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The guide explains the transition of the EU CBAM to its definitive phase in January 2026, emphasizing the financial impact on exporters of steel and aluminum. It highlights that the use of high default values for missing verified emissions data increases costs, while carbon prices paid in the country of origin can be deducted from CBAM liability.

Carbon Market Watch criticizes the European Commission's proposed reforms to the ETS2 Market Stability Reserve (MSR2), arguing that removing the 'sunset clause' and increasing allowance releases would create a 'carbon bomb' that threatens EU climate goals. While the European Parliament has proposed mitigating some of these risks by reinstating a partial expiry date for allowances and increasing funding for the Social Climate Fund, the author contends that the system still allows for too much pollution. The document urges policymakers to make the earmarking of MSR2 auction revenues for vulnerable households mandatory and to conduct a full impact assessment of the reforms.

The report argues that fossil fuel interests use corporate lobbying, trade associations, and advisory roles to maintain the availability of cheap, low-quality carbon credits to avoid structural decarbonization. It details specific efforts to weaken California's cap-and-trade program and oppose transparency laws like AB 1305, while highlighting the role of the CFTC in federal oversight. The document concludes with recommendations to ban fossil fuel companies from climate advisory roles and eliminate carbon credits from California's compliance mechanisms.

The report argues that the proposed Turkish ETS is fundamentally weak due to its reliance on an intensity-based cap, broad unconditional free allocation, and the use of offsets. These design choices are expected to prevent the system from generating a meaningful carbon price signal, thereby failing to drive emissions reductions aligned with the Paris Agreement and leaving Turkish exporters exposed to significant CBAM fees. The authors recommend transitioning to an absolute declining cap, phasing out offsets, and shifting toward auctioning to retain climate revenues domestically.

The Canadian Climate Institute asserts that industrial carbon pricing has a negligible effect on food prices, estimated at most at 0.1 per cent. The author explains that the policy does not apply to individuals, farmers, or transport companies, and is designed to limit costs for large industrial emitters through thresholds and carbon credits. The text identifies the actual drivers of food inflation as supply chain disruptions, labour shortages, U.S. trade policy, and climate-driven weather extremes such as droughts in Western Canada.

Vietnam's solar power generation helps the country avoid approximately USD 594 million in fossil fuel import costs during the current energy price surge driven by the Iran war. While Vietnam leads Southeast Asia in solar and wind shares, it continues to prioritize coal and gas in its long-term power planning, increasing its vulnerability to global price shocks.

The report assesses five Canadian industrial carbon pricing systems, noting that while the combination of a federal benchmark and provincial tailoring has been largely effective, design differences can fragment markets. It emphasizes the need for predictable carbon pricing and continuous monitoring to prevent issues like credit oversupply.

The document examines the progress of carbon pricing in three Southeast Asian nations. Indonesia has an advanced regulatory framework and a functioning carbon exchange (IDXCarbon) but struggles with low trading volumes and high emission allowances. The Philippines is in the early stages of designing an emissions trading system (ETS) and exploring voluntary markets. Viet Nam is piloting an ETS for power, steel, and cement sectors, driven by its 2050 net-zero commitment and the impact of the EU's Carbon Border Adjustment Mechanism (CBAM).

Indonesia's energy subsidies peaked at IDR 886.1 trillion in 2022 and remained high in 2024 at IDR 713.5 trillion, with fossil fuel support accounting for 88.9% of the total. The report highlights three dominant costs: electricity compensation for the state utility PLN, 3-kg LPG subsidies, and fuel compensation payments to Pertamina. These measures often benefit higher-income households and create a 'net negative carbon price' that offsets the national carbon pricing scheme. While electric vehicle (EV) incentives have surged since 2020, they remain negligible compared to fossil fuel support. The document recommends a phased reform plan to redirect spending toward renewable energy, targeted social protection, and induction cooking to reduce import dependency and emissions.

The report identifies China as the world's largest methane emitter and explores how sustainable finance can bridge the investment gap for abatement. It highlights the 2025 NDC update as a critical window for action and recommends the integration of quantitative methane targets, expanded green taxonomies, and the inclusion of methane in the national emissions trading system to mobilise the estimated USD 7.7 billion in annual investment needed.

The report examines how the green transition is reshaping trade, investment, and geopolitics for Africa. It analyzes the impact of the EU and UK Carbon Border Adjustment Mechanisms (CBAM), the decarbonisation of maritime and aviation sectors, and the potential for Africa to move from raw mineral extraction to EV battery production. It warns that without strategic policy intervention, clean energy exports and critical mineral demand may reproduce extractive economic patterns, while advocating for a unified continental approach to negotiate fairer terms in international climate-trade frameworks.

The document examines the evolution of carbon pricing globally and regionally, with a deep dive into Southeast Asian markets. It analyzes the impact of the EU's Carbon Border Adjustment Mechanism (CBAM) on regional exports and the progress of Article 6 of the Paris Agreement. Specific country updates detail Indonesia's operational ETS, the Philippines' legislative efforts toward a cap-and-invest system, and Viet Nam's pilot phase for a national compliance market.

The document assesses the potential for an Emissions Trading System for Agriculture (Agri-ETS) in the EU, arguing that such a system would only be effective if it targets large-scale polluters, avoids free allowances and carbon offsets, and is integrated into a wider suite of reforms. It highlights the risks of 'GHG tunnel vision' and the necessity of reforming the Common Agricultural Policy (CAP) to stop subsidising harmful practices. The author advocates for a 'Just Transition Fund for Agri-food' to support small-scale farmers using Agri-ETS revenues.

Ember argues that Indonesia's energy transition requires more ambitious emissions targets and a stronger regulatory framework, particularly for the underregulated captive coal sector. The organization recommends integrating JETP investments with long-term economic diversification in coal-dependent provinces to ensure a just transition. Ember also highlights a significant gap in solar deployment, noting that Indonesia reached only 416 MW of on-grid solar capacity last year against a 2025 target of 4.1 GW, and calls for more transparent procurement processes by PLN.

Ember argues that Indonesia's JETP 2025 scenario is insufficiently ambitious, particularly regarding the captive power sector, where it suggests that integrating solar PV could significantly reduce emissions. The brief calls for the inclusion of captive power in peaking emission targets, the removal of solar quotas, and the redirection of JETP investments toward coal-producing provinces to mitigate fiscal vulnerabilities and job losses.

Plan 1.5 argues that the South Korean government's 2035 NDC, set at 53-61% below 2018 levels, is inadequate because the 'practical' lower bound of 53% is driven by industrial interests rather than scientific necessity. The organization highlights that the industrial sector's reduction target of 24.3% is significantly lower than those of comparable manufacturing nations like Japan and Germany. The statement calls on the National Assembly to revise long-term reduction paths to protect future generations and avoid potential legal liabilities under international law.

The report examines how Brazil's agribusiness sector, despite being the country's largest climate polluter, maintains a privileged position through lobbying and 'corporate capture'. It highlights the omission of agricultural methane from Brazil's Nationally Determined Contribution (NDC) and warns that industry-led efforts at COP30, such as the 'AgriZone', aim to position the sector as a climate solution while resisting meaningful regulation.

The report examines how Brazil's powerful agribusiness sector uses greenwashing and political lobbying to avoid climate regulation, specifically regarding methane emissions, as the country prepares to host COP30. It highlights the contradiction between Brazil's global climate leadership goals and the exclusion of agricultural methane from its Nationally Determined Contribution (NDC). The document details corporate efforts to shape the COP30 agenda through the 'AgriZone' and media partnerships, while criticizing structural weaknesses in the Brazilian Climate Plan, such as the exclusion of agriculture from the Emissions Trading System and the inefficiency of the ABC+ Plan. It concludes that the livestock industry's influence threatens the effectiveness of Brazil's climate commitments and the broader goals of the Paris Agreement.

The document provides a toolkit on carbon finance, detailing the use of carbon taxes, credits, and trading systems to reduce greenhouse gas emissions. It categorizes instruments into commercial options like Voluntary Carbon Markets and public systems such as the EU ETS and Colombian Carbon Tax, while specifying the capacity requirements and timelines for establishing these mechanisms.

The EU's Carbon Border Adjustment Mechanism (CBAM) is designed to prevent carbon leakage and encourage global decarbonisation by imposing levies on high-emitting imports. While facing criticism from BRICS nations as a protectionist barrier, the CBAM's design allows for the deduction of carbon prices already paid in the country of origin. This has led several countries, including India, China, Brazil, and Vietnam, to strategically develop or expand domestic carbon markets or taxes to ensure that carbon revenues are retained domestically rather than paid to the EU. Modelling indicates that if domestic prices reach 50% of the EU's price, countries like India could retain EUR 676 million annually.