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E.ON’s hedging stalls amid sales slump

Utility E.ON barely advanced its forward hedging over the second quarter as its electricity sales dipped but its relatively advanced hedging position means it is unlikely to up its carbon buying in the near future.

NZ Market: NZUs drop to 2-month low in seasonal lull

New Zealand carbon allowances fell 0.8% in Wednesday trade to their lowest levels since mid-June in what market participants said was a routine August lull, and prices could go in either direction once market activity picks up again next month.

EU Market: EUAs dip again as thin auction demand stokes fears

EU carbon prices fell for the second straight session after bid coverage at the UK’s auction discouraged speculators from betting that this month’s thin supply could spur further gains.

BITE-SIZED UPDATES FROM AROUND THE WORLD

US court upholds Obama’s CO2 price – A US federal appeals court unanimously upheld the Obama administration’s social cost of carbon, which is used across the federal government for cost-benefit analysis for environmental regulations and is set at $36/tonne of CO2. The Chicago-based 7th US Circuit Court of Appeals ruled that the US Department of Energy had the authority to use the measure in its 2014 energy efficiency standards for commercial refrigerators. (The Hill)

Public banks tout climate finance – Climate finance totalling $81 billion was mobilised for projects funded by the world’s six largest multilateral development banks (MDBs) in 2015. This included $25 billion of MDBs’ direct climate finance, combined with a further $56 billion from other investors.

Big coal urges UK to rethink CCS snub –  The World Coal Association has written to new UK climate minister Greg Clark urging him to rethink the previous government’s decision to scrap a £1 billion scheme designed to encourage the development of CCS. (Financial Times, $)

Free the north – The City Council of Ontario’s North Bay will propose to the provincial government that it considers exempting northern Ontario from its cap-and-trade scheme due to the expected impact on the local economy, which they say is already struggling.  However, according to mynorthbaynow.com, some citizens are sceptical of what influence, if any, the council’s move will have.

ARB zeros in on energy – California authorities will host an all-day workshop/webinar from 10am-4pm local time on Aug. 23 with a focus on emission reductions from the energy sector and on the process to update the US state’s 2030 Target Scoping Plan, including current and forthcoming initiatives that contribute to greenhouse gas emissions reductions in the electricity, energy efficiency, and natural gas sectors. Further details will be available here in the coming weeks.

And finally… California’s CO2 tax headache – Californian lawmakers should take advantage of the uncertainty surrounding the future of the state’s cap-and-trade system and impose an explicit carbon tax anyway, argue academics Michael Wara, Adele Morris and Jerry Taylor. They contend that while the state’s market faces legal challenges over whether it is functionally a tax, a straight-up carbon tax would provide even more powerful market signals to encourage emissions reductions, serve broader fiscal purposes and thereby make for a better model for federal legislation for Congress, where cap-and-trade is increasingly viewed as complex, subject to manipulation and giveaways, and as an engine for the expansion of government. (LA Times)

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