This primer provides an in-depth overview of the Australia's Safeguard Mechanism, recent performance, list of the covered entities, and the recent policy changes that are going to reshape the system over the coming period.

The North American market for renewable diesel is expected to experience remarkable growth, driven by supportive regulatory frameworks, increasing consumer demand for sustainable fuels, and a growing awareness of the need to combat climate change. As per our research, the North American renewable diesel consumption stood at 6.9 billion liters in 2022 and is projected to reach 27.3 billion liters by 2030.

The Canadian Federal Government give states the flexibility to develop their own carbon pricing systems, that meet a minimum stringency. Alberta chooses to implement a Technology Innovation and Emissions Reduction Regulation (TIER) for heavy emitters and the Federal fuel program for transportation emissions. As of 2021, the market had nearly 35+ million credits circulating in the market, which is sufficient to cover two years of obligations. Two major drivers will have an impact on the offset supply: 1. Decline in current stock of pneumatic and wind power generation offsets 2. Increased CCUS offset credit generation.

Targeting the carbon intensity of fuels to reduce emissions from the transportation sector has led to the consideration of low-carbon fuels. The California Low Carbon Fuel Standard (LCFS) is a mechanism that uses the life cycle carbon intensity of various fuel routes as a metric to cut emissions by 10%. Currently, the credit bank is at 11.70 MT. Tier 1 pathways are squeezing the other pathways, with a major credit increase from renewable diesel.

This introductory market primer on the New Zealand Emission Trading System ( NZ ETS). Launched in 2008, NZ ETS is a central policy for climate change mitigation in the country. Governed by the Climate Change Response Act 2002, the scheme covers almost half of New Zealand’s GHG emissions. Sector wise, NZ ETS encompasses forestry, stationary energy, industrial processing, liquid fossil fuels, waste, and synthetic GHGs. The forestry sector has a distinct feature where it is obligated to surrender emissions along with an opportunity to earn New Zealand Units (NZUs) for emissions removal.