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12th Week CCM 2026. Europe explains pricing but postpones ETS2; North America wants to integrate its carbon markets; Saudi Arabia cautious; study reveals the value of boreal forests. And more.
- Art Dam
- Mar 22
- 6 min read
Monday, 23 March 2026.
12th Week Carbon Credit Markets in 2026.
The European Union reinforces the effectiveness of carbon pricing, highlighting that the EU ETS has already reduced emissions by 50% and will be expanded with ETS2, despite the postponement to 2028. In North America, Canada (Quebec) and the United States (California and Washington) are advancing the proposal to integrate their carbon markets into a common system. Saudi Arabia, in its most recent NDC, adopts a cautious stance on Article 6, recognizing its potential but waiting until the rules are fully operational and under strict supervision.
Among other highlights, the UN reinforces the role of non-market approaches under Article 6.8, emphasizing cooperation in technology, financing, and public policies without the use of offsets. A study from Sweden reveals that old-growth boreal forests store up to 89% more carbon than managed areas, with implications for a third of global forests in regions such as Canada, Russia, and Scandinavia. In the European Union, the Innovation Fund attracts almost €10 billion in proposals, while progress on Article 6 globally includes 19 initial reports and over a thousand notifications of prior consideration.
And a list of unmissable events.
More details below and - if you like - listening to “Carbon Rises” or another one of your choice.
Carbon Credits
Five Key Lessons on Carbon Pricing, According to the European Commission
The European Commission article highlights that carbon pricing is one of the most effective tools for reducing emissions, boosting clean innovation and strengthening economic competitiveness, showing that the EU ETS has already cut emissions by 50% since its launch, finances large projects via the Innovation Fund, prepares for expansion to ETS2 (transport and buildings) and includes safeguards to prevent carbon leakage and ensure a level playing field in international trade.
Quebec (Canada), Washington, and California (United States) propose integrating their carbon markets
Washington, California, and Quebec have put out for public consultation, in March 2026, a draft agreement to integrate their carbon markets into a common transboundary system. Quebec had already established, in 2013, a Cap-and-Trade System for greenhouse gas emission permits — the well-known “carbon market” — with the aim of combating climate change. In 2014, the province linked its system to California's, creating the largest carbon market in North America. Now, Washington is initiating a formal process to join the group. Among the main points of the proposal are:
Allowing the exchange of compliance instruments, joint auctions, and integrated accounting of emission reductions.
Alignment of emission reporting and verification rules.
Development of common platforms, such as a participant registry and auction platform.
Possibility of reciprocal recognition or eventual invalidation of allowances and carbon credits.
Commitment to move towards harmonized auctions.
Use of the accounting mechanism already adopted by Quebec and California since 2022.
The official period for submitting comments remains open until May 1, 2026, keeping the initiative in its initial stage. The advancement of the agreement still depends on technical assessments, environmental justice analyses, public hearings, and formal approvals in each jurisdiction. The agreement also foresees the entry of new states or provinces, provided their programs are compatible and harmonizable.
Saudi Arabia's Latest NDC Remains Cautious Regarding Article 6 and Carbon Credits
Saudi Arabia's latest NDC, filed on December 31, 2025, makes it clear that the country supports Article 6 mechanisms, recognizing their potential to mobilize investment, engage the private sector, and contribute to NDC compliance. On the other hand, it explicitly states that "the Kingdom does not currently have any active agreements or ongoing discussions to participate in cooperative approaches under Article 6," and that the country may use international carbon credits (ITMOs) in the future, provided that the rules are fully operational and that any participation is rigorously supervised by the designated national authority (DNA), responsible for authorizing projects, ensuring corresponding adjustments, and controlling emissions and transfers.
Others Highlights
UN Reinforces Non-Market Approaches to Climate Change in the Paris Agreement
Non-market approaches (NMAs) under Article 6.8 of the Paris Agreement seek to strengthen international climate cooperation through actions such as technology transfer, financing, capacity building, and integrated public policies, without resorting to carbon offsetting mechanisms. The UNFCCC platform dedicated to this topic promotes coordination among countries, identifies common needs, and supports initiatives that expand social benefits, climate resilience, and sustainable development, reinforcing that mitigation and adaptation can advance through collaborative pathways beyond market instruments.
Old-growth forests in temperate climates store up to 89% more carbon than managed areas, reveals Swedish study
A new article in Science led by Didac Pascual and Anders Ahlström shows that Sweden's old-growth forests store between 78% and 89% more carbon than managed forests — a difference so large that the historical conversion of these ecosystems has already released emissions equivalent to 1.5 times the country's total use of fossil fuels since 1834; the study also highlights that half of the harvested biomass is burned, that soil preparation accelerates carbon losses, and that conserving mature forests is much more effective for the climate, with global implications for boreal regions such as Canada and Russia. Recall the article we published on carbon from boreal forests, which represent a third of the global forest area.
Shorts & Opportunities
According to a statement from the Directorate-General for Climate Action of the European Commission, published on March 20, 2026, the Innovation Fund calls for proposals received almost €10 billion in funding requests — including €8.4 billion for green hydrogen and €1.4 billion for low-carbon industrial thermal energy — demonstrating the strong interest of European industry in decarbonization technologies, with support from the EU ETS and additional co-financing from Germany and Spain.
The Council of the European Union has officially confirmed the postponement of the new emissions trading system for transport and building climate control still based on fossil fuels (ETS 2) to 2028, a change included in the package that also approved the climate target of -90% by 2040.
March 2026 update of the Article 6 Implementation Partnership: progress on Article 6 continues to accelerate, with 19 Parties already submitting initial reports, 1,122 notifications of prior consideration, 151 CDM activities approved for transition to Article 6.4, and 88 projects authorized under independent standards.
Events
🇵🇾 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 15 or 16, Upcoming ICAP Status Report 2026. Option April 15 (Americas and Europe). Option April 16 (Asia-Pacific and Europe)
🇨🇴🇳🇱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.
📅 April 29, Verra’s April 2026 Stakeholder Update Webinar
🇧🇷 May 13-14, Fórum CCS Brasil. British Consulate-General São Paulo, Brazil.
🇦🇺 May 20 - 21, Carbon Farming Industry Forum 2026. Freemantle, Australia
🇸🇬 May 20–22, Innovate4Climate (I4C) 2026. In Singapore
🇪🇸 May 21-22, 13th Meeting of the Roundtable on Financing Water. OECD, Bank of Spain (Banco de España), CDP and the Network for Greening the Financial System (NGFS)
🇵🇪 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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