Aviation, forests, and EU ETS drive carbon-market signals

Indonesia’s carbon-market participants had another week of external signals to watch: EU rulemaking continued to shape demand expectations, forest-credit integrity debates stayed prominent, and compliance-market price moves offered context for domestic pricing and project strategy. For Indonesian developers, buyers, and policymakers, the main takeaway is that international markets are rewarding stronger permanence, clearer claims, and more credible decarbonisation pathways.

Compliance markets

• Alberta’s industrial carbon programme now covers a smaller regulated base, with Carbon Pulse reporting that both listed sites and covered pollution declined in the province’s latest compliance review. Carbon Pulse

• Carbon Pulse says the next California–Quebec allowance sale will offer nearly the same supply as the prior auction, signalling continuity in the Western Climate Initiative calendar. Carbon Pulse

• EU carbon prices recovered into the end of the week, with Carbon Pulse attributing the move to supportive power-market fundamentals and chart-driven buying; the outlet put the weekly increase at about 1.6%. Carbon Pulse

EU policy and aviation

• Parliament negotiator Peter Liese amended his EU carbon-market draft so routes to countries using the UN aviation offset framework would not receive an automatic carve-out from EU permit obligations, Carbon Pulse reports. Carbon Pulse

• An EU-commissioned analysis covered by Carbon Pulse argues that the current global aviation offset regime is not enough for the sector’s longer-term transition, and that deeper operational and fuel changes will be needed after its present phase. Carbon Pulse

• Carbon Pulse reports that Brussels is preparing conditions for international land-sector Article 6 units, potentially limiting how much nature-linked credits can count toward the bloc’s climate objective if reversal risk remains unresolved. Carbon Pulse

• Carbon Pulse says six European governments have revived calls for taxing exceptional energy-company profits, while the European Commission is leaving any such move to national capitals for now. Carbon Pulse

Nature and land carbon

• Brazil has moved forward with Amazon concession plans that Carbon Pulse says could restore a little over thirty-six thousand hectares and may later supply carbon credits, with one site already in procurement and another still under public review. Carbon Pulse

• New research reported by Carbon Pulse finds that keeping intact tropical forests standing can deliver stronger climate and species outcomes than trying to rebuild ecosystems after clearing. Carbon Pulse

• A US policy essay covered by Carbon Pulse argues that restoration projects meeting clear environmental and quality screens should move faster through permitting, aiming to help nature repair outrun further ecosystem damage. Carbon Pulse

Shipping and carbon storage

• An EU official defended using a dedicated emissions-market allowance pool for lower-carbon marine fuels, with Carbon Pulse saying the proposal is sized at 110 million allowances and should not be broadened to cover vessel-efficiency upgrades. Carbon Pulse

• Carbon Pulse reports that a North Sea offshore CO2 storage project has begun commercial operations, with announced capacity described as reaching as much as eight million tonnes per year. Carbon Pulse