CP Daily: Thursday July 11, 2019

Published 23:29 on July 11, 2019  /  Last updated at 23:29 on July 11, 2019  /  Newsletter  /  No Comments

A daily summary of our news plus bite-sized updates from around the world.

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TOP STORY

UK confirms November carbon tax roll-out in event of no-deal Brexit

UK emitters will be subject to a £16/tonne carbon tax from Nov. 4 if Britain leaves the EU without a deal at the end of October, the government said on Thursday.

EMEA

EEX updates 2019 EUA auction calendar, publishes 2020 schedule

EU carbon allowance auction volumes will be cut by around 37% in the final four months of 2019, sale hosts EEX announced late Thursday, as the MSR removes a further 117.6 million EUAs from the market this year.

EU Market: EUAs consolidate above €28 after notching fresh 11-year high

European carbon prices hit a fresh 11-year high early on Thursday before consolidating above €28, as participants mulled whether EUAs as their next move would scale higher ground to test all-time highs or recede on profit-taking.

EU won’t bring deeper emission goal to UN chief’s September summit

The EU won’t showcase a deeper collective emission cut goal at September’s UN Secretary General climate summit, officials said on Thursday, dashing hopes that the bloc’s leaders could return to the table this summer to agree a net zero 2050 goal.

AMERICAS

California approves offset bill focused on new protocols, aggregation

The California Senate has passed legislation that directs a new task force to consider developing compliance offset protocols focused on natural and working lands (NWL) and potentially could enable multiple landowners to jointly develop projects.

NA Markets: California allowances dip, RGGI rises during holiday week

California Carbon Allowance (CCA) prices declined by double-digits amid thin volume on the secondary market, as RGGI allowance (RGA) prices rose slightly during the holiday-shortened week.

Canadian Conservative climate plan would raise GHG output, costs vs Liberal strategy -analysis

The Canadian federal Conservatives’ plan to eliminate or overhaul parts of the ruling Liberals’ climate and CO2 pricing strategy would prove costly and take the country further away from its Paris Agreement target, according to a report released Thursday.

Study to determine Canadian offset supply for federal OBPS expected this autumn

The Canadian federal government has solicited a report to determine the potential for different offset protocols to supply credits to the country’s ‘backstop’ large emitter trading programme.

ASIA PACIFIC

Australia’s Paris target, offset policy under scrutiny as advisers launch review

Whether Australia should increase its emissions target under the Paris Agreement, change the approach of the ERF, and access the international carbon offset market were among the issues in the policy review launched by the independent Climate Change Authority on Thursday.

NZ Market: NZUs hold for now despite tumbling timber prices

New Zealand carbon allowances are holding around the NZ$23 ($15.36) level despite rapidly fading timber export prices that has brought speculation on whether forest owners would sell off more NZUs to compensate for falling income levels.

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BITE-SIZED UPDATES FROM AROUND THE WORLD

Shame sham – The heads of some of Europe’s largest airlines under lobby group A4E have hit back against efforts to discourage Europeans from flying, arguing the industry was making huge strides in cutting its carbon footprint and that there was no shame in air travel, Reuters reports. Ryanair boss Michael O’Leary said his airline paid the equivalent of around €4 per passenger in environmental taxes last year. Meanwhile, the Guardian writes that Dutch airline and A4E member KLM – which operates relatively fewer short-haul flights than low-cost rivals such as Ryanair – has launched a campaign asking people to fly less. The video and open letter from CEO Pieter Elbers asks: “Do you always have to meet face-to-face?” and “Could you take the train instead?”

11 is the loneliest number – The decline of coal-fired power could mean the fuel generates just 11% of the United States’ electricity by 2030, down from 27.4% in 2018, according to new analysis by Moody’s Investors Service. The agency said it maintains a stable outlook for the coal industry for the next 12-18 months, but expects utility demand to “fall significantly” over a longer horizon. Coal companies will likely turn to increased exports as gas-fired generation and renewables displace demand for the dirtier fuel, according to the report. But Moody’s said that is an imperfect solution, with cashflows from exports expected to be “volatile” as Asian demand reacts to the changing economics of coal-fired power. (Utility Dive)

Unlucky 13 – The Trump administration’s plans to roll back vehicle fuel economy standards could increase emissions from the light vehicles sector by 13%, according to a Carbon Brief analysis. Compared to a scenario where the rising Obama-era standards remain in force, the rollback could lead emissions higher by 85 Mt of CO2 by 2035, equal to the current yearly GHG output of Bangladesh. It would also represent an overall increase of transportation sector emissions of 5% and overall US economy-wide CO2 emissions of 1.7%.

Coal grab – US bank JP Morgan is considering buying up to 64% of coal-burning German utility Steag, as five municipal shareholders are keen to divest amid low returns, German weekly newspaper Wirtschaftswoche reported. Dortmund intends to keep its 36% stake. (Montel)

School’s in – The Maldives has become the latest of Japan’s Joint Crediting Mechanism (JCM) partner countries to have their first carbon credits issued. The committee overseeing the mechanism has issued 155 credits for emission reductions achieved under a 14-month period by installing a solar rooftop panel on a school in the capital of Male. Japan retained 78 of the credits, while the Maldives got the rest. Japan expects to earn 50-100 million credits from the JCM by 2030, although so far only 22,153 credits have been issued. Seven of Japan’s 16 partner countries have now generated offsets.

School’s in, part 2 – Dozens of universities and educational networks representing thousands of schools around the world have signed a letter declaring a “climate emergency” and vowing to take action. The initiative was announced Wednesday by a UN environment representative in a UN meeting on higher education, and commits the signatories to a three-point plan, including a goal to be carbon neutral “by 2030 or 2050 at the very latest” (Climate Nexus)

And finally… In Rod we trust – A US State Department intelligence analyst has resigned in protest after the White House blocked his discussion of climate science in Congressional testimony, The New York Times reports. Rod Schoonover, an analyst with the State Department’s Bureau of Intelligence and Research, testified last month before the House Permanent Select Committee on Intelligence on the effects of climate change on national security. But in a highly unusual move, the White House refused to approve Schoonover’s written testimony for entry into the permanent Congressional record. The reasoning, according to a June 4 email reviewed by The Times, was that the climate science cited in Schoonover’s testimony did not correspond with White House views on the matter. Ultimately, Schoonover did deliver the oral testimony before the committee, but his accompanying written statement was not included in the official record of the hearing.

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