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**This article is available to non-subscribers** – The future of Ontario’s carbon market has effectively become a two-horse race after the leader of the ruling Liberal party conceded defeat over the weekend.
An absence of US federal climate action under President Trump has prompted some states to take matters into their own hands, but after almost a dozen failed attempts so far this year, retrospective lawmakers are regrouping and considering more pragmatic approaches to get their carbon pricing bills over the finish line.
A pair of New York power plants failed to surrender enough allowances to cover their emissions during RGGI’s 2015-17 compliance period, the market’s administrator said on Monday, confirming compliance data released earlier this year.
The delay of China’s national emissions trading scheme is threatening to choke the nation’s fledgling carbon market industry as a majority of companies have put a freeze on new hires and some staffers have been forced to take a pay cut to keep their jobs, according to a new survey.
South Korean carbon allowances weakened slightly on Monday as the government failed to release outright results from Friday’s auction, leaving traders uncertain how to respond.
Australia’s Clean Energy Regulator has cancelled two contracts for delivery of a total 1.67 million carbon credits to its Emissions Reduction Fund.
EU carbon prices jumped back above €16 on Monday as soaring energy prices and a stronger auction lent bullish support in defiance of warnings from observers about a pull-back in EUAs.
CARBON FORWARD 2018
Don’t miss the 3rd annual Carbon Forward conference and training day – Oct. 16-18, 2018 in London.
Spend two days with top experts, players, and decision-makers from the global carbon markets as they address today’s most attractive opportunities and pressing challenges. And join us for the EU ETS pre-conference training day organised by carbon market experts Redshaw Advisors, where you will learn how to effectively manage your carbon risk ahead of the looming overhaul of the bloc’s emissions trading scheme.
Job listings this week:
- Senior Advisor, Climate and Transportation Electrification, Southern California Edison – Rosemead, CA
- Senior Environmental Affairs Adviser, Organisation for Security and Cooperation in Europe – Vienna
- Graduate Client Services Executive, ClimateCare – Oxford, UK
Or click here to see all our job adverts
BITE-SIZED UPDATES FROM AROUND THE WORLD
Renewably yours – A record amount of renewable power capacity was installed worldwide last year as the cost of wind and solar became even more competitive with fossil fuels, research by renewables policy organisation REN21 showed. Renewable power generation capacity had its largest annual increase yet with an estimated 178 GWof capacity added, Reuters reports. New solar capacity reached a record 98 GW, up 29%, while new wind capacity dipped by 4% to 52 GW. Total global renewable power capacity, including hydro, rose to 2,195 GW in 2017 from 2,017 GW in the previous year, REN21 said. Renewables accounted for 70% of net additions to global generating capacity, however energy demand and energy-related CO2 emissions rose for the first time in four years.
Money talks – Institutional investors with $26 trillion in assets under management called on G7 leaders, as they meet in Quebec later this week for their annual summit, to phase out the use of coal in power generation to help limit climate change, despite strong opposition from Washington. (Reuters)
Up, up and away – Carbon emissions from airlines are forecast by IATA to grow to 897 million tonnes in 2018 as a result of an historically high fuel consumption of 94 billion US gallons. This is an upward forecast from the industry association in Dec. 2017 when it estimated carbon missions would reach 874 Mt from lower fuel consumption. Its new forecast would represent a 4.4% increase on 2017 emissions of 859 Mt. (GreenAir Online)
Show us your risk – Britain should force large companies and assets owners such as pension funds to report their exposure to climate risks by 2022 at the latest, a cross-party group of lawmakers said in a report published on Monday. Concerns in the investment community that assets are being mispriced because climate risk is not being factored into financial reporting have prompted demand for more transparent climate-related financial information, Reuters reports. Separately, a cross-party coalition of MPs and peers has called on the government to enshrine a “net-zero” GHG target in law.
The biggest help – Canada provides more government support for oil and gas companies than any other G7 nation and is among the least transparent about fossil fuel subsidies, a new report reveals. Despite pledging in 2009 to completely end the subsidies by 2025, the seven countries collectively were found to be spending more than £70 billion ($93 bln) annually supporting oil, gas and coal. The report was co-authored by the International Institute for Sustainable Development, Natural Resources Defense Council, the Overseas Development Institute, and Oil Change International. It comes as Canada prepares to host this week’s G7 summit, only days after Prime Minister Justin Trudeau announced federal government plans to purchase the Kinder Morgan pipeline, which will ship diluted bitumen from Alberta’s oilsands to BC’s coast for export. (The Narwhal)
Grand plans – China recently approved a new combined free trade zone and ecological region in the southern Hainan province, and the local government is targeting a role as an international trading hub, reported newswire ECNS. The new district will be an international trading venue for energy, shipping, bulk commodities, property rights, stock equities, and carbon credits, pledged a local government official. However, Hainan – an island in the South China Sea known more for beachside tourism than international trade – would have to stave off competition from at least 30 other Chinese carbon exchanges, as well as the yet-to-be-built national ETS exchange in Shanghai, before it could start to draw interest from abroad once the new zone is fully built seven years from now.
Turkish ETS – Turkey’s Iyi Party has promised a local emissions trading scheme and an increase in the share of renewables in the power generation mix in its manifesto for elections on June, Argus reports. Turkey pledged to cut its carbon emissions by 21% by 2030 as part of the Paris climate change agreement, but the country’s parliament is yet to ratify it. The Iyi Party was founded in October last year and then formed an alliance with the main opposition CHP party to remove the risk of being below the 10% threshold to gain places in parliament. Polls predict a close race between the ruling Cumhur alliance and the opposition Millet alliance.
Tipped to be wrong – Leading global forecasts widely underestimate the future costs of climate change, a new paper warns. The findings released in the Review of Environmental Economics and Policy say projections used by the United Nations Intergovernmental Panel on Climate Change (IPCC) rely on outdated models and fail to account for “tipping points” ― key moments when global warming rapidly speeds up and becomes irreversible. (HuffPost)
Climate wins – Hawaii Governor David Ige (D) will sign three climate-related bills into law on Monday that were passed last month in the legislature. These include a bill to set a carbon neutrality target for the 50th state by 2045 and establish the Greenhouse Gas Sequestration Task Force, construct a voluntary carbon offset programme, and require environmental impact statements to factor in sea level rise analysis before building projects. (Public Now)
And finally… Save Blockbuster! – Actor and former California Gov. Arnold Schwarzenegger (R) has mocked news that President Trump is considering a plan to prolong the use of struggling US coal and nuclear plants, The Hill reports, saying he eagerly awaits the administration’s regulations to also protect pagers, fax machines, and failed video rental business Blockbuster. The White House on Friday announced that Trump had ordered Energy Secretary Rick Perry to take “immediate steps” to preclude the closures of these plants using a Cold War-era law in the name of energy security. Critics say the move is an unprecedented intervention into wholesale energy markets and could ultimately lead to their unravelling.
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