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Power generation in China fell in 2015 for the first time in nearly half a century with fossil fuel-fired output hit the hardest, data from the National Bureau of Statistics showed on Tuesday, pointing to a drop in absolute CO2 emissions and a growing surplus of allowances in the country’s seven pilot carbon markets.
China’s NDRC on Tuesday published the list of eight sectors and 15 sub-industries likely to participate in the national carbon market from the start, and outlined strict rules for verifiers to avoid conflicts of interest.
The recent sell-off in EU carbon prices seems overdone considering the market’s underlying fundamentals have hardly changed since the end of 2015, but longer-term prospects for EUA prices don’t seem as rosy as they once did, according to an analyst.
Post-2020 EU ETS reforms risk being ineffective unless regulators make drastic adjustments to address the impact of overlapping policies, argue the European Federation of Energy Traders (EFET).
European carbon prices gained for a second straight day on Tuesday, nearing €7 on short-covering, a bullish auction, and a stronger energy complex, which was lifted by colder weather across Europe.
EU ETS emissions fell 0.7% last year to 1.802 billion tonnes, analysts at Sandbag forecast on Tuesday, a figure slightly higher than their previous projections as power sector output was higher than expected.
German energy minister Sigmar Gabriel on Tuesday urged for more efforts by European nations to fix the EU ETS, while also calling for a national roundtable discussion on the future of coal in the country.
South Korean companies have over the past week cancelled more than 1.6 million CERs from the UN registry that will be converted into offsets eligible in the Korean emissions trading scheme at a market value of €10 more per unit compared to the UN market.
Bite-sized updates from around the world
Close to half of states, including many run by Republicans, are hoping to use some form of a carbon market similar to cap and trade to meet federal Clean Power Plan targets, according to a ClimateWire review of high-level planning talks.
The Paris Agreement may prove to be unfair for Turkey if the country is required to contribute funds to fight climate change as if it were a developed country, according to a top Turkish business representative. (Today’s Zaman) – Note: Turkey falls in between the UNFCCC’s developed/developing country status, which could mean it is ineligible for cash from sources such as the Green Climate Fund.
Lawmakers who oppose taking action to lower greenhouse gas emissions by putting a price on carbon often argue that doing so would hurt businesses and consumers. However, a New York Times op-ed by its editorial board argues the energy policies adopted by some American states and Canadian provinces demonstrate that those arguments are simply unfounded.
The global elite gather for their annual World Economic Forum in Davos from Wednesday. Climate Home sets out the climate-related agenda, with much of the event webstreamed.
And finally… Clean energy maven Michael Liebreich of BNEF gives his 10 predictions for 2016, suggesting that renewable energy will do more than withstand the crash in fossil fuel prices and are due a record year. He includes BNEF analysts’ take that the recent EUA price crash will be a temporary setback to longer-term gains.
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