CP Daily: Thursday June 17, 2021

Published 23:16 on June 17, 2021  /  Last updated at 23:16 on June 17, 2021  /  Newsletter  /  No Comments

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

Presenting CP Daily, Carbon Pulse’s free newsletter. It’s a daily summary of our news plus bite-sized updates from around the world. Subscribe here

TOP STORY

UN climate talks to take political dimension after ‘no breakthroughs’ on Article 6

Ministers from 40 nations will aim to advance international emissions trade talks on the Paris Agreement’s Article 6 next month, after scant progress by officials during a three-week virtual UN meeting.

AMERICAS

NA Markets: CCAs flirt with $22 before edging down, as RGGI rises on thin activity

California Carbon Allowance (CCA) prices set a new all-time high this week before retracing slightly on lower activity, while RGGI permits inched up on thin trading volumes despite few near-term drivers.

Analysts lower WCI offset demand expectations for third compliance period

California and Quebec regulated entities are expected to turn in a lower number of offsets than previously forecast for the upcoming third compliance period of the WCI cap-and-trade programme, analysts said Thursday.

Dominion seeks approval of RGGI rate case by July amid calls for further analysis

Dominion Energy has asked the Virginia State Corporation Commission (SCC) to approve its RGGI rate request next month, while an environmental group continued to advocate for more long-term analysis of carbon market compliance options despite the utility’s pushback.

TC Energy, Pembina plan Alberta CCUS project to store 20 MtCO2/yr

Fossil fuel companies TC Energy and Pembina Pipeline Corporation announced plans to implement a CO2 transportation and sequestration system across Alberta on Thursday, with the goal of storing 10% of the province’s yearly industrial emissions.

EMEA

Euro Markets: Carbon continues slide as auction, supply weigh

European carbon prices dipped on Thursday on another weak auction result and as supply concerns continued to weigh.

NGOs call for EU-wide gas phaseout by 2035

European NGOs are calling for the EU to phase out gas by 2035, as the 27-nation bloc is finalising major pieces of legislation that will set energy and climate policy for the decades ahead.

ASIA PACIFIC

SK Market: KAUs fall to fresh 5-year low as buyers call the shots

South Korean carbon permits slumped 9.7% in Thursday trade to hit their lowest levels since Feb. 2016, as buyers are faced with a market flush with supply.

INTERNATIONAL

African countries back Egypt to host COP27 UN climate talks

Egypt is poised to host next year’s UN climate summit after receiving endorsement from the African Group of Negotiators on Climate Change (AGN) this week, according to government officials and media reports.

VOLUNTARY

INTERVIEW: Rabobank to launch voluntary credits marketplace in early 2022, says carbon bank CEO

Rabobank intends to launch its marketplace for carbon credits generated from sustainable agricultural practices early next year, the CEO of its newly-launched Rabo Carbon Bank told Carbon Pulse.

COMMENT

Voluntary carbon market – broken more than breakthrough

The voluntary carbon market is supposed to be saving the world. Instead many carbon credit retailers are lining their pockets, warns market veteran and Redshaw Advisors founder Louis Redshaw.

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BITE-SIZED UPDATES FROM AROUND THE WORLD

Carbon Pulse has teamed up with CME Group to provide its clients with regular updates on the global carbon markets. Check out these briefs for the latest insights on pressing trends and events impacting markets, published every other week. Registration required

EMEA

Quick start – Germany’s next government after the September election must quickly introduce measures and instruments to ensure the country reaches the increased climate targets lawmakers are set to decide next week, said the Climate Neutrality Foundation and the think-tanks Agora Energiewende and Agora Verkehrswende. They call for an end date to fossil fuel use on Jan. 1, 2045, with a few exceptions such as CCUS for industry, renewables expansion to 70% of power consumption by 2030: a higher national carbon price on transport and heating fuels (fixed at €60 in 2023, then market price with lower and upper limits): abolishing the renewables levy by 2025: a national floor price for the EU ETS; and 14 million e-cars on German streets by 2030. (Clean Energy Wire)

Border bluster – Russian Deputy Prime Minister Alexander Novak said the EU’s carbon border adjustment mechanism (CBAM) plans may clash with the global trade rules and threaten the safety of energy supplies. Novak, Russia’s former Energy Minister, told the ministry’s inhouse magazine that such carbon border taxes could be extended in coming years beyond steel, cement, and electricity to oil, natural gas, and coal, key sources of revenues for Moscow’s state coffers. He called for the need to seek a compromise and warned about possible interruptions of energy supplies. (Reuters)

ASIA PACIFIC

Splashing the cash – In Australia, the NSW state government will spend an additional A$380 mln to kick-start investment in its five new renewable energy zones, taking investment in those above half a bln dollars, reports the Sydney Morning Herald.

Catching flak – South Korean industrial conglomerate SK pledged last November to abandon new fossil fuel investments, but then in March this year decided to invest $1.4 bln in an offshore gas field in Australia, and is now drawing ire from environmental groups amid accusations of greenwashing, according to the FT.

The struggle is real – More China-invested overseas coal-fired power capacity was cancelled than commissioned since 2017, research showed Wednesday, highlighting the obstacles facing the industry as countries work to reduce carbon emissions. The Centre for Research on Energy and Clean Air (CREA) said that the amount of capacity shelved or cancelled since 2017 was 4.5 times higher than the amount that went into construction over the period. (Reuters)

Decisions, decisions – Indonesia has yet to make its mind up about which market mechanism to put in place to control carbon emissions, according to Environment and Forestry Minister Siti Nurbaya. Despite some media playing up carbon tax considerations, officials are still weighing an emissions trading scheme and results-based payments, he said, according to D-insights ($).

AMERICAS

Biofuel fifteen – Fifteen Democratic lawmakers are warning President Joe Biden’s administration against taking any steps to exempt oil refiners from biofuel blending mandates under the Renewable Fuel Standard – something Biden is reportedly considering, amid pressure from unions and oil-state senators. The lawmakers, led by Midwestern Democratic Sens. Amy Klobuchar of Minnesota and Cheri Bustos of Illinois, warn that doing so would run the risk of “directly undermin[ing] your commitment to address climate change and restore integrity to the RFS,” they wrote. Instead, they called on the administration to stabilise the renewable fuels marketplace by setting strong blending targets in the proposed rule for the 2021 and 2022 Renewable Volume Obligations and by responding to a court remand to reinstate 500 mln gal of blending requirements waived from 2016’s targets. (Politico)

SCIENCE & TECH

‘Rock n ‘Ringa – BlackRock, the world’s largest asset manager, said Thursday it’s acquiring London-based consulting firm Baringa Partners’ climate modelling system, Axios reports. BlackRock plans to integrate the model into its proprietary tools to help clients reduce their portfolios’ climate risk exposure. Asset managers and investment firms are looking to in-house teams or outside firms to gauge their risks of climate impacts, such as sea level rise. In addition, companies including BlackRock want to help clients profit off the transition to a clean energy economy — which Baringa’s model is designed for. BlackRock already has a set of tools called Aladdin Climate to evaluate climate risks and opportunities as the company boosts sustainability efforts. It intends to blend Baringa’s model with Aladdin to create broader, more accurate tools and metrics for investment managers to minimise risk exposure.

AND FINALLY…

Hot enough for ya? – Mutually worsening heat and drought, both fuelled by climate change, are stifling the American West, stoking wildfire fears and straining electrical grids — and the worst is far from over. “We could have two, three, four, five of these heatwaves before the end of the summer,” Park Williams, a UCLA climate and fire scientist, told the AP. A record-breaking heatwave trapped by an area of high atmospheric pressure, known as a heat dome, is pushing temperatures as much as 30F above normal and subjecting 40 mln people to temperatures over 100F. Doctors in Arizona and Nevada warned touching pavement could cause third degree burns. The extreme heat is also straining electrical grids. California grid operators called for voluntary demand reduction and, for the second time in four months, Texas grid operators are asking their customers to reduce their energy usage — including using less air conditioning and putting off cooking and washing their clothes — prompting jokes that Texas Senator Ted Cruz (R) would soon be flying to Alaska (he briefly fled to Mexico this past winter during Texas’ unusual cold spell and resulting blackouts). (Climate Nexus)

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