Latest news with #carbonmarket
E&E News
21-05-2025
- Business
- E&E News
California carbon prices are stuck. Here's why.
Prices in California's carbon market are expected to remain low in a state auction Wednesday, minimizing the amount of money the market generates for projects that address pollution and climate change. California's carbon market has raised $32 billion since 2013 for climate-related projects by selling at quarterly auctions pollution allowances that each represent a ton of greenhouse gas emissions. But the auction prices have fallen in the past year and are expected to remain low or drop further Wednesday due to uncertainty about California's carbon market. Advertisement 'It's very concerning, especially at a time when we're facing a significant budget deficit,' said Katelyn Roedner Sutter, California state Ddrector at the Environmental Defense Fund. 'There's more pressure to fund priorities out of the [auction revenues] because we don't have as many general fund dollars available as we would otherwise.'
The Sun
19-05-2025
- Business
- The Sun
Fury as Brits face HIGHER energy bills under PM's EU surrender deal that limits UK's ability to change Net Zero rules
HOUSEHOLDS face higher energy bills under an EU deal that limits Britain's ability to change its Net Zero rules, experts warn. Sir Keir Starmer has agreed to hook the UK into the EU's carbon market as part of his wider Brexit reset. 2 The move ties British firms to Brussels' climate laws and rising pollution charges — making it harder for any future government to water down green targets without triggering trade penalties. Since coming to power last July, Labour has pushed a Net Zero policy crusade under Energy Secretary Ed Miliband. Carbon prices in the UK surged six per cent on the news, and it is feared they could climb further to match Europe's, where firms pay around €70 (£58) a tonne compared to just £51 in Britain. One energy insider said gas power stations — which usually set the UK's electricity price — will now face higher carbon costs, hitting every household and business regardless of if they export to the EU. Shadow Energy Secretary Andrew Bowie said the link up 'leaves the door wide open for higher energy bills and new taxes on transport'. Ex-Brexit negotiator Lord Frost also blasted the deal. He wrote on X: 'Want to weaken our Net Zero commitments? In future, only if the EU says so.' The Government says the move will help British exporters avoid new EU taxes due from 2026, which would hit goods like steel, fertiliser and cement made in countries with weaker climate rules. It also claims the link could save UK firms £770million between 2026 and 2030, by cutting trade red tape and smoothing out price shocks. A Department for Energy Security and Net Zero spokesman said: 'Forty-four different business organisations including the CBI, Make UK, and UK Steel all backed our approach last month as crucial to preventing businesses relocating overseas and reducing costs for both UK and EU consumers.'
Reuters
19-05-2025
- Business
- Reuters
Brazil reforestation firm re.green gets fresh financing in deal with BNDES, Bradesco
SAO PAULO, May 19 (Reuters) - Brazilian reforestation startup has obtained 80 million reais ($14.13 million) in financing from state development bank BNDES, it said on Monday, in a deal that also involved lender Bradesco as a financial intermediary. The deal is similar to a 160 million real deal announced by Mombak last month, which marked the first reforestation project backed by Brazil's 10 billion real "New Climate Fund" unveiled in 2023 to finance climate-related projects. The deal comes as Brazil's nascent carbon market quickly gains ground and attracts interest from private investors and lenders such as Bradesco and Santander ( opens new tab, which acted as an intermediary for Mombak. Some restoration startups have complained of difficulty getting loans to reduce capital costs and finance operations, as many investors still see it as risky. "We have a mantra that is de-risking, which is how we will, over time, reduce uncertainty and bring more confidence to our market," Chief Executive Thiago Picolo said in an interview. "In our case, we now have the first disbursement from BNDES, also involving Bradesco for the first time. So it is a series of steps that reduce uncertainty, increase confidence, and facilitate fundraising." buys degraded land from farmers and ranchers or partners with them to replant native species in the Amazon rainforest and in Brazil's coastal Atlantic rainforest. By turning degraded land into forests, the company is working to generate "carbon credits" that companies can buy to offset their greenhouse gas emissions. The startup has a deal with Microsoft (MSFT.O), opens new tab to restore forests and is backed by Brazilian billionaire Joao Moreira Salles and asset managers such as Dynamo and Gavea, founded by former Brazilian central bank governor Arminio Fraga. The BNDES financing "shows that we have a powerful tool to enable investments in the recovery of degraded areas in the country," said the state development bank's head, Aloizio Mercadante. "It confirms the great power of this fund made available by President Luiz Inacio Lula da Silva for BNDES to decisively fight the effects of climate change in our country," he added. The bank's program is part of Brazil's 2015 commitment to restoring 12 million hectares (29.7 million acres) of its native forests by 2030, which Lula reaffirmed last year. ($1 = 5.6632 reais)
Reuters
19-05-2025
- Business
- Reuters
British benchmark carbon price rises on EU link talks
LONDON, May 19 (Reuters) - The benchmark British carbon price rose more than 6% on Monday after Britain and the EU signalled they would work towards linking their emission trading systems. Both the EU and UK charge power plants and other industrial entities for each ton of carbon dioxide they emit as part of wider efforts to cut emissions and reach climate targets. The benchmark UK allowance (UKA) contract was up 6.5 pounds at 51.50 pounds ($68.85) a metric ton by 0908 GMT. Prices in the UK are currently lower than those in the EU and analysts said that linking the two schemes would be likely to result in higher UK prices. "Linking the schemes would drive UKA prices ... to parity with EU allowance (EUA) prices," Redshaw Advisers analysts said. The equivalent EUA benchmark contract is trading around 70.35 euros ($79.24) /ton. ($1 = 0.7481 pounds) ($1 = 0.8879 euros)
Zawya
13-05-2025
- Business
- Zawya
VCM and AFCM to host trader-led carbon demonstration auction in Tunisia
Tunis — The Regional Voluntary Carbon Market Company (VCM), a carbon credit company established by PIF and Saudi Tadawul Group, in collaboration with the Arab Federation of Capital Markets (AFCM) is hosting a trader-led demonstration auction during the AFCM Annual Conference in Tunisia, taking place on May 13–14, 2025. The demonstration will show how an interconnected order-book across local and global participants enhances liquidity, price discovery, and market depth, outcomes that no single exchange or nation can achieve alone. Representatives from countries including, Kingdom of Saudi Arabia, Singapore, United Arab Emirates (UAE) and Switzerland will participate in the auction demonstration, offering a valuable opportunity for dialogue and action on developing effective frameworks to mobilize capital for climate initiatives. 'This demonstration provides a practical look at how capital markets might engage with carbon trading as part of broader sustainability strategies,' said Rami El-Dokany, Secretary General of the Arab Federation of Capital Markets. 'Our work with VCM is rooted in knowledge-sharing and encouraging collaboration that can contribute to achieving long-term climate finance ambitions.' Riham El Gizy, CEO of VCM, commented: 'This demonstration reflects the progress we have made in developing the infrastructure for carbon trading. Our investment in the platform showcased today allows us to create an interconnected order-book mechanism that can support better liquidity and price discovery in the region. It also allows local exchanges and market participants to use these tools to help channel more capital toward climate goals. We are grateful to AFCM for supporting this collaboration.' Since its inception in 2022, VCM has facilitated the trading of over 7 million carbon credits across multiple auctions held in Riyadh, Nairobi and Baku, including more than 1.5 million credits in 2025 alone. To date, the exchange platform has enabled over 100 million Saudi Riyals in carbon trading value with 30+ market participants on the digital exchange platform, reflecting growing traction and interest from both regional and international stakeholders. CONTACT DETAILS For commercial enquiries about participating in VCM's voluntary carbon markets, please contact: media@ For media enquiries about VCM, please contact: media@ ABOUT VCM VCM was established by Public Investment Fund (PIF) and Saudi Tadawul Group Holding Company (Saudi Tadawul Group) in October 2022. PIF holds an 80% stake and Tadawul Group holds a 20% stake in the company. VCM is aiming to create a credible voluntary carbon market at speed and at scale with global impact. The market prioritizes high quality carbon credits and positive climate action, an exchange for the trading of voluntary carbon credits and advisory services that help organizations understand how to decarbonize. In October 2022, VCM hosted its first auction at the sixth Future Investment Initiative (FII) in Riyadh. In June 2023, VCM successfully auctioned 2.2 million tons of voluntary carbon credits in the largest-ever carbon credit sale in Nairobi, Kenya. In October 2023, VCM and PIF hosted the world's first Global South Carbon Market Conference at FII7 in Riyadh. In November 2024, VCM launched the biggest carbon credits exchange in the region on the sidelines of COP29, while auctioning over 2.5 million tons of voluntary carbon credits in its 3rd auction. - Follow the company on LinkedIn - Follow VCM on X: - View the website: ABOUT AFCM The Arab Federation of Capital Markets (AFCM) is the Arab industry group for 18 exchanges and 7 Clearing houses (CSDs/CCPs), and multiple affiliate members (financial institutions, brokerage firms and local industry associations) from all around the Arab region. The federation is set to promote a harmonized framework and a transparent environment for the Arab capital markets, by exchanging viewpoints and providing opportunities for cooperation among its members, by knowledge transfer through webinars, workshops, conferences, research papers, and through fruitful cooperation with regional and international organisations. Learn more:
