CP Daily: Monday March 1, 2021

Published 23:07 on March 1, 2021  /  Last updated at 23:50 on March 1, 2021  /  Newsletter  /  No Comments

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

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VCM Report: VER prices resume bullish 2021 path as first GEO futures trade

Voluntary emission reduction (VER) values trended higher this week as the first Global Emissions Offset (GEO) futures contracts transacted on Monday, while elevated interest in North American forestry and other project types provided a further boost.


Three EU nations set high bar for EU carbon market reforms

The EU should maintain its supply-adjusting MSR rate through 2030 and revise rules for cancelling surplus carbon market allowances, three of the EU’s most climate-ambitious nations have urged.

EU Market: EUAs slip further as observers see little to jumpstart prices

EUS eased further on Monday, defying stronger energy and equity markets as analysts struck a more measured tone to the bullish projections of recent weeks.


Four TCI jurisdictions release draft Model Rule with similarities to RGGI

Four US jurisdictions unveiled a draft Model Rule for the Transportation & Climate Initiative (TCI) cap-and-trade programme on Monday to regulate on-road diesel and gasoline emissions, with the proposal including several mechanisms from the RGGI carbon market.

Utah power plant to analyse hydrogen storage for electricity decarbonisation

A Utah-based power plant that supplies electricity to California cap-and-trade emitters will be part of a study evaluating the cost effectiveness and efficiency of hydrogen energy storage, two companies announced Monday.


China eyes late June start for trading in ETS

Trading in China’s national carbon market is slated to start in late June, the ecology and environment ministry has said.

China’s State Grid releases carbon neutral action plan, vows to accommodate ETS

China’s State Grid Corp. released a ‘carbon peaking and carbon neutral’ action plan on Monday, outlining a raft of measures it will take over the next few years, including making sure the national ETS can have a bigger impact on electricity emissions.

Australia Market Roundup: Regulator issues 536,000 offsets as govt launches CCS fund

Australia’s Clean Energy Regulator has issued well over half a million carbon credits over the past week but revoked two projects, while the government on Monday launched its A$50 million ($39 mln) carbon capture development fund.

Nepal becomes 12th country to ink World Bank REDD agreement

Nepal has signed a deal with the World Bank-led Forest Carbon Partnership Facility (FCPF) to lower emissions from deforestation and forest degradation, the country announced Friday.


Climate impacts highlight need for credible near-term path to net zero targets, panellists say

The US and other countries will need to shift from emissions reduction planning to tangible policies and regulatory structures to drive those GHG cuts, panelists said at CERAWeek by IHS Markit.


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No pain, no gain – Emerging economies face a more difficult transition to net zero emissions than do developed economies, although with wide variance among them, according to a research letter published last week by the Institute of International Finance (IIF). Entitled Carbon Efficiency 101 – Emerging Markets, the analysis uses carbon efficiency as a proxy for transition risk and finds Ukraine, Russia, Saudi Arabia, and Pakistan are especially dependent on carbon-intense activities. Others, such as Brazil, Turkey, and Chile, are less carbon-intense and possibly face a smoother transition. The ratings are based on five performance indicators: energy intensity, emissions intensity of the energy supply, fuel exports as a share of merchandise exports, renewable energy as a share of total primary energy, and carbon emissions embedded in exports.


Budget bonding – In its annual budget this week, the UK government will launch plans for its first sovereign green savings bonds, offering retail investors the chance to buy into projects dedicated to greening the economy, such as renewable energy schemes. A savings bond of an as-yet undetermined size and structure will be offered this year through National Savings & Investments, the government-backed savings scheme. (FT)

Bank build – The UK is also expected to unveil £22 bln for a new bank in the budget to boost the green economy, setting aside an initial £12 bln of capital and £10 bln of government guarantees for the UK Infrastructure Bank. The new bank will launch in the spring and operate UK-wide and it is hoped will unlock billions more in private finance to support £40 bln of infrastructure investment for the economy. (Daily Telegraph)

Forty favoured – Aviva has become the first leading insurer worldwide to set a target to shrink its carbon footprint to net zero by 2040, a decade earlier than most banks. The firm said it had written to the 30 biggest CO2 emitters in its portfolio asking them to sign up to the science-based targets aligned to the Paris Agreement and within 1-3 years to set net zero emission goals. If they do not take action, Aviva said it would sell its shareholdings in those companies. (Guardian)

Fossil fuels out – Senior officials from Europe have urged the World Bank’s management to expand its climate change strategy to exclude investments in oil- and coal-related projects around the world, and gradually phase out investment in natural gas projects, according to three sources familiar with the matter cited by Reuters. In a six-page letter, World Bank executive directors representing major European shareholder countries and Canada welcomed moves to ensure its lending supports efforts to reduce carbon emissions, but urged it to go even further. The World Bank confirmed receipt of the letter, and noted that the Bank and its sister organisations had provided $83 bln for climate action over the past five years.

Calendar adjustment – The Joint Committee under the EU and Swiss ETS Linking Agreement has agreed on a minor change of dates on the previously published 2021 calendar for the transfers of emission allowances between the registries of the EU and Swiss carbon markets. The Agreement entered into force in Jan. 2020, and as of Sep. 2020 the physical transfer of emission allowances between the two systems was enabled through occasional windows on predefined dates. The previously scheduled transfer dates of Apr. 5 and May 24 will be replaced by Apr. 7 and May 26, respectively, due to registry closures.


Both ways – If the EU and the US introduce tariffs or other trade measures against countries over climate policies, India will take steps to become competitive and create a level playing field for Indian manufacturers and exporters, its commerce secretary Anup Wadhawan has said, according to the Hindu Business Line. The game can be played both ways, he added.


May day – Next year’s Atlantic hurricane season could begin on May 15th if officials decide this year to move its formal start date up by two weeks. The decision will likely be made this spring, during meetings held by the US National Oceanic and Atmospheric Administration (NOAA) and World Meteorological Organization (WMO). 2022 is the earliest that the start date can be officially changed, a spokesperson for NOAA’s National Hurricane Center told The Verge. But come May 15th of this year, the agency will start issuing its Tropical Weather Outlooks, which are routine forecasts that it typically doesn’t start releasing until hurricane season starts on June 1st. The proposed changes come as climate change makes hurricane season more unpredictable and more advanced technology makes it easier to spot tropical storms early in the season.

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