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In the run-up to next month’s climate summit in Paris, all major emitters have submitted INDCs focusing on domestic efforts to cut greenhouse gas emissions. So what are the prospects for international carbon trading?
Negotiators in Paris must agree robust global standards for measuring national goals ahead of fostering international carbon trade, an EU official said Tuesday, stressing that market proponents should seek credit demand sources outside of Europe.
UN climate negotiators should this year set a $25/tonne carbon tax on international shipping as one of several measures for the sector, an OECD-affiliated think tank said this week, a move rebuffed by the industry.
Brokers in Shanghai’s carbon market have pushed offset prices to some 20% above allowance prices, a premium that some participants say does not reflect the real value of CCERs in the municipal carbon market.
Views are mixed as to whether the EU’s Market Stability Reserve will raise carbon prices, according to a panel of ETS representing the private and public sectors.
The recent announcement by President Xi Jinping that China will start a national emissions trading scheme in 2017 can be seen as a genuine game changer. It has given a boost to carbon markets and cap-and-trade as the preferred way forward for those economies that have the capacity, the depth and the breadth for a liquid carbon market, writes Andrei Marcu, head of Brussels think-tank CEPS’s Carbon Market Forum.
Mexico and Quebec on Monday signed an agreement that will allow Mexico to learn about its Canadian counterpart’s carbon market as it thrashes out its climate change policies.
European carbon prices crept up in light, range-bound trade on Tuesday, consolidating in a new trading range a day after testing a 2.5-year high.
Bite-sized updates from around the world
According to a 10-page paper obtained by the Frankfurter Allgemeine Zeitung (FAZ) newspaper, the EU is abandoning its plans for setting long-term targets for renewable energy and energy efficiency. Concrete steps, such as how countries will increase the share of wind and solar energy by 2030, should be taken in national action plans, FAZ writes. These plans can be adjusted at any time, however, if national conditions change, according to the paper. Last year, EU member states agreed non-binding targets to raise the share of renewables in the bloc’s energy mix to 27%, and to increase energy efficiency by the same percentage. Germany had wanted these targets to become binding but this was a step too far for many, including Eastern European countries, France and the UK, who were all against this idea, FAZ wrote, citing diplomatic sources. (Clean Energy Wire)
US Democrats are starting to line up against CPP – Obama’s plan is facing some opposition from his own party in Kentucky and Missouri. (Townhall.com)
Should efficient coal plants count as climate finance? Former UN climate chief Yvo de Boer warns that without support for new highly efficient coal plants, the world may end up with something much worse. He notes that the OEDC’s calculations of climate finance did not include Japan’s $3.2 billion to coal over 2013/2014 in finding $62 billion was provided last year. He also points out that emerging nations such as India have already indicated that coal will play a very prominent role in their energy mix, an issue we looked into in our analysis on Monday. (BusinessGreen)
Energy companies get behind ideas to cut Alberta’s GHG emissions – TransAlta and ATCO are suggesting the province “dial down” its coal-fired power plants and “dial up” the amount of renewable energy, and Shell, Cenovus and Suncor are endorsing a carbon tax. (Calgary Herald)
Australia must double decarbonisation rate to meet 2030 goals, report finds – Coalition claims nation is making good progress towards cutting emissions by 26% by 2030, but report by PricewaterhouseCoopers shows more is needed. (Guardian)
The UK’s Committee on Climate Change (CCC) published its initial recommendations for Britain’s fifth carbon budget, suggesting a 54% cut in emissions by 2030 from a 1990 baseline.
China plans to cut city-gate non-residential natural gas prices by up to 30 per cent in some provinces at the end of October in a bid to raise demand as the government wants gas to play a bigger part in replacing smog-inducing coal-fired power. (Securities Times/Reuters)