Energy Transition, Renewables, Emissions, Carbon
January 21, 2026
ET Highlights: California reveals 2027-2045 emissions allowance budgets, EU’s CBAM hits fertilizer hurdle, India sets new emissions caps
Energy Transition Highlights: Our editors and analysts bring together the biggest stories in the industry this week, from renewables to storage to carbon prices.
Top story
California proposes deeper emissions cut
The California Air Resources Board released its proposal for annual emissions caps from 2027-2045 on Jan. 13, making slightly deeper cuts than it proposed back in 2024.
CARB’s long-awaited regulations lay out reductions to planned emissions allowance budgets from 2027-2030, reductions that total about 118 million allowances cut from the annual budgets of those four years. CARB signaled its intent to lower those annual budgets back in an October 2025 workshop.
CARB’s proposal also includes the 2031-2045 budget after the program was recently extended by the state legislature. The planned budgets are slightly tighter than CARB’s previous proposal, initially made in 2024.
CARB’s “Option 1” for 2031-2045 annual budgets posted in July 2024 proposed an overall budget of 1,366.6 million mt for those years; the newly proposed budget is instead 1,304.3 million mt, a 4.5% decrease.
“These proposed changes are expected to bolster the [cap-and-invest program’s] price signal and increase the incentive for covered entities to invest in GHG emissions reduction activities, aligned with the accelerated pace of decarbonization called for in the 2022 Scoping Plan Update,” CARB said.
Benchmark of the Week
$30.37/alw
Platts, part of S&P Global Energy, assessed next-month California carbon allowance prices at $30.37 per allowance on Jan. 16. Prices dropped after the emissions allowance budgets were released but are expected to rise again once emissions caps start to tighten in 2027.
Learn more: Platts Carbon Markets Specifications Guide
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EU CBAM hits the ground running then trips over fertilizer exemption
The EU Carbon Border Adjustment Mechanism made a strong debut with 10,483 import declarations recorded in its first week, the European Commission said Jan. 14, but Brussels' suggestion that it might exempt fertilizers has paralyzed trading activity, raising questions about the mechanism's stability. The EU's CBAM covered imports of 1.66 million metric tons of carbon-intensive goods in its first operational week, with 4,100 economic operators successfully obtaining CBAM authorized declarant status, the EC said.
India hits 50% non-fossil power capacity, seeks $300 bil for energy transition by 2030
India achieved 50% of its installed power capacity from non-fossil fuel sources in 2025, yet the country needs around $300 billion in investments by 2030 to accelerate energy transition and attract global investors, according to Minister for New and Renewable Energy, Pralhad Joshi. Speaking at the International Renewable Energy Agency in Abu Dhabi, UAE, Joshi highlighted that India's growing electricity demand and thrust on clean energy would require more efforts and funds.
S&P Global Energy Core
India sets GHG emissions caps for refineries, petrochemicals, textiles and secondary aluminium units
India has set greenhouse gas emissions caps for 208 refineries, petrochemicals, textiles and secondary aluminum units under the compliance carbon market, a Ministry of Environment, Forest and Climate Change notification showed. India’s National Carbon Market is expected to start trading carbon credits in 2026/2027 as per market expectations, under the Carbon Credit Trading Scheme, which aims to decarbonize hard-to-abate sectors through the compliance market in stages.
INTERVIEW: Uniper says European hydrogen costs still too high for mass rollout
German utility Uniper is calling for clearer policy frameworks to accelerate project development, boost demand and bring down costs across Europe, as it seeks to take final investment decisions on large-scale electrolyzers. Uniper's Head of Business Development for Hydrogen Christian Stuckmann said the company has become "very, very strict and careful" about development spending, and noted that costs were still too high for widespread green hydrogen adoption.
CF Industries, Trafigura, TFG Marine join forces to accelerate low-carbon ammonia use
Fertilizer company CF Industries, trader Trafigura and marine fuel supplier TFG Marine have signed a memorandum of understanding to accelerate the adoption of low-carbon ammonia as a shipping fuel to replace conventional bunker fuels, according to Trafigura. The MOU seeks to collaborate on market development, stakeholder engagement and bunkering logistics for low-carbon ammonia, with initial focus on the US Gulf Coast and Northwest Europe.