp price movements. Changes around biomethane imports have also come into focus. The current bill does not limit EU imports when producers benefit from subsidy schemes, but industry groups have proposed excluding any biomethane that received significant incentives in its country of origin or which counts towards renewable targets there. Details of the bill are still open to amendment. The lower house of parliament, the Bundestag, will first hold a reading before referring the bill to committees, which usually make the most substantive changes based on expert hearings. After committee discussions, the Bundestag will hold second and third readings, before the upper house, the Bundesrat, takes up the bill. Here, there could be delays, as states and municipalities are responsible for implementing and enforcing the law. Disagreements among states could trigger mediation, further slowing progress. The economy and energy ministry wants the law to take force on 1 July. By Svea Winter Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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