Regulatory frameworks and mechanisms for the trading of carbon credits, offsets, and allowances, including international systems under the Paris Agreement (Article 6), voluntary carbon markets (VCM), and regional compliance schemes.
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Source-backed regulatory and guidance signals tracked by Foresight, with the newest developments first.
China - Beijing EEB Sets 2026 Carbon Management and Trading Arrangements for Key Emitters
Beijing’s ecology and environment bureau has set detailed 2026 reporting, verification, allocation and surrender requirements for key carbon‑emitting units under the municipal emissions trading scheme, including strict timelines and use of the city’s carbon trading platform. This tightens compliance expectations, links the ETS more closely to Beijing’s carbon‑inclusive offset scheme, and signals continued scrutiny of data quality and surrender performance for large emitters operating in the city.
ChinaEuropean Parliament Debates EU ETS Review and Industrial Competitiveness
On 20 May 2026 the European Parliament held a high-profile debate with Commissioner Wopke Hoekstra on whether and how to revise the EU Emissions Trading System to balance climate goals, industrial competitiveness, and energy independence. The discussion signals that ETS reform is likely but that the Commission intends to preserve a strong carbon price while redirecting auction revenues and adjusting design features such as free allocation, CBAM and the Market Stability Reserve to protect frontrunner investments and ease pressure on exposed sectors.
European UnionGermany: Bundestag Debates AfD Motion to Abolish EU ETS and CBAM
On 21 May 2026 the German Bundestag held the first debate on an AfD motion calling for abolition of the EU Emissions Trading System and the Carbon Border Adjustment Mechanism, referring the proposal to the environment committee for further consideration. If such demands gained political traction they could undermine the stability of EU carbon pricing, so companies exposed to EU ETS and CBAM costs should monitor this debate as an early signal for potential shifts in long-term carbon-cost and investment planning.
GermanyEuropean UnionChina - Guangdong Ecology Department Issues 2025 Carbon Market Allowance Allocation Plan
In February 2026, Guangdong’s ecology and environment department issued the 2025 carbon market allowance allocation plan, capping provincial ETS emissions at around 120 million tonnes and tightening free versus paid allocation rules across eight key sectors. The plan introduces stricter limits on surplus banking and deficits, freezes and stages the release of legacy allowances, and increases the role of auctions and offsets, requiring covered companies to actively manage carbon positions and prepare for future national ETS integration.
ChinaChina MEE Consults on Updating Power-Sector GHG Accounting and Verification Guidelines
In May 2026, China’s Ministry of Ecology and Environment opened a consultation to update power-sector greenhouse gas accounting and verification guidelines, focusing on coal carbon oxidation rate factors. These changes could alter how power plants calculate and verify emissions, with implications for reported totals and compliance planning for Chinese power generators.
ChinaEU Council Working Party on the Environment Issues Revised Agenda for 18–21 May 2026 Meeting
The EU Council Working Party on the Environment has issued a revised agenda for its 18–21 May 2026 meeting, confirming discussions on waste exports, vehicle CO2 standards, the ETS market stability reserve, and adding an item on the Dushanbe Water Decade Declaration. This procedural update signals imminent Council negotiations on key circular-economy and climate files, so waste exporters, automotive manufacturers and ETS participants should closely monitor outcomes and be ready for resulting legislative compromises.
European UnionEU Commission Decision Updates EU ETS Free Allocation Tables for 15 Member States
In March 2026 the European Commission adopted, and in May 2026 published in the Official Journal, a decision updating EU ETS free allocation tables for 15 Member States based on notified changes at covered installations. From June 2026 these revised national allocation tables will govern the volume and timing of free allowances recorded in the Union Registry, so power and industrial operators should confirm their updated allocations and adjust carbon compliance and trading plans accordingly.
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SwedenChina Registers Hongyuan County Afforestation CCER Project
China’s forestry authorities have confirmed that the Hongyuan County Protective Forest Afforestation Carbon Sink Project in Sichuan has passed review by the National Center for Climate Change Strategy and International Cooperation and been officially registered under the national CCER voluntary emission reduction scheme. This marks a milestone for forestry-based carbon credits in western China, signaling that project-level CCER registrations are progressing and broadening the future supply of domestic voluntary offsets for companies planning climate and ESG strategies.
ChinaEU Parliament ENVI Committee Publishes Amendments 179–372 to Temporary Decarbonisation Fund Proposal
The European Parliament’s environment committee has tabled a large package of amendments refining how the proposed Temporary Decarbonisation Fund would support EU ETS and CBAM‑exposed industrial installations and selected downstream sectors, with applications envisaged by 31 March 2028 and reporting by 31 December 2030. If adopted, these changes would shape which CN‑coded products and value chains qualify for compensation, how support is calculated from phased‑out free allowances, and what decarbonisation, governance and geographic‑balance conditions companies must meet to access funding.
European UnionPoland: Sejm Parliamentary Team Debates EU ETS Benchmark Revisions and Critical Chemicals Alliance
In May 2026 the Polish chemical industry used a Sejm parliamentary meeting to highlight concerns about upcoming EU ETS benchmark changes, the Alliance for Critical Chemicals and the Industrial Accelerator Act, stressing risks to competitiveness and investment. While no new obligations were introduced, the discussion signals potential tightening of free allocations and carbon cost exposure, so companies should monitor policy choices on ETS reform and critical chemicals when planning decarbonisation and capacity decisions.
PolandEuropean UnionCanada and Alberta Finalise Implementation Agreement on Carbon Markets, Electricity and Pipeline
Canada and Alberta have signed an Implementation Agreement that locks in a long-term carbon pricing path for Alberta’s industrial emitters, aligns provincial and federal electricity and methane rules, and links a major oilsands CCUS project to a new west coast oil pipeline. This deal gives investors clearer price and regulatory signals but also hardwires pipeline expansion and production growth into Canada’s net-zero strategy, raising strategic questions on transition risk, permitting capacity, and future federal flexibility.
CanadaCalifornia CARB May 2026 Hearing on Amendments to GHG Reporting and Cap-and-Invest Regulations
California Air Resources Board has published the agenda for its 28–29 May 2026 board meeting, where it will consider SIP revisions for extreme ozone nonattainment areas and hold hearings on proposed amendments to the state’s greenhouse gas reporting and cap-and-invest regulations. These hearings move California’s carbon market and reporting framework into the decision phase, signalling tighter allowance budgets, broader reporting coverage and evolving allocation rules that covered emitters should factor into mid-term climate compliance and investment planning.
United StatesUkraine Ministry of Economy Publishes Draft Law on National Greenhouse Gas Emissions Trading System
Ukraine’s Ministry of Economy has released a draft law to establish a national greenhouse gas emissions trading system, setting out principles for how emission quotas will be allocated and traded. If adopted, this framework would introduce carbon pricing obligations for major emitters in Ukraine and influence investment, decarbonisation, and compliance planning over the coming years.
UkraineUkraine Ministry Of Economy Publishes Draft National Emissions Trading System Law For Public Consultation
Ukraine’s Ministry of Economy has published a draft law to establish a national greenhouse gas emissions trading system and opened a one‑month public consultation starting 15 May 2026. This signals a major step toward an EU‑aligned carbon market in Ukraine, with future compliance obligations likely for large emitters once the framework is finalised.
UkraineHubei Ecology And Environment Department Invites Applications For Provincial Carbon Puhui Support Institutions
In May 2026, the Hubei Department of Ecology and Environment opened a short application window to appoint technical and operational support institutions for its provincial carbon puhui system under new trial management measures. Successful Hubei-based organisations will help shape methodologies, data and platform operations for citizen-level carbon incentives, positioning themselves as key service providers in the province’s emerging carbon market and net-zero strategy.
ChinaNew Zealand Government Issues Guidance For Voluntary Carbon And Nature Markets
New Zealand has issued updated guidance, an applicant guide, and online tools to steer participation in voluntary carbon and nature markets and carbon removal projects, clarifying expectations for high‑integrity credits and alignment with international climate frameworks. This gives investors, project developers, and corporates clearer guardrails for using voluntary credits alongside emissions reductions, reducing greenwashing risk while supporting financing for credible nature‑based and technological mitigation projects.
New ZealandEuropean Commission Proposes CBAM Implementing Rules on Third‑Country Carbon Prices and Independent Certifiers
The European Commission has issued a draft CBAM implementing regulation that defines how carbon prices paid in third countries can be converted into reductions in CBAM certificates, what evidence importers must provide, and how independent certifiers must be accredited, with application intended from 1 January 2026. If adopted, this framework will materially influence how CBAM‑covered importers and their suppliers design carbon pricing data flows, engage accredited verifiers, and optimise CBAM exposure across installations and supply chains.
European UnionNetherlands Parliament Assesses EU CBAM Strengthening and Temporary Decarbonisation Fund Proposals
The Dutch Parliament has published a detailed Q&A setting out the government’s negotiating stance on EU proposals to strengthen the Carbon Border Adjustment Mechanism and to create a Temporary Decarbonisation Fund, highlighting support for stronger carbon leakage protection but deep concerns about market distortions, administrative burdens, and budgetary and WTO risks. For companies exposed to CBAM or EU ETS reform, this signals that scope extensions to more downstream goods and new export-leakage support are likely but still contested, with design choices on thresholds, standard values and funding mechanisms to be decided in upcoming EU negotiations through at least mid‑2026.
NetherlandsEuropean UnionChina: Tianjin Ecology and Environment Bureau Consults on Draft Guidelines for Verification of Key Greenhouse Gas Emission Units (Trial)
In May 2026, the Tianjin Municipal Ecology and Environment Bureau launched a short public consultation on draft guidelines for verifying greenhouse gas emissions data from key emitting units in the Tianjin carbon market. The guidelines will shape how major emitters in Tianjin demonstrate emissions data quality and compliance, so companies and verification bodies should quickly review the draft and provide input on practical verification and reporting requirements.
ChinaCouncil Working Party on the Environment To Examine Waste Export Ban, Vehicle CO2 Standards and ETS Market Stability Reserve (18–21 May 2026)
The Council Working Party on the Environment will meet on 18 and 21 May 2026 to discuss proposals on banning exports of mixed municipal waste, tightening CO2 standards and labelling for new light-duty vehicles, and changing the EU ETS market stability reserve. These meetings mark the next Council negotiation step on major circular economy and climate files, signalling timing and direction for waste exporters, automotive manufacturers and carbon-intensive industries to track.
European UnionThese are just a few of the most recent Carbon Markets alerts. Foresight tracks every jurisdiction, every day — and surfaces only what affects your portfolio, with full citations and evidence.
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Definition
Regulatory frameworks and mechanisms for the trading of carbon credits, offsets, and allowances, including international systems under the Paris Agreement (Article 6), voluntary carbon markets (VCM), and regional compliance schemes.
Industry relevance
Carbon Markets developments can change product scope, supplier expectations, market access, reporting duties, and risk ownership. Foresight tracks the signals early so teams can respond before obligations become urgent.
Foresight tracking
Foresight monitors official sources, extracts structured regulatory intelligence, and maps alerts to a customer's products, substances, markets, and priorities so teams see the relevant signal with source evidence for review.
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