The first trading week of 2026 opened with geopolitical turbulence and continued regulatory movement across energy, carbon, and sustainability markets. Oil markets responded to uncertainty around Venezuela’s leadership, while regulators in the EU and China advanced efforts in plastic recycling and climate reporting. Carbon pricing and border adjustment concerns remained front of mind for refiners and policymakers alike. Meanwhile, renewables and biofuels saw strong momentum despite lingering policy and market consolidation in the UK and Norway. Here's what mattered this week:

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Macro and Others

Oil Swings as Traders Weigh Venezuela Future After Maduro Ouster

Markets reacted to the abrupt capture of Venezuelan President Nicolás Maduro, as oil prices swung before stabilising. Brent held around $61 and WTI at $57, with analysts noting that Venezuela’s current output of 800,000 barrels per day remains a marginal portion of global supply. The broader sentiment pointed to oversupply, with Capital Economics forecasting Brent falling to $50 in the months ahead. Despite political upheaval, Venezuela’s key oil infrastructure remains intact for now.

OPEC+ Sticks With Plan to Keep Oil Flow Steady Amid Turmoil

OPEC+ opted to maintain existing production levels through Q1 2026 during a brief meeting on Sunday. The group refrained from addressing the situation in Venezuela, citing the premature nature of any adjustments. Analysts noted that any output recovery in Venezuela would require extensive investment and systemic reform, with near-term production upside likely capped at 150,000 barrels per day.

Trump Snatches Maduro but Leaves Regime in Charge for Now

President Trump confirmed that Maduro was in US custody but stopped short of announcing a full regime change. Vice President Delcy Rodríguez, a former Maduro ally, has been tasked with navigating a transition under Washington's influence, although internal tensions remain high. Trump signalled that the US would have a “presence” in Venezuela’s oil sector, raising speculation about greater involvement from Chevron and other US companies.

China Releases Corporate Climate Reporting Standard

China's Ministry of Finance released a trial corporate climate disclosure standard aligned with IFRS S2. The standard adopts a phased implementation plan, starting with voluntary disclosures, with future mandates expected for both listed and unlisted companies. It emphasizes governance, strategy, risk, and metrics, while also incorporating China-specific requirements to report climate impacts from business activities and supply chains.

EU Commission Harmonizes Circular Economy Rules to Reignite Plastic Recycling

In a bid to tackle market fragmentation and slow recycling progress, the European Commission unveiled harmonized EU-wide end-of-waste criteria for plastics and announced supporting measures for the upcoming Circular Economy Act. The package includes clearer reporting rules for recycled PET, trade measures for plastic imports, and steps to standardize public procurement of circular goods.

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Carbon Markets

UK Refiners Seek Carbon Cost Relief Following Plant Closures, Urge CBAM Clarity

Following the closures of the Grangemouth and Lindsey refineries in 2025, UK refiners are pressing the government for clarity on CBAM coverage and interim cost relief. Industry group FIUK has proposed reallocating unused UK ETS allowances from shuttered sites to reduce compliance costs and called for certainty that refined fuels will be included in the UK’s CBAM from 2028.

California Makes Largest Offset Issuance With Benefits to the State Since 2018

California’s Air Resources Board issued over 5 million carbon offsets in December, including nearly 4.9 million tagged with Direct Environmental Benefits (DEBs). This marks the largest DEB issuance since 2018, with offset prices holding steady despite rising volume. The issuance covered improved forestry management and methane capture projects, including a major tranche from the Navajo Nation Forestry Project.

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Renewables and Biofuels

UK Set New Annual Heat and Sunshine Records Last Year

The UK recorded its warmest and sunniest year in history in 2025, with average temperatures at 10.09°C and over 1,648 hours of sunshine. This led to a 30% rise in solar generation year-on-year, reaching a record 18.5 TWh. Energy officials pointed to these figures as evidence of the UK’s growing potential to reduce reliance on fossil fuels.

UK Offshore Faces Deeper Consolidation

More consolidation is expected in the UK offshore oil and gas sector in 2026, as firms respond to the long-term Energy Profits Levy. Major players are reshaping their portfolios, with Shell, TotalEnergies, and Harbour Energy engaging in joint ventures and divestments. Harbour’s recent acquisitions in the US and its Catcher field deal highlight a shift toward international diversification.

DHL and CMA CGM Launch Biofuel-Powered Ocean Freight Partnership

DHL and CMA CGM will jointly use nearly 9,000 metric tons of UCOME-based biofuel, enabling a reduction of around 25,000 metric tons of CO₂e. This agreement supports DHL's GoGreen Plus programme and CMA CGM’s ACT+ offering, allowing shippers to integrate low-emissions maritime transport into their logistics with emissions savings of up to 80% compared to traditional fuels.

Norway Will Enter FuelEU Later in 2026

Norway confirmed it will delay entry into the EU's FuelEU Maritime regulation until later in 2026. The Norwegian Maritime Authority cited the need for further EEA/EFTA and EU-level clarifications before the regulation can be applied domestically.

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Corporate Sustainability and Regulation

Microsoft Signs Long-Term Clean Energy and AI Deployment Deal with Iberdrola

Microsoft signed new PPAs in Spain with Iberdrola, adding 150 MW from two wind farms. The deal expands their global renewable capacity to 500 MW and includes broader collaboration on carbon credits, hydrogen, and electrification. Microsoft will also expand its use of Azure cloud services across Iberdrola’s business, supporting energy system digitisation and AI deployment.

Port of Rotterdam Issues First-Ever Carbon Capture and Storage Bond

The Port of Rotterdam raised €50 million through a CCS-linked bond to finance its investment in the Porthos CO₂ storage project. Porthos will collect emissions from major industrial players and store up to 2.5 million tonnes of CO₂ annually beneath the North Sea. Japan’s Dai-ichi Life Insurance was the bond’s largest investor.