8th Week CCM 2026. Article 6.4 and the end of CDM; carbon credits unite Saudi Arabia and America; rules for emitters in Japan; Kenya launches registry; Bonaire in focus; IFRS; physical risk repriced
- Art Dam
- Feb 22
- 7 min read
Monday, 16 February 2026.
In recent days we've had a lot of news about carbon markets, which we bring to you in today's edition.
First of all, this week's song: Latin Power On The Rise, a Latin trap reggaeton track in Spanish and English. It presents the content of our last post in a lighter and more artistic way. Listen to the other songs too—you'll like them. And in the coming weeks, it might even be in your language, as we announced for the first time in the 7th Week of CCM 2026, as part of our creative project—complementary to the technical articles and with the same quality you already know.
And here we go to the 8th Week Carbon Credit Markets in 2026.
The carbon market had an intense week: the UN accelerated the implementation of Article 6.4, the CDM began its final shutdown, Saudi Arabia expanded partnerships in North America to establish itself as a hub for high-integrity carbon credits, Japan moved forward with mandatory rules for large emitters, and Kenya launched its National Carbon Registry.
Another highlight was the Hague Tribunal's decision obligating the Dutch government to protect Bonaire from the impacts of the climate crisis, reinforcing state responsibility in the face of growing physical risks. And the oil industry may have an interest in this decision.
In the "Shorts & Opportunities" section, the IFRS Foundation brings together essential materials to support climate disclosures under ISSB standards, and a recent study confirms that physical climate risk is already clearly priced into bank credit, increasing spreads and tightening conditions for more vulnerable companies.
We also listed events such as the Bolivia Carbon Forum, the UNFCCC Climate Weeks, and the Brazilian Climate and Carbon Conference. More details below.
Carbon Credits
UN Accelerates Implementation of New Global Carbon Market Focusing on High-Integrity Credits
A press release from the UNFCCC, published on February 20, indicates that the UN body responsible for the Paris Agreement Crediting Mechanism (PACM) has approved an accelerated plan to boost the implementation of the new global carbon market. The strategy prioritizes sectors with the highest demand and potential for climate impact, while advancing the development of more robust methodologies to ensure real and verifiable emission reductions.
The meeting also approved new technical tools, revised the transition procedures from the former Clean Development Mechanism (CDM), strengthened the accreditation system, and confirmed new leadership—including Mkhuthazi Steleki as president and Jacqui Ruesga as vice-president. With these decisions, the mechanism enters its operational phase, seeking to deliver reliable credits that offer environmental integrity and security for countries, companies, and investors.
CDM Ends 25-Year Cycle and Paves the Way for Article 6.4
The Clean Development Mechanism (CDM), created 25 years ago by the Marrakech Rules, officially ends its trajectory and marks the transition to Article 6.4 of the Paris Agreement, as Carbon Credit Markets anticipated during COP30. The UNFCCC secretariat confirms that the CDM's functions will be progressively switched off by the end of 2026, while countries and entities have only a few months to request transitions and final issuances. Parties also need to decide, still in 2026, the fate of the remaining CER credits. The transition occurs in parallel with the advancement of the implementation of Article 6.4, which will replace the CDM as the centralized mechanism for generating credits. The rules already define formal deadlines — such as the submission of transition approvals by June 2026 — and procedural adjustments to ensure consistency between new activities and migrated activities. This move consolidates the transition from a system created in the early 2000s to a new market architecture, more aligned with NDCs and enhanced environmental integrity.
Saudi Arabia and North America Expand Cooperation to Boost High-Integrity Carbon Credit Market
On February 5, 2026, during the CMF Select New York event, the Regional Voluntary Carbon Market Company (RVCMC) — a Saudi state-owned company founded in 2022 by the Public Investment Fund (80%) and the Saudi Tadawul Group (20%) to develop the voluntary carbon market and prepare for the transition to future compliance mechanisms — announced, together with the Saudi Press Agency (SPA), new strategic partnerships in North America. The agreements include exclusive partnerships with some companies ranging from the local distribution of decarbonization platforms — operational climate management tools — to the development of carbon removal projects within Saudi Arabia. The move reinforces the Kingdom's ambition to become a global hub for high-integrity carbon credits, while deepening the integration between Saudi Arabia and the United States in advancing climate finance.
Information is circulating in the market that RVCMC intends to launch a carbon compliance system by 2028, adopting a gradual strategy that leverages and expands the existing voluntary market, in a transition model that prioritizes market development first and regulation later.
The PIF is Saudi Arabia's sovereign wealth fund, created in 1971 and responsible for financing projects of strategic importance to the country's economy, while the STG oversees, manages, and develops Saudi financial markets, including the stock exchange and services related to securities and investments.
Japan Advances Carbon Trading with Mandatory Rules for Large Emitters
The Japanese cabinet approved a legislative package that establishes a mandatory carbon trading system, imposing compulsory participation on companies that emit 100,000 tons or more of CO₂ per year, an estimated group of 300 to 400 companies responsible for about 60% of national emissions. Starting in fiscal year 2027, these companies will receive annual emissions quotas, and may sell surpluses or purchase additional allowances if they exceed their limits, risking financial penalties if they still exceed them after purchases. The method for calculating quotas is being defined, while new stages of climate policy include a tax on fossil fuel importers in 2028 and the start of auctions for energy company permits in 2033. In parallel, another approved law requires that, starting in 2026, manufacturers and sellers of certain plastic products use recycled materials, reinforcing the national strategy for decarbonization and a circular economy. Final approval depends on Parliament, but the Cabinet's decision indicates high political priority and alignment between METI and the Ministry of the Environment.
Kenya Consolidates Climate Governance with Launch of National Carbon Registry.
Kenya has formally launched the Kenya National Carbon Registry, an official digital platform for registering, monitoring, and authorizing carbon projects and credits. Developed and validated by NEMA – the National Environment Management Authority (responsible for the registry) – in partnership with the Climate Change Directorate, the Kenyan government agency responsible for coordinating national climate change policy, the system, built with broad stakeholder engagement, usability testing, and institutional capacity building, reinforces market integrity by preventing double counting, ensuring alignment with Article 6 of the Paris Agreement, and consolidating the country's digital sovereignty over climate data. With over 300 active projects in sectors such as renewable energy, forestry, and agriculture, the registry centralizes previously dispersed information, increases public transparency, and strengthens investor and community confidence. Kenya now has an infrastructure that serves as a continental benchmark for high-integrity carbon markets – all this just days after making headlines for denying the continuation of Koko, a large clean cooking project, in the voluntary market.
Other Highlight
Hague Court Orders Dutch Government to Protect Bonaire from Climate Crisis Impacts
A recent ruling by the Hague Court has ordered the Dutch government to take urgent measures to protect the residents of Bonaire, a Caribbean island sinking due to climate change, as reported by Euronews and Dutch News. The ruling — compared to precedents involving Fiji and the advisory opinion of the International Court of Justice — reinforces that states have a legal obligation to protect vulnerable populations in the face of rising sea levels, coastal erosion and extreme events, a topic that gained prominence in international media during COP30.
Bonaire, which is part of the Kingdom of the Netherlands and is located just 80 km off the coast of Venezuela, practically opposite Caracas, has historical significance in the Caribbean: throughout the 20th century, it formed an important petro-industrial hub with Aruba and Curaçao, in which Curaçao housed one of the world's largest refineries, while Bonaire played strategic roles in storage, logistics, and support for the refining and transportation of Venezuelan oil—integrating a crucial energy complex for the oil trade in the region.
Shorts & Opportunities
The IFRS Foundation selects 4 publications to guide climate disclosures with the ISSB Standards.
Applying IFRS S1 when reporting only climate-related information (14 pages, January 2025)
Disclosing information about climate-related transition plans (66 pages, June 2025)
Greenhouse gas (GHG) emissions disclosure requirements (24 pages, May 2025)
Nature and social aspects of climate-related risks and opportunities (5 pages, December 2023)
The study "Physical Climate Risk and the Pricing of Bank Loans," published in the Journal of Environmental Economics and Management (Elsevier), shows that there is a hard price for physical climate risk: greater vulnerability raises spreads, tightens contractual terms, and worsens long-term ratings.
Events
🇧🇴 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
Carbon Credit Markets is an educational channel and leading media outlet in the carbon markets, member of the coalition COP Experience, with a strong digital presence and a global audience in over 100 countries. It is the number 1 website in Brazil and the 16th most influential in the world, according to FeedSpot.
