CP Daily: Friday September 6, 2019

Published 00:39 on September 7, 2019  /  Last updated at 00:39 on September 7, 2019  /  Newsletter  /  No Comments

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

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TOP STORY

Q3 RGGI auction settles below secondary market with compliance buying the bulk

RGGI’s September auction cleared at a discount to the secondary market for the second consecutive sale as compliance entities purchased more than half, according to results published on Friday.

EMEA

EU Market: EUAs slip to €25 for near 5% weekly loss despite Brexit safeguards

EUAs dropped back towards €25 on Friday as weak economic data and a looming jump in auction supply weighed amid aggressive selling.

German emitters boost EUA buying in July as prices peak -report

German emitters ramped up their EU Allowance buying in July as prices rallied to a 13-year high, a government report shows.

ASIA PACIFIC

China missing out on massive non-CO2 GHG cuts -report

China could cut a cumulative 1.5-3 billion tonnes of CO2e by 2030 at low cost by introducing easily available policies, including bringing some of those gases into its planned emissions trading scheme, according to research.

CN Markets: Pilot market data for week ending Sep. 6, 2019

Closing prices, ranges and volumes for China’s regional pilot carbon markets this week.

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SAVE THE DATE

CARBON FORWARD 2019: Survive and thrive in the global carbon markets

Learn how to survive and thrive in carbon markets by joining us at the 4th annual CARBON FORWARD conference & training day where we will be joined by the pre-eminent experts to discuss a programme developed by environmental market experts and based on feedback from companies like yours.

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BITE-SIZED UPDATES FROM AROUND THE WORLD

Not a one – Oil majors have invested $50 billion in 18 fossil fuel projects within the past year and none of the largest listed companies are making investment decisions that are in line with the 1.5C global warming limit of the Paris Agreement, according to think-tank Carbon Tracker. The firms risk “wasting” $2.2 trillion by 2030 on new projects if governments apply stricter curbs on GHG emissions, it adds. (The Guardian)

Farmer’s delight – Some £3.9 bln a year in EU subsidies paid to UK farmers could be partly replaced after Brexit by cash from selling carbon credits, inducing more landowners to pursue ‘carbon farming’ by planting trees and protecting marshlands that sequester GHGs, Bloomberg reports. Read Carbon Pulse’s take on how the EU is also considering carbon farming under its post-2020 budget.

Plead the fifth – Four automakers confirmed Friday that they are being investigated by the US Department of Justice (DOJ) for antitrust violations after striking a fuel economy pact with California, rebuking the Trump administration’s proposal to rollback Obama-era fuel economy standards, according to the New York Times. Ford, Volkswagen, Honda, and BMW announced an agreement with California in July that would require the companies to reach an average fleetwide fuel economy of 51 miles per gallon (4.61 litres per 100 km) by model year 2026. The Trump administration had proposed a rollback to 37 mpg (6.37 litres per 100 kilometres) through 2025. The DOJ is investigating whether the California pact could violate antitrust laws. All four automakers confirmed the DOJ inquiry in public statements and said they are working with federal authorities. The Trump administration is expected to finalise its Corporate Average Fuel Economy (CAFE) Standards soon, likely revoking California’s Clean Air Rule waiver that allows it to set a more stringent target. (New York Times)

Show me the money – Pacific Gas & Electric’s (PG&E) restructuring plan will call for more than $14 billion in equity commitments, but a draft term sheet seen by Bloomberg did not outline the estimated total liabilities stemming from the California wildfires. According to the outlet, PG&E would exit bankruptcy next year by using a mixture of debt and equity to cover its wildfire liabilities, which the utility had previously valued at $30 billion. A final restructuring plan is set to be filed by the end of Monday. The embattled California utility has not participated in any WCI cap-and-trade auction since filing for bankruptcy in January, and traders believe that trend could continue until the matter is solved. (Bloomberg)

Hey big spender – The California Air Resources Board announced today that the pace of implementation for programmes funded by California Climate Investments has picked up significantly. State agencies implemented $914 mln in projects during the first six months of 2019, compared to $1.4 bln for all of 2018 and $720 mln for all of 2017. More than 20 state agencies are involved in programme development, project selection, and implementation of 60 California Climate Investments programmes that focus on reducing climate pollution and range from building affordable housing near transit to helping to protect communities from wildfires.

CDM cash at work – The China CDM Fund along with the Fujian provincial government and the Industrial Bank of China have set up a green investment mechanism which initially involves 1 billion yuan ($140 mln) in loans, as well as an expected further 2.5 bln yuan in social spending, Xinhua news agency reports. The mechanism will provide below-benchmark rates for loans for green projects aiming to slash GHGs. The China CDM Fund was founded with tax revenues from CER sales during the heyday of the CDM, and has provided over 17 billion yuan in preferential lending to low carbon projects so far.

And finally… Peak shedding – The Kebnekaise mountain peak known to Swedes as their country’s highest can no longer lay claim to the title due to global heating, scientists have confirmed, as the glacier at its summit shrinks amid soaring Arctic temperatures. (The Guardian)

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