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Second Ontario CO2 auction sells out at premium price, as federal action has emitters ‘taking scheme more seriously’
Ontario’s second CO2 auction fully sold out at a 2.3% premium to the reserve price, the government announced Tuesday, with observers noting that recent Canadian federal action on carbon pricing has emitters in the province’s cap-and-trade scheme taking it more seriously.
Global CO2 emissions from energy were virtually flat in 2016 for the third consecutive year, oil major BP said on Tuesday, but it’s not clear whether this is a longer-lasting trend.
Governor Jerry Brown and Democratic legislative leaders have agreed a deal on California’s budget for the coming year but it does not include language on the state’s cap-and-trade programme, which needs to be extended beyond 2020.
China has issued the first permits under its green certificate scheme, due to launch on July 1, in the first of a number of new markets planned to boost clean energy use and cut CO2.
Shanghai carbon allowances rose 5.7% on Tuesday amid year-high volumes as the market responded bullishly to Monday’s announcement on the price floor in the upcoming June 30 auction.
A sensibly reformed emissions trading scheme with a top-down approach can achieve 94% of the greenhouse gas emission cuts Kazakhstan needs to make to meet its 2030 target, according to a German government report.
Nick Hurd has left his job as UK climate minister and had been replaced by Claire Perry, marking further appointments in a cabinet reshuffle of the centre-right Conservative government that saw Greg Clark hold on to his role as the senior minister overseeing climate policy.
EU carbon prices rose to end just above €5 in a becalmed session that reflected the market’s hesitancy ahead an upcoming auction glut.
We’re excited to release the draft programme for this year’s Carbon Forward 2017 conference and training day.
BITE-SIZED UPDATES FROM AROUND THE WORLD
Borrowed strategy – The Trump administration intends to use the same strategy to rollback the US Clean Power Plan as was utilised in court by challengers of the divisive measure. E&E News reports on some of the details of the plan, which will see The White House claim that the EPA overstepped its authority in regulating the entire power sector under the Obama administration, suggesting that the agency may release a scaled-back rule rather than trying to scrap it entirely. The strategy doesn’t appear to involve attacking the underlying science or seeking to undo the 2009 endangerment finding that CO2 threatens public health. Details are also emerging over what a proposed replacement for the plan will look like, with the proposal now being reviewed by the Office of Management and Budget. Regardless of how this goes, expect a protracted court battle.
Aussie Groundhog Day – In a Tuesday party room meeting of Australia’s ruling Coalition, more than 20 MPs spoke out against last week’s Finkel report and its recommendation to set a Clean Energy Target, sources at the meeting told AFR. Some said it looked like the target would have to be set higher than the recommended 0.6 tonnes of CO2 per MWh to be acceptable to the Coalition’s right wing, a move that might evaporate the opposition Labor party’s support for the scheme. The “revolt” against PM Malcolm Turnbull is led by former PM Tony Abbott. The two clashed on emissions trading in 2009 in a fight that ended with Abbott ousting Turnbull as party leader. History could now repeat itself, according to Fairfax.
Good luck with that – Other nations such as China and Russia must cover the expected 20% shortfall in the GCF cash contributions because of a lack of funding from the US, said Korea’s Song Young-gil, the former Incheon city mayor who spearheaded a successful bid to host the $10 billion GCF’s headquarters. Yet, Swiss spokesman Pierre-Alain Eltschinger said it was “not realistic to expect anyone to make up for the US shortfall. (Reuters)
Bumpy Brexit – Analysts at ICIS have published a white paper on whether the EU ETS will get smooth or bumpy ride from Brexit. It provides scenarios analysing the impact of Britain’s exit on the EU ETS market balance and as well as a mid-term outlook for EUA prices. As Carbon Pulse has previously reported, it finds that the most bearish EUA price risk is associated with a scenario where the lead time between the announcement of Brexit and the actual end of compliance obligations for UK installations is reduced to a minimum, and when Brexit takes place before the end of phase three in 2020.
Better get started – Germany will have to double its share of renewable power and cut its use of coal and oil by half to reach its official target of cutting CO2 emissions by 55% by 2030, according to energy think-tank Agora Energiewende. The country must also use 30% less energy than today. “The climate targets are totally out of reach without giving efficiency a much higher priority,” said Agora director Patrick Graichen at a press conference. In a 2030 “big picture” analysis, the think-tank argues that Germany should step up its target for the roll-out of renewables to 60% of power consumption by 2030 compared to the current target of 55-60% by 2035. Because Germany will likely miss its 2020 emission targets, it must urgently take aim at the targets for 2030, said Graichen with reference to a coalition agreement expected after the autumn general elections. “If you want to achieve climate targets, you need to start ten years ahead of time.” (Clean Energy Wire)
Linking is the easy part – On behalf of the German emissions trading authority (DEHSt), consultants adelphi and researchers at the Wuppertal Institute have published a manual on bilateral linking of emissions trading systems. They outline 10 step on how the effects of linking two schemes can be assessed upfront.
The EU’s facepalm – Palm oil biofuel is worse than fossil fuel, claims NGO Rainforest Foundation Norway in a report showing how EU policies have very limited effectiveness in preventing biofuel-led deforestation in the developing world. The group calls on the EU to follow Norway’s move earlier this month, when it become the first country to ban biofuel based on palm oil or by-products of palm oil in all public procurement of fuels for public transport.
Here we go again – The Nature Conservancy on Monday filed proposed carbon tax initiatives with the Washington Secretary of State’s Office, as the Seattle-based conservation group the groundwork for a possible 2018 ballot measure, AP reports. The initiatives aim to reduce GHG emissions by charging a tax or by giving the state authority to impose CO2 fees on polluters, with the proceeds going toward clean energy, clean water or other projects. TNC will decide later this year or next on whether to move ahead with the plan. Last fall, Washington voters rejected the I-732 carbon tax ballot measure that many business groups as well as major environmental and labour groups opposed, but on which TNC did not take a position.
Working on it – China has announced a 2.7 million yuan tender for 10 climate research projects. Among the planned projects are studies on how to structure the nation’s climate change laws as well as designing climate bond and insurance tools. Interested parties have until June 26 to apply.
Made in NWT – A carbon tax should be designed specifically for Canada’s Northwest Territories and revenues should remain there, according to a report co-authored by Michael Miltenberger, former NWT finance minister. According to CBC, the report outlines a northern approach to reducing GHGs in light of the federal government’s new carbon tax backstop. Miltenberger said there’s “enormous economic opportunity with the transition into renewables,” pointing to successful energy projects in NWT communities like Colville Lake’s unique solar/diesel hybrid system and the Lutsel K’e solar array. The report calls on the federal government to invest in more hybrid projects, and establish a C$500 million/year fund for remote communities in all three territories to establish new technologies. It suggests the territorial governments could top up the fund to C$700 million.
Poor Chad – Of the 186 countries assessed in a recent survey of climate vulnerability, Chad was rated most in peril, Climate Home reports. A study by Verisk Maplecroft found that a combination of high poverty, frequent conflicts, and the risk of both droughts and floods means the central African nation is bottom of the list, just below Bangladesh and some way behind Norway, the country least vulnerable to climate change.
And finally… Probably the best – Beermaker Carlsberg has set itself goals to achieve zero CO2 emissions and halve water use at its breweries by 2030, 100% use of renewable electricity on those sites by 2022, and to work with its supply chain partners to reduce ‘beer-in-hand’ emissions by 30% by 2030. The goals were set after working with NGO The Carbon Trust to align with the 1.5C temperature goal of the Paris Agreement.
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