CORSIA, RECs, biomethane policy — May 2026
)
Six markets moved on carbon and clean fuel policy in May. On the carbon side: binding provincial accountability in China, near-total CORSIA supply restriction in Europe, and verifier discretion on Green Gas Certificates from SBTi. On the clean fuels side: US Department of Defense wind permitting delays removing 91 million RECs from near-term supply, and new domestic biomethane compliance frameworks in both Brazil and Portugal. Each development carries direct implications for compliance procurement, supply strategy, and instrument eligibility. Read on to discover what these policy developments mean for you.
Valid as of 18 May 2026.
Global
SBTi's updated Corporate Net-Zero Standard supports verifier discretion on Green Gas Certificates
What happened
On April 26, 2026, SBTi published version 1.3.1 of its Corporate Net-Zero Standard. This standard remains in effect through December 2027 while CNZS version 2 is being developed. Annex A (p.52) addresses the use of biomethane certificates, specifically Green Gas Certificates (GGCs), for Scope 1 emissions reduction claims. SBTi recommends companies follow the GHG Protocol’s Corporate Accounting and Reporting Standard interim guidance and does not yet guarantee that biomethane certificates will count toward science-based targets.
Whether a company with SBTi commitments can use GGCs for Scope 1 depends on how its auditor interprets interim GHGP guidance. The GHG Protocol has indicated it will publish a revised Corporate Standard by 2028.
What it means for your business
GGC procurement decisions for companies with active SBTi targets remain subject to external verifier interpretation. Procurement leads should confirm their auditor position on interim GHG Protocol guidance before committing to GGC volumes for Scope 1 claims. Companies without SBTi commitments are unaffected. The GHG Protocol is expected to publish its revised Corporate Standard by 2028.
Entry into force
Global. Effective from publication: April 26, 2026. Applies to all companies using SBTi's Corporate Net-Zero Standard framework.
Further reading
United States
Department of Defense stalls 30GW of onshore wind, tightening near-term REC supply
What happened
The Trump administration has directed the Department of Defense to withhold project approvals for 160 onshore wind projects on private land, citing radar interference concerns as the basis for DoD authority to block permitting. Delays have been ongoing since August 2025. The total capacity affected is 30GW, which may tighten near-term REC supply. No timeline for resolution has been confirmed.
What it means for your business
A meaningful reduction in eligible near-term supply from new generation is relevant to buyers with US renewable electricity targets or renewable energy certificate obligations. Companies relying on forward contracts from onshore wind projects within this pipeline may want to assess exposure.
Entry into force
United States. Delays in effect as of date of reporting. No formal end date announced.
Further reading
Europe
Germany's €5 billion industrial decarbonization scheme receives European Commission approval
What happened
The European Commission approved a €5 billion German state aid scheme to support heavy industry move from fossil fuels to lower-carbon alternatives. Eligible pathways include biomethane, electrification, hydrogen, carbon capture, and heat recovery. Sectors in scope include steel, cement, chemicals, glass, ceramics, paper, and metals. Funding is allocated through competitive bidding based on the lowest aid required per tonne of CO₂ avoided. Support is structured as two-way carbon contracts for difference: companies receive payments when low-carbon production is more expensive than conventional routes and repay when the cost differential reverses.
What it means for your business
The scheme signals significant new public-backed demand for industrial decarbonization in Germany's hardest-to-abate sectors. Projects must compete on cost-effectiveness within the bidding process. Industrial buyers evaluating biomethane for fuel-switching in Germany can assess scheme eligibility and cost competitiveness against alternative pathways within the bidding process.
Entry into force
Germany. Commission approval confirmed. Competitive bidding rounds in progress.
Further reading
EU Commission previews CORSIA eligibility criteria that could exclude nearly all current supply from EU airline use
What happened
The European Commission shared a preliminary, unofficial concept note with industry associations setting out provisional criteria for CORSIA carbon units eligible for use by EU-based airlines. The note introduces additional requirements for Phase 1 (2024-2026, compliance deadline January 2028) and Phase 2 (2027-2029). Restrictions include tighter rules on cookstove project methodology and the exclusion of certain REDD+ project types. For Phase 2, the Commission's provisional position is to accept only PACM credits issued under the Article 6.4 mechanism. By the Commission's own estimation, the proposed criteria would exclude between 90% and 100% of currently CORSIA-eligible supply. More clarity on the official EU position is expected in July.
What it means for your business
European airlines must work towards the January 2028 deadline for CORSIA Phase 1 obligations under considerable uncertainty.
Entry into force
Concept note provisional. Implementing Regulation targeted Q3 2026, following public consultation. Phase 1 compliance deadline: January 2028.
Further reading
European Commission concept is not publicly available.
Portugal advances RED III transposition with binding biomethane blending targets
What happened
Portugal submitted its draft for transposing the EU's Renewable Energy Directive (RED III) into national law. The proposal introduces progressively increasing biomethane blending targets in gas consumption, reaching 9% by 2030, with specific obligations on large gas suppliers. Compliance is tied to a combined use of Guarantees of Origin (GOs) and Proofs of Sustainability (PoS). In transport, the draft sets binding targets for advanced biofuels and RFNBOs, with differentiated trajectories for road and maritime. Road targets reach 15% and maritime 9% by 2030, with minimum RFNBO shares specified at each phase.
What it means for your business
The mandatory blending framework, backed by tradeable compliance certificates, provides a clear procurement mechanism for obligated gas suppliers and a new demand channel for biomethane sourced and certified across the EU. Companies with Portuguese gas supply obligations or transport fuel compliance requirements may wish to assess their procurement position ahead of 2027.
Entry into force
Draft law submitted. Binding targets phase in from 2027; 9% blending target in gas consumption by 2030.
Further reading
Portuguese parliamentary submission.
Asia-Pacific
China formalizes binding carbon and energy accountability framework for provincial governments
What happened
On April 23, 2026, China released its first binding framework for assessing provincial progress toward carbon peaking and carbon neutrality goals. The framework formally introduces pass/fail accountability for provincial governments across a "5+9" indicator system. The five binding indicators are: total carbon emissions, carbon intensity reduction, total coal and oil consumption, and share of non-fossil energy consumption. Nine supporting indicators cover carbon reduction in energy efficiency, construction, transport, and carbon trading. Assessment outcomes directly affect central government financial allocations to local economies and career progression of government leaders. The framework applies from 2026 through 2030.
What it means for your business
For buyers and sellers in China's GEC and CCER markets, this framework creates a structural demand driver. Provincial governments now face formal, career-affecting accountability for carbon intensity and non-fossil energy share, which GECs and CCERs are positioned to help meet. Provincial governments now face formal accountability across construction, public institutions, and transport, sectors in which GECs and CCERs are compliance instruments. Companies procuring GECs for China-based operations or counterparties can factor this demand trajectory into forward procurement planning.
Entry into force
China. Effective 2026. Assessments on an annual basis through 2030.
Further reading
Chinese State Council: Carbon Peaking and Neutrality Assessment Framework
LATAM
Brazil finalizes national biomethane certification framework
What happened
Brazil's National Agency of Petroleum (ANP) finalized regulations establishing a national biomethane compliance and certification program. The framework introduces mandatory annual biomethane targets for natural gas producers and importers. Compliance is tracked through the Biomethane Origin Guarantee Certificate (CGOB), which serves as the primary instrument for meeting blending obligations. The regulations define procedures for CGOB issuance, accreditation of origin certification agents, and certification of producers and importers.
What it means for your business
Brazil is one of the largest natural gas markets in South America. For voluntary buyers operating in Brazil's gas sector, CGOBs provide a traceable instrument for biomethane claims. For counterparties subject to mandatory blending obligations, compliance procurement from certified producers is now a legal requirement.
Entry into force
Brazil. Regulations finalized as of reporting date. Mandatory targets apply from 2026.
Further reading
Disclaimer
This content reflects regulatory developments confirmed as of 18th May 2026 and was accurate as of the date of publication. It is provided for general informational purposes only, is limited to confirmed developments, and does not purport to be comprehensive. Any forward-looking statements reflect the position as understood at the date of publication and are subject to change.
This content does not constitute legal, regulatory, tax, or compliance advice. Readers should obtain independent professional advice before acting on the information contained herein.
Neither ACT Commodities Group B.V. nor any of its subsidiaries, affiliates, or group companies (together, "ACT Group"), nor their respective directors, officers, employees, or agents, accepts any liability for any loss or damage arising from the use of, or reliance on, any information set out herein, except to the extent such liability cannot be excluded by applicable law. ACT Group is under no obligation to update this content after the date of publication.
© ACT Commodities Group B.V. [2026]. All rights reserved. Reproduction or distribution without prior written consent is prohibited. This disclaimer is governed by the laws of the Netherlands.