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The European Parliament’s environment committee (ENVI) on Tuesday voted in favour of an amendment to fast-track international shipping into the EU ETS via the bloc’s monitoring, reporting, and verification (MRV) regulation for maritime emissions.
The EU is re-examining its climate policy for airlines, including a potential return to covering foreign flights in its carbon market, after the UN’s CORSIA international aviation offsetting scheme was effectively put on ice last week.
Germany favours adding new sectors to the EU ETS but recommends waiting for an EU study on the effects of a higher 2030 emissions target before discussing new bloc-wide policies, its environment minister told lawmakers on Tuesday.
EUAs came within a few cents of last year’s peak near €30 on Tuesday but collapsed back in late trade to pause a six-week rally that has defied fundamentals amid a wave of ‘speculative mania’.
Switzerland’s emissions from transport fuels were little changed for the second straight year in 2019, while CO2 output from heating decreased by 2.5%, according to figures published Tuesday.
The Ukrainian energy ministry is working on a proposal to create an energy efficiency modernisation fund for its heavy industries using revenues from the country’s carbon tax.
A new European energy and emissions trading platform is preparing to launch with committed participants representing more than 50% of the continent’s traded volumes.
China’s biggest coal company is set to make huge windfall profits under the national CO2 emissions trading scheme after data showed Tuesday the CO2 intensity at its power plants is far below even the strictest benchmark proposed for the carbon market.
The spot price in Beijing’s pilot emissions trading scheme rose to a record price of 100 yuan/tonne ($14.26) on Tuesday, though traded volumes remain low.
Carbon permits in South Korea’s emissions trading scheme saw a fourth consecutive session of losses on Tuesday as traders increasingly realise the COVID-19 driven economic downturn means the market will be oversupplied for the foreseeable future.
Australia’s Clean Energy Regulator has awarded over 300,000 carbon credits to three coal mine methane power stations in its latest offset issuance, which topped 550,000 units in total.
Australian project developer Corporate Carbon has hired an experienced offset market expert to head up the strategic development and origination team of its advisory arm.
California regulator ARB published an application this week for out-of-state offset projects to qualify as providing direct environmental benefits to the state (DEBs), aiming to help the agency make a final determination on the post-2020 designation.
The Northeast US RGGI carbon market will make 16.2 million allowances available for its September auction, the programme administrator announced Tuesday.
BITE-SIZED UPDATES FROM AROUND THE WORLD
A perfect brew – The EU, Canada, and China convened online Tuesday for a fourth Ministerial Meeting on Climate Action (MoCA), to demonstrate their continued support for the Paris Agreement. The yearly meetings have focused on the implementation of the 2015 pact through the promotion of ambitious climate action as well as the successful adoption of the technical rules under the UNFCCC.
Pay day – British chancellor Rishi Sunak is set to announce a £3 bln green investment package on Wednesday to aid the country’s recovery from the coronavirus. Sunak is expected to unveil a raft of measures, including £2 bln for households to insulate their homes and make them more energy efficient, and funding to plant 75,000 acres of trees per year by 2025. The scheme is set to go live in September. (Carbon Brief)
Mining pathways – Emissions from metals production will need to halve over the next 20 years in order to hit a 2C global temperature target, according to Wood Mackenzie’s latest 2050 emissions scenario. The scenario includes a global CO2 price of US$110/tonne by 2030, which for instance would constitute 67% of the 2019 aluminium price. Electrification across metal production sectors is envisaged by the scenario, and investor pressure and alternative sources of capital like green and ESG bonds are also seen as drivers of change. (Hellenic Shipping News)
Eye-watering excise – An EU carbon border tax would cost Russian exporters more than €5 bln a year in tariffs, KPMG has told Russia’s leading businesses. Costs could hit €50 bln over the next decade should the EU introduce the strictest kinds of emissions fees on imported goods within the next few years, the Moscow Times reported. The EU is currently debating a carbon border tax to levy an additional fee on goods imported to the 27-member bloc based on emissions levels. KPMG assessed that if the EU introduces the levy from 2025 and charges taxes based on direct carbon emissions in production, Russian exporters will face a €33.3 bln tax bill between 2025 and 2030.
Line ‘em up and knock ‘em down again – The US Supreme Court late on Monday upheld a lower court ruling barring the cross-border Keystone XL pipeline from benefitting from a permit used to fast track pipeline construction. The Court, however, reversed the lower court’s blanket prohibition on the Army Corps of Engineers from issuing the permit, known as Nationwide Permit 12, for other projects. The Supreme Court action came the same day that a federal judge ordered the Dakota Access Pipeline to be emptied and shut down until an Environmental Impact Statement has been completed, and one day after Dominion Energy and Duke Energy cancelled the proposed 600-mile Atlantic Coast Pipeline. (Climate Nexus)
High stakes in state – Local governments in Colorado can pursue a high-stakes climate lawsuit against the fossil fuel industry in state court, judges ruled Tuesday, in a setback for ExxonMobil and other companies. The US Court of Appeals for the Tenth Circuit rejected industry lawyers’ claims that a lawsuit from the City of Boulder, Boulder County, and San Miguel County belongs in federal court. The ruling is the latest procedural victory for local governments attempting to hold fossil fuel producers liable for local harms linked to climate change. (Bloomberg Law)
And finally… Polluter Protection Program – More than 5,600 companies in the fossil fuel industry have taken a minimum of $3 bln in coronavirus aid from the US government, according to an analysis by Documented and the Guardian of newly released data. The Small Business Administration (SBA) on Monday released the data of Paycheck Protection Program (PPP) loans under pressure for further transparency, including from journalism outlets that had sued demanding the public records. The $3 bln figure is probably far less than the companies actually received, as the SBA did not disclose the specific amounts of loans and instead listed ranges. The businesses include oil and gas drillers and coal mine operators, as well as refiners, pipeline companies, and firms that provide services to the industry.
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