CP Daily: Wednesday January 13, 2021

Published 22:58 on January 13, 2021  /  Last updated at 22:58 on January 13, 2021  /  Newsletter  /  No Comments

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

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TOP STORY

EU Climate Law talks likely sealed in March ahead of leaders’ summit

EU negotiators expect to reach a political agreement on the 27-nation bloc’s landmark Climate Law in March, ahead of a key European Council summit that will provide further guidance for future climate legislation, according to sources involved in the process.

ASIA PACIFIC

SK Market: Year’s first KAU auction fails to sell out

A third of the allowances on offer at 2021’s first South Korean carbon auction were left unsold on Wednesday as the market continues to be gripped by bearish sentiment.

Analysts see upside potential for Australian carbon credits

Australian Carbon Credit Unit (ACCU) prices in the secondary market are likely to tick up this year as pressure continues to mount on the government to tighten climate policy settings, analysts said Wednesday.

QUICK TAKE: Unpacking China’s climate change guidance

China’s environment ministry on Wednesday released a guidance document on climate change and air pollution, which in time could have a significant impact on the status of the national emissions trading scheme.

AMERICAS

California power sector emissions drop in November to fall beneath 2019 levels

California electricity sector emissions declined in November to recede below 2019 levels, while also breaking a three-month trend of year-on-year GHG increases amid hotter weather across the Golden State, according to California Independent System Operator (CAISO) data.

California offset issuances slump in year’s first disbursement

California issued fewer than 200,000 offsets in its first issuance of 2021, with a majority of the new credits coming from an existing forestry project, according to data published by regulator ARB on Wednesday.

US EPA to grant most 2019 Renewable Fuel Standard waivers -report

The US EPA will issue the majority of pending 2019 compliance waivers under the Renewable Fuel Standard (RFS) in the final week of President Donald Trump’s tenure, according to a media report published Wednesday.

Energy company asks court to freeze commodity trader’s RIN activity, fearing bankruptcy

An obligated party under the US Renewable Fuel Standard (RFS) has requested a Texas court grant a temporary restraining order against a commodity firm, fearing that the company could become insolvent due to the millions of dollars in unfilled biofuel credit (RIN) contracts it is alleged to owe.

EMEA

EU Market: EUAs sink nearly 5% on gas pullback, technical breach

EUAs slid below €34 on Wednesday for the first time in four sessions, continuing the retreat from Tuesday’s record high amid a major pullback in gas prices and signs of a technical reversal in carbon, as data showed the influx of participants into the market continued last week.

COMMENT

WWF ‘Blueprint for Corporate Action on Climate & Nature’ – Key takeaways for the voluntary carbon market

In Dec. 2020, WWF published a ‘Blueprint for Corporate Action on Climate and Nature’, setting out a vision for how companies should follow the mitigation hierarchy to address the climate emergency, informed by science and the Paris policy environment. Here are Gold Standard’s key takeaways for the voluntary carbon market.

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BITE-SIZED UPDATES FROM AROUND THE WORLD

Faster exit – Germany’s exit from coal-fired power production is likely to happen “much faster” than 2038 as the EU raises its emissions reduction target, environment minister Svenja Schulze told a conference on Wednesday, according to Montel. It was likely the country will need to raise its climate goals by 10 percentage points to cut emissions by 65% below 1990 levels by 2030 to meet new EU targets, she added. Meanwhile, the boss of Poland’s state-owned coal miner PGG said he does not expect to change its timetable that envisages closing its mines by 2049, despite the tougher EU goal, Reuters reported.

An unlikely pair – Major airlines including Easyjet, KLM, and Air France have joined forces with environmental NGOs to call for stricter policies on biofuels and the reduction of the aviation sector’s environmental impact. In a statement released on Wednesday, the airlines and green groups recommended that EU policymakers support sustainable aviation fuels (SAFs) by prioritising e-fuels and those made from agriculture waste and forest residues. Later this year, the European Commission is due to unveil a new initiative, called ReFuelEU Aviation, to promote SAFs, which currently only make up 0.05% of total jet fuel consumption. (EurActiv)

Black-balling – NGOs Reclaim Finance and Urgewald have accused top asset manager BlackRock of greenwashing after publishing findings that suggest the company has $85 bln worth of assets invested in coal companies one year on from the firm’s high-profile pledge to exit investments in thermal coal. The NGOs note that the current coal ban applies only to the company’s actively managed portfolio, not the index funds and exchange traded funds that make up two-thirds of the $7.8 trillion of assets BlackRock has under management. (BusinessGreen)

Sunnier days ahead – Renewable energy is still a ways from becoming the dominant source of energy on the US electric grid, but wind and solar will remain the resources of choice for new development in 2021, according to an EIA report published Tuesday. According to the agency, the US is set to bring 39.7 GW of new capacity online by the end of 2021. Natural gas generation will represent just over 16% of this new capacity, with 6.6 GW scheduled to come online this year. Wind generation is expected to grow 12.2 GW, down from 21 GW in 2020. Solar, meanwhile, will enjoy another record-breaking year, with 15.4 GW in new capacity expected to come online in 2021. The US is also expected to add 4.3 GW of battery storage, more than quadrupling existing capacity. (Utility Dive)

IPO investments – Commodities trading and data firm Xpansiv has raised US$40 mln (A$52 mln) before it launches an initial public offering in 2021 to list on the Australian Stock Exchange. The company said the funding round, led by wealth management firm Shaw and Partners, includes existing and prominent new Australian investors. Xpansiv added that trading volumes on its spot exchange CBL grew 172% over the Nov. 2019 through Nov. 2020 period, with the company having most recently helped develop carrier association IATA’s Aviation Carbon Exchange (ACE) to facilitate trade in both CORSIA-eligible and voluntary offsets.

And finally… The Empire Strikes Back – A final review summarising climate science from the UN IPCC scientific panel will give little space given to the obstructive role of fossil fuel lobbying. Sociologist Robert Brulle said this is like “trying to tell the story of Star Wars, but omitting Darth Vader”, declining to participate in the work but hoping his views will be reflected. (Climate Home)

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