In late 2025, the market for carbon credits based on biochar, a carbon removal method, is showing stable prices. However, behind the calm surface, many players say sentiment is weakening, which comes from fewer retirements, lower demand, and a tight supply.

A recent report by S&P Global found that in October 2025, U.S. biochar credits for delivery in 2025 stayed at around $150 per tonne of CO₂e. Credits for next year’s delivery were about $148 per tonne. This is slightly lower due to less buying activity and hopes for more supply.

Still, the drop in retirements signals weaker demand. Tech-based carbon removal retirements slipped to just 3,327 metric tons (mt) in October, down sharply from 57,417 mt in September. So, while prices held steady for now, the weak market mood raises questions about how the biochar credit market may perform in the coming months. 

However, reports from the largest open data platform on the durable CDR market, CDR.fyi paint a different picture of annual biochar contracted volume, purchases, delivered, and retired.

Turning Waste Into Value: How Biochar Works

Biochar comes from heating organic waste, such as agricultural leftovers. This happens in a low-oxygen process known as pyrolysis. Doing this locks in carbon and converts plant waste into a stable, carbon-rich material. That carbon can be stored for decades or centuries.

Biochar removes carbon instead of just avoiding emissions. So, its credits fall under the “carbon dioxide removal (CDR)” category. Over the last few years, buyers in the voluntary carbon market have shown growing interest in CDR credits.

Some traditional “emissions-avoidance” credits are criticized. They often lack permanence and strong verification.

Biochar has a co-benefit: it can boost soil health, water retention, and agricultural yields when added to soil. However, these benefits come after its main role in carbon removal.

Biochar is appealing because it’s relatively affordable compared to pricier carbon removal methods, like direct air capture. It also offers two benefits: removing carbon and improving soil health. 

Supply Chains and Demand: The Fragile Balance

Recent data by CDR.fyi points to a mixed and fragile state for the biochar carbon credit market. The key findings include:

• A 2025 market snapshot from CDR.fyi shows that from 2022 to mid-2025, around 3.04 million tonnes (Mt) of biochar carbon removal (BCR) credits were contracted. Roughly 1.6 Mt of that was purchased in the first half of 2025 alone.

• Deliveries and retirements of BCR credits have also increased. By the end of Q2 2025, around 302,000 tonnes had been retired. That’s about double the amount from previous years.

• The biochar market also saw strong yearly growth, especially from 2023 to 2024, with a 435% increase.

• Despite this, the number of active buyers remains low. A few big companies, like Microsoft, Google, and JPMorgan Chase, make most of the purchases.

On the supply side, biochar credits remain constrained. Many projects face delays in certification or in building out production capacity. Recent data shows that some biochar projects are still validating or just issuing their first credits. This limits the credits available for immediate delivery or sale.

High demand from big buyers, limited supply, and delays in new projects explain why prices remain strong. Yet, it also exposes the fragility of the market: if even a few big buyers step back, or if supply improves markedly, prices could shift.

• MUST READ: Microsoft’s Major Biochar Deal Aims to Offset 1.24M Tonnes CO2

Diversifying Revenue and Expanding Buyers

Faced with weak sentiment and supply constraints, many biochar developers are rethinking their strategies. Some are trying to expand the market beyond a few large corporations.

A broker in the S&P Global report said there’s a rising push to reach “smaller buyers.” This includes small companies and possibly individuals. This could help broaden demand, reduce concentration risk, and create a more stable base for biochar credits.

Meanwhile, developers are seeking diversified revenue streams. Many are now focusing on the actual biochar product instead of just selling carbon credits. They sell it as soil amendments, bio-fertilizers, and for other uses. This strategy can boost the “bankability” of projects. This makes them more appealing to investors. It also cuts down on reliance on the unstable credit market.

Long-term purchase agreements (offtake deals) are also becoming more common. For buyers seeking certainty, signing multi-year contracts with biochar producers ensures a steady supply.

It may also provide price advantages compared to unpredictable spot markets. That can be a win–win: producers get steady funding, buyers get a reliable supply.

These measures only partly tackle the bigger problem. The supply is still small and fragmented compared to the high demand from companies wanting to offset emissions on a large scale.

What Forecasts Say: Growth is possible, but big challenges remain

Industry analysts are cautiously optimistic about the long-term prospects of biochar carbon credits. Stratistics MRC predicts that the global biochar carbon credit market may rise from about $304.1 million in 2025 to nearly $1,847.3 million by 2032. That implies a compound annual growth rate of about 29.4%.

In another estimate, the biochar market can reach over $3 billion by 2034. That’s a more conservative projection, at a 13.5% annual growth rate.

Other forecasts, such as MSCI Carbon Markets, say demand for biochar credits might rise a lot in the next decade. This rise is fueled by corporate net-zero goals and a greater focus on lasting carbon removal.

Still, several major hurdles stand in the way of scalable growth, such as:

• Supply chain bottlenecks: Many biochar projects remain small or underfunded; building larger plants requires capital and time. Delays in certification, pyrolysis equipment supply, and feedstock sourcing continue to slow expansion.
• Market concentration: A small number of buyers still dominate demand. This means that changes in their demand — or shifts in corporate climate strategies — could strongly affect the whole market.
• Competition and price pressure: If supply grows faster than demand in the medium term, credit prices might come under pressure. Some models even anticipate short-term price compression before a rebound.
• Policy and integration challenges: Many analysts believe that biochar needs more than just voluntary credits to grow. It may need integration into compliance markets, support from government policies, or large public funding.

Implications for Buyers, Producers, and the Climate

For buyers, whether big firms or small businesses, biochar credits are a great way to offset emissions. They are durable and often more credible than traditional offsets. Plus, they can improve soil health and offer other benefits. But buyers should be aware: the current supply-demand mismatch and limited buyer base introduce risk.

For producers, biochar remains a difficult but possibly rewarding business. Diversified income streams and long-term agreements may help stabilize revenue.

For the climate, biochar represents one of the more promising carbon removal tools available today. If done carefully and combined with larger climate actions, it could help remove and store a lot of CO₂. 

A Fragile but Promising Path Forward

The biochar carbon credit market in late 2025 is at a delicate balance. Prices remain steady, thanks largely to tight supply and committed offtake deals. But weaker retirements and shrinking buyer activity hint at deeper structural challenges.

Still, signs of adaptation show promise for biochar. New buyers are emerging, business models are diversifying, and long-term contracts are forming. These changes suggest many believe biochar can grow beyond a niche solution. If the industry can fix supply bottlenecks and broaden demand beyond a few big companies, biochar could be a strong part of global carbon removal.

• READ MORE: The Biochar Gold Rush: Why Companies Are Scrambling to Lock in Carbon Credits

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TotalEnergies has committed about US$167 million to study offshore carbon capture and storage (CCS) in Brazil. The funding will support mapping and analyzing deep-sea geological formations along the Brazilian coast.

Scientists will look at deep saline reservoirs below the seabed. They seek to find out which ones can safely store carbon dioxide (CO₂) for a long time. If suitable, these reservoirs could host large-scale offshore CO₂ storage projects in the future.

This investment comes as Brazil works on developing regulations for CCS. Scientific studies will help regulators, investors, and companies identify safe storage sites and reduce project risks. TotalEnergies shows trust in Brazil’s ability to be a carbon storage hub. This may draw more investment to the country.

TotalEnergies’ Global CCS Initiatives

TotalEnergies is also active in CCS projects worldwide, using international experience to support its work in Brazil. Key examples include:

• Northern Lights (Norway): Phase 1 operations started summer of 2025 with a capacity of 1.5 million tons of CO₂ per year, aiming to expand to 5 million tons by 2028.

• Aramis (Netherlands): Planned to store CO₂ captured from industrial sources under the North Sea, building experience in transport and injection technologies.

• North Sea Projects (Europe): TotalEnergies plans to repurpose depleted oil and gas fields for CO₂ storage. This could help hard-to-decarbonize industries reduce emissions.

By 2030, TotalEnergies aims to offer more than 10 million tons of CO₂ storage per year globally. The knowledge from these projects—on capture, transport, injection, monitoring, and safety—can help speed up Brazil’s CCS development.

Why Offshore Storage Makes Sense for Brazil

Brazil has deep offshore basins with geology well-suited for CO₂ injection. These deep saline reservoirs lie beneath thick rock layers that act as natural seals, trapping CO₂ for centuries. Offshore storage offers advantages over building new land-based facilities, including:

• Existing oil and gas infrastructure, such as wells and pipelines, can be adapted for CO₂ injection.

• Deployment can be quicker and cheaper. New land-based storage sites need a lot of construction.

• Offshore storage reduces competition for land and avoids densely populated areas.

For a country with big offshore oil operations, using current offshore geology makes sense both technically and economically. It also provides a pathway to reduce emissions from energy and industrial production.

Moreover, CCS can earn carbon credits by reliably removing or stopping CO₂ emissions from getting into the atmosphere. Each tonne of CO₂ stored in geological formations or offshore reservoirs can be measured and certified.

This allows companies or governments to earn tradable carbon credits. These credits can be sold or used to offset emissions. This creates a financial incentive to boost carbon storage projects. It also helps with wider climate change efforts.

• SEE MORE: World’s First Commercial CCS Plant Owned by Shell, Equinor, and TotalEnergies Injects CO2 in North Sea

Brazil’s CCS Market Potential and Economic Impact

Currently, Brazil’s CCS market is small but growing. In 2024, the market value was estimated at roughly US$99.6 million. By 2030, it could rise to around US$155.1 million, with an average growth rate of 7.5% per year, per market research.

Brazil could capture and store hundreds of millions of tons of CO₂ each year. This is possible if industries use CCS and create suitable storage sites.

Blending offshore and onshore storage with industrial emissions capture, plus bioenergy with carbon capture, could form a complete CCS industry. This could create billions in yearly economic value. It includes infrastructure development, monitoring services, and new jobs.

CCS Already Operating in Brazil

Brazil is not starting from scratch. Petrobras, the state-owned oil and gas company, operates one of the world’s largest offshore carbon storage programs. From 2008 to 2024, Petrobras injected about 67.9 million tons of CO₂ into deep-sea pre-salt reservoirs. In 2024 alone, the company reinjected 14.2 million tons, setting a new annual record.

Petrobras separates CO₂ from extracted gas using floating production, storage, and offloading vessels in ultra-deepwater. CO₂ is then reinjected into offshore reservoirs. This process boosts oil recovery and cuts emissions from production.

Some pre-salt oil fields now produce oil with lower emissions per barrel than the global offshore average, according to an S&P Global study. This existing track record shows that offshore CCS in Brazil is operational at a large scale.

Industries like cement and steel are looking into CCS technologies. These could cut greenhouse gas emissions by up to 57% in heavy industry.

What TotalEnergies’ Investment Brings

TotalEnergies’ funding plays several key roles:

First is scientific research. Mapping geology and testing reservoirs reduces uncertainty and risks for large-scale CCS projects.

Second is market confidence. Investment by a major energy company signals that Brazil could become a CCS hub, attracting more companies and investors.

Third is industry development. If offshore and onshore CCS grow together, Brazil can create a strong carbon-management industry. This would mix industrial capture, bioenergy, and storage.

Last is climate impact. CCS helps sectors that find it hard to cut emissions, such as heavy industry and fossil fuel extraction, reduce their CO₂ output.

TotalEnergies’ investment can boost Brazil’s climate strategy. It supports scientific research and industrial adoption that could lead to safe, scalable CCS capacity.

Challenges for Scaling CCS in Brazil

Despite its potential, scaling CCS in Brazil faces several hurdles, such as:

• Cost: Building offshore infrastructure, drilling injection wells, and installing CO₂-handling systems require large investments.

• Regulation: Clear laws and oversight are essential. CCS operations need rules for site approval, environmental safety, monitoring CO₂ over decades, and liability if leaks occur.

• Demand: CCS depends on enough CO₂ emitters—such as factories, refineries, and power plants—willing to pay for capture and storage. Without sufficient demand, storage sites and pipelines may remain underused.

• Public Trust: Communities need assurance that CO₂ storage is safe over the long term. Transparency, monitoring, and clear liability are critical.

• Scope Limits: CCS reduces emissions at the point of capture but does not prevent CO₂ released when fossil fuels are later burned. CCS complements, but does not replace, the need for cleaner energy and reduced fossil-fuel use.

Addressing these challenges will determine whether Brazil can achieve large-scale CCS adoption and unlock its full potential.

What to Watch: Future CCS Growth and Policy Developments

In the next few years, several key changes will shape how carbon capture and storage grow in Brazil. First, TotalEnergies’ geological studies will identify safe offshore locations for burying CO₂. This will help find the best storage sites.

Clear government rules will be important. They will guide how to approve sites, monitor stored CO₂, and certify carbon credits. This will help build trust with investors and protect the environment. More industries, like power plants, oil refineries, cement factories, and bioenergy plants, will begin using CCS. This will increase the demand for new setups.

Brazil will expand its infrastructure to keep up with rising demand. This includes building more pipelines, injection wells, storage centers, and monitoring tools. These steps, backed by companies like Petrobras investing billions, position Brazil as a leader in Latin American CCS.

If these factors align, Brazil could establish a major carbon storage industry. This would reduce national greenhouse gas emissions and create a new economic sector, while using existing expertise from Petrobras and global CCS developments.

• READ MORE: Global Investment in CCS Surges Toward $80 Billion as Climate Goals Drive Demand

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Artificial intelligence is transforming the world, and its impact on energy is growing faster than anticipated. Over the past few years, tech companies have invested huge amounts of money into new data centres to train and run advanced AI models. These facilities are now significant energy consumers, and their rapid expansion is prompting governments and utilities to reassess grid planning, supply choices, and long-term energy strategies.

IEA’s 2025 World Energy Outlook has pointed out that AI’s influence on energy is not just about higher demand. AI is also becoming a powerful tool for boosting efficiency, cutting waste, and speeding up clean energy innovation. The next decade will show how well countries balance these two sides of the AI-energy equation.

Let’s dive deeper into this.

AI’s Rising Footprint: Data Centres Double Their Electricity Use by 2030

The world is building data centres at record speed. In 2025 alone, global investment in data centres is expected to hit USD 580 billion—surpassing the USD 540 billion going into oil supply that same year. This simple comparison shows how digital the global economy has become.

AI-optimised servers use far more power than traditional equipment. According to recent analysis, electricity use from these servers could increase fivefold by 2030, driven by soaring demand for AI applications.

• As a result, total data centre electricity consumption is set to double by the end of the decade.

Even with such rapid growth, data centres will still make up less than 10% of global electricity demand growth between 2024 and 2030. Other areas—such as industry, electric vehicles, and cooling—will drive more absolute growth. Still, the speed of data centre expansion creates pressure on regional grids, especially in the United States, where AI and cloud computing are scaling the fastest.

The Power Side Story: Where Will All This Electricity Come From?

As data centres multiply, the energy system must adapt. Most facilities rely on grid electricity, so their carbon footprint depends on the mix of power available where they operate.

Renewables lead the growth.

Between now and 2035, renewable energy will supply around 45% of the new electricity demand from data centres in many outlook scenarios. Wind and solar continue to dominate additions because they are cheap, scalable, and widely supported by policy.

Natural gas also plays a big role

In regions like the United States and the Middle East, natural gas remains a key backup to meet rising AI-driven loads. Gas-fired generation for data centres could grow by 220–285 TWh by 2035. But a surge in orders for new gas turbines is stretching supply chains, making equipment more expensive and slower to deliver.

Nuclear power is back in the conversation.

Tech companies are showing new interest in nuclear energy to power high-demand AI clusters. Several firms and utilities have announced deals to extend the life of existing reactors. The world also saw the first power-purchase agreement between a data centre and an SMR (small modular reactor)—a sign that nuclear could become a steady baseload option for AI operations.

• READ MORE: Wired for Change: AI, Energy, and the Decarbonization Dilemma • Carbon Credits

A Geographic Tilt: The U.S., China, and Europe Dominate AI-Driven Power Demand

Data centres are not spread evenly across the world. The United States, China, and Europe make up 82% of global capacity, and they will host over 85% of new builds in the coming years.

But their impact on electricity demand differs sharply:

• United States: Data centres account for nearly half of the country’s electricity demand growth through 2030. This is the highest share globally.
• China and the European Union: Data centres contribute 6–10% of demand growth. Their energy systems are larger and more diverse, so AI plays a smaller role in shaping overall consumption trends.

A closer look at the project pipeline reveals even more pressure points:

• More than half of the upcoming data centres sit within or near cities with over 1 million people, where grids are already stressed.
• 55% of new data centres exceed 200 MW—each one consuming as much energy as 200,000 households once operational.
• Nearly two-thirds of new construction is happening in existing high-density clusters, increasing the risk of local grid congestion.

• FURTHER READING: Green AI Explained: Fueling Innovation with a Smaller Carbon Footprint

Beyond Demand: AI Could Cut Global Energy Use by Boosting Efficiency

AI’s story in energy is not only about higher consumption. It also offers major efficiency gains across sectors.

When deployed widely, AI systems can optimise manufacturing, improve logistics, manage transportation flows, detect energy waste, and improve industrial process controls. Analysts suggest that broad adoption of AI-enabled solutions could deliver 3–10% efficiency gains across transport and industry by 2035.

This would translate into 13.5 exajoules of energy savings—slightly more than the entire energy consumption of Indonesia today. Such savings would support national efficiency targets and help reduce emissions at a time when every region is under pressure to accelerate climate action.

However, several challenges stand in the way:

• Many industries lack high-quality datasets needed for advanced AI optimisation.
• Digital infrastructure is uneven, especially in developing countries.
• Concerns around privacy, regulation, and cybersecurity slow deployment.
• Some AI-driven improvements may create rebound effects, such as more automated car use, reducing public transport ridership.

AI is reshaping the energy system by driving rapid growth in electricity demand while also offering powerful tools to improve efficiency and accelerate clean-tech innovation. Data centres are expanding faster than many grids can handle, pushing regions to invest in renewables, natural gas, and nuclear power.

Yet AI’s real value lies in its ability to cut waste and make energy systems smarter—if supported by strong data, robust digital infrastructure, and sound regulation. AI is not a magic solution, but with thoughtful planning and investment, it can become a major force in building a cleaner, more resilient global energy future.

• READ MORE: AI’s Energy Hunger: Data Centers Set to Use Power Equal to Japan’s by 2035

The post Energy’s Biggest Consumer and Greatest Savior: The Two Faces of AI in Energy appeared first on Carbon Credits.

Canada is at a key moment in its fight against climate change. Carbon pricing has been the central tool used to cut emissions, but recent policy changes and differences across provinces have created uncertainty.

This article examines how Canada’s carbon pricing system works now. It covers expert concerns and what the key federal review in 2026 might mean for both industry and the country’s journey toward a lower-carbon future.

How Canada Prices Pollution

Canada uses carbon pricing to encourage companies and people to cut greenhouse gas (GHG) emissions. Under that system, there are two main parts.

For ordinary people and small businesses, there used to be a “fuel charge” or carbon tax on fossil fuels. For large industrial emitters, there is a program called the Output-Based Pricing System (OBPS).

Under the OBPS, factories or facilities that produce a lot of emissions get a limit based on how much they produce. If they emit more than their limit, they must pay; if they emit less, they earn credits that they can sell or use later.

This approach aims to reduce carbon pollution while trying to protect industries that compete globally. The goal is to cancel out the risk that companies might move to other countries with weaker climate rules.

From Gas Pumps to Smokestacks: A Major Policy Shift

In 2025, the federal government made important changes. It removed the “consumer-facing” carbon tax — the fuel charge — effective April 1, 2025. This means people pay no extra carbon tax when buying gasoline or heating fuel.

Instead, the focus shifted more clearly onto industrial carbon pricing. The government said it would review the carbon pricing “benchmark” in 2026. This review could change how industrial carbon pricing operates.

A recent analysis by ClearBlue Markets shows that Canada’s carbon pricing for industry is now fragmented. Fragmentation has caused uncertainty. This is a problem for companies that need stable cost signals before they invest in cleaner technology.

The ClearBlue report stated:

“The federal benchmark review will therefore trigger extensive engagement between the federal government and the provinces, aimed at aligning key benchmark elements such as coverage, pricing stringency, and competitiveness protections. Negotiations are likely to be complex and politically charged, particularly with provinces like Alberta and Saskatchewan, which have already taken strong positions. These types of unilateral decisions reflect ongoing tensions and highlight the difficulty of achieving a truly aligned national approach.”

Carbon pricing today: A patchwork across Canada

Because Canada is large and its provinces have different rules, carbon pricing for industry is not the same everywhere. ClearBlue Markets shows that credit prices—what companies pay or earn—vary a lot by province or system.

Here are specific examples:

In Alberta, the Environmental Monitoring, Evaluation and Reporting Agency has seen a big drop in credits under its Technology Innovation and Emissions Reduction Program (TIER). Despite a compliance price of CAD 95 per tonne, market credits trade at around CAD 18 per tonne. This shows a credit surplus and weak demand.

In British Columbia (B.C.), the new B.C. Output-Based Pricing System (B.C. OBPS) began to be applied recently. Credits are trading at about CAD 65 per tonne, a discount compared with the regulatory level of CAD 80.

In Ontario, the Emissions Performance Standards (EPS) system governs industrial emissions. Because the program does not allow offset credits, supply is tighter — units (EPUs) recently traded at around CAD 72 per tonne.

In areas where the federal OBPS still applies, like some territories and small provinces, cheap carbon offset credits from Alberta’s TIER have lowered prices. Now, they can be as low as about CAD 37.50 per tonne.

The true cost of carbon emissions differs greatly by industry and province. The federal government aims to raise the carbon price to CAD 170 per tonne by 2030 for direct pricing systems.

• SEE MORE: Mark Carney’s Climate Strategy: Balancing Carbon Policy, Trade, and Energy Security

The 2026 Showdown: Can Canada Fix Its Carbon Market?

The upcoming review of the federal benchmark is seen as a turning point. It could lead to stronger, more aligned carbon pricing across all provinces. As ClearBlue Markets notes, the review may address issues such as:

• Align different provincial systems under a common design. This way, credits and compliance will act more alike.
• Improving transparency in reporting credit inventories, trades, and emission reductions.
• Possibly introducing a “floor price” — a minimum cost for carbon credits — to avoid extreme price drops like those seen in some programs.
• Setting a long-term carbon price path past 2030 helps industries plan investments more clearly. This is especially important for clean technologies.

All of these could make carbon pricing more predictable and effective. If the review doesn’t meet expectations, patchwork and uncertainty may persist. This could weaken the carbon price signal and confuse investment in clean technology.

This patchwork of provincial and federal carbon pricing programs has created a corresponding patchwork of compliance offset markets. The image below shows how these offset markets are distributed across Canada.

Global Pressure Is Rising: Europe Could Hit Canada with Carbon Tariffs

One major external risk comes from the global trade environment. Starting in 2026, the European Union’s Carbon Border Adjustment Mechanism (CBAM) will impact imports based on their carbon emissions.

For Canadian exporters, this raises a key question:

• Will EU authorities accept the compliance credits or offsets generated under Canada’s various carbon pricing systems as evidence of “carbon price paid”?

If not, Canadian exports might face extra tariffs. This could double the carbon cost or hurt competitiveness.

This makes it even more important for Canada to standardize and strengthen its carbon pricing framework before 2026. This is to ensure that its pricing and credits are recognized internationally. Otherwise, Canadian industries like steel, aluminum, and cement might find it hard to compete. This is especially true in markets with strict climate-related import rules.

Strengths and Challenges of Canada’s Carbon Pricing

Carbon pricing works to link environmental costs with economic decision-making. For large emitters, it encourages improved efficiency. Carbon pricing revenue, especially from the OBPS, can fund clean energy projects. It also supports carbon capture and investments in low-carbon infrastructure.

A recent evaluation by the government highlights that industrial carbon pricing helps reduce emissions with minimal impact on households.

But there are major challenges too. The system varies by province, so many industries might have low carbon costs. This means there is little motivation for real change.

A 2022 report from the Office of the Auditor General of Canada (OAG) found that weak rules in provincial large-emitter programs lower the impact of carbon pricing. Also, the unclear use of carbon revenues and the long-term price outlook have made some firms hesitant to invest in cleaner technologies.

The Stakes: Canada’s Climate Credibility and Industrial Future

The 2026 benchmark review could reshape Canada’s carbon pricing for decades. Key signs to watch are:

• Whether the government sets a new, clear carbon price path beyond 2030 — possibly up to 2050, that would give firms confidence to invest in long-term clean solutions.
• Whether provincial carbon pricing systems become more harmonized. This means similar rules, credit prices, and transparency everywhere.
• Introducing a price floor or other methods can help prevent deeply discounted carbon credits. This ensures a strong carbon price signal.
• Will Canadian industrial credits and compliance be set up to gain recognition under global systems like CBAM? This could help keep Canadian exports competitive.

Canada’s carbon pricing, especially for industry, is at a crossroads. The removal of the consumer carbon tax in 2025 reflects a shift toward focusing on industrial emissions. Meanwhile, the upcoming 2026 benchmark review offers a chance to make this system stronger, fairer, and more predictable.

However, much depends on political and regulatory will. Without clear pricing, rules, and long-term certainty, the carbon price might be too weak. This puts Canada’s climate goals and global competitiveness at risk. But if the government and provinces act quickly, carbon pricing can help Canada shift to a low-carbon economy while also keeping industries competitive.

• MUST READ: Canada Goes Nuclear Again: This Time It’s a C$3 Billion Bet on SMR

The post Canada’s Carbon Pricing Reset in 2026: Will Industry Step Up or Stall Climate Progress? appeared first on Carbon Credits.