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TOP STORY

Gross misconduct: Revelation of “misleading” EU carbon trading data ruffles market

Data showing record open interest on EU carbon allowance futures and options this year is misleading, Carbon Pulse has learned, with the potential volume to be delivered later this year far below what one exchange is currently reporting, leading to anger amongst some market participants.

INTERNATIONAL

Pressure mounts on GCF board as tense meeting heads into final day

The Green Climate Fund (GCF) board wrangled for hours on Friday as nations debated whether to give climate aid to an oil-rich Gulf state.

AMERICAS

California’s ARB amends November carbon auction to add 1.2 mln V16s

The California Air Resources Board (ARB) on Friday revised its November auction to include an additional 1.2 million Vintage 2016 allowances that had previously been omitted.

California carbon market reform delay due to price band questions, politics -sources

California’s Air Resources Board (ARB) postponed its approval of cap-and-trade amendments this week as it grapples with a flood of industry questions about proposed price band levels and political issues tied to the midterm elections, regulatory sources said.

Maine environmental groups say cross-border hydro line could increase NE emissions

An international hydroelectric project set to deliver clean energy to Massachusetts should not proceed, because it may actually contribute to increased GHG emissions in the northeast US, according to a new report commissioned by three Maine environmental groups.

EMEA

EU Market: EUAs hold above trend support, near €20 despite 3% weekly loss

EUAs ended slightly lower on Friday but held above key trend support and near €20 to post a small weekly loss.

ASIA PACIFIC

Australia offset issuance drops to 37k

Australia’s Clean Energy Regulator issued a below-average 37,185 carbon credits this week, but noted a small uptick in new project registration ahead of the next ERF auction in December.

CN Markets: Pilot market data for week ending Oct. 19, 2018

Below is a table of the closing prices, ranges and volumes for China’s regional pilot carbon markets this week. All prices are in RMB, and volumes in tonnes of CO2e. Data sourced from local exchanges.

ICYM – FROM CF2018

CARBON FORWARD 2018: Switzerland lines up first Paris-era carbon trades

Switzerland will start buying its first international credits next year to help meet its emission goal under the Paris Agreement, marking one of the first trades under the pact, an official said Thursday at the Carbon Forward 2018 conference in London.

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BITE-SIZED UPDATES FROM AROUND THE WORLD

Still rising – China’s Q3 GDP growth slowed down, government data shows, but fossil fuel use kept rising as has been the trend all year long, although at a slightly slower rate. Total power generation rose 4.6% in September y/y and has increased 7.4% year-to-date, the National Bureau of Statistics said. Thermal power generation rose 3.7% y/y and has grown 6.9% ytd, likely pushing China’s energy-related CO2 emissions higher, even though renewable and nuclear generation also increased.

Efficiency deficiency – A much larger investment in deployment of existing energy efficiency technologies and stronger policy measures would enable major progress towards meeting the Paris Agreement’s climate goals, according to a new report from the International Energy Agency (IEA). The report lays out an “efficient world scenario” to help energy-related emissions peak in 2020 and then fall significantly, finding that these goals would require annual investments of $584 billion through 2025 and rising to $1.3 trillion each year from 2026-2040. However, the IEA warned that the expansion of energy conservation policies has actually slowed, with efficiency investments only increasing by 3% to $236 bln last year. Additionally, global energy intensity – an efficiency metric based on energy used per unit of GDP – fell by its smallest amount since 2010 this past year. (Axios)

Drive it faster – Britain should ban gasoline and diesel fueled cars by 2032 to speed up a shift toward zero-emissions vehicles, a panel of lawmakers from the main parties in Parliament said. According to Bloomberg, the Business Energy and Industrial Strategy Committee in the House of Commons said the government should implement the ban by 2032, eight years earlier than the current target, and that failing to do so would undermine promises to reduce air pollution by over two thirds by 2050.

Just you wait – Saskatchewan will have to wait until 2019 for the province’s Appeals Court to hear its constitutional challenge to the Canadian federal government’s carbon tax. According to Saskatchewan’s Environment Minister Dustin Duncan, Ottawa had asked for more time in the case, causing the delay. The minister also questioned why the feds cannot wait until a ruling is made until Ottawa imposes its ‘backstop’ carbon price of C$20 on the province beginning in January. (Calgary Herald)

Cabin pressure – The National Airlines Council of Canada on Friday sent a letter to three federal ministries cautioning the government about the effect its ‘backstop’ carbon levy would cause to revenues as well as marginal domestic routes. Airlines will be required to pay the levy – starting at C$20 next year – within provinces that fall under the federal pricing system, with Ottawa slated to work on a system for interprovincial flights. However, lobby group president Massimo Bergamini told The Canadian Press that a higher Ontario aviation fuel tax would combine with the carbon tax to drive up the cost of a flight by as much as $45 for a family of four by 2022 in the province, with resulting higher fares potentially pushing more Canadians to US airports and airlines. Additionally, he said carriers may have to cut the number of flights on marginal routes, including in the country’s remote north. Instead, the council is advocating a federal system similar to cap-and-trade where carriers could buy and sell credits from other industries.

Do chime in – The Ontario government is requesting public consultation in developing its “made-in-Ontario” climate plan due for release later this fall. The government said that areas of focus in the plan will include understanding the impacts of climate change across a variety of sectors, creating measures to reduce GHGs, and utilising private finance to drive innovative climate solutions, including an “emissions reductions fund” for technology-based solutions. Comments can be submitted anonymously, with the consultation running until Nov. 16.

Fifteen I’m alright with you – US EPA Acting Administrator Andrew Wheeler believes his department has the legal authority to expand sales of 15% ethanol fuel blends (E15), he told reporters at Washington DC food waste event on Thursday. Wheeler also said he hoped the oil industry – which has pledged to file lawsuits against the EPA if it finalises the regulation next year – would join the agency in making the Renewable Fuels Program (RFS) “function better with the American public”. However, some experts and stakeholders have questioned whether the EPA has the ability to make that change without Congressional action. (Politico)

Can hardly bear it – A coastal town in the Russian Arctic has been “besieged by hungry polar bears” who are spending more time on land as sea ice melts due to climate change, reports the Daily Telegraph. At least six polar bears were roaming the streets of Dikson, the most northern inhabited place in Russia, during late September when sea ice is at its smallest of the year. A Russian polar bear expert said that the bears haven’t adapted to the rapidly-changing variations in the conditions of the ice, meaning that the town will remain “at risk” until the bears go back out on the sea ice, which is not expected to form until mid-November. (Carbon Brief)

15 minutes of Dirk – IETA boss Dirk Forrister was interviewed by CNN Switzerland for a segment covering carbon markets, the Paris Agreement, Trump, a European carbon floor price, the Swiss-EU link, China’s ETS, net zero 2050, and other riveting topics from our industry.

And finally… Plant-based diets ain’t nuthing ta f*** wit – Meat-based diets have been under heavy scrutiny lately, as the IPCC’s Special Report on 1.5C called for a managed reduction in demand for meat and dairy to increase humanity’s chances of staying below that critical temperature threshold. Building on that, a new report from the Changing Markets Foundation, Mighty Earth, and Compassion in World Farming has pointed the finger at governments in many EU countries and the US for failing to tackle meat overconsumption to meet climate targets. In contrast, the report does highlight positive market trends like the growth of plant-based foods and innovation in meat alternatives. One recent example of this comes from California-based Impossible Foods, which teamed up with US fast food chain White Castle to sell plant-based sliders nationwide. To help promote the product, three members of hip hop group Wu-Tang Clan joined the companies for a four-part “out there” web series modelled off ‘60s and ‘70s sci-fi television shows. The three members, who have all promoted plant-based lifestyles for decades, orbit the earth in their spaceship “Wu-F-O”, eat the new Impossible Sliders, and answer questions left by fans. Episodes One and Two are now available for your viewing pleasure. (Sustainable Brands)

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