This week, global attention shifted towards the frameworks and financing underpinning energy transition efforts. A leaked CBAM draft outlined how carbon prices will be calculated, while Germany moved to stabilise its national carbon market in response to the EU’s ETS2 delay. Meanwhile, Mexico introduced a new national climate plan, and the UK rolled out a sustainability assurance standard. Energy storage emerged as a growth hotspot, driven by data centre demand and regulatory changes. Across the renewables and fuels sector, announcements on SAF technology, battery investments, and hybrid solar parks highlighted continued momentum despite rising policy uncertainty.

Macroeconomics & Geopolitics

The EU must reduce fossil fuel consumption by 25% by 2035 to meet climate neutrality goals, according to the IEA’s World Energy Outlook 2025. While renewable energy deployment has expanded, progress in industrial electrification remains sluggish. Achieving net zero by 2050 would require tripling global renewable capacity and cutting methane emissions from the energy sector by 80% by 2035 (MTN).

In the US, the record-breaking 43-day government shutdown ended as President Trump signed a short-term spending bill. Although operations are resuming, the economic impact remains significant, with GDP growth expected to fall by 1.5 percentage points in the current quarter (BN).

UBS forecasts a “boom cycle” for global energy storage, driven by rising demand from AI data centres. Storage deployment is predicted to grow by 40% globally in 2026. The US remains a key market, while emerging economies may see the fastest expansion. Chinese manufacturers face regulatory headwinds in the US but could benefit from new capacity payment schemes domestically (R).

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Carbon Markets

Leaked EU CBAM drafts confirm that certificate prices will be based on a volume-weighted average of all EU ETS auction clearing prices. Prices will be calculated quarterly in 2026 and weekly from 2027, with a single official rate published by the European Commission (AM).

Germany will extend the price corridor for its national ETS (nEHS) to 2027, bridging the gap left by the EU’s decision to postpone ETS2 to 2028. The extension will maintain the €55–65 price range to provide stability for transport and heating fuel suppliers. The move has been welcomed by energy market stakeholders for delivering legal clarity and planning security (CP).

In the voluntary carbon market, Singapore’s NCCS, in partnership with Verra and Gold Standard, has released the final Article 6.2 Crediting Protocol. The framework enables countries to use verified credits from independent standards to meet national climate goals. It introduces processes for authorisation, reporting, and corresponding adjustments to align voluntary and compliance markets. Pilot testing is due to begin in 2026 (CP).

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Renewables & Biofuels

Statkraft has launched Germany’s first hybrid solar–battery park, combining 46.4 MW of solar PV with 16 MW of battery storage. Located in Saxony-Anhalt, the site will deliver 50,000 MWh annually and support grid stability with 57 MWh of dispatchable storage (MTN).

In Spain, biodiesel and HVO demand declined in September, although the national reserves agency has revised upwards its total 2025 demand projections. The blend rate fell to a two-year low of 5.9%, while diesel consumption continued to rise, reflecting sustained economic growth (AM).

Aether Fuels aims to bring the cost of SAF below HEFA-SPK levels using its enhanced FT technology. Singapore-based Project Beacon will convert waste gas and biomethane into SAF, with operations expected to begin in 2028. A larger facility is planned for 2030, with the long-term goal of pushing SAF closer to cost parity with fossil fuels (AM).

EDP Renewables has announced plans to invest up to $2 billion in renewable and storage projects across Asia by 2030, focusing on markets with regulatory maturity. It has exited countries with insufficient permitting clarity or bankable pricing, such as Indonesia and Thailand (BN).

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Corporate Sustainability & Regulation

The UK’s Financial Reporting Council (FRC) has published a new sustainability assurance standard aligned with international benchmarks. Known as ISSA (UK) 5000, the standard will be used voluntarily and aims to enhance the credibility of UK sustainability disclosures in anticipation of possible future mandatory reporting (ET).

The TNFD has announced it will pause technical work following confirmation that the ISSB will take over standard-setting for nature-related disclosures. TNFD will support the ISSB’s development of a formal reporting framework through 2026, with a full handover expected by 2027 (BN).

Mexico has unveiled a revised national climate plan at COP30. The plan introduces an absolute emissions cap for the first time, targeting 332–404 million tCO₂e by 2035. The updated NDC incorporates climate security and just transition principles and aligns with Mexico’s 2050 net zero target (AM).

EU member states are seeking a one-year delay to the bloc’s deforestation regulation, originally scheduled to come into effect at the end of 2025. The regulation targets imports linked to deforestation (e.g., palm oil, coffee), but concerns over administrative complexity and market readiness are prompting calls for additional time. Final decisions depend on ongoing trilogue negotiations (BN).

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Week 46 demonstrated that global climate governance is shifting from high-level pledges towards detailed implementation frameworks. From emissions pricing and sustainability reporting to project-level investments in battery storage and SAF, clarity and execution are now paramount. Yet delays to policy timelines – such as ETS2 and the EU deforestation law – highlight the need for coordinated momentum. As COP30 approaches, bridging ambition with practical, implementable tools remains the central challenge for policymakers and market participants alike.