This podcast episode explores the impact of Russia's invasion of Ukraine on carbon markets. The invasion caused a disruption in the European energy market and led to a decrease in demand for carbon. It also shifted political priorities away from climate change towards geopolitics. The episode discusses the European Union's Emissions Trading System (ETS), the voluntary carbon market, and the front-loading of permits in the ETS. It highlights the significance of carbon border adjustment mechanisms (CBAMs) in shaping global carbon markets and the potential impact of the EU's CBAM on global carbon pricing. The episode also discusses the challenges faced by voluntary carbon markets, the outlook for Article 6 of the Paris Agreement, and the European perspective on international offsets. It concludes by highlighting the factors that could impact the carbon market in the next year, including cooperation between China and Europe and the upcoming CBAM reporting phase.