Carbon Markets

Netherlands PBL Assesses ETS2 CO2 Costs For Households

The Netherlands Environmental Assessment Agency has issued a May 2026 policy brief projecting that the EU’s new ETS2 carbon price for road transport and buildings will start affecting Dutch households from 2028, adding roughly €10–70 per month to typical fuel bills by 2030. This signals that climate and fiscal planning must now integrate ETS2-driven energy and transport costs, with careful use of price-corridor design and targeted compensation to avoid energy poverty while preserving decarbonisation incentives.

13 May 2026, 09:38pbl.nlEuropean UnionNetherlands

Vietnam Deputy Prime Minister Speeds Up Work on Forest Carbon Market Decree

In early May 2026, Vietnam’s deputy prime minister directed officials to accelerate drafting a decree on forest carbon sink and sequestration services as the legal basis for a national forest carbon market. This signals faster policy design on how local governments and forest landowners can provide forest carbon services and trade emissions reductions, an early step toward a more structured forest carbon market in Vietnam.

13 May 2026, 09:37vovworld.vnVietnam

EU Commission Draft Implementing Regulation Revises EU ETS Free Allocation Benchmarks for 2026–2030

The European Commission has issued a draft implementing regulation setting revised EU ETS benchmark values for free allocation of emission allowances for the 2026–2030 period. These tighter benchmarks will reduce free allocation across carbon-intensive sectors, so EU installations should model future allowance needs and carbon cost exposure now to prepare for final adoption and align investment and decarbonisation plans.

12 May 2026, 15:20eur-lex.europa.euEuropean Union

EU Commission Consults On Updated EU ETS Free-Allocation Benchmarks For 2026–2030

In May 2026 the European Commission opened a four-week consultation on a draft implementing regulation to revise EU ETS free-allocation benchmark values for the 2026–2030 period. These benchmark changes will reshape how many allowances energy- and emissions-intensive installations receive for free, influencing carbon cost exposure, competitiveness and investment planning across EU industry.

12 May 2026, 15:20ec.europa.euEuropean Union

European Commission Opens Consultation On Updated EU ETS Benchmarks For 2026–2030

In May 2026 the European Commission proposed updated benchmark values under the EU Emissions Trading System for 2026–2030 and launched a public and Member State consultation before adoption. These benchmarks will reshape free allowance allocation for industrial installations, affecting carbon cost exposure and investment planning across EU ETS sectors, so operators should scrutinise the draft values and prepare input and scenario analyses.

12 May 2026, 15:20ec.europa.euEuropean Union

EU Commission Consults On Updated EU ETS Benchmarks For 2026–2030

The European Commission has published a draft implementing regulation and Q&A updating the benchmark values that determine free allowance allocation under the EU Emissions Trading System for 2026–2030, with stakeholder feedback open from 11 May to 8 June 2026 and adoption targeted for late June. These changes will reset carbon cost exposure and investment incentives for ETS industrial installations across the EU, making it critical for operators to reassess free allocation assumptions, decarbonisation plans, and liquidity needs ahead of the 2026 compliance cycle.

12 May 2026, 15:20ec.europa.euEuropean Union

EU, Brazil and China Launch Open Coalition on Compliance Carbon Markets

In May 2026 the EU, Brazil and China launched an Open Coalition on Compliance Carbon Markets, adopting terms of reference and inviting other jurisdictions with national carbon pricing schemes to join. The coalition’s workplan, due in September 2026, is likely to shape future expectations on carbon market integrity, MRV and cross-system corporate carbon accounting, influencing how companies manage compliance emissions exposure over time.

9 May 2026, 14:11climate.ec.europa.euEuropean UnionBrazilChinaNew ZealandGermany

Chile MMA Publishes 2025 Green Tax Emissions Compensation Results

Chile’s Ministry of the Environment has released 2025 results from the Green Tax Emissions Compensation System, showing a stabilising offset market with nine diversified projects delivering 1.68 MtCO2 of certified reductions across multiple regions. For companies subject to the Green Tax, this confirms a functioning compensation mechanism that can lower compliance costs by sourcing credits from renewable energy, waste-to-energy and electromobility projects while supporting national decarbonisation goals.

9 May 2026, 13:30mma.gob.clChile

EU Commission Instructs Corrections to Union Registry National Allocation Tables for Eight Member States

On 06 May 2026 the European Commission adopted Decision C(2026)3191 instructing the Union Registry’s Central Administrator to correct the national allocation tables for Belgium, Ireland, Spain, France, Italy, Poland, Slovakia and Finland. While operational and compliance impacts will be handled through updated EU ETS allocation records rather than new procedures, affected companies should monitor their Union Registry positions in these countries for any changes.

9 May 2026, 13:27ec.europa.euEuropean UnionBelgiumIrelandSpainFranceItalyPolandSlovakiaFinland

Taiwan and Paraguay Explore Article 6 Cooperation for Carbon Fee Offsets

Taiwan’s Ministry of Environment is developing a bilateral Article 6 cooperation framework with Paraguay that would allow high‑integrity international carbon credits from joint projects to offset up to 5% of emissions subject to Taiwan’s domestic carbon fee, following a 2025 memorandum of understanding and a high‑level seminar held in May 2026. For companies facing the carbon fee, this signals an emerging pathway to use cross‑border forestry, renewable energy and green transport projects in Paraguay to manage compliance costs and demonstrate climate leadership, although the Implementation Agreement and detailed eligibility rules are still being designed.

9 May 2026, 13:19enews.moenv.gov.twTaiwanParaguay

EU Adopts Regulation (EU) 2026/1046 Amending Regulation (EU) 2019/1242 on Emission Credits for Heavy-Duty Vehicles (2025–2029)

In May 2026 the EU published Regulation (EU) 2026/1046 in the Official Journal, amending Regulation (EU) 2019/1242 to revise how CO2 emission credits are calculated for new heavy-duty vehicles for reporting years 2025–2029. The change gives manufacturers more flexibility to bank credits ahead of stricter 2030 CO2 targets, so fleet and compliance teams should reassess heavy-duty vehicle credit strategies and sales mix assumptions, noting that the amendment excludes urban buses.

9 May 2026, 07:09eur-lex.europa.euEuropean UnionEuropean Economic Area

California LAO Analyses CARB's Proposed Cap-and-Invest Amendments and GGRF Impacts

California’s Legislative Analyst’s Office has briefed Senate committees on the California Air Resources Board’s April 2026 proposal to amend the Cap-and-Invest Program, highlighting major shifts in allowance allocations, offset rules, and an upcoming late-May board vote. The analysis signals potential softening of near-term emissions ambition, increased support for industry, and sharply lower Greenhouse Gas Reduction Fund revenues, with implications for carbon prices, funding programmes, and long-term climate planning in California.

8 May 2026, 18:07lao.ca.govUnited States

Germany (DEHSt) Opens 2025 EU‑ETS‑1 Compensation Applications and Updates BEHG–nEHS Guidance

Germany’s emissions trading authority has opened the 2025 EU‑ETS‑1 compensation application process and updated its guidance on avoiding double charging between EU ETS 1 and the national fuel emissions scheme, with a statutory application deadline of 31 July 2026. For operators and fuel suppliers, this raises the urgency of aligning contracts, reporting and storage documentation with BEHG, BEDV and EBeV 2030 requirements to secure compensation and minimise the risk of future recovery actions as EU ETS 2 is phased in.

8 May 2026, 17:36dehst.deGermanyEuropean Union

Sweden and Switzerland Sign Pilot Cooperation on Trading Negative Emissions Under the Paris Agreement

In May 2026 Sweden and Switzerland signed a pilot cooperation agreement to trade a small volume of negative CO₂ emissions under the Paris Agreement’s emissions trading framework. The initiative does not yet impose broad compliance obligations but signals how future cross-border carbon-removal markets and Article 6 trading arrangements could be structured, especially for private-sector participation and net-zero strategies.

8 May 2026, 11:00energimyndigheten.seSwedenSwitzerland

EU Council Working Party Meeting on EU–UK ETS Linking and Draft Energy and Financial Agreements

The Council of the EU’s Working Party on the United Kingdom is meeting on 8 May 2026 to review Commission updates and draft agreements on EU–UK ETS linking, UK participation in the EU internal electricity market, and a new UK financial contribution to EU cohesion funding. While no decisions will be taken at this stage, the presence of draft treaty texts signals concrete progress toward renewed EU–UK climate and energy integration, with potential future impacts on carbon pricing, cross-border power trading, and long-term investment planning.

8 May 2026, 07:28data.consilium.europa.euEuropean UnionUnited Kingdom

UK ETS Updates Voluntary MRV Waste Guidance (VMRVP01 Annex Emission Factors)

In May 2026 the UK ETS Authority, via the Department for Energy Security and Net Zero, updated its voluntary monitoring and reporting guidance for waste incineration installations, revising the VMRVP01 annex to add default preliminary and biomass fraction emission factors under the Monitoring and Reporting Regulation framework. This strengthens expectations for energy-from-waste operators ahead of the waste sector entering the UK ETS, enabling more consistent emissions baselines while increasing the importance of robust data systems and quarterly greenhouse gas reporting during the voluntary MRV-only period.

8 May 2026, 06:55gov.ukUnited Kingdom

UK ETS Voluntary MRV Waste Guidance (VMRVP01) Updated With Emission Factors

In May 2026 the UK ETS technical guidance for waste installations in the voluntary MRV-only period was updated to revise the VMRVP01 document, adding preliminary and biomass-fraction emission factors and clarifying how default factors and quarterly data reporting should be used in emissions calculations. This update does not create new legal reporting duties but tightens expectations on how in-scope waste operators calculate and report emissions under the voluntary MRV framework, which can influence reported baselines and future allowance decisions once the sector enters the statutory scheme.

8 May 2026, 06:55gov.ukUnited Kingdom

Germany DEHSt Publishes Mandatory "Investitionsüberschuss" Excel Tool for Carbon-Leakage Compensation

Germany’s emissions trading authority has released a mandatory Excel tool for calculating investment surpluses used in carbon-leakage compensation claims under the national fuel emissions trading scheme (BEHG/BECV). Companies seeking compensation must now use this template and align internal workflows with auditors and the FMS process, tightening documentation, audit trails, and controls around ecological contribution reporting.

8 May 2026, 06:48dehst.deGermany

European Commission Schedules 2025 TNAC Publication for EU ETS Market Stability Reserve

The European Commission will publish the 2025 total number of allowances in circulation (TNAC) for the EU Emissions Trading System's Market Stability Reserve on 29 May 2026. This indicator governs automatic withdrawals or releases of allowances from the reserve, so EU ETS participants should monitor the publication for potential impacts on allowance supply, carbon prices, and compliance planning.

7 May 2026, 19:33climate.ec.europa.euEuropean Union

EU Commission Outlines ETS Review and Climate Resilience Agenda to ENVI Committee

In a 4 May 2026 ENVI Committee speech, EU Climate Commissioner Wopke Hoekstra outlined forthcoming revisions to the EU Emissions Trading System, new decarbonisation funding tools, and a planned EU Climate Resilience Framework. These signals clarify the direction of the EU’s 2040 climate architecture, suggesting tighter long‑term ETS caps, more support for hard‑to‑abate sectors and resilience investments, and intensifying pressure on fossil‑fuel‑reliant business models.

7 May 2026, 19:18ec.europa.euEuropean Union