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33rd week CCM 2026. Carbon Capture. Brazil, Germany and EU innovate; ITMOs, carbon markets, and derivatives make significant strides in Asia-Pacific; strategic value of CBAM; marine CO₂ removal
- Art Dam
- 2 hours ago
- 6 min read
Monday, 17 August 2026.
33rd Week Carbon Credit Markets in 2026.
If you’d like, you can read the article while listening to any Carbon Credit Markets tracks.
Carbon credits are scaling up further as Hong Kong advances as a super-connector between Chinese and international markets - creating robust infrastructure for derivatives - while Brazil launches an operational framework for CCS/CCUS that integrates geological reservoirs into the regulated market, enabling the accounting of permanent removals within the SBCE and structuring industrial hubs with long-term monitoring.
Other highlights showcase Europe's progress in carbon removal and industrial decarbonization, with Germany driving DACCS, CCS/CCU, and hydrogen initiatives, while the European Union launches €5 billion in carbon contracts for difference to cut emissions by 50% within four years and 85% within fifteen; meanwhile, marine CO₂ removal (mCDR) is gaining traction as a promising technology that relies on robust governance, rigorous science, and environmental safeguards to ensure safe ocean innovation.
Briefs and Opportunities highlight the dynamism of carbon markets, with Mongolia and Palau executing their first ITMO transfers via the JCM after issuing 214,040 tCO₂e and 194 tCO₂e, respectively; Indonesia’s market continues to expand, with 1.98 million tCO₂e traded since 2023 - totaling IDR 93.89 billion - under OJK supervision; and McKinsey highlights that the CBAM can transform compliance into value creation by leveraging verified emissions data as a competitive advantage.
In addition to a list of relevant events.
Carbon Credits
Hong Kong and China advance as a global hub for carbon credit derivatives
On August 5, 2026, FOW - a portal specializing in futures markets and financial infrastructure - published an analysis highlighting Hong Kong’s potential role as a “super-connector” between China’s carbon credit markets and the rest of the world. The article explains that the city could integrate onshore and offshore markets, supported by the expansion of China’s national ETS, the 2024 relaunch of the voluntary offset market, and international regulatory pressures such as the European Carbon Border Adjustment Mechanism. According to the text, “Hong Kong has the opportunity to play a key role as the ‘super connector’ between Chinese and global commodity markets.” AEX Holdings has tested carbon forward trading simulations, aiming to create transparent infrastructure featuring international practices and centralized clearing, although attracting liquidity remains a major challenge. The prevailing view is that Hong Kong could eventually operate a carbon derivatives system capable of connecting global investors to the world’s largest emissions market. We thank Jeff Huang, founder and chief executive of AEX Holdings for sharing this article with Carbon Credit Markets.
Brazil launches an operational framework for CCS and CCUS and integrates geological reservoirs into the carbon market
Decree No. 13.095/2026 establishes the operational foundation for Carbon Capture and Storage (CCS) and Carbon Capture, Utilization, and Storage (CCUS) projects in Brazil, defining how captured CO₂ will be transported via pipelines and injected into geological reservoirs in compliance with international standards regarding integrity, permanence, and monitoring. The National Agency of Petroleum, Natural Gas and Biofuels (ANP) assumes technical oversight of the entire cycle, evaluating pressure front evolution, storage block capacity, and long-term geological behavior models—responsibilities that may span two to five decades until reservoir stability is confirmed. The decree recognizes technological pathways such as BECCS (Bioenergy with CCS), BECCUS (Bioenergy with CCUS), DACCS (Direct Air Capture with Storage), and DACCUS (Direct Air Capture with Utilization and Storage), and integrates geological storage into the carbon market, allowing reductions and removals to be accounted for within the Brazilian Emissions Trading System (SBCE), provided there is a guaranteed minimum permanence of fifty years or irreversible mineral trapping. The policy encourages the formation of multi-user hubs featuring shared infrastructure and the potential repurposing of gas pipelines, thereby creating economies of scale for industrial capture clusters. Long-term liability remains with the operator even after decommissioning and post-injection monitoring, necessitating robust risk management models, financial guarantees, and structured contracts to support obligations that span generations.
Others Highlights
European Union and Germany Advance Carbon Removal and Industrial Decarbonization
Germany has brought together 180 experts to accelerate carbon removal technologies - such as DACCS, CCS, CCU, hydrogen, and electrification - which are essential for offsetting residual emissions and achieving climate neutrality by 2045. Concurrently, the EU approved a €5 billion scheme to support industrial sectors in replacing fossil fuels with low-carbon alternatives, mandating emission reductions of 50% within four years and 85% within 15 years, in accordance with the requirement: “Projects must deliver substantial emission reductions, including at least 50% within four years and 85% by the end of the contract period in 15 years.” Support will be provided through "carbon contracts for difference," covering only additional costs and requiring repayment once clean technologies become more cost-effective. Sectors such as steel, chemicals, cement, glass, and paper will be prioritized within the EU ETS framework. The Commission concluded that the scheme is necessary and proportionate, maintains fair competition, and reinforces Europe's energy transition, as highlighted by Teresa Ribera: “This scheme will help deliver substantial emissions reductions in key sectors, using public support in a targeted and proportionate way.”
Marine CO₂ Removal Advances as a Technology, Amid Calls for Governance and Scientific Safeguards
A World Economic Forum report positions marine carbon dioxide removal (mCDR) as a high-potential frontier sector capable of contributing significantly to ocean regeneration and global climate goals, provided it is integrated into a Regenerative Blue Economy grounded in planetary boundaries and equitable prosperity. The document emphasizes that the advancement of mCDR requires robust governance, rigorous scientific standards, transparent monitoring, and continuous assessment of ecological impacts to ensure that new technologies do not exacerbate risks such as acidification, biodiversity loss, or the displacement of coastal communities. Within the framework of four systemic levers - integrated governance, innovative finance, human capacity building, and technology/AI - mCDR is presented as a strategic opportunity that can only thrive through strong regulation, social responsibility, and independent science, reinforcing that marine regeneration relies as much on innovation as it does on well-defined environmental and social safeguards.
Briefs & Opportunities
Mongolia and Palau have made significant strides regarding Article 6.2, each executing their first international transfers of ITMOs through the Joint Crediting Mechanism (JCM), a bilateral cooperation model established by the Japanese government to support emission-reduction projects in partner countries. Mongolia issued 214,040 tCO₂e and Palau transferred 194 tCO₂e. Such transactions are only possible following the submission of their respective Initial Reports to the UNFCCC, reports developed with technical support from the A6IP Center, thereby strengthening cooperation on carbon markets and the expansion of renewable energy.
Indonesia’s Carbon Market Continues to Expand, OJK Reports
On August 4, 2026, the Otoritas Jasa Keuangan (OJK) - Indonesia’s financial system supervisory authority - released its monthly report highlighting the evolution of the carbon credit market. Since the launch of the Indonesia Carbon Exchange on September 26, 2023, the country has recorded a trading volume of 1.98 million tCO₂e, generating IDR 93.89 billion in value, with 155 registered users on the platform. According to the document, “cumulative trading volume reached 1.98 million tCO2e, with a total transaction value of IDR93.89 billion.” The publication reinforces the OJK’s role in regulating and expanding the carbon market, aligning with national decarbonization policies and the strengthening of the country's financial infrastructure.
In the article “CBAM: How companies can build from compliance to value creation” published in July 2026, McKinsey demonstrates how CBAM can transform mere regulatory compliance into genuine value creation, highlighting the strategic role of verified emissions data—an essential read for anyone wishing to understand how this shift can redefine costs, competitiveness, and business decisions.
Events
August
🇧🇷 27 - 28, Brazilian Climate and Carbon Conference, Brazil NBS Alliance.
September
🇲🇽 2 - 3, México Carbon Forum. Aguascalientes, Mexico.
🇨🇭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.
📅 07 - 08, Congress SAE BRASIL 2026, Pavilhão da Bienal – Parque Ibirapuera, São Paulo, Brazil
🇦🇺 20 - 21, Australasian Emission Reduction Summit, Adelaide, Australia
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