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UN body ICAO’s Council this week fully approved a new jurisdictional REDD programme to supply carbon credits under the pilot phase of the CORSIA global aviation offset scheme, that alongside an update to a previously-recognised standard will see a compliance-based carbon market accept international deforestation reduction units for the first time.
China’s environment ministry has tightened the overall benchmark for large coal-fired power plants in the national emissions trading scheme, but introduced loopholes that cancel out most potential CO2 cuts from the stricter standard, according to an updated draft released Friday evening.
China needs to immediately halt construction of new coal-fired power plants and aim for a 200 yuan ($30) per tonne price of carbon in its emissions trading scheme to get on track to meeting its target of reaching net zero emissions by 2060, according to a report released Friday.
Closing prices, ranges and volumes for China’s regional pilot carbon markets this week.
The EU’s failure to conclude negotiations on a budget and stimulus package this week could derail efforts to agree an increase the bloc’s 2030 emissions target by year-end, though experts say that lawmakers increasingly linking the two issues could smoothen their passage.
EUAs climbed to hit €27 on Friday, reversing some of the declines of the previous two sessions, with buyers inspired by a strong auction result as they braced for a potential Brexit deal and an extended period without auctions.
An allowance price cap in the proposed Transportation and Climate Initiative (TCI) carbon market may restrain member jurisdictions from reaching the regional US programme’s overarching GHG reduction goal, according to a study published Thursday.
A California watchdog group plans to hold a mid-December meeting on its recommendations for the WCI-linked cap-and-trade programme, including possible automatic supply triggers to address growing concerns about the scheme’s allowance surplus, regulatory sources told Carbon Pulse.
Financial players cut their California Carbon Allowance (CCA) holdings before this week’s WCI auction as prices dropped on the secondary market, while regulated entities kept their position roughly unchanged, according to US Commodity Futures Trading Commission (CFTC) data published Friday.
BITE-SIZED UPDATES FROM AROUND THE WORLD
Green listings – The European Commission launched the first tranche of its green finance taxonomy on Friday, aimed at helping investors in defining what is environmentally sustainable. The executive published two texts open for a public consultation until Jan. 1 covering multiple sectors and potentially denying gas status as a transition fuel by setting an emissions threshold of 100g CO2eKWh. Carmakers would also be considered unsustainable if their fleets emit more than 50g CO2/km, falling to zero by 2026 and down from current EU car sale standards of 95g CO2/km. The Commission will consider any views when finalising the rules that give lawmakers limited scrutiny. Once adopted, the taxonomy will apply from Jan. 1, 2022.
To endorse or not to endorse – European leaders are resisting giving their strong support to a controversial climate plan pushed by Saudi Arabia that seeks to reduce emissions while capturing and reusing GHGs by burning hydrocarbons. The G20 is haggling over whether to say they “endorse” a so-called circular carbon economy, according to officials familiar with the negotiations as well as a draft of the group’s declaration seen by Bloomberg. The final wording could change before leaders hold a virtual meeting this weekend, which is hosted by Saudi Arabia. EU governments have been resisting using the word “endorse”, arguing instead to acknowledge carbon capture’s contribution to climate action while making clear it wasn’t enough, according to an official, who asked not to be identified because the deliberations are private.
Atomic gap – Utility EDF has confirmed it will begin shutting down the UK’s 45-year old Hinkley Point B nuclear power plant within the next two years. Although the defuelling was originally scheduled for 2023, it was brought forward after cracks were discovered in the graphite core of the reactor. The process will now begin no later than July 2022, the Guardian reports. A new reactor at Hinkley Point C is only expected to start generation in 2025, creating a shortfall that may boost CO2-intensive thermal output to make up the loss.,
Let’s talk – The UNFCCC’s Climate Dialogues are set to kick off next week, designed to maintain “critical momentum” in the intergovernmental process in support of a robust international framework for climate action and increased climate ambition. Running from Nov. 23-Dec. 4, the talks are tasked with contributing to maximum progress and ensuring a minimum of delays in the multilateral climate action agenda in the run-up to COP26 in Glasgow next year. “The dialogues will not be about formal negotiations, yet governments can still reflect on where we stand regarding some of the substantive issues. They provide an opportunity for the Parties to the UNFCCC to come and share what they have been able to achieve this year and what they look forward to doing in 2021,” said Tosi Mpanu Mpanu, Chair of SBSTA. In addition to advancing technical work under the constituted bodies, the Dialogues will focus on engaging parties and other stakeholders in exchanging views and sharing experiences on implementation of other activities, including work on reducing GHGs, adapting to the effects of climate change, science, finance, technology, capacity-building, transparency, gender, Action for Climate Empowerment (ACE), and the preparation and submission of NDCs.
And finally… Wheels up – Out-going US EPA administrator Andrew Wheeler recently directed aids to plan taxpayer-funded trips for himself and his chief and deputy chiefs of staff, Mandy Gunasekara and Michael Molina. Because of the coronavirus pandemic precautions, the visit to Taiwan requires a chartered flight costing over $250,000, with an additional $45,000 earmarked for the 10-person delegation’s three-day visit in December. There is no specific event planned for Taiwan or in Latin America, where there was no policy goal stated for the trip, but simply a preference that they’d like to go to Panama, Costa Rica, Ecuador, and the Dominican Republic. If those aren’t available, apparently they are open to visiting other countries in the region, during which time there are no major environmental conferences and for which there has been nothing officially scheduled, instead of preparing the EPA offices for the incoming presidential administration under Joe Biden. (Climate Nexus)
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