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23rd Week CCM 2026. Week of front-runners. Cap-and-Invest California; JCM Japan; Flex-Fuel and Ethanol Engine India; Battery Grid Brazil; Australia against fires; Soil and Soy; COP31 Award
- Art Dam
- Jun 7
- 7 min read
Monday, 8 June 2026.
23rd Week Carbon Credit Markets in 2026.
If you like - listening to Digital Sunrise or others at your choice.
Carbon Markets. California has approved updates to its Cap-and-Invest program, adjusting the emissions ceiling, reinforcing price stability, and authorizing up to US$4 billion in free allowances to reduce leakage and maintain industrial competitiveness. Meanwhile, Japan's JCM, a bilateral mechanism under Article 6.2, continues to finance low-carbon technologies in partner countries to generate certified reductions and removals, following a structured cycle of methodology, validation, registration, and issuance, with over 298 active projects and targets of up to 200 million tCO₂ by 2040.
Among Other Highlights, India accelerated its ethanol agenda by launching its first fully flex-fuel car, reinforcing cooperation initiated by the Global Alliance for Biofuels and advancing policies such as Ethanol Blended Petrol, while expanding the use of corn ethanol, biorefineries, and SAF targets. In parallel, Brazil published the guidelines for the first national battery storage auction, aligning itself with the United States, the United Kingdom, and Australia in treating energy storage as essential infrastructure for integrating renewables, strengthening energy security, and preparing the electricity grid for a more solar and wind-based energy mix.
Shorts & Opportunities presents Firecoat Defend paint, developed from Australian scientific research and certified by USDA Forest Service tests, which redefines fire protection standards, as well as the book Applications in Soil Health, which brings together applied cases of regenerative agriculture and sustainable management. It also highlights the call from researcher Mariangela Hungria, who invites producers to validate on a real scale the reduction of soybean plant density without loss of productivity. Finally, it publicizes the COP31 International Sustainable Construction Competition, aimed at innovative and climate-resilient projects in Antalya, Turkey.
In addition to a list of relevant events.
Carbon Credits
California Adjusts Its Carbon Market and Expands Industry Support in Cap-and-Invest Review
On May 29, 2026, the California Air Resources Board (CARB) approved a technical package of updates to the Cap-and-Invest program, focusing on recalibrating the carbon price signal, adjusting the emissions ceiling, refining market stability mechanisms, and mitigating economic impacts on energy-intensive sectors. The review incorporates the distribution of up to $4 billion in free allowances to refineries and large emitters, with the goal of reducing leakage, preserving industrial competitiveness, and ensuring regulatory compliance during a period of high costs. The package includes: redefining the cap decline trajectory, adjustments to the Allowance Price Containment Reserve (APCR), strengthening Market Surveillance rules to limit speculative behavior, and new Cost Containment devices to prevent extreme volatility. According to the official statement, the changes align the market with the goals of climate neutrality in 2045, maintaining the environmental integrity of the system while strengthening regulatory predictability, price stability, and consumer protection.
JCM: The Japanese Mechanism that Transforms International Cooperation into Article 6.2 Carbon Credits
The Joint Crediting Mechanism (JCM) is a bilateral system in which Japan finances and implements low-carbon technologies in partner countries to generate reductions and removals of GHGs, converted into credits shared between Japan and the host country, avoiding double counting as per Article 6.2 of the Paris Agreement. The mechanism follows a structured cycle — PIN (Project Idea Note, initial document), methodology, validation, registration, monitoring, and issuance — managed by the JCMA (JCM Implementation Agency), which coordinates projects and official registration. Benefits include environmental gains (global emission reductions), economic gains (new business and investments for Japanese and local companies, as well as credits for the Japanese GX-ETS system), and diplomatic gains (strengthening bilateral cooperation and supporting the development of carbon markets). In 2025, the Japanese government—through the Ministries of Environment, Economy, Trade and Industry, Agriculture, Forestry and Fisheries, along with the JCMA—established official eligibility criteria to ensure that each project has added value, demonstrates that it is only viable thanks to JCM incentives, and is aligned with the NDCs of both countries. With more than 298 projects in renewable energy, energy efficiency, waste, transport, and forestry, the JCM supports Japan's goals of achieving 100 million tCO₂ by 2030 and 200 million tCO₂ by 2040, while also contributing to the NDCs of partner countries.
Others Highlights
India Launches First Flex-Fuel Car and Accelerates Ethanol Agenda
India's advance in biofuels is part of an international scenario in which Brazil is a historical reference: since the 1970s, the country has developed the flex-fuel engine, capable of operating with 100% ethanol, 100% gasoline, or any mixture of both — a technology that today equips 80% of the Brazilian fleet, with more than 40 million vehicles sold and gasoline containing 27.5% ethanol (potentially reaching 30%). This leading role helped to drive the creation, in 2023, within the G20, of the Global Alliance for Biofuels, an initiative led by Brazil, India, and other countries to expand the sustainable use of clean fuels worldwide. In this context of growing cooperation, India is accelerating its own energy transition with concrete moves in the automotive sector.
It was in this environment that, on Friday, June 5, 2026, the Japanese company Suzuki and the Indian company Maruti Suzuki presented the Wagon R FFV, India's first fully flex-fuel vehicle capable of running on E20 to E100. The launch, attended by Indian government officials, symbolizes a strategic step towards clean mobility, reinforcing the national commitment to decarbonization, reducing dependence on oil, promoting agriculture, and expanding technologies aligned with the energy transition. The model marks the beginning of a new phase of innovation, integrating industry, government, and climate policies.
Meanwhile, the Indian government highlighted that the ethanol journey has become “unstoppable,” with the Ethanol Blended Petrol (EBP) program advancing from 1.53% in 2014 to 10% in 2022, reaching E20 nationwide five years ahead of schedule. The Ministry of Petroleum and Natural Gas also emphasized the expansion of corn ethanol, which went from 0% to 42% of production, the growth of 2G biorefineries using agricultural waste, and the development of SAF (Sustainable Aviation Fuel) with mandatory targets already defined. With benefits that include lower emissions, improved air quality, foreign exchange savings, agricultural income, and energy security, India is consolidating itself as one of the leading global references in biofuels and large-scale energy transition policies.
Following a trend already adopted by other countries, Brazil moves forward with an unprecedented auction of batteries for its electrical system
Countries such as the United States, the United Kingdom, and Australia already carry out structured contracts for energy storage in batteries, with official policies that include auctions, incentives, and specific targets — such as the American Long Duration Storage program, the British Capacity Market auctions that incorporate batteries, and the Australian grid-scale storage projects supported by the federal government. These countries already treat storage as critical infrastructure to integrate renewables — remember this post from 2024 —, reduce systemic costs, and ensure stability to the electrical system — and it is precisely this logic that is beginning to consolidate in Brazil.
In this international context, the country is now joining the group of nations that are structuring formal energy storage markets, a move that becomes indispensable as the participation of variable renewable sources grows. On June 3, 2026, the guidelines for the first Brazilian battery storage auction were published—MME Normative Ordinance No. 136/2026—creating the LRCAP 2026, which will contract power in MW through new electrochemical systems, with 15-year contracts and the start of supply in 2028. The inclusion of the "storage" category in the model—previously restricted to generation, transmission, and distribution—responds to a structural need: to guarantee energy security, expand operational flexibility, avoid the waste of renewables, and prepare the National Interconnected System for a future with greater participation of solar and wind power, in which storing energy becomes as strategic as producing it.
Shorts & Opportunities
Discover the next generation of fire protection solutions, combining advanced science, industrial innovation, and official certifications to deliver the world's best fire-resistant paint—a technology capable of saving homes and lives, according to UNSW researchers. The Firecoat Defend line, already recognized in technical evaluations by the USDA Forest Service and backed by rigorous international performance certifications, redefines the global standard for safety, thermal resistance, and structural protection. It's worth reading to understand how this "people-who-make" innovation helps protect against fires.
Applications in Soil Health: Case Studies and Experiences — a work built upon research from SOHMA/ESALQ-USP that brings together, in 16 chapters, applied knowledge on regenerative agriculture, integrated systems, ecosystem restoration, and soil health indices, highlighting their role in the face of the challenges of sustainable agriculture, food security, and climate change. Essential reading for those working at the interface between science, management, and conservation.
Researcher Mariangela Hungria, an international authority in soil microbiology, biological nitrogen fixation, and soybean innovation, is launching a call to validate, on a Brazilian scale, results showing that it is possible to reduce soybean plant density without loss of productivity—a direct path to lower costs, optimize inputs, and increase efficiency in the field. On LinkedIn, she proposes a large collaborative trial, inviting producers to test, record, and share their observations, opening the way for a possible revolution in sowing.
Registration is open for the International Sustainable Construction Competition, held within the framework of COP31 — a unique opportunity to showcase innovative and climate-resilient projects. With a deadline of October 15, 2026, this is your chance to see your work exhibited in Antalya and recognized by high-level authorities. Participate and be part of the global best practices in sustainable construction.
Events
July
🇫🇷 1–2, Green Growth and Sustainable Development (GGSD) Forum 2026. In Paris and online.
🇯🇵 22, Strengthening Local Resilience to Planetary Crises: Scaling up Synergistic Solutions. Kobe, Japan, in-person and online.
🇧🇷 24, 2nd Brazilian Conference on Greenhouse Gas Inventory. Curitiba, Brazil.
August
🇧🇷 27 - 28, Brazilian Climate and Carbon Conference, Brazil NBS Alliance.
September
🇨🇳15, Carbon Market Conference. Open Coalition on Compliance Carbon Market, in Wuhan, China.
October
🇦🇿🇺🇳 5 - 9, UNFCCC Climate Week 2, Baku, Azerbaijan.
📅 October 07 & 08, Congress SAE BRASIL 2026, Pavilhão da Bienal – Parque Ibirapuera, São Paulo, Brazil
🇦🇺 October 20-21, Australasian Emission Reduction Summit, Adelaide, Australia
📅 October 28, Verra’s October 2026 Stakeholder Update Webinar
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