CP Daily: Wednesday February 3, 2016

Published 00:47 on February 4, 2016  /  Last updated at 00:47 on February 4, 2016  / Stian Reklev /  Newsletters

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

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RGGI urged to consider deeper emissions cuts from 2020

US states participating in RGGI should consider a deeper emission reduction target after 2020 in order to meet their longer-term goals, attendees urged the market’s operators at a stakeholder meeting in Wilmington, Delaware on Tuesday.

Guangdong becomes China’s first carbon market to green-light OTC forward trading

The Guangdong emissions exchange on Wednesday became the first in China to release rules for forward trading in carbon, though all deals must be negotiated over the counter (OTC) as screen-based forward trading is banned in the country’s regional pilot schemes.

Utility SSE announces major UK coal plant closure

Scottish utility SSE on Tuesday announced plans to shut down three units at its Fiddler’s Ferry coal-fired power plant this spring, adding that the fourth unit at Britain’s eighth biggest emitting installation could be taken offline after next winter.

Ukraine returns €5 mln in unspent AAU funds to Japan, deal sought for remaining cash

Ukraine has returned to Japan €5 million in AAU sale proceeds that it was obligated to invest in domestic emission reduction projects but failed to spend, with green groups calling for the government to prosecute officials involved in carbon market-related corruption under former President Viktor Yanukovich.

Analysts see 9-12 month demand gap for Australia’s ERF

With current uncertainties regarding the funding of Australia’s Emissions Reduction Fund (ERF), analysts on Wednesday said project developers face a gap in government demand for offsets of at least 9-12 months, which would slow down the rate of emission reductions from the nation’s primary climate policy tool.

New Jersey RGGI membership clash likely headed back to court after DEP snubs Assembly

New Jersey’s Department of Environmental Protection (DEP) will not respond to the State Assembly’s December resolution that the exit from RGGI was unlawful, meaning the issue is likely to go back to court.

EU Market: Carbon dips back towards 20-mth low, fails to match oil rebound

EU carbon prices slipped 3.4% on Wednesday to move back towards the previous session’s 20-month low of €5.46, as EUAs briefly tracked a volatile oil market but failed keep pace with its late gains.

Vattenfall’s forward hedging levels down in 2015 after slower Q4

Vattenfall, Europe’s second largest emitter, sold less forward power last year while hedging a smaller proportion of it, according to the Swedish state-owned utility’s annual financial results on Wednesday.

Canada’s Newfoundland and Labrador to price carbon -minister

Newfoundland and Labrador will target industrial emitters and help fight climate change by putting a price on carbon, the Canadian province’s environment minister said on Tuesday.

Developers of cheap CCS technology awarded C$15 mln in Alberta carbon levy cash

Alberta’s climate fund has awarded a C$15 million ($10.9 million) grant to a Quebec-based company to advance the commercial deployment of its low-cost carbon capture and storage technology in the Canadian oil sands, the firms announced on Tuesday.

Bite-sized updates from around the world

The Green Climate Fund is holding ‘crisis’ talks in Cape Town this week following warnings from key donors US, UK and Germany that the cash pool lacked a clear strategy. The GCF is aiming to spend $2.5 billion from its $10 billion in pledges this year, requiring $850-930 million in project approvals. But it has only 29 suitable projects in its pipeline and currently only one of its accredited partners has the capacity to handle projects worth more than $250 million. (Climate Home)

China’s State Council last month said it would develop a plan to cut crude steel production capacity by 100-150 million tonnes.  The plan, which will cut CO2 emissions in one of China’s biggest industrial sectors, is to be released after the Lunar New Year. Independent news agency Caixin on Wednesday reported that the capacity cut would take place over five years instead of the initially intended three, which would slow down emission cuts in the sector. (In Chinese)

Republican Pennsylvania State Senator Pat Stefano has introduced a Senate resolution asking for the state implementation of the Clean Power Plan to be delayed by two years while awaiting the outcome of lawsuits against the CPP because implementing the plan “could have disastrous consequences on Pennsylvania as an exporter of electric power generation, result in job losses, and cripple the state’s economy”. Democratic Governor Tom Wolf, who was elected on a platform that included the state joining RGGI, has asked for the Clean Power Plan implementation to be fast-tracked. See Stefano’s press statement here.

And finally… Jim Ratliff worked for 14 years in the mines of eastern Kentucky, drilling holes and blasting dynamite to expose the coal that has powered Appalachian life for more than a century. Today, he rolls into an office at 8 am, settles into a small metal desk and does something that, until last year, was completely foreign to him: computer coding.  Bloomberg reports on this surprising trend.

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