CP Daily: Friday April 22, 2016

Published 18:03 on April 22, 2016  /  Last updated at 18:22 on April 22, 2016  /  Newsletter  /  No Comments

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

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EU industry MEP proposes bulking up post-2020 Innovation Fund

The post-2020 Innovation Fund should be increased by earmarking 550 million EUAs from auctions, up from the 400 million proposed by the Commission, according to Fredrick Federley, the senior lawmaker steering emissions market reforms through the European Parliament’s industry committee (ITRE).

China plans tiered discounting system for carrying over pilot CO2 units into national ETS -official

Carbon allowances from China’s pilot emission markets that are brought into the national ETS will be given a value depending on the degree of over-allocation and the price levels in the market they originated from, a government official said Friday.

EU Market: EUAs storm above €6 on energy complex, German auction premium

European carbon prices hit their highest since early February on Friday, topping €6 and posting an 8.9% weekly rise on the back of a stronger energy complex and after Germany’s EUA auction cleared at a record premium.

NZ Market: NZUs dip slightly as traders step back after buy rush

Spot NZUs slipped down to NZ$13.15 ($9.10) on Friday, a 2.2% drop week-on-week as the market consolidated after the bull run earlier this month that saw the contract peak at NZ$13.50 on Apr. 13.

CN Markets: Pilot market data for week ending Apr. 22, 2016

Closing prices, ranges and volumes for China’s regional pilot carbon markets this week.

Voluntary market data from EEM for Apr. 22, 2016

A table of Verified Emission Reduction (VER) prices and offered volumes, provided by European Environmental Markets (EEM) and based on voluntary market data from Carbon Trade Exchange (CTX).

 

BITE-SIZED UPDATES FROM AROUND THE WORLD

Paris Agreement breaks record for sign-ups – At least 168 countries were due to sign the Paris Agreement at a largely symbolic ceremony in New York today, easily beating the record for a day-one endorsement of an international agreement. UN chief Ban Ki-moon said he hoped the high turn-out would lead to a speedy ratification of the pact and swift implementation. Some 13 countries are expected to deposit their instruments of ratification immediately. China’s Vice Premier Zhang Gaoli pledged to ratify by September before the G20 Hangzhou summit. Read our take on how the Agreement could come into effect in 2018, two years earlier than planned and why this increases the slim chances that nations will swiftly deepen their emission reduction pledges.

Shippers cut and run, collection only  – The UN shipping agency IMO may have once again pushed back proposals to take on emission reduction targets this week (see our take), but claimed victory on Friday by approving mandatory fuel use data collection requirements. The measure could take effect in 2018 and “sends a clear and positive signal about the Organization’s continuing commitment to climate change mitigation”. (IMO)

Jerry went too far on targetsCalifornia governor Jerry Brown exceeded his authority when he issued an ambitious greenhouse gas reduction target last year, the state legislature’s attorney told lawmakers. She said Brown does not have the authority, without legislative approval, to extend beyond 2020 the provisions of climate law AB 32. Brown vowed to push on with post-2020 plans alone after subsequent legislation stalled last year. (Sacramento Bee)

Branson joins EU meet on low-carbon innovation – Virgin’s billionaire founder Richard Branson will join a European Commission’s roundtable on June 9 examining how to stimulate low carbon innovation in the EU ETS-regulated power and industry sectors and worldwide. Branson give a keynote speech during the webstreamed session in Brussels alongside Europe’s climate commissioner Miguel Arias Canete and several executives of major European energy and industrial firms. The event also aims to showcase the next steps for the “Mission Innovation” initiative launched at December’s UN climate talks in Paris, under which 20 nations representing 75% of global power-related emissions committed to double their clean energy R&D investments to 2020.

Congo signs $200m Europe-backed REDD deal – The DRC became the first country to sign an agreement with the Central African Forest Initiative (CAFI), launched in Sept. 2015 by six African nations and European donor countries to restart efforts to protect the massive Congo Basin, lately the target of an expansion of palm oil plantations as available land in Indonesia dwindles. (Thomson Reuters Foundation)

And finally … High-ambition snub – Australia and Japan joined the so-called High-Ambition Group during the climate negotiations in Paris in December, but when the group met again in New York this week the two nations were not invited to the table. Observers commented they were most likely kept out because of their domestic climate policies. “We’ve got a 2030 target consistent with 3 to 4 degrees of global warming and we’ve got a domestic policy framework that has seen emissions increase from the electricity sector. It is difficult to be in a high ambition coalition if you are a low ambition country,” said the Melbourne-based Climate Institute’s Erwin Jackson. (Fairfax)

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