CP Daily: Thursday September 15, 2016

Published 20:15 on September 15, 2016  /  Last updated at 20:15 on September 15, 2016  /  Newsletters  /  No Comments

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

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German emitters downgrade EUA price expectations for 2020 by 18% -survey

German companies regulated under the EU ETS have downgraded their future price expectations after this year’s collapse in EUAs, while also lowering the mark they believe is needed to incentivise emission reductions, according to an annual survey.

Aviation hub Singapore commits to ICAO carbon market, but other nations shy

Asian aviation centre Singapore has become the 51st nation to show its willingness to opt-in to UN aviation body ICAO’s global carbon market at its earliest phase, but doubts remain about several other major flight hub nations.

EU ETS firms face no new burden from more flexible EUA allocation, says IETA

Companies with exposure to the EU ETS face no additional administrative burden should lawmakers use a more flexible allocation system from 2020, though regulators may have more work to do, according to an IETA briefing paper.

EU Market: Short-covering, energy lift EUAs 4.5% to next technical barrier

European carbon jumped by 4.5% on Thursday, buoyed by short-covering and a firmer energy market.

Carbon seller disqualified by UK govt over £13M in investment scams

A 38-year old man has been disqualified by the British government for fleecing investors out of at least £13.3 million through a number of “alternative investment scams”, including one selling carbon credits.


Decarbonise your portfolio – Investors need to consider how climate change will impact their portfolios, according to a report from BlackRock, the world’s largest asset manager. In terms of the specific physical effects, the company explains that rising temperatures and more devastating weather create salient economic risks, particularly to coastal real estate, agriculture and companies with supply chains in geographically vulnerable areas. However, it notes that these effects are “hard to model” and thus difficult to invest around, adding that a good alternative are companies developing renewable power and other GHG-reduction technologies on the equity side, and green bonds for fixed income.  Additionally, BlackRock found that a portfolio’s carbon footprint can be cut by 70% while keeping the tracking error to the MSCI World Index benchmark within 0.3%.  It added that investors should avoid “the losers, [which are] pretty clearly clustered in the fossil fuel space.” (CNBC)

No money, mo’ problems – Funding from rich nations to help envoys from developing countries attend UN climate talks is drying up, meaning fewer may be able to attend this year’s summit in Marrakesh, Climate Home reports.

UK’s nuclear move secures CO2 goals – The UK’s signal today that it will allow the construction of a new nuclear power plant at Hinkley Point will reduce uncertainty about the Britain’s ability to meet its emissions reduction targets after years of shutting down low-carbon power incentives such as for CCS and onshore wind, according to Sam Fankhauser of the Grantham Research Institute. He said the UK government’s own advisers have shown it will be very difficult to meet the UK’s 2028-2032 carbon budget without CCS or new nuclear and though renewables may be cheaper they are unlikely to meet entire UK demand by Hinkley’s expected 2025 start date. Hinkley’s £92.50/MWh guaranteed power price is also likely to be cheaper than electricity supplied by coal or gas plants, assuming that there is a carbon price consistent with the UK’s targets, he said.

Brexit can bring on a tax – With Brexit, there is now an opportunity to look again at an EU-wide carbon tax, according to James Nix of Brussels-based non-profit Green Budget Europe, who argues that the ETS only came into place because of the UK’s opposition to a fiscal instrument. (EurActiv)

And finally… Excusez-moi? – French presidential hopeful and the country’s former head of state Nicolas Sarkozy suggested climate change isn’t caused by man, according to French weekly Marianne reported. “Climate has been changing for four billion years,” the former president told a panel of business leaders this week, the weekly. “Sahara has become a desert, it isn’t because of industry. You need to be as arrogant as men are to believe we changed the climate.” (Politico)

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