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.
Bundestag stimmt THG-Gesetzesentwurf zu
Bundestag stimmt THG-Gesetzesentwurf zu
Hamburg, 23 April (Argus) — Der Bundestag hat am 23. April das Gesetz zur Weiterentwicklung der Treibhausgasminderungsquote in der vom Umweltausschuss geänderten Fassung verabschiedet. Damit neigt sich ein langwieriges politisches Ringen um die Energiewende im Verkehrssektor dem Ende zu — und fällt ambitionierter aus als viele erwartet haben. Bereits der ursprüngliche Regierungsentwurf hat im November letzten Jahres die Preise für Treibhausgasminderungseinsparungen stark steigen lassen. Auch die Verabschiedung des Gesetzes führt zu einem weiteren Anstieg der Preise für THG-Zertifikate. Dies wirkt sich preistreibend für Diesel und Benzin aus, fördert aber Alternativen wie HVO, Biomethan und Strom im Verkehr. Mit dem nun verabschiedeten Beschluss wird die THG-Quote im Straßenverkehr bis 2040 schrittweise auf 65 % angehoben; im ursprünglichen Regierungsentwurf war ein Zielwert von 59 % vorgesehen. Dieser basiert auf umfangreichen Änderungen des Umweltausschusses , der am 22. April eine Beschlussempfehlung vorgelegt hatte. Neben der höheren Gesamtquote sieht diese unter anderem vor, die Obergrenze für Biokraftstoffe aus Nahrungs- und Futtermittelpflanzen anzuheben: Sie soll schrittweise von derzeit 4,4 % bis 2032 auf 5,8 % steigen. Dies soll nach parlamentarischer Begründung zur Marktstabilisierung beitragen und Planungssicherheit für Landwirtschaft und heimische Produktion schaffen. Für den Gesetzentwurf stimmten die Koalitionsfraktionen CDU/CSU und SPD, während AfD, Bündnis 90/Die Grünen und Die Linke dagegen votierten. Für den Markt für THG-Zertifikate markiert die Verabschiedung das Ende einer Phase erhöhter Unsicherheit. Marktteilnehmer rechneten mit der zweiten und dritten Lesung des Gesetzes bereits im März, diese wurden jedoch mehrfach verschoben. In der Folge hatten Marktteilnehmer damit begonnen, alternative regulatorische Szenarien einzupreisen, insbesondere mit Blick auf die Frage, ob zentrale Regelungen wie die Abschaffung der Doppelanrechnung fortschrittlicher Biokraftstoffe wie vorgesehen rückwirkend greifen würden. Die Unterquote für erneuerbare Kraftstoffe nicht biogenen Ursprungs (RFNBO), wie zum Beispiel E-Fuels und Wasserstoff, wird ebenfalls ambitionierter ausgestaltet und soll bis 2040 auf 10 % steigen, um zusätzliche Investitionsanreize zu setzen. Abgelehnt wurden Entschließungsanträge der Oppositionsfraktionen von Grünen und Linken. Zugleich nahm der Bundestag eine Entschließung der Koalitionsfraktionen an, in der die Bundesregierung unter anderem zu weiteren Maßnahmen zur Betrugsprävention, zur Unterstützung von Anti-Dumping-Verfahren auf EU-Ebene sowie zur Flexibilisierung der Schutzsortenregelung für E5 aufgefordert wird. Darüber hinaus enthält dieser eine Aufforderung, einen nationalen Aktionsplan für Biomethan vorzulegen. Mit dem Bundestagsbeschluss kann das Gesetz nun dem Bundesrat zugeleitet werden. Eine Befassung in der Sitzung am 8. Mai halten Marktteilnehmer für wahrscheinlich. Für den THG-Markt bedeutet der heutige Beschluss vor allem, dass die regulatorische Richtung nun feststeht und zentrale Unsicherheiten, insbesondere zur Rückwirkung der Neuregelungen, weitgehend ausgeräumt sind. Von Marcel Rothenstein Senden Sie Kommentare und fordern Sie weitere Informationen an feedback@argusmedia.com Copyright © 2026. Argus Media group . Alle Rechte vorbehalten.
Firms to develop Colombian afforestation project
Firms to develop Colombian afforestation project
London, 23 April (Argus) — Carbon finance firm Climate Impact Partners has partnered with UK asset manager Aviva Investors to develop a Colombian afforestation and restoration project expected to generate carbon removal credits. The project will cover up to 13,600 hectares (136km²) and is expected to generate "high-integrity" carbon removal credits by sequestering 2.4mn t of CO2 in its first phase, and over 6mn t CO2 over the life span of the project, Climate Impact Partners said. The established forest is expected to be marked as conservation land, "securing the permanence of the forest and its carbon removal outcomes", the firm said. The project is also expected to offer co-benefits such as employment opportunities, ecological regeneration and strengthened biodiversity. Climate Impact Partners will originate and deliver the project, which will be funded by Aviva Investors' carbon removal fund. Argus last week assessed Colombian ARR carbon credits of vintages 2018-23 at $13.30-16.70/t CO2 equivalent. By Victoria Hatherick Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Brazil eyes UCO imports to unlock SAF output
Brazil eyes UCO imports to unlock SAF output
Sao Paulo, 23 April (Argus) — Brazilian refineries are looking to import used cooking oil (UCO) to produce sustainable aviation fuel (SAF) as they struggle with limitations in domestic collection and traceability and thanks to the feedstock's higher economic attractiveness. This residual feedstock is likely to gain greater relevance in SAF projects, given expectations of higher margins from this biofuel compared with biodiesel. Around 1pc of biodiesel produced in Brazil in 2025 used domestic UCO as a feedstock, data from hydrocarbons regulator ANP show. Brazil currently prohibits UCO imports, but the government is considering creating a quota — still undefined — to allow such imports exclusively for SAF production, Euler Lage, a project manager focused on renewables for the presidential chief of staff, said recently . If authorized, market participants expect UCO imports to come mainly from Asia, the world's leading producer. Support from the Asian market is likely to be temporary, until other feedstocks with higher or similar added value become available to Brazilian producers. Brazil's UCO market remains unregulated and lacks official data. Rendering association Abra began representing the UCO sector in January, initiating efforts to structure the market. Abra's initiative ranges from creating product specifications to improving UCO's traceability. Establishing a feedstock's origin is a key requirement for a product to generate Cbio decarbonization credits under Brazil's Renovabio biofuel policy. The requirement is applicable for credits generated from the use of SAF and other biofuels, such as biodiesel and ethanol. Abra is working on developing a specific national classification of economic activities codes for UCO. The code is essential for granting official recognition to the activity, allowing companies in the sector to be correctly classified, included in government statistics, and protected by greater legal certainty, Abra president Decio Coutinho told Argus . The association is also developing an app to record information on UCO collection and movement, aiming to reduce traceability gaps and increase transparency throughout the supply chain. Abra estimates that Brazil can collect around 2mn metric tonnes (t)/yr of UCO, around 40pc of its edible oil consumption. More conservative projections estimate collection if 500,000-1mn t/yr, according to market participants. Alternative feedstocks Other feedstocks such as soybean oil, technical corn oil and beef tallow are also on the radars of Brazilian companies interested in producing SAF via the hydrotreated esters and fatty acids (HEFA) route. The 17,000 b/d Riograndense refinery, in the southern state of Rio Grande do Sul, plans to invest in oilseeds canola and carinata , seizing the region's potential for winter crops production. The project's strategic location will allow it to not depend on UCO availability and collection, according to the refinery. A second production phase of the privately operated 300,000 b/d Mataripe refinery, in northeastern Bahia state, envisages an SAF production project that uses oil from macauba — the Brazilian yellow coconut — as its primary feedstock. Participants expect the refinery to shift all biofuel production to this alternative feedstock as of 2035, replacing UCO and soybean oil. Both projects aim to initially serve international markets, such as Europe and the US, because of their maturity and demand levels. Pricing for Brazilian SAF should use the foreign market as a reference until the Brazilian market gains traction. Brazil currently produces 10,500 b/d of SAF, all in state-controlled Petrobras' Reduc refinery. The country will produce 101,600 b/d by the end of this year. The national aviation fuel program ProBioQAV establishes a mandate for airlines to gradually reduce greenhouse gas emissions in their domestic operations as of 2027 through the use of SAF. Under the rule, the mandatory GHG reduction starts at 1pc in 2027 and increases progressively until reaching 10pc in 2037. By Natalia Dalle Cort and Maria Albuquerque Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Washington still aiming for 2027 GHG market link
Washington still aiming for 2027 GHG market link
Houston, 22 April (Argus) — Washington state is still eyeing 2027 for when it could join the Western Climate Initiative (WCI) carbon market, despite numerous regulatory and political hurdles, the state's Department of Ecology said on Wednesday. Ecology estimates its cap-and-invest program could join the WCI before the state's 1 November 2027 deadline for regulated participants to cover their outstanding emissions for 2023-26, the agency said at a public hearing on the recent draft linkage agreement . Current WCI partners California and Quebec are working to amend their respective program regulations this year. Both have indicated they prefer to finish their work first before fully turning their attention to linkage with Washington. But that does not mean that regulators from California, Quebec and Washington are not also advancing their required steps for linkage in parallel to any regulatory changes. "We expect we could complete the linkage agreement in 2026 and link in 2027, and this is including discussions with California and Quebec," Ecology senior planner for linkage Stephanie Potts said. Quebec's link with the California cap-and-trade program took more than a year to finalize, after work started in 2014, while the process with former WCI member Ontario took just months before it joined at the start of 2018. Ecology must also finish its current rulemaking to align the state's program with the WCI, with a final proposal expected in spring and adoption in summer. The agency must also finalize the required environmental justice assessment (EJA), Climate Commitment Act linkage criteria findings and then formally decide to link. California and Quebec will also need to amend their regulations to accept Washington Carbon Allowances (WCAs). California also requires a linkage report and findings from the governor's office to evaluate the stringency of Washington's cap-and-invest program. One new area of consideration is the shared electricity market between Washington and California. Both states need to align their coverage for electric power entities and their greenhouse gas (GHG) emissions, ensuring neither has an advantage over the other, Potts said. Washington is working on regulations for imported electricity in its program as part of its linkage-related rulemaking. Quebec remains a point of uncertainty in the process. The province's environment ministry again delayed publishing its draft amendments earlier this month, while the new premier, Christine Frechette of Coalition Avenir Quebec (CAQ), forms her government. Quebec is also holding a general election on 5 October, which looks likely to change political leadership in the province. A Leger-Quebecor poll of roughly 1,000 eligible voters over 17-20 April shows Parti Quebecois at 31pc of support, with CAQ trailing in third place at 17pc. California will also hold its election on 3 November to replace governor Gavin Newsom (D), who is ending his final term this year. "Changes in government have not inhibited staff from continuing to work together on this process, to share information and move the process forward," Potts said. Ecology will hold another public hearing on its draft linkage agreement on 22 April and is accepting public comment through 6 May. By Denise Cathey Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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