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- International emission trade talks begin slowly as NZ, Japan set pace
- Korea to release 900k allowances from reserve, sends CO2 price tumbling
- Manitoba to push ahead with carbon pricing under new government
- Weather could be bigger driver of EU carbon prices as utility behaviour shifts
- EU Market: EUAs eke out 1.1% weekly gain after German auction brings relief
- NZ Market: NZUs break through NZ$15 level on rule changes
- EU clears Germany, Spain coal aid plans
- G7 urges ICAO to reach carbon market deal in October
- CN Markets: Pilot market data for week ending May 27, 2016
- Voluntary market data from CTX for May 27, 2016
UN climate negotiations meeting in Bonn over the past fortnight began a long-haul process to refine rules for international emissions trade, with Japan and New Zealand vowing to advance their own plans regardless.
South Korea will sell 900,000 Korean Allowances Units (KAUs) from its market reserve next week at a minimum price of 17,100 won ($14.49) each, the government announced Friday, sending the KAU price down nearly 10%.
Manitoba’s new Conservative government has confirmed it will introduce a carbon pricing mechanism, carrying on the work started by the Canadian province’s previous NDP administration.
Fluctuations in the weather may have a bigger effect on EU carbon prices as utilities move towards shorter-term hedging strategies, participants in the bloc’s ETS said.
European carbon prices finished slightly higher on Friday to post a 1.2% weekly gain, after Germany successfully auctioned off its share of EUAs following Poland’s failed sale on Wednesday.
Spot allowances in New Zealand’s emissions trading scheme rose 1% on Friday as traders were cautiously bullish following news that the 2-for-1 rule will be phased out.
EU competition chiefs cleared Germany and Spain’s plans to prolong the lives of their coal assets, in what has come to be seen as test cases for the global shift to clean energy.
G7 leaders in Japan on Friday urged ICAO to overcome its impasse and strike a deal on a global carbon offset market for the aviation sector in October, piling pressure on the UN aviation body to act.
Closing prices, ranges and volumes for China’s regional pilot carbon markets this week.
A table of Verified Emission Reduction (VER) prices and offered volumes, based on voluntary market data provided by Carbon Trade Exchange (CTX).
BITE-SIZED UPDATES FROM AROUND THE WORLD
Trump promises war against climate action – Presumptive Republican presidential nominee Donald Trump promised Thursday that, if elected, he would withdraw the United States from the Paris Agreement (he probably can’t), cut U.S spending on United Nations climate change programs, and revive the oil and coal sector. He also said he would approve the Keystone XL pipeline and rescind regulations to cut carbon emissions and protect waterways. He dismissed solar and wind energy as expensive and harmful to birds. “A Trump administration will focus on real environmental challenges, not the phony ones we’ve been looking at,” he told an oil industry audience in Bismarck, North Dakota. (H/T Climate Nexus)
Brexit could alter climate talks hierarchy – At present the EU is collectively at a similar level to the other two global super powers, the US and China. A UK exit would alter the balance of power for good, writes E3G’s Shane Tomlinson in a blog for Climate Home.
Heating and transport – Germany’s Energiewende is falling short of its goals, especially in areas without support instruments and high subsidies, writes Deutsche Bank Research in a paper (in German). “So far, the state is counting on support measures and regulatory law […]. These instruments are often economically inefficient and/or lead to interference with property rights and the freedom of choice,” write the authors. They suggest integrating the German transition more into the European energy and climate policy, even if this leads to “less ambitious climate goals,” and they propose reforming the EU ETS and extending it to the heating and transport sectors. The authors admit that they do not offer an affordable and feasible solution to all challenges. (H/T Clean Energy Wire)
CDM complaint – Residents of Sukhdev Vihar, a district of New Delhi, have filed a complaint with the UNFCCC against the nearby Okhla waste-to-energy plant for making “false claims” about the technology it is using to earn CERs. According to the Times of India, the residents allege that the plant is incinerating thousands of tonnes of unsegregated waste daily including plastics, while also emitting carcinogens. “They have lied to UNFCCC about the technology used by the plant and about the toxic emissions,” said one resident. Soumya Dutta of the Indian People’s Science Group adds: “The problem is that the claims of these projects are not validated properly by the nodal agency, MoEF. One of the requirements a project has to meet to be entitled to CER is sustainable development of the community. Is that happening?”
Provincial partnership – Alberta Premier Rachel Notley and Ontario Premier Kathleen Wynne on Thursday announced the two provinces had signed a memorandum of understanding to team up on initiatives to tackle climate change, CBC reports. The deal involves examining opportunities, including but not limited to reducing GHGs in the production, transportation and use of natural resources in Alberta and Ontario. Wynne also said the Alberta government’s recent efforts to tackle its own emissions will ultimately help the province’s push to get more oil pipelines approved. “It convinces me that this conversation, which is a national conversation, is a much easier one because of the work Alberta is doing, absolutely,” she said.
Government tree-huggers – The Norwegian parliament has proposed to ensure that the government’s public procurement has a deforestation-free supply chain, according to the Rainforest Foundation, making it potentially the first government in the world to make such a pledge.
German offsetting – Germany’s Federal Environment Agency (UBA) has bought and cancelled 138,000 CERs to offset the emissions of the agency’s staff in 2014. The German federal government last year agreed to neutralise the climate impact of all its employees between 2014 and 2017.
And finally… Harassment – Canada’s and Alberta’s environment ministers are speaking out about the harassment they and other Canadian female politicians are receiving on social media, CBC reports. “This is ridiculous. This is my work. This is my workplace and there are some things that are just inappropriate,” said Alberta’s Shannon Phillips.
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