Carbon markets
Overview
Carbon markets are developing as a crucial economic lever in the challenge of reversing the accumulation of greenhouse gases in the Earth’s atmosphere, while CO2 remains a key factor in a range of industrial sectors.
National governments are embracing carbon markets, with a proliferation of carbon pricing policies worldwide. The private sector is channelling finance into projects that generate carbon emissions reductions and removals to mitigate their hard-to-abate emissions.
And the United Nations is making progress in building a global marketplace for carbon emissions reductions that will facilitate nations’ attempts to meet their obligations under the Paris Agreement.
Industrial sectors remain a key source of CO2 emissions and consumption, with innovation looking towards sustainable methods of production and utilisation.
Argus is setting the stage for an extended period of growth, evolution and interconnection of carbon market participants and initiatives.
Latest carbon markets news
Browse the latest market moving news on carbon markets.
Refineries can drive South Korean green H2 use: Acwa
Refineries can drive South Korean green H2 use: Acwa
Hamburg, 29 May (Argus) — Refineries could become a main anchor for renewable hydrogen demand in South Korea, as adoption for power generation has become more uncertain, Saudi Arabian project developer Acwa said. South Korea's primary focus in recent years for use of imported clean hydrogen and ammonia has been on power generation. Changes to long-term power supply and energy security planning have altered this , but Acwa sees offtake opportunities in other sectors. "We are really trying to encourage the authorities to expand the scope beyond power generation," the firm's head of green hydrogen business development, Driss Berraho, told Argus on the sidelines of the World Hydrogen Summit in Rotterdam last week. Refineries could provide "a good avenue to initiate the market" and to "create baseload large-scale demand with limited impact on the end consumer," he said. Renewable hydrogen adoption in refineries could help scale the sector and develop infrastructure that would eventually bring down overall supply costs, Berraho said. This could support future hydrogen or ammonia use for power generation at more affordable prices, he said. In Europe, refineries are already the main demand source for renewable hydrogen. Fossil-based hydrogen can be replaced with few technical modifications, and higher costs can be spread across all fuel consumers at the pump. The EU has doubled down on this through consumption targets under its revised Renewable Energy Directive (RED III). South Korea has made plans to decarbonise refineries, but specific quotas for renewable hydrogen use and penalties are yet to be set, Berraho said. Still, Acwa has "observed that refiners are getting ready" and are "doing the groundwork to understand supply chains," he said. Acwa generally remains "convinced of the long-term potential" of northeast Asian markets, Berraho said, pointing to encouraging signs from Japan including results of a recent zero-emissions power capacity auction . Asian firms remain interested in co-investing in Saudi projects, Acwa's advisor to the chairman, Marco Arcelli, said in Rotterdam . European focus For now, Acwa sees Europe as the main offtake market, especially because of the RED III targets. German utility EnBW has joined Acwa's Saudi Yanbu project , which could produce more than 2mn t/yr of ammonia, as a partner and potential key offtaker. Acwa is also engaged in offtake conversations with other firms, including Germany's Sefe , Arcelli said. The company expects to finalise binding offtake deals for Yanbu by the end of this year or in early 2027, paving the way for a final investment decision (FID), Berraho said. On the project development side, everything should be lined up for a FID later this year, he said. Front-end engineering design work is ongoing and Acwa this week received pre-certification for Yanbu's compliance with the EU's definition of renewable fuels of non-biological origin. Outside of Saudi Arabia, where Acwa is also developing the Neom project , most plans are less advanced. Acwa is planning large renewable ammonia plants in Morocco and in Egypt , but these are in much earlier development stages, Arcelli said. In Indonesia, Acwa has teamed up with domestic firms PT PLN and Pupuk to make renewable ammonia for domestic fertilizer production. But the plans are "progressing very slowly," Arcelli said, noting that Indonesia has ample potential but that the "general framework" for development of hydrogen projects differs considerably between countries. Acwa had hoped the project "could go much faster because it would really position Indonesia as the leader in the Asia-Pacific region outside of China," Arcelli said. The company operates a 20MW electrolysis plant in Uzbekistan that supplies renewable ammonia for domestic fertilizer production. This gives Acwa "the credibility that we can fully develop green hydrogen projects on our own," Arcelli said. Another larger plant in Uzbekistan is still on the cards, but this will depend on demand and learnings from the operational project, he said. Uzbekistan stands out for renewable hydrogen and ammonia in central Asia as it has a "very unique combination of factors," Berraho said, including ample renewables potential and a very strong industrial base across refining, chemicals and heavy industry. Discussions on energy security feature strongly in the country, he said. By Stefan Krumpelmann Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Local opposition builds to Texas data centers
Local opposition builds to Texas data centers
Houston, 28 May (Argus) — A wave of local efforts to slow or block data center projects is spreading across Texas, as communities push back against the rapid expansion of facilities expected to drive the state's next surge in electricity demand. Counties and cities have in recent months proposed or enacted moratoriums, denied zoning requests and imposed new restrictions, citing concerns over water use, grid strain, noise and the industrialization of rural areas. The local-level backlash has intensified since February, striking in even heavily Republican-leaning districts. Hill County, south of Dallas-Fort Worth, approved a moratorium targeting data centers and related infrastructure, prompting a lawsuit this week from developers seeking to invalidate the measure. Van Zandt County adopted a broader "green energy" moratorium, while similar proposals in Hays and Tom Green counties have been tabled following legal concerns. Hood County commissioners narrowly rejected a comparable measure. "You have counties adopting moratoriums over the objection of their own attorneys, who are saying they don't have the authority to do this," said Tina Nguyen, a litigation partner at Baker Botts, in a webinar Thursday. At the city level, San Marcos denied a rezoning request after hours of debate focused on water availability. Harlingen imposed a temporary ban on new applications, and San Angelo adopted new setback and noise requirements. Round Rock, by contrast, approved a project despite opposition. The opposition comes as Texas has become a leading hub for data center development tied to artificial intelligence, with regulators projecting electricity demand could more than quadruple by 2032. Texas currently has about 87 operating data centers and roughly 156 planned projects, positioning the state to overtake Virginia as the largest US data center market later this decade, according to industry figures presented by Baker Botts. Growing chorus of disapproval The local resistance is spilling into statewide politics and has begun to elicit rare bipartisan agreement in some corners. Texas Agriculture Commissioner Sid Miller recently called for a temporary statewide moratorium on new data center development, warning that the rapid growth of such facilities is straining the Lone Star State's resources. The three-term commissioner endorsed by President Donald Trump lost his Republican primary in March and will not stand for re-election. The Democratic challenger in the race has also advocated for a statewide moratorium. Legal experts suggest counties may lack the authority to impose broad development moratoriums, raising the likelihood of further court challenges. Developers are increasingly seeking injunctions to block enforcement, warning that even temporary delays can disrupt financing and timelines. Uncertainty created by the disputes could stymie project development as Texas regulators move to integrate a surge of large electricity users. Under a new process being finalized by the Electric Reliability Council of Texas (ERCOT), projects must certify they have secured all required local approvals or that none are needed to qualify for accelerated interconnection. "The problem is the rule doesn't distinguish between a lawful government action and an illegal one," said Juliana Sersen, a former ERCOT attorney and partner at Baker Botts. That dynamic could leave some projects unable to meet requirements if subject to local moratoriums, even if those restrictions are later overturned, she said. By Jasmina Kelemen Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Energy security fears drive diversification spend: IEA
Energy security fears drive diversification spend: IEA
London, 28 May (Argus) — The war in the Middle East, the subsequent de facto closure of the strait of Hormuz, and resulting concerns over energy security are prompting countries and companies to invest in energy diversification and electricity, energy watchdog the IEA said today. The IEA projects that global energy investment will reach $3.4 trillion in 2026, a slight lift on the year . Of this, around $2.2 trillion is set to go to power grids, storage, "low-emissions fuels", nuclear, renewables, energy efficiency and electrification, while around $1.2 trillion is expected to be invested in fossil fuels. "We are in the midst of the largest energy security crisis the world has ever faced", IEA executive director Fatih Birol said. The war is "expected to reinforce a strong prioritisation of energy security amongst decision-makers", as well as a "renewed focus on resilience and diversification", the IEA said. "Electricity-related investment remains the dominant theme in global energy spending trends", the IEA said. Investment in electricity supply and infrastructure is set to reach nearly $1.6 trillion in 2026, and increase to $2 trillion if end-use electrification is included, the report found. "Electricity is going to make even stronger inroads in the total energy mix as a response to this crisis", Birol said. The watchdog expects renewables spending to reach around $665bn in 2026, with $365bn going just to solar power, $200bn to wind and $75bn to hydropower. The annual growth in renewables spending "has moderated", in part because of declining technology costs, but also policy changes in China and the US. But "low-emissions sources" still make up more than 70pc of global power investment, the IEA said. Investment in fossil fuel supply in 2026 is set to hit just over $1 trillion, returning it "to the 2024 level", the IEA said. Oil investment is expected to drop for a third consecutive year in 2026 to below $500bn. "Uncertainty over the duration of the price spike, long project lead times, supply chain constraints and tighter offshore rig markets are limiting near-term spending responses outside the Middle East" for oil, the IEA said. But investment in natural gas is projected to grow to $330bn, the highest in a decade, driven by new LNG export projects and demand from data centres, the report found. Coal investment is also set to rise, to the highest level since 2012, at $180bn, the IEA said. The bulk of spending, at around 70pc, is in China. Some countries in Asia "may seek to keep existing coal-fired power plants operating for longer to bolster energy security", the IEA said. But it is "too early to say" what the net emission effect of this may be, Birol said today. Investments in renewables, nuclear, energy efficiency and electrification in the past decade "have tangibly improved energy security in major fuel-importing regions and reduced emissions", saving China, the EU, Japan, South Korea, southeast Asia and India around $260bn from avoided fossil fuel imports in 2025, the IEA said. The conflict "has already sparked a search for new energy export routes to reduce excessive reliance on the strait [of Hormuz]", the IEA said. And repair bills for damage to energy infrastructure are "difficult to establish" but are "set to run into tens of billions of dollars", the organisation added. Oil companies are "recalibrating their expectations for upcoming years, on the assumption that oil prices will settle back above the pre-conflict baseline as countries replenish their inventories", the IEA said. "Trust will be an important element in the energy world", in coming months and years, as governments seek reliable energy partners, Birol said. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Australia’s Santos to pursue Papua LNG, Alaska oil
Australia’s Santos to pursue Papua LNG, Alaska oil
Sydney, 26 May (Argus) — Australian independent Santos has outlined plans to focus on its best-performing and most profitable projects, including LNG projects and its Alaska North Slope oil tenements, while slashing spending on Australian domestic gas fields. Santos will transform its Australian domestic oil and gas business to reduce capital expenditure (capex) and raise margins, chief executive Kevin Gallagher told an investor forum in Sydney on 26 May. The company will focus on production in the Moomba Central fields area in South Australia state's onshore Cooper basin, maintaining throughput at the Moomba gas plant while deprioritising other Cooper basin fields, to save $300mn in capex between 2027-30 and $150mn/year thereafter. The company will develop two profitable basins — in Alaska, where it is bringing its 80,000 b/d Pikka phase 1 oil field online, and in Papua New Guinea, where it holds equity in the proposed Papua LNG terminal which is due to reach a final investment decision (FID) in July-December this year . Santos took an FID on connecting new gas supply to the ExxonMobil-operated 6.9mn t/yr PNG LNG joint venture earlier this month. Domestic prospects The Adelaide-based firm has prioritised foreign projects in recent years, with Gallagher criticising the Australian government's position on the process for achieving offshore regulatory approvals during the Barossa pipeline court dispute. Despite this it produced first gas at the Barossa LNG project earlier this year and said it had overcome commissioning problems that paused shipments of LNG between 26 February and 21 May, with the project now at 75pc of its planned 2026 production rates and targeting plateau production in mid-2026. Santos plans to drill three appraisal wells in Australia's onshore Beetaloo shale gas subbasin from July, which it said may contain 430 tcf of undiscovered gas and could become a major source of LNG feedstock. The company's other Australian upstream target is the Bedout subbasin offshore Western Australia (WA) where it has repeatedly deferred development of the Dorado phase 1 project — which was to include a 60,000 b/d oilfield, considered to be the largest undeveloped oil project in Australia. Santos will appraise the three wells for scale in 2027. In carbon markets, the company said it would aim to achieve FID-ready status at its proposed 10mn t/yr Bayu-Undan carbon capture and storage (CCS) scheme in 2026. The initial customer would be Barossa, with 2.3mn t/yr planned for sequestration in the former gas field between Australia and East Timor. But third-party CO2 volumes would be sought to commercialise the CCS project further, Gallagher said. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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