Global Environmental Markets Update - February 2026

In this issue

This update is published monthly and provides analysis of key developments in select compliance and voluntary carbon, and emerging environmental markets.

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Highlights for February

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Select regional carbon markets:

• ACCU prices softened through February amid muted market conditions, with total volumes exchanged holding broadly steady month‑on‑month, while SMC trading reached its largest monthly sum ahead of the forthcoming surrender.
• New Zealand’s carbon market rebounded strongly in February, with NZU prices rising sharply amid renewed buying interest and improved trading volumes followingmonths of weak sentiment.
• Singaporesignalled it may reassess the trajectory of its post-2027 carbon tax, withofficials indicating the rate could shift toward the lower end of theS$50–80/tCO₂-e range by 2030 if global climate ambition continues to weaken.
• In  Japan, public consultation closed on the proposed GX-ETS ahead of its planned April launch, with industry feedback highlighting uncertainty around banking rules and the role of international credits.
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Voluntary carbon market:

• The VCM continued to show a growing divide between legacy avoidance credits and projects alignedwith emerging integrity standards.
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Article 6 market:

• The Article 6.4 Methodological Expert Panel released a draft methodological tool aimed at standardising how emission reductions are calculated forbiomass-related projects.
  
  

Australian biodiversity market:

• Australia launched the first tranche of the EPBC reform package, signalling the beginning of the broader EPBC Act reforms implementation timeline.
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Sustainable Aviation Fuel credits:

• Sustainable Aviation Fuel credit retirements declined month-on-month in February, though activity remained significantly higher than the same period last year.

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This market update is produced using select data, commentary and insights as available in full to our Carbon Intelligence Package subscribers. Learn more here. ‍