Provisions for international carbon trade risk being squeezed out of the UN climate pact after a week of minimal progress at talks in Paris, although market proponents are adamant this won’t stop the spread of emission markets worldwide.
Decisions affecting the future of the CDM and JI, the Kyoto Protocol’s carbon market mechanisms, have once again been postponed by negotiators this year’s annual UN climate summit, but some identified progress that could benefit a new global climate pact.
China’s latest estimate is that it needs a carbon price of around 100 yuan ($15.62, €14.38) in its national emissions trading scheme to meet its target of peaking its greenhouse gas emissions by 2030, a government researcher involved in the ETS design process said on the sidelines of the UN climate talks in Paris on Friday.
It’s the last day of the first week of the UN climate talks in Paris, and the last chance for negotiators to sort out some of the numerous sticky technical details before the text is passed on to the French presidency on Saturday. Carbon Pulse tracks developments in the talks and on the sidelines, and will post updates as they come in.
Former Australian Prime Minister Kevin Rudd is fronting an effort to build a common emissions trading market spanning China, Japan and South Korea, nations that collectively emit around a third of the world’s greenhouse gas emissions.
The nine US states making up the RGGI carbon market sold all 15.37 million emissions allowances on offer for $7.50 each in their latest auction, which was held Dec. 2.
EU carbon prices hit a one-week peak of €8.65 on Friday but faded in the afternoon amid heavy volumes to post a small weekly loss of 6 cents.
Spot NZUs rose 2.8% this week to close Friday at NZ$8.55 ($5.72), a record eleventh straight week of gains as buyers continued to hoover up limited supply.
Closing prices, ranges and volumes for China’s regional pilot carbon markets this week. All prices are in RMB, and volumes in tonnes of CO2e. Data sourced from local exchanges.
Bite-sized updates from around the world
Poland says it may not support Paris climate deal without higher threshold for bringing its entry into force than draft text options requiring backing of nations emitting between 50-60% of global emissions for the agreement to come into force. Poland wants 90% to ensure that the deal is truly global. (Bloomberg)
The Pacific island of Tonga released its INDC on Friday, pledging to increase the share of renewable energy in electricity generation from current levels of 9% to 50% in 2020 and 70% in 2030, reducing 2030 emissions by 27,000 tonnes of CO2e per year. It also said it would set targets for emissions from transport, agriculture, waste management and LULUCF, as well as double the number of marine protected areas.
California announced an effort by 13 North American and European governments to make all new passenger vehicles sold in their jurisdictions zero-emission by 2050. Additionally, it was announced that eight new signatories have joined the Under 2 MOU climate pact. Click here to read the press release.
And finally… Anonymous-affiliated hackers have leaked the private login details of nearly 1,415 officials at the UN talks in an apparent act of protest against arrests of activists in the city. (Guardian)
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