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EU carbon prices are only likely to slowly recover from the sharp falls of the past two months, but will remain vulnerable to shocks throughout the next decade because the MSR will have a limited calming effect, analysts at Thomson Reuters Point Carbon said on Tuesday.
Energy Aspects has reduced its near-term EU carbon price forecasts for the second time in as many months, cutting by as much as 15.4% and warning that EUAs could plumb new lows.
China on Tuesday announced it has approved 71 more projects to earn offset credits that they can sell to companies brought into the nation’s carbon market.
EU carbon prices were little changed on Tuesday in what has so far been a becalmed start to the week, as analysts grow more confident that prices won’t fall much further.
European refineries’ costs are set to rise from around €0.06 a barrel to €0.23 under proposed post-2020 reforms to the EU ETS, according to lobby group FuelsEurope.
Bite-sized updates from around the world
The EU is withholding €12m contribution to COP22 in Marrakech in a diplomatic row over Morocco’s claim on Western Sahara, drying up funds to a conference the hosts primarily expects will be funded by foreign donors. (Climate Home)
Germany’s Energiewende still largely remains an energy transition in the power sector and needs to be extended to heating urgently, according to a position paper by environmental and consumer protection association Deutsche Umwelthilfe. Current measures are insufficient to reach Germany’s goal to reduce CO2 emissions from heating by 80% by 2050, the organisation said, while calling for enhancements to the legal framework, binding timetables for renovations, and additional financial incentives. (H/T Clean Energy Wire)
The Asian Development Bank has backed the issuance of Asia’s first climate bond, providing $225 million in credit enhancement to a Philippine renewable power firm operating a geothermal plant in south of Manila. (Reuters)
How carbon pricing can facilitate global economic growth? Consultancy Ecofys and the Al Gore-founded Generation Foundation have agreed to work together for three years to find out. The two said the research will explore “the role of carbon pricing along value chains up to the end consumers.” (Ecofys)
Put a price on carbon or face trillions of dollars of costs, massive food security & migration challenges. That’s according to US technology author Steve Hanley, who cites an MIT study that finds the world will remain awash with fossil fuels in the absence of a price on carbon. “The case for a carbon fee is simple. Mankind has been using the earth as a toilet since the beginning of the Industrial Revolution. Doing so is simply unsustainable. Continuing to do so is like playing Russian Roulette with an automatic rifle and full clip of ammunition.” (Clean Technica)
And finally… Why Warren Buffett doesn’t think climate change is his problem – A letter to Berkshire Hathaway shareholders reveals his simple and direct explanation of the dangers of climate change while also arguing how difficult it is for business and government to tackle the problem. (Bloomberg)
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