16th Week CCM 2026. Carbon markets advance in Asia-Pacific; Indonesia; COP31; REDD+; Verra and Article 6; IPCC and CO₂ removals; AI and heat islands; ESG and hydrogen in Europe and Brazil
- Art Dam
- 6 days ago
- 8 min read
Monday, 20 April 2026.
16th Week Carbon Credit Markets in 2026.
Carbon markets are experiencing a phase of strong expansion and growing financial relevance, according to ICAP, with new national ETS, record revenues, and a shift in the center of gravity toward the Asia‑Pacific. On the political front, Turkey signals that markets will remain central to the COP31 agenda, while the UNFCCC highlights technical progress from a decade of REDD+ in Latin America, but warns of the lack of predictable financing. Countries such as Indonesia are accelerating reforms to integrate forest credits and strengthen governance, and standards like Verra are updating guidance for Article 6 and CORSIA, expanding transparency and clarity for buyers — a set of developments that reinforces the rapid maturation and complexity of the global carbon architecture.
Other highlights include the start, by the IPCC, of the development of the methodological report on CO₂ removal, which will define guidelines for measuring and verifying emissions and removals through 2027. In Europe, the European Banking Authority is advancing the reform of prudential reporting, proposing a specific ESG module that simplifies obligations and improves data on environmental risks. Meanwhile, a new study reveals that AI data centers are creating “digital heat islands”, raising local temperatures by up to 2 °C and affecting more than 340 million people, with greater concentration in countries leading the expansion of these infrastructures.
Shorts & Opportunities include an interview at the North American Carbon World to discuss the future of carbon pricing. In Brazil, a FAPESP study identifies regions with greater potential for green hydrogen, but highlights infrastructure challenges. In Europe, the new European Resilience Alliance for Clean Hydrogen & Derivatives and an opening for Auditing Manager in the voluntary carbon markets.
And a list of unmissable events.
More details below and - if you like - listening to a soft rock / yacht rock groove “Hydrogen Comes Strong” or some other musical choice of your preference.
Carbon Credits
Global carbon market accelerates expansion and consolidates financial weight, ICAP reports
The newly released ICAP Status Report 2026 reveals that carbon markets are experiencing their most robust phase, with 41 ETS covering 26% of global emissions, 63% of world GDP, and more than half of the planet’s population, while Japan, India, and Vietnam launch national systems and 14 G20 countries already operate ETS as a central instrument of NDC 3.0. Revenues reached a record US$ 80 billion in 2025, and three‑quarters of all regulated volumeis now in Asia‑Pacific, reinforcing the market’s geoeconomic shift, which is also becoming increasingly relevant for investors — with EU cement stocks falling more than 10% in a single day due to carbon‑related news, airlines citing carbon prices more than oil in annual reports, and studies showing that carbon is already the main cost driver for commodities in the UK equity market.
Turkey, COP31 releases letter with joint vision, principles, agenda, and signaling on carbon markets
The COP31 President‑Designate, Murat Kurum, published a letter addressed to Parties and Observers, presenting a common vision with the President of the Negotiations, the Australian Chris Bowen, and highlighting the core principles that will guide the Presidency — Inclusivity, Transparency, Ambition, Results‑oriented action, and International cooperation. The document also details the priorities of the Action Agenda and the key dates of the preparatory process, including the Pre‑COP in Fiji (5–8 October), with a leaders’ event in Tuvalu, and the Leaders’ Summit in Antalya (11–12 November). The letter also signals the relevance of carbon markets, by mentioning the implementation of the Paris Agreement and areas of action that traditionally include progress on Article 6, reinforcing that market instruments will continue to be part of the mitigation and international cooperation agenda of COP31.
New UNFCCC report reveals progress and challenges after 10 years of REDD+ in Latin America and the Caribbean
Published in March 2026, the report from the regional meeting of the REDD+ Community of Practice, held from 9 to 12 December 2025, brings together lessons from more than a decade of REDD+ implementation in Latin America and the Caribbean, highlighting that the region is among the most advanced in the world, with most countries already submitting their forest reference levels (FREL/FRL), operating Safeguard Information Systems (SIS), and improving their summaries. Despite the technical progress, the document notes that predictable, long‑term financing remains the main challenge, reinforcing the importance of regional cooperation to strengthen MRV, governance, and access to resources.
Indonesia accelerates its climate and financial agenda with the expansion of the Carbon Exchange and a new framework for forest credits
Indonesia has intensified its sustainable finance and carbon market strategy with two complementary moves: in its March 2026 institutional presentation, OJK highlighted the progress of the Carbon Exchange, which since 2023 has already moved IDR 91.7 billion, traded 1.93 million tCO₂e, and expanded its user base from 24 to 151, consolidating the country as an emerging hub for climate investment; and on 16 April 2026, according to Antara News, the government strengthened market governance with Permenhut 6/2026 (Peraturan Menteri Kehutanan, or Regulation of the Minister of Forests), which regulates the trade of forest carbon credits, operationalizes the economic value of carbon (NEK)established in Presidential Decree 110/2025 (Perpres), defines a peta‑jalan (roadmap) for emission reductions, expands the participation of perhutanan sosial (social forestry management) and indigenous communities, requires independent validation and verification, and simplifies electronic processes — strengthening transparency, environmental integrity, and the financial integration of the Indonesian carbon market.
Verra updates guidance for Article 6 and CORSIA and launches new buyer resource
Verra published on 9 April 2026 the document Updated Article 6 and CORSIA Label Guidance & New Buyer Resource, which introduces new guidance on the application of Article 6 and CORSIA designations in carbon credits. It also launched an unprecedented resource for buyers, offering greater clarity on eligibility, traceability, and the use of credits across different international regimes; the update reinforces the importance of environmental integrity, transparency, and regulatory harmonization for those following the evolution of carbon market rules and seeking to understand how these changes may impact transactions, due diligence, and compensation strategies.
Others Highlights
IPCC begins drafting report on CO₂ removal
The IPCC, the UN’s Intergovernmental Panel on Climate Change responsible for assessing the state of the science on global warming, brought together more than 150 experts in Rome from 8 to 12 April 2026 for the first author meeting of the 2027 Methodology Report on Carbon Dioxide Removal Technologies (CDRT) and Carbon Capture, Utilization and Storage (CCUS). The meeting marked the start of developing guidelines that will help countries measure, report, and verify CO₂ emissions and removals with greater transparency, covering everything from direct air capture to nature‑based solutions, with technical and governmental review expected by the end of 2027.
Broad reform of European prudential banking reporting includes a specific module for ESG
As part of the wider process of simplifying supervisory reporting announced by the European Banking Authority (EBA) in its public consultation on simpler, smarter, and more proportionate requirements, the document “CP Module 7 – ESG reporting” proposes updates to the ESG reporting framework within the revision of the Implementing Technical Standards (ITS). The proposal reduces obligations for smaller institutions, details templates, technical instructions, and definitions for collecting data on environmental risks — including transition risks and physical risks— exposures to climate‑sensitive sectors, and sustainability indicators, while also explaining how ESG reporting integrates with the regulatory minimum (Pillar 1), supervisor‑defined adjustments (Pillar 2), and the supervisory review process. The EBA invites stakeholders to submit comments until 14 July 2026.
AI data centers create ‘digital heat islands’ and already affect 340 million people, study finds. And see where they are.
The preprint The Data Heat Island Effect (Marinoni et al., March 2026, DOI:10.48550/arXiv.2603.20897) shows that the rapid expansion of AI data centers — especially those operated by hyperscalers, giants such as AWS, Google, and Microsoft that run massive‑scale cloud computing infrastructures — is creating measurable zones of local warming. Analyzing decades of remote‑sensing data, the authors identify an average 2 °C increase in surface temperature after these centers begin operating, with variations that propagate spatially and form a new anthropogenic microclimate, named the data heat island effect; the study estimates that more than 340 million people already live in potentially affected areas, warning that this phenomenon may influence regional well‑being, urban infrastructure, and the global debate on environmentally sustainable AI, making the full read essential to understand the scale and urgency of this emerging impact.
And to understand where this digital heating is already concentrating, it is worth seeing the Visual Capitalist article from February 2026 that maps the countries with the most data centers in the world — a panorama that helps visualize where the data heat island effect is likely to be most intense.
Shorts & Opportunities
An unmissable video: the Fireside Chat from NACW 2026, held on 9 April 2026 during North American Carbon World, the leading U.S. conference on carbon markets and climate policy. The session featured Dr. Richard Sandor— a global pioneer widely recognized as the father of carbon markets, responsible for creating the Chicago Climate Exchange — and Tim Profeta, a reference in climate regulation, for a strategic conversation on the future of carbon pricing, the evolution of environmental financial instruments, and the pathways for post‑2030 climate policy. A rare opportunity to hear two of the most influential voices in the construction of modern environmental markets.
A FAPESP study identifies the Brazilian regions with the greatest potential for the production and use of green hydrogen, highlighting the fuel as strategic for the decarbonization of hard‑to‑abate industrial sectors. The research shows that the country has favorable conditions to develop this new energy chain but reveals a central challenge: the geographical disconnect between the main production hubs and consumption centers, which will require substantial investments in transport and distribution infrastructure to enable the expansion of this emerging market.
The European Resilience Alliance for Clean Hydrogen & Derivatives (ERA) — launched on 14 April 2026 at the European Parliament in Brussels by European industrial leaders such as ENAGÁS, Fluxys, Fortum, Gasgrid Finland, Moeve, Nordion Energi, OGE, RWE, SEFE, Stegra, and Thyssenkrupp, in cooperation with Hydrogen Europe — joins forces to accelerate clean hydrogen, strengthen industrial competitiveness, and expand Europe’s energy independence, in an announcement worth reading.
Equitable Earth, a global reference in nature‑based solutions, is seeking an Auditing Manager to lead and enhance the remote validation and verification function of its standard — a strategic, high‑impact opportunity for those looking to shape quality especially in the voluntary carbon markets. Expected start date: May / June 2026.
Events
🇰🇷🇺🇳 April 21 - 25, UNFCCC Climate Week 1, Yeosu, Republic of Korea.
🇬🇧 April 22, 1Q26 Voluntary Carbon Market in Review. MSCI.
🇬🇧 April 22, Advancing Market Integrity - Insights from Continuous Improvement Work Program Report, ICVCM.
🇺🇸 April 24, ISO-GHG Protocol Product-Level Carbon Accounting: What’s Next? WRI.
🇬🇧 Abril 27, International carbon credits & the EU 2040 target: A blueprint for environmental integrity. BeZero Carbon.
🇨🇴🇳🇱 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 12, Building Credible Strategies for Carbon Dioxide Removals. Gold Standard
🇧🇷 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
🇧🇷 July 24, 2nd Brazilian Conference on Greenhouse Gas Inventory. Curitiba, Brazil.
🇧🇷 August 27 - 28, Brazilian Climate and Carbon Conference, Brazil NBS Alliance
🇦🇿🇺🇳 October 5 - 9, UNFCCC Climate Week 2, Baku, Azerbaijan
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