ET Highlights: Policy vulnerability slows US wind growth, India sets carbon market emission targets, European Commission to tweak clean hydrogen rules

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US WIND TRACKER: Only three states add capacity in Q2 due to policy vulnerability

Wind-powered generation accounted for 5% of clean energy additions across the US in the second quarter of 2025, with only three states adding capacity.

The US added 437 MW of wind capacity in the second quarter to total 157.52 GW, up 3% on the year, according to S&P Global Market Intelligence data. However, the amount added in the second quarter fell 68% from what was added in the first quarter, as wind additions continue to trail behind solar and energy storage.

“Wind is very vulnerable to policy and thus we expect large attrition rates,” Cinthya Pena, senior market analyst for renewables markets with S&P Global Commodity Insights, said.

SPGlobal.com

SPGlobal.com

Austria, Germany push for extending free carbon allowances amid CBAM concerns

Austria was the latest EU member to join Germany in pushing for an extension of free carbon allowances in the EU Emissions Trading System beyond the planned 2034 phase-out, arguing that the EU's Carbon Border Adjustment Mechanism must function effectively before imposing additional costs on European industry. "Without an extension of the free certificates, there is a risk that value creation and emissions will simply be shifted because companies will be deprived of investment funds for the transformation," Austria's minister of economy, energy and tourism Wolfgang Hattmannsdorfer said.

Vietnam proposes tax refunds to boost biofuel output ahead of E10 mandate

Vietnam's Ministry of Finance has proposed new regulations that would allow biofuel producers to claim special consumption tax refunds on mineral gasoline inputs. The move is widely seen as an attempt to support domestic ethanol output ahead of the nationwide E10 gasoline mandate, which will take effect from Jan. 1, 2026. The draft circular, which is currently open for public comment, details the procedures for licensed biofuel producers to claim refunds or carry forward tax credits on mineral gasoline used in the blending of ethanol fuels.

Strong appetite for Biochar carbon projects in India, offtakes essential: CDR Summit

Investors are showing strong interest in Biochar carbon credit projects in India, drawn by their high integrity and long-term climate benefits. However, the market lacks spot liquidity, making long-term offtake agreements essential for securing investor confidence. While prices remain stable, developers stress the need for a more active spot market to ensure future growth.

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India sets final GHG emissions intensity targets for compliance carbon market

India announced final greenhouse gas emissions intensity targets for the compliance carbon market, mandating firms in the aluminum, cement, chlor-alkali, and pulp & paper sectors to cut emissions by around 0.5%-3% starting fiscal 2025-26. The four sectors will be the first to be brought under India’s Carbon Credit Trading Scheme, under which a National Carbon Market is expected to be launched at the end of 2026-early 2027 for trading carbon credits.

EC to consider changes to green hydrogen rules under 2026 strategy update

The European Commission will consider possible amendments to the implementation of strict rules governing renewable hydrogen production as part of an updated hydrogen strategy that will be completed by the end of 2026, an EC official said at the World Hydrogen Week conference in Copenhagen, Denmark. Under current EU green hydrogen rules, renewable power for electrolyzers must come from new installations from 2028 and must be matched on an hourly basis from 2030. Many in the sector are calling for a relaxation of the regulations.

Asian energy experts cite geopolitical risks as key transition challenge

Asian energy experts identified mounting geopolitical uncertainties as the primary challenge complicating their nations' energy transition, even as they pursued ambitious clean energy targets amid growing electricity demand and economic pressures. Speaking at the Oct. 8-9 Innovation for Cool Earth Forum in Tokyo, Asian leaders highlighted the need to pivot to domestic self-sufficiency and regional alliances to overcome a worsening global environment