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29th week CCM 2026. Aviation emissions. European Union revises ETS, includes international aviation and is warned by ICAO; corporate SAF; CBAM; Brazil ITMOs; COP31 advances
- Art Dam
- 1 day ago
- 6 min read
Monday, 20 July 2026.
29th Week Carbon Credit Markets in 2026.
If you’d like, read the article while listening to any Carbon Credit Markets song you choose.
Carbon credits in the European Union are undergoing an ETS review - with identification of results and weaknesses - that reinforces climate targets, boosts investment, and expands coverage to new sectors; meanwhile, the International Civil Aviation Organization criticizes the proposal to apply the ETS to international flights starting in 2029, citing risks of cost duplication, overlap with CORSIA, and compromised global coordination toward net-zero aviation.
Other highlights include the record agreement for 35 million gallons (132 million liters) of SAF certificates via "Book & Claim," reinforcing the expansion of sustainable fuel in corporate aviation. Meanwhile, the European Commission set the price for CBAM certificates at €75.36 for the first quarter of 2026, aligning the cost charged to importers with the average price of EU ETS auctions.
Briefs and Opportunities include a Brazilian public consultation on rules for the international transfer of carbon credits - Article 6 ITMOs -, the unveiling of Caretta as the COP31 mascot, an invitation for young people to join the 5,000-strong volunteer network for the Antalya gathering, and the 2nd Brazilian GHG Inventory Conference on July 24, 2026.
In addition to a list of relevant events.
Carbon Credits
European Union revises its ETS to address weaknesses and accelerate industrial decarbonization
The EU ETS revision, released on July 17, seeks to address the system's weaknesses and transform it into a more powerful tool for innovation, competitiveness, and energy independence, ensuring that more resources flow back to European industry and accelerate the transition to a low-carbon economy. Established in 2005, the ETS is the EU's primary carbon pricing mechanism - responsible for reducing emissions and mobilizing investment - and is now undergoing a major overhaul.
Key figures from the revision
23% electrification - current level of electrified energy demand in the EU.
46% by 2040 - indicative target that could cut €260 billion/year in fossil fuel imports.
€270 billion - accumulated ETS revenues, alongside a 50% reduction in emissions across covered sectors.
€100 billion - new Industrial Decarbonization Bank.
50% of national ETS revenues - mandatory reinvestment, totaling over €100 billion before 2030.
2% in international credits - additional flexibility for 2036–2040.
€6 billion - boost to free allocations through 2030.
CBAM through 2038 - extension of the phase-out of free allocations.
78% savings - lower cost of driving an electric vehicle.
60% reduction - savings from heat pumps.
Electricity 3× more expensive - still a barrier to electrification.
Identified weaknesses
Unequal global competition puts pressure on strategic industrial sectors.
Insufficient decarbonization by companies that invested outside Europe.
Limited use of ETS revenues - less than 10% applied to industrial decarbonization, despite Member States retaining 80% of the revenue.
Four pillars of the review
2040 climate targets - a trajectory aligned with a 90% reduction in emissions.
Conditional support for companies - permits continue beyond 2030, provided there is investment in decarbonization within the EU.
Expanded investments - Innovation Fund (€44bn), Decarbonization Bank (€100bn), ETS Booster (€30bn), and Modernization Fund (€46bn).
Sectoral expansion - inclusion of aviation, maritime, waste, and permanent carbon removals, with incentives for sustainable fuels.
Global aviation body criticizes expansion of European ETS and warns of risk of overlap with CORSIA
In a statement released on July 17, 2026, ICAO—the International Civil Aviation Organization, a specialized UN agency uniting 193 countries in cooperation to maintain a safe, integrated, and sustainable global aviation system - expressed concern regarding the European Union's proposal to expand the scope of the EU ETS to international flights starting in 2029. The organization states that the measure could double carbon costs, create regulatory inconsistencies, and undermine CORSIA - the global aviation emissions offsetting and reduction mechanism designed to ensure a harmonized approach, prevent double counting, and maintain a level playing field among countries. According to ICAO, unilaterally expanding the ETS threatens the international coherence needed for the sector to achieve its net-zero emissions goal by 2050.
Others Highlights
American Airlines and Google strike record SAF certificate deal, driven by the Book & Claim system
American Airlines and Google have signed a record-breaking agreement to purchase SAF certificates equivalent to 35 million gallons (132 million liters) of sustainable aviation fuel over three years—the largest commitment of its kind announced between an airline and a corporate user, according to the companies. The contract has the potential to avoid nearly 300,000 metric tons of CO₂e, expanding American’s use of SAF - supplied by Valero - and supporting state initiatives that enable fueling at hubs such as Chicago O’Hare (ORD). SAF certificates represent the emissions reduction generated when an airline uses SAF within the voluntary Book & Claim system, in which the actual fuel usage is recorded ("booked") by the airline operator and the climate benefit is subsequently claimed by the corporate buyer. The methodologies for this system have been developed and recognized by industry initiatives such as the RSB and the World Economic Forum’s Clean Skies for Tomorrow program, as well as through guidelines from organizations like A4A and IATA.
CBAM Certificates reach €75.36: European Commission publishes updated values on June 7, 2024
The official page of the European Commission, published on June 7, 2024, details that the price of CBAM certificates is calculated from the weighted average of EU ETS auctions, ensuring that importers face a carbon cost equivalent to that applied to domestic production. For 2026, values are published quarterly, with prices already set at €75.36 in the 1st quarter and €75.28 in the 2nd quarter, while the others await publication; from 2027 onwards, the update will be weekly. The certificates will be acquired through a common central platform, in accordance with Regulation (EU) 2023/956, reinforcing the transparency and harmonization of the mechanism.
Briefs & Opportunities
The Brazilian government has opened a public consultation on the rules for the international transfer of carbon credits - specifically Article 6 ITMOs (Internationally Transferred Mitigation Outcomes), which are credits that can be traded between countries to meet climate targets. This marks a decisive step toward structuring the Brazilian market and aligning it with global standards. Contributions from companies, experts, and organizations may be submitted until August 6, 2026.
COP31 unveils Caretta, its mascot. It is an imposing loggerhead sea turtle - a symbol of strength and ancient lineage in the seas. Now an icon of COP31 climate action, explore how Caretta can guide us toward a more resilient future; discover its journey and deep ancestral roots in Antalya, the host city of the gathering; and be inspired by a story spanning over 100 million years.
COP31 invitation to young people: from November 9 to 20, 2026, COP31 will bring together thousands of people in Antalya to build one of the largest global movements for sustainability, climate action, and volunteering. Join this network of 5,000 volunteers and enjoy a unique international experience - sign up and be part of the future of climate action.
The 2nd Brazilian GHG Inventory Conference, taking place on July 24, 2026, brings together experts from across the country to discuss emissions inventories, decarbonization, and climate management - a must-attend event for those working in the environmental sector. Read the press release below; registration remains open on Sympla.
Events
July
🇯🇵 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
🇨🇭8, Taking Responsibility. Navigating the New Era of Ongoing Emissions. Gold Standard.
🇨🇳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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