CP Daily: Tuesday May 31, 2016

Published 19:37 on May 31, 2016  /  Last updated at 19:39 on May 31, 2016  /  Newsletter  /  No Comments

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

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Key EU lawmaker sticks to 2.2% annual cap reduction in proposed ETS reforms

UK MEP Ian Duncan has published his report on post-2020 EU ETS reforms, proposing to stick to the European Commission’s plan for a linear reduction factor of 2.2% per year.

ANALYSIS: EU Parliament draft would keep ETS a low price ‘irritant’ for years

MEP Ian Duncan’s proposed ETS reforms would do nothing to lift EU carbon prices for years but may appease reluctant industries with a workable way of strengthening the market in the longer term.

NZ Market: New Zealand carbon rises to new 5-year high amid strong demand

Spot NZUs edged up 1% in Tuesday trade to fresh five-year highs as demand remained strong while some major sellers were happy to sit back and wait for the price to move higher.

Baosteel subsidiary launches tender for carbon offset swap

A subsidiary of Baosteel, China’s biggest steel producer, on Tuesday issued a tender seeking to swap 320,000 Guangdong Emissions Allowances (GDEAs) with an equal amount of carbon offsets, a move that could indicate a downward pressure on offset prices.

EU Market: EUAs hold above €6 following new ETS Phase 4 proposal

European carbon was steady on Tuesday, holding above €6 after being seemingly unfazed by a new proposal on EU ETS Phase 4 reforms.

COMMENT: Australia on path to market-based climate approach – after the election

Whoever wins the upcoming July 2 election in Australia will need to work with business to set out a path that will ensure the country meets its obligations under the Paris Agreement and a market-based approach will be key, writes the Carbon Market Institute’s Peter Castellas.

BITE-SIZED UPDATES FROM AROUND THE WORLD

*** Will European carbon prices ever recover? Thomson Reuters Point Carbon analysts will host a webinar on June 8 at 1300 GMT. Click here for more details and to register ***

Governments ready for clean energy meet – Energy ministers, business leaders, and NGOs will come together for the Clean Energy Ministerial this week aiming to build on the momentum gained during the Paris Agreement. US Secretary of Energy Ernest Moniz has called for increasing the funding from roughly $290 million to $1 billion over the five-year ramp-up period of the Mission Innovation initiative. (H/T Climate Nexus)

Maryland whiplash – Maryland’s Republican governor Friday gave his state’s climate policy supporters a case of whiplash, vetoing renewable portfolio standard legislation two months after he signed into law one of the most ambitious greenhouse gas reduction targets in the nation. ClimateWire reports.

BECCS gets going – A commercial scale BECCS (bioenergy with carbon capture and storage) project is underway in the US state of Illinois, testing out the controversial but perhaps necessary technology for the first time. CO2 is being captured and stored from an ethanol plant, meaning that it has the potential to create net negative emissions. (Carbon Brief)

A restrictive wind blows – Europe’s wind energy industry is calling on the European Commission to look closely at Poland’s proposed law to restrict the siting of wind farms and examine whether it contravenes EU law.  According to WindEurope, under the new legislation, which was passed by Poland’s lower house last week, wind farms would have to be built a minimum distance from residential areas of at least 10 times the size of the turbine – in effect a length of about 2km. The constraint would exclude 99% of the Polish territory from wind energy development.

Shades of grey – As much as half of the coral in the north parts of the Great Barrier Reef has been killed by mass bleaching in the last three months, the New York Times reported. Its the third bout of bleaching to strike the reef in 18 years and the most extreme that scientists have recorded. This could elevate climate change to a vote-changing issue in Australia, according to an editorial in the Sydney Morning Herald.

And finally… Bleach reach – A satirical take on Australia’s policies and inaction on climate change have been lampooned in a tourism video spoof that has become a viral hit. The video sings the praises of the country’s beautiful (mostly bleached) Great Barrier Reef, the great deals some (refugees) families can get on a visit to Nauru, and the impossibly good hair of Greens Senator Scott Ludlam. (The New Daily)

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