Energy Transition, Renewables, Emissions, Carbon
April 8, 2026
ET Highlights: Political pressure on Europe’s carbon policy, water scarcity hurdles for hydrogen, US’ biochar market growth
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
Political pressure mounts on Europe's flagship carbon policy
The EU Emissions Trading System is facing its greatest test yet. European leaders and companies are sounding the alarm, warning that high carbon prices are undermining the bloc's industrial competitiveness and threatening to drive manufacturing offshore.
In this episode of Energy Evolution, host Eklavya Gupte examines what's driving the turbulence in Europe's carbon market and what it means for the bloc's energy transition.
The conversation revolves about how political pressure from member states has dragged EU Allowance prices down by almost Eur30/metric tons of CO2 equivalent in recent months.
It then turns to Julia Michalak, EU policy director at the International Emissions Trading Association, who breaks down the ETS reforms now under consideration: extended free allocations, the modified Market Stability Reserve and why industrial competitiveness concerns are dominating the climate policy debate in Brussels.
Pedro Barata, associate vice president for carbon markets and private sector decarbonization at the Environmental Defense Fund, offers a perspective on the political economy of carbon pricing and how the EU's Carbon Border Adjustment Mechanism is evolving from a climate tool into an instrument of industrial policy -- with major implications for global trade.
Benchmark of the Week
Eur72.12/mtCO2e
Platts assessed EUAs for December 2026 at this price on April 2, down from Eur92.09/mtCO2e on Jan. 15.
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SPGlobal.com
INTERVIEW: India's Kandla port eyes mid-2028 start for eMethanol bunkering
India's Deendayal Port Authority is positioning Kandla as a competitive bunkering hub by mid-2028, targeting a cost of $700-$750/mt for Renewable Fuel of Non-Biological Origin-compliant eMethanol, significantly below current prices, according to DPA chairman Sushil Kumar Singh. DPA has firmed up plans with Assam Petro-chemicals and Thermax to produce renewable methanol at Kandla, while simultaneously working with Solar Energy Corp. of India for a separate procurement tender to source domestic eMethanol at the ‘plug-and-play’ clean fuels hub in western India, according to Singh.
Water scarcity, infrastructure gaps threaten Central Asia hydrogen plans
Central Asia's ambitious plans to develop a low-carbon hydrogen industry are facing mounting challenges such as water scarcity, infrastructure deficits and unclear export routes undermine investor confidence and project viability, industry experts told Platts. Kazakhstan's goal to produce more than 2 million metric tons per year of low-carbon hydrogen is becoming increasingly uncertain, with several high-profile projects stalling, according to Asylbek Jakiyev, chairman of Kazakh oil and gas lobby group PetroCouncil. However, others are progressing -- among the most notable is German developer Svevind's $50 billion Hyrasia One green hydrogen and ammonia project, which will use 40 GW of wind and solar generation to power 20 GW of electrolysis.
CERAWEEK: In the case for clean resources, 'energy security' tops 'energy transition'
Clean hydrogen and ammonia supporters are making the case that alternative fuels can lower nations' reliance on imports of fuel from the Middle East, as public and private climate goals fall by the wayside. Green and blue hydrogen are still touted as lower-emission substitutes to conventional "gray" hydrogen -- used in fertilizer production and refining -- and fossil fuels. But the corporate climate case has largely been supplanted by the case for diversification, industry participants said at the CERAWeek by S&P Global Energy conference in Houston.
S&P Global Energy Core
INTERVIEW: US biochar market growth hinges on finding best physical applications
The growing US biochar market brings advantages in areas like carbon accounting, but demand for the resulting carbon credits is outrunning demand for the physical product, the American Biochar Institute said in an interview. The primary driver of the US biochar market is demand for carbon removal credits, according to Myles Gray, executive director of the American Biochar Institute. The credit demand is voluntary and is being driven by American tech companies, some financial institutions, consulting firms, and a handful of other types of businesses, Gray said.
First Ammonia to sign second customer for Texas hydrogen project: CEO
First Ammonia is poised to secure a second customer for its 200-megawatt hydrogen project in Victoria, Texas, and move toward financial close despite losing a project partner, according to First Ammonia CEO Joel Moser. German energy company Uniper SE has already committed to buying most of the flagship facility's green ammonia output, Moser said. An offtake contract for the remaining volumes is expected to be announced in the coming weeks. The company expects to reach a final investment decision on the project in mid-2026, following due diligence and is also poised to sign a power purchase agreement with an undisclosed supplier.