Top Story: SBTi Loses a Key Backer

The Science Based Targets initiative (SBTi) has faced a significant setback as the three-year incubation grant provided by Jeff Bezos’s $10 billion philanthropic fund expired at the end of last year. This development may impact the organization’s ability to further推进 its mission to mobilize ambitious climate action.

Voluntary Carbon Market Concerns

The market for durable CO2 removals (CDR) faces potential supplier consolidation, bankruptcies, and oversupply due to declining investments and limited new purchasers.

Research Highlights: Biomass-Based Carbon Removal

Recent scientific research indicates that biomass-based carbon removal and storage (BiCRS) methods achieve higher CO2 retention than direct air capture (DAC) and enhanced rock weathering (ERW).

Asia Pacific Developments

India’s Carbon Market

The Indian government is progressing with its carbon market, with the first carbon credit certificates in the compliance market expected to be traded in October 2026.

India is also working on establishing host country authorization procedures under Article 6.4 of the Paris Agreement.

Australian Carbon Project Acquisition

An Australian carbon project developer has acquired a soil carbon company to expand its expertise and offerings.

South Korea’s Investments

South Korea’s trade ministry has pledged an investment of 129.3 billion won ($89 million) to support R&D projects aiding carbon neutrality and energy stability.

New South Wales GHG Reporting

The state of New South Wales has published guidelines on how large projects should report their greenhouse gas emissions.

New Zealand Climate Change Commission

New Zealand’s Climate Change Commission has expressed the need to review industrial allocation practices due to a petition calling for their rapid phase-out.

Japan’s Emissions Reduction Project

Three regional banks in Hokkaido will support an emissions reduction project aimed at waste management in the dairy sector, marking a new initiative in the country.

EMEA Region Updates

Carbon Capture and Storage in the EU

Experts advocate for a significant role of carbon capture and storage in the EU Clean Industrial Deal.

Belgium’s Nuclear Renaissance

The new Belgian government plans to repeal its nuclear phaseout and build new reactors, promoting heat pumps, solar PV, and slowing the shift to electric vehicles.

EU Regulatory Simplification

Upcoming EU regulatory simplification may concern sustainable finance advocates, who fear potential deregulation.

Chemical Sector Electrification

The European Chemical Industry Council suggests electrification can double or even quadruple in the chemical sector with clean power sources decarbonizing up to 90% of current processes.

TotalEnergies’ Carbon Credits Spending

French energy giant TotalEnergies increased its annual spend on carbon credits to $49 million in 2024, marking a 2% year-on-year growth.

New Bioenergy Project

A French startup has partnered with a carbon storage firm to launch France’s first bioenergy with carbon capture and storage (BECCS) project.

Major EU Fossil Fuel Producer Cuts Targets

Adds to a trend following BP and Shell watering down their climate goals.

UK’s Small Modular Reactors Plan

The UK government is taking steps to allow small modular reactors to be built, pushing forward with nuclear power initiatives.

EU Carbon Prices

EU carbon prices saw a modest increase, ending two days of declines, supported by afternoon rallies in gas and power markets.

American Climate Developments

California’s LCFS Surplus

Despite a high surplus in Q3 2024, LCFS credit prices have gone up, with cautious optimism amidst political changes in the US and Canada.

Environmentalists’ Standing Challenge

A group of environmentalists’ standing challenge to the US EPA over granting Louisiana authority for CO2 injection wells is being questioned.

California Climate Disclosure

Business groups’ claims challenging California’s climate disclosure rules were dismissed by a US district court.

Agricultural Carbon Storage Study

A new study challenges the assumption that crop rotation and fertilization can significantly increase carbon storage in agricultural fields.

Ocean Alkalinity Enhancement

Researchers find that ocean alkalinity enhancement off华盛顿’s coast must comply with various regulations, but constructive steps have been made to aid CO2 removal projects.

CO2 Supply to Efuels Facility

A pipeline development company has agreed to supply up to 670,000 tonnes of CO2 annually to a Midwest electrofuels facility.

British Columbia’s CCSP Discussion

The environment ministry released a paper seeking input on plans to reduce monitoring and maintenance requirements in the carbon capture and sequestration offset protocol (CCSP).

Brazilian Carbon Projects

A carbon project implementer in Brazil plans to launch a call to identify large-scale afforestation, reforestation, and revegetation (ARR) initiatives.

International Climate Trends

UN Climate Advisor Moves

The former vice-chair of the UN’s Subsidiary Body for Scientific and Technological Advice (SBSTA) is joining a financial services provider.

US Foreign Assistance Freeze

The US administration’s freeze on foreign aid is affecting biodiversity and climate projects globally.

Agricultural Supply Chain Biodiversity Impact

The agricultural industry has destroyed biodiversity over 55 million square kilometres in its supply chain.

Colombian Biodiversity Credits

A Colombian developer will sell up to 30,000 biodiversity credits generated through a marine conservation project in Zanzibar.

EU CAP Reform Suggestions

Global NGOs recommend funding biodiversity credits to mobilize financing under the EU’s Common Agricultural Policy (CAP) reform.

Nature Investment Framework

An England-based company released a framework to encourage private investments in nature recovery with a hierarchy of metrics.

Upcoming Events

India Climate Week – Feb. 3-7, New Delhi

The Carbon Markets Association of India (CMAI) is hosting an event featuring discussions on carbon markets, green technologies, and India’s Net Zero path.

Carbon Forward Asia – Mar. 4-5, Singapore

This conference will explore ASEAN markets, regional opportunities, and developments in carbon pricing.

North American Carbon World (NACW) – Mar. 25-27, Los Angeles

The annual NACW conference will address climate policy and carbon markets with experts and discussions on new policies.

Bite-Sized Updates

International

Blue Carbon Competition: Global conservation organizations have launched Blue Carbon Plus (BC+), an initiative to develop regenerative business models for coastal conservation. The BC+ Challenge seeks early-stage projects contributing to blue carbon ecosystem conservation and offers grant funding.

EMEA

Net Zero Council: The UK government’s Net Zero Council met to establish priorities for 2025-26, focusing on supporting sectors in achieving net zero and aiding thousands of jobs. The council includes leaders from businesses, civil society, and local authorities.

Gas Storage Targets: European countries with significant gas reserves are discussing informal talks on relaxing gas refill targets after 2023, due to concerns over profitability in storing gas.

Carbonaide Expansion: Carbonaide, a technology provider, opened a new office in Stockholm to support international expansion and large-scale commercial implementation of its carbon storage technology.

Athen’s Green Airport: Athens International Airport aims to be the first European airport powered entirely by renewable sources, completing its renewable energy project in the second half of 2025.

Asia Pacific

Clean Energy Regulator: The regulator received compliance audits from un-named developers, finding significant concerns. One greenhouse and energy auditor was deregistered.

Eneos and Nippo Partnership: Eneos, a Japanese oil firm, has concluded a contract with Nippo for its low-carbon asphalt using Gold Standard-certified credits.

China Forest Drought Risk: A study indicates that planted forests in China are at higher risk of drought compared to natural forests, suggesting the need for enhanced management.

Singapore Airlines SAF Agreement: Singapore Airlines Group signed an agreement with Aether Fuels to supply sustainable aviation fuel for five years, with the option for an extension.

Blue Carbon Satellite: South Korea-based Telepix launched BlueBON, a monitoring satellite for blue carbon data, aiming to contribute to carbon markets.

Americas

Oregon Clean Truck Regulations: Oregon lawmakers introduced legislation delaying the implementation of California’s Advanced Clean Trucks (ACT) regulations until 2027.

Waga Energy Expansion: The French renewable energy firm expanded to Brazil, targeting RNG production with supportive regulatory frameworks.

Science and Technology

James Hansen’s Analysis: Climate scientist James Hansen’s new analysis suggests that recent temperature increases may be under-estimated and advocates for a carbon fee and dividend policy, with potential geoengineering solutions, to avoid critical tipping points.

Final Takeaway

From policy shifts in major economies to technological advancements, the landscape of carbon markets and climate solutions is evolving rapidly. Cities are innovating with urban agriculture, and companies are investing in sustainable technologies. Stay informed with the latest developments to navigate the complexities of climate action.