7th Week CCM 2026. Article 6 & MCUs; Netherlands subsidizes CDRs; Brazil in ICAP; McKinsey sees optimism; EU & China +renewables; US +emissions; EU & agricultural carbon; Indonesia ahead; CAR Brazil
- Art Dam
- 2 hours ago
- 7 min read
Monday, 16 February 2026.
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And here we are at week 7 of Carbon Credit Markets in 2026.
Latin America and the Caribbean are advancing climate action by strengthening domestic instruments such as MCUs, while international initiatives—such as the Dutch subsidy for carbon removal technologies and Brazil's entry into ICAP—are expanding innovation, cooperation, and capacity to develop robust carbon markets and raise mitigation ambitions.
The global climate scenario shows important progress, with McKinsey highlighting new pragmatic reasons for optimism: strengthened emissions monitoring, the European Union reaching 47.5% renewable electricity, China adding 543 GW of energy capacity, and, in contrast, the United States registering a 2.4% increase in greenhouse gas emissions in 2025.
The European Union is advancing in carbon agriculture certification by consulting methodologies for agroforestry, soil management, peatland rewetting, and tree planting, while Indonesia strengthens its sustainable taxonomy (TKBI) and a growing carbon market that has already moved 1.81 million tCO₂e; in Brazil, the CAR (Rural Environmental Registry) continues to expand, but faces low validation and land tenure risks, highlighting persistent structural challenges.
Events, including the UNFCCC Climate Weeks and the Brazilian Climate and Carbon Conference, are all worth mentioning. More details below.
Carbon Credits
Article 6.4 — What are MCUs and why do they matter for Latin America and the Caribbean?
A factsheet published by Acción Climática LAC and the UNEP LAC-6 program explains that Mitigation Contribution Units (MCUs) are emission reductions or removals generated under Article 6.4 that are not authorized for international transfer, remaining in the host country to strengthen its own NDCs. The document highlights that MCUs play a strategic role by allowing governments to choose between authorizing or withholding units, influencing corresponding adjustments, access to results-based climate finance, development of domestic carbon pricing instruments, and engagement with national voluntary buyers. For the LAC region, where institutional capacity and environmental integrity are essential, MCUs offer flexibility to expand domestic ambition without closing doors to international markets, as well as supporting the construction of monitoring, reporting, and verification systems. The publication also emphasizes the role of the Regional Collaboration Centres in preparing countries to implement this instrument.
Netherlands Launches Unprecedented Subsidy for Carbon Removal
The Netherlands has created a pioneering €10 million subsidy to boost permanent CO₂ removal (CDR) technologies, funding up to €4 million per project within the MOOI (Missiegedreven Onderzoek, Ontwikkeling en Innovatie) program. The focus includes direct air capture (DAC) — such as that developed by the startup Carbyon — carbon mineralization — already explored by the company Paebbl — and biogenic CO₂ capture for use in durable materials. The initiative requires research consortia and companies and seeks to accelerate solutions capable of supporting the European goal of climate neutrality by 2050.
Brazil Becomes the 36th Member of ICAP and Reinforces Commitment to Carbon Markets
Brazil has become the 36th member of the International Carbon Action Partnership (ICAP), a global initiative that since 2007 has brought together governments committed to developing and improving emissions trading systems (ETS), promoting technical cooperation, exchange of experiences and alignment of best practices. The membership strengthens the advancement of the Brazilian Emissions Trading System (SBCE) and expands the country's access to an international network dedicated to improving climate policies, carbon pricing and emission reduction instruments. ICAP is recognized for supporting the implementation of ETS around the world, offering analysis, capacity building and spaces for dialogue between jurisdictions, which makes its participation strategic for Brazil in the context of energy transition, international competitiveness and consolidation of robust carbon markets. It is also worth noting that ICAP and the European Commission recently launched a new multi-year program, funded by the European Union, to strengthen emissions trading systems (ETS) around the world.
Other Highlights
New McKinsey report points to pragmatic reasons for climate optimism
The report highlights that the traditional logic based solely on climate targets no longer sustains the pace of transformation, but economic and strategic factors now reinforce progress, such as the fact that 91% of new renewable projects in 2024 are already cheaper than fossil fuel alternatives, in addition to governments treating climate as an industrial policy and energy security. McKinsey argues that these new "whys" — competitiveness, cost reduction, resilience and capital attraction — are driving the transition even in a more complex global scenario, creating incentives capable of maintaining climate progress regardless of multilateral negotiations or the exact warming trajectory.
Global Monitoring Reinforces Progress in Emissions Reduction
Global greenhouse gas emissions are increasingly well understood, thanks to more comprehensive data that allow countries to identify where to reduce impacts and advance effective climate strategies. Detailed monitoring of CO₂, methane, and other gases strengthens the global capacity to act, showing that many sectors and regions are already beginning to decouple economic growth and emissions. Read more in “Greenhouse gas emissions” - Hannah Ritchie, Pablo Rosado, and Max Roser (2020) - published online by OurWorldinData.org and updated on January 30, 2026.
European Union reaches almost 50% renewable electricity in 2024
According to Eurostat, in 2024, renewable sources accounted for 47.5% of the European Union's gross electricity consumption, an increase of 2.1 percentage points compared to 2023 and almost triple the figure recorded in 2004. The progress reflects the continued expansion of wind, hydroelectric and solar power, consolidating renewables as a central pillar of the European energy transition.
China surges ahead in the global energy race
China is experiencing an unprecedented energy race, having added 543 GW of new capacity in the last year alone, more than the entire US electrical grid has accumulated since 2021, according to China's National Energy Administration (NEA). This advance — driven by solar, wind, hydroelectric and nuclear power — strengthens its position in high-energy-demand sectors such as artificial intelligence, robotics, advanced manufacturing and energy storage. Also worth reading is the MIT Technology Review article, “China’s energy dominance in three charts”.
Preliminary data for 2025 on US greenhouse gas emissions
US greenhouse gas emissions will grow 2.4% in 2025, outpacing the economy and reversing two years of decline, according to preliminary estimates from the Rhodium Group. Read more at the source.
Shorts & Opportunities
Comment on European methodologies for certifying carbon agriculture
The European Commission has opened a public consultation on methodologies associated with carbon agriculture practices. According to the official page, the consultation covers methodologies for:
agroforestry and soil management in agricultural areas with mineral soils, including the enhanced use of fertilizers
peatland restoration through rewetting
tree planting
Contributions can be submitted until February 19, 2026.
Indonesia Sustainable Finance Taxonomy and Carbon Exchange
Indonesia has just launched TKBI, its Sustainable Finance Taxonomy, highlighting the Indonesian Financial Services Authority's (OJK) commitment to sustainable finance and achieving the emissions targets of that important country. Additionally, it reports that from its launch on September 26, 2023, to December 30, 2025, the carbon trading platform registered 150 users. In December 2025, the transaction volume increased by 190,264 tCO2e, raising the accumulated volume to 1,811,933 tCO2e, with a total transaction value of IDR 87 billion Indonesian rupiahs (equiv. US$ 5.5 million).
Progress in Brazil's Rural Environmental Registry Contrasts with Low Validation and Persistent Land Tenure Risks
The latest data from the Termômetro do Código Florestal shows that Brazil has reached 436.9 million hectares registered in the CAR (Rural Environmental Registry), compared to 428.9 million in the previous update. Even so, approximately 24.6 million hectares remain outside the system, equivalent to 5.32% of the area that should be registered. Added to this is the fact that the analysis of registrations by state environmental agencies remains slow, which increases the risk of inconsistencies, overlaps, and land tenure conflicts. Don't forget that with regard to this type of risk in Brazil, our partner Busca Global is here to help you.
Events
🇩🇪 February 16 - 20, Supervisory Body's 20th meeting (SBM 020), Bonn, Germany
🇪🇺 February 17, ABC of EU climate policy: why it matters and how it works. Online webinar.
🇧🇴 March 5, Bolivia Carbon Forum, Santa Cruz, Bolivia
🇵🇾 March 25 & 26, Paraguay Carbon Forum, Asunción, Paraguay
🇨🇴🇳🇱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.
🇵🇪 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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