CP Daily: Friday August 12, 2016

Published 18:48 on August 12, 2016  /  Last updated at 18:48 on August 12, 2016  / Carbon Pulse /  Newsletters

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

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China Industrial Bank eyes a trillion yuan in green loans by 2020

China Industrial Bank aims to have one trillion yuan ($150 billion) in outstanding green loans by 2020, the bank said this week, as it chases energy-saving and environmental projects.

EU Market: EUAs notch 3.6% weekly gain ahead of more auction curbs

EU carbon barely budged on Friday to consolidate a 3.6% weekly gain ahead of further reductions in auction volume to an already crimped August calendar.

China floats draft carbon trading rules for low-emission vehicle makers

China has drawn up draft regulations that would bring New Energy Vehicle (NEV) producers into its national CO2 emissions trading scheme, although separately administered, with rules drawing heavily on California’s ZEV programme.

CN Markets: Pilot market data for week ending Aug. 12, 2016

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


*** Launching the second of our comprehensive, regularly-updated intelligence ‘Dossiers‘ on carbon pricing policies. Each dossier builds into a powerful online research tool with key news, analysis, quotes, data, charts, tables, timelines, supporting documents and links – all in one place. And they can all be exported in printable PDF format for convenient offline reading ***

DOSSIER: International Mechanisms

This 31-page dossier provides an overview of the international emissions trading mechanisms created under the Kyoto Protocol: the Clean Development Mechanisms, Joint Implementation and International Emissions Trading. It also examines other mechanisms including REDD, NAMAs, and those currently being developed outside the UNFCCC such as the Pilot Auction Facility and the Nitric Acid Action Group.



New carbon lows – CO2 prices in Chongqing’s ETS fell to 3.28 yuan ($0.49) in Friday trade, an all-time low for any of China’s pilot markets. The drop came on the back of the first handful of trades to go through in the market since February. Carbon Pulse was unable to track down a single trader or analyst paying attention to the Chongqing market, though one source speculated the deals gone through could be compliance trades. The compliance deadline was initially meant to be June 20, but neither the local government nor the exchange have provided any information on it. Chongqing was this week picked by the government along with five non-pilot provinces for World Bank-funded consulting to get ready for the national ETS even though it has had a market operating for two years.

RGGI gets strong show of support from voters Voters in the US northeast overwhelmingly support the region’s cap-and-trade program, RGGI, according to a new bipartisan poll by green group the Sierra Club. Nearly 80% of voters from both parties in the nine RGGI states and 72% support strengthening RGGI’s restrictions on emissions. The poll may bolster the confidence of lawmakers to set more ambitious post-2020 goals as part of its extension due later this year.

Coal drop – China’s coal output fell 13% in July on a year-on-year basis, data from the Bureau of Statistics showed Friday. In the first seven months of 2016, production reached 1.9 billion tonnes, 10.1% lower than in the same period last year. But at the same time coal imports are up 6.7% to 130 mt. One reason for the fall in output is China’s drive to cut over-capacity, although Reuters reported this week only 95 million tonnes of capacity has been slashed so far this year, while the target for the year is 250 mt.

China spy case pressures UK to pull on nuclear plans – UK PM Theresa May is being urged by energy experts to pull the plug on the £18.5bn Hinkley Point C nuclear power project, after new allegations of spying in the US by a consultant working for the Chinese co-investor China General Nuclear Power. (The Guardian)

New fund eyes more clean cookstoves – The new $4 million Clean Cooking Working Capital Fund is the first debt fund focused on greener cookstoves and aims to speed up their deployment in poor communities worldwide by lending to businesses that would otherwise struggle to finance their growth, said co-founders Deutsche Bank and the Global Alliance for Clean Cookstoves. It awarded its first loans this week to two US-based social enterprise firms, Envirofit International and BioLite. (Thomson Reuters Foundation)

And finally … Chickens on carbon pricing – Because explaining carbon pricing can sometimes be a dry and unrelenting task, US broadcaster Earthfix has made this short video giving an overview of some basic carbon pricing principles – using chickens, apparently because they are more fun to watch than people carbon trading.

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