10th Week CCM 2026. World Bank analyzes cheap carbon credits; EU launches removal standard & warns about critical materials; US seeks pricing; Brazil makes progress; Article 6 & 106 agreements
- Art Dam
- Mar 8
- 7 min read
Monday, 09 March 2026.
10th Week Carbon Credit Markets in 2026.
Carbon markets are experiencing both progress and tension: a World Bank study shows that large emitters are actually reducing emissions, while smaller companies are resorting to cheap, low-quality credits, increasing the risk of greenwashing. At the same time, the European Union is launching the first voluntary standard for permanent removals, raising the requirements for quality. In the United States, Congress is expanding pricing proposals — from taxes to cap-and-trade — signaling continued interest in market instruments. In Brazil, the formation of the CTCP marks the entry of productive sectors into defining the rules of the future national cap-and-trade system.
Other highlights include the Industrial Accelerator Act, which seeks to boost European industry by requiring local content and low emissions, stimulating "Made in EU" (European Union) production and jobs, while a study indicates that the EU needs to invest €70 billion/year in climate adaptation by 2050 to address growing risks. Meanwhile, the European Court of Auditors warns of external dependence on critical materials, highlighting planning failures that could compromise the energy transition.
As "Shorts & Opportunities", the Bolivia Carbon Forum 2025 highlighted carbon as a lever for sustainable development, capable of attracting climate investment and generating local economic benefits. Meanwhile, the A6IP report shows progress on Article 6, with 106 active bilateral agreements - two recent involving Brazil, Singapore and Switzerland - while European research indicates more aware citizens, but still ill-prepared for the impacts of climate change.
We've also listed several events.
More details below and - if you like - listening to “Planetary Action”.
Carbon Credits
Large emitters cut carbon; small ones resort to cheap carbon credits, shows World Bank study
The Policy Research Working Paper Deep and Shallow Decarbonization in Supply Chains (Feb. 2026) identifies a clear divide in suppliers' responses to climate targets validated by large buyers. Companies with higher emissions tend to promote real reductions, adjusting processes and investing in efficiency. Suppliers with lower emissions, on the other hand, rely much more on carbon credits, often choosing cheap, low-quality offsets as a substitute for physical reductions — a pattern that suggests more cosmetic than effective responses.
This asymmetry creates a contrast between deep and superficial decarbonization. Where regulatory, reputational, or economic pressure is greater, real cuts prevail; where it is less, the use of credits as a quick fix grows. The result is a scenario that combines concrete advances with potential greenwashing practices, reinforcing the need for more rigorous standards for the use and quality of carbon credits.
European Union launches pioneering voluntary standard for permanent carbon removal credits
The European Union has introduced the first voluntary standard for permanent carbon removal credits, establishing rigorous criteria for certifying technologies such as DACCS, BioCCS and biochar, with the aim of boosting climate innovation, attracting investment and reducing greenwashing risks, strengthening the credibility and expansion of a European carbon credit market aligned with climate neutrality.
US Congress Expands Arsenal of Carbon Pricing Proposals, From Fees to Cap-and-Trade
A survey by the Center for Climate and Energy Solutions (C2ES) shows that the 119th US Congress presented a broad set of carbon pricing proposals, including carbon fees, cap-and-trade programs, tradable performance standards, and even a one-time tax on historical emissions from major oil companies. The initiatives—analyzed by Olivia Windorf and Jason Ye—differ in the sectors covered, price levels, treatment of imports, and destination of revenues, ranging from subsidies to households to infrastructure and a just transition. Despite the lack of political consensus on which model to adopt, the set indicates a persistent interest by Congress in market instruments to reduce emissions.
The sector representatives who will participate in the development of the Brazilian cap-and-trade rules have been defined
The Extraordinary Secretariat of the Carbon Market has announced the 7 entities selected to compose the Permanent Technical Advisory Committee (CTCP), the body that will support the formulation of the rules of the Brazilian Emissions Trading System (SBCE). This selection marks the beginning of the phase in which the design of the cap-and-trade system will be built with the direct participation of sectors such as energy, industry, agriculture and forestry, transport, waste, urban mobility, and the financial market. The chosen entities—such as IBP (Energy), CNI (Industry), UNICA (Urban Mobility), ABREMA (Waste), CNT (Transport), CNA (Agriculture and Forestry), ANBIMA, CNSeg, and FEBRABAN (Financial Market in a joint application)—will work on defining allocation criteria, methodologies, and governance of the new regulated market. (Suggested hyperlink: CTCP official page)
The selection process follows the qualification of 36 organizations and the rejection of another 22. This process is part of the SBCE implementation roadmap, which includes the National Emissions Reporting Plan (PNR), public consultations, and sectoral meetings until full operation in 2030. The establishment of the CTCP, with a virtual meeting already scheduled for March 18, 2026, consolidates the relevance of the productive sectors and reinforces the strategic role of the carbon market in articulating industrial, financial, technological, and climate policies.
Others Highlights
The Industrial Accelerator Act is launched to boost decarbonization and jobs in the European Union
The European Commission has proposed the Industrial Accelerator Act, a package aimed at strengthening European industry by increasing demand for low-carbon technologies and products and for "Made in EU" items, stimulating domestic production, business growth and job creation. The initiative establishes local content requirements and low-emission criteria in public procurement and subsidies, focusing on strategic sectors such as steel, cement, aluminum, automotive and net-zero technologies, as well as imposing conditions for large foreign investments, such as value creation in the EU, technology transfer and a minimum of 50% European employment. The plan also provides for a single digital licensing process to accelerate industrial projects and seeks to raise the share of manufacturing in European GDP to 20% by 2035, strengthening economic resilience and reducing external dependencies.
EU Needs to Invest €70 Billion Annually in Climate Adaptation by 2050, New Study Indicates
According to a new study by the European Commission, the European Union, its Member States, and the private sector need to invest approximately €70 billion per year in climate adaptation by 2050 in order to reduce exposure to increasing climate risks and strengthen the resilience of European societies. The report highlights that more frequent extreme events—such as heat waves, droughts, floods, and wildfires—are already putting pressure on infrastructure, agricultural systems, and public services, making it urgent to increase investments in measures such as water management, coastal protection, urban modernization, and nature-based solutions. The study reinforces that delaying adaptation will increase future costs and widen regional inequalities, making continued investment a strategic priority for the European climate transition.
EU Warns of Risks in the Supply Chain of Critical Materials Essential to the Energy Transition
The European Court of Auditors points out that the European Union (EU) remains highly dependent on other countries to obtain critical materials — such as lithium, cobalt, and rare earths — fundamental to the energy transition, highlighting failures in strategic planning, risk monitoring, and supplier diversification. Furthermore, the report “Special report 04/2026: Critical raw materials for the energy transition – Not a rock-solid policy” also warns that the lack of coordination could compromise climate and industrial goals.
Regarding how the Courts of Auditors of various countries have positioned themselves on this matter, see our post from a few days ago “A global audit of 70 courts of accounts reveals that countries plan, for but fail to deliver on, climate adaptation measures”.
Shorts & Opportunities
Bolivia Carbon Forum 2026, event held on March 5th, discussed carbon as a concrete lever for sustainable development, capable of generating climate investment, conservation, and economic benefits for that country as well. Here is a video of the event's opening, from the Red Uno De Bolivia YouTube channel.
February Update: Paris Agreement Article 6 Implementation Status Report, published by the Article 6 Implementation Partnership, this report provides a clear overview of the progress and challenges in operationalizing the international cooperation mechanisms of the Paris Agreement—and is worth reading to understand how countries are structuring mitigation transactions, registration infrastructures, and corresponding adjustment rules. There are already 106 formalized bilateral agreements—an increase compared to the 104 existing in January 2026—including new agreements between Brazil and Singapore and between Brazil and Switzerland.
What do EU citizens think of the impacts of climate change? Europeans are increasingly aware of the effects of climate change, but research warns that individuals and families are still unprepared for what is to come.
Events
🖥️ March 12, Learn about the IFRS Sustainability Alliance—A quick guide for prospective members. Nearly 40 countries use ISSB Standards. Time option 1 or time option 2.
🇮🇹 March 17 - 19, 3rd European Carbon Farming Summit. Padova Congress, Itália.
🇵🇾 March 25 & 26, Paraguay Carbon Forum, Asunción, Paraguay
🇧🇷 March 26, Fórum Crea - SP - Visão ESG: O Papel da Engenharia na Resiliência dos Negócios. São Paulo, Brasil
🇨🇴🇳🇱April 28 - 29, First International Conference on Phasing Out Fossil Fuels, by the Governments of Colombia and the Netherlands. In the city of Santa Marta, Colombia.
🇦🇺 May 20 - 21, Carbon Farming Industry Forum 2026. Freemantle, Australia
🇵🇪 May 27 & 28, Peru Carbon Forum 2026, 3ra edición, ESAN, Lima, Peru
Between COP30 and COP31, when governments, financial leaders and implementers stop negotiating text and start building the concrete mechanisms that actually deliver results.
🇰🇷🇺🇳April 21 - 25, Climate Week 1, Yeosu, Republic of Korea.
🇦🇿🇺🇳 October 5 - 9, Climate Week 2, Baku, Azerbaijan
🇧🇷 August 27th and 28th, Brazilian Climate and Carbon Conference, Brazil NBS Alliance
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