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 northeast hit by earthquake, energy sites safe
Japan's northeast hit by earthquake, energy sites safe
Tokyo, 25 June (Argus) — A 7.2-magnitude earthquake struck northeastern Japan today. No major damage to nuclear power plants or thermal power facilities and domestic refineries has been reported so far, according to industry sources contacted by Argus . The earthquake occurred off the coast of Iwate prefecture at 07:30 on 25 June Japan time (22:30 GMT on 24 June), according to the Japan Meteorological Agency. The quake registered an upper-6 seismic intensity — the second-highest level on Japan's shindo scale — in Aomori prefecture. There is no risk of a tsunami from the earthquake, the agency said. Japanese prime minister Sanae Takaichi also said there was no risk of a tsunami. The government would assess the damage and work to respond to the disaster, she added. The earthquake did not affect power generation facilities in the Tohoku area, with no damage reported to nuclear, thermal, hydroelectric, or renewable power plants, Tohoku Electric Power told Argus . Around 4.6GW of coal-fired capacity and 7.9GW of gas-fed capacity were available for operation in Tohoku as of 25 June, according to a power plant operational status notice by the Japan Electric Power Exchange. The 825MW Onagawa No.2 nuclear reactor in Miyagi, close to the earthquake's epicentre off the Iwate coast, continues to operate. No damage was reported at the Rokkasho nuclear fuel reprocessing plant in Aomori, which is scheduled to begin operations in the April 2027-March 2028 fiscal year. Two major biomass power plants in Tohoku — the 75MW unit at Ofunato in Iwate and a similar-sized plant at Hachinohe in Aomori — were also unaffected, sources told Argus . In Hokkaido, where the quake registered at 4 on Japan's seismic intensity scale in some areas, there was no damage to power generation facilities, a representative at Hokkaido Electric Power said. No nuclear reactors are currently operating in Hokkaido, with the 2,070MW Tomari nuclear plant remaining safely closed. Japanese refiner Eneos operates the 145,000 b/d Sendai refinery in Miyagi. But the earthquake had no impact on Eneos' facilities including refineries, the company said. By Fumito Nagase, Motoko Hasegawa, Kohei Yamamoto, Takeshi Maeda, Reina Maeda, Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Texas renewable diesel flows up as Calif. demand eases
Texas renewable diesel flows up as Calif. demand eases
Seattle, 24 June (Argus) — Renewable diesel producers along the US Gulf coast are increasingly selling into the Texas ultra-low sulphur diesel (ULSD) market as bulk demand slows across California — the largest R99 market in the country — in tandem with record-high US output of the fuel. Renewable diesel production at US biorefineries in May hit an all-time high of about 6.86mn bl, part of a steady increase since the beginning of the year following the implementation of record-high biofuels blending targets, according to the latest RIN generation data from the Environmental Protection Agency (EPA). Higher run rates through the second quarter, compounded by elevated and volatile diesel prices across the country, made California buyers hesitant to commit to high-volume R99 spot purchases as the market faced fresh supply. But Texas's 20¢/USG diesel excise tax abatement, applicable to renewable diesel, appears to have thrust the state — particularly Houston's fob truck spot market — into the spotlight as an attractive secondary supply outlet. Local market participants have cited R99 on offer from various Gulf coast producers throughout June, with the tax abatement now making renewable volume competitive with conventional ULSD in the region. Offers for R99 fob truck in Houston as recently as Wednesday morning were heard at July Nymex ULSD +9¢/USG, which a number of sources said represented about a 5¢/USG discount versus conventional ULSD once accounting for the excise tax abatement. Spot R99 via the pipeline in California by comparison last traded at double-digit discounts, 35¢/USG and 80¢/USG, respectively, to the corresponding Los Angeles and San Francisco CARB complexes (conventional in-state CARB diesel + attributes). By Jasmine Davis Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
UK must speed electrification to hit climate goals: CCC
UK must speed electrification to hit climate goals: CCC
London, 24 June (Argus) — The "slow pace of electrification is putting the UK's climate targets at risk", the UK parliamentary advisory Climate Change Committee (CCC) said today, in its annual progress report, which assesses government progress in reducing emissions. The CCC noted "good progress in a range of areas", including contracting a record amount of new renewable energy in the latest auction, and on electric vehicles (EVs). Nearly one in four new car sales is now electric, the CCC said. Moving faster to electrify the UK could be "an opportunity to enhance UK energy security in the face of rising threats", as well as hitting climate goals, the committee said. Reliance on fossil fuels for transport and gas boilers for domestic heating leaves the UK "exposed to geopolitical shocks", it added. Of the UK's emissions, 93pc are now outside the electricity supply sector, the report noted. Surface transport is the highest-emitting sector. The government should prioritise a "more rapid transition to EVs" and speed up heat pump installations, the CCC said. A "typical UK household will see lower and less volatile bills" by switching to an EV and heat pump from fossil-fuelled alternatives, it said. The net cost for the UK to reach net zero greenhouse gas (GHG) emissions by 2050 is lower than "a single fossil fuel price shock", the committee found in March. The government should take "further action to reduce the cost of electricity", and ensure faster industrial electrification, including by speeding grid connections, the report found. The committee found that progress in the agriculture, land use and aviation sectors "has also been too slow". UK GHG emissions were 407mn t/CO2 equivalent (t/CO2e) in 2025, down by 1.8pc or 7.3mn t/CO2e, compared with 2024, provisional estimates show. The UK is on track to meet its fourth and fifth carbon budgets — which cover 2023-27 and 2028-32, respectively — the CCC said. Carbon budgets, which are legally binding in the UK, cap the total GHG emissions that the UK can emit over five-year periods. The UK met its first three carbon budgets, largely through decarbonising the power sector and shutting down coal-fired power generation. The country has a legally-binding target to reach net zero GHG emissions by 2050. But the UK is not on track to achieve its national climate plan — known as a nationally determined contribution (NDC) under the UN climate process — for 2030, the CCC found. It flagged "a significant gap" between government plans and the UK's 2030 NDC commitment to reduce GHG emissions by at least 68pc compared with 1990 levels. "Credible plans" and plans with "some risks attached" exist for 44pc and 15pc, respectively, of the required GHG reductions to reach the NDC target, the CCC said. For the rest, "significant risks" are attached for 19pc of required cuts, and 4pc have "insufficient plans" in place. The remaining 17pc of emissions reductions required are not covered, the committee said. The UK must reduce its GHG emissions to 291mn t/CO2e by 2030 to meet its NDC. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Indonesia to issue 30mn t REDD+ credits in July: Update
Indonesia to issue 30mn t REDD+ credits in July: Update
Adds details on launch of Indonesia's carbon registry and remarks by UK's special representative for climate London, 24 June (Argus) — The Indonesian government will issue more than 30mn t of CO2 equivalent (CO2e) of forestry carbon credits on 6 July, forestry minister Raja Juli Antoni said at the Net Zero Delivery Summit 2026 today as part of London Climate Action Week. "I will issue a ministerial approval and facilitate the issuance of forestry carbon credits exceeding 30mn t CO2e," the minister said, adding that this represented one of the "most significant milestones" in the development of the country's forest carbon markets. The issuance has been long-awaited from the market, as forestry projects located in Indonesia stopped issuing credits following a government ban in 2022, which was removed late last year. This is likely to weigh on prices for Indonesian carbon credits generated form forestry projects in the country. Prices for credits generated in 2020 from the Verra-listed Katingan Reducing Emissions from Deforestation and Forest Degradation (REDD+) project have fallen from record highs reached in early March, in anticipation of the bulk issuance. Indonesia will officially launch its national carbon unit registry, SRUK, on 9 July, the minister said. "Our objective is simple — to create an ecosystem where climate ambition can be matched by investor confidence." The future of carbon markets "will not be determined solely by the volume of credit", but rather by the level of trust these give to investment, mobilisation and the climate and development outcomes that they deliver, he said. The minister called for strengthening integrity and transparency to allow confidence in carbon credit markets to grow, further developing market infrastructure; liquidity mechanisms and risk-sharing instruments and ensuring that delivered carbon finance benefits on the ground, "particularly for indigenous people or local communities and those who safeguard forests and natural ecosystems". Indonesia expects its CO2 emissions to peak in 2030 and aims to achieve net zero by 2060 "or sooner". 'Make it work' Governments and private investors need to "roll up their sleeves" and make carbon markets work, UK special representative for climate Rachel Kyte said at the summit. "We are in overtime… And I have to tell you that the mood has changed," she said, adding that while governments keep working on making market infrastructure more robust, the message from the private sector is also "less whiny than it used to be", being more pragmatic to solve issues where the carbon market stumbles. She also stressed the importance of interoperability between permit and carbon credit markets, which is particularly important for emerging markets and developing economies that are trying to build a carbon market framework. "The UK can announce that we are joining the Open Coalition for the Interoperability of Compliance Markets" in addition to the intergovernmental Coalition to Grow Carbon Markets (CGCM), which the UK established with Kenya and Singapore last year, Kyte said, adding that it was crucial to think how compliance, international markets — such as activity under Article 6 of the Paris agreement — and voluntary carbon markets interoperate. "Increasingly the pragmatism [for developing economies] is that, if I've got a high integrity credit that I can generate from my mangroves, my seagrasses, my forests, my retired coal plant or whatever it is, then I should be able to set up a framework whereby that credit can be used in the voluntary markets, under Article 6 or in the compliance markets," she said. In November, the CGCM will publish a playbook which advises governments on the policy instruments they can use to generate the greatest impact in supporting private sector action into carbon markets. By Erisa Senerdem Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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