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The outlook for utility hedging is becoming more clouded as companies switch ownership and rely more on newly-formed capacity markets, cutting the odds that the biggest buyers in the EU carbon market will drive a price recovery.
Despite being in dire need of reform, the EU’s aviation ETS still outscores the draft international aviation carbon market under consideration at ICAO, campaigners T&E said in a report on Tuesday.
A coalition of 10 EU power generators are urging MEPs to adopt amendments they say would strengthen the EU ETS beyond the European Commission’s post-2020 revision proposal.
EU carbon prices gave back much of their recent gains as a weak auction and consolidating power prices held EUAs in check.
Australia faces a cumulative emission reduction goal of nearly 1 billion tonnes of CO2 by 2030 to meet its Paris target, and would need to lower the benchmarks under the Safeguard Mechanism by over 5% annually to achieve it, according to analysts Reputex.
California Governor Jerry Brown has signed a bill that requires the state to make deep cuts in black carbon, methane and HFC emissions by 2050.
Canada’s Ontario province has launched a tender to collect information on how to buy and retire carbon credits to offset government air travel.
BITE-SIZED UPDATES FROM AROUND THE WORLD
Subsidies slammed – The world’s biggest polluters have released their fossil fuel subsidy peer reviews, Climate Home reports, and the obstacles to reform are clear: the US will wait on Congress, while China will wait on China. The documents, released on Monday by China’s G20 presidency, reveal the long road ahead. The G20 has committed to eliminate “inefficient” subsidies for coal, oil and gas in the medium term and the G7, of which the US is a member, has tightened the timeline to 2025. Of 16 policies marked for elimination by the US, all but three concluded with the sentence: “The United States Congress must pass enabling legislation for this proposal to become law”. Since 2010, the Obama administration has put forward 11 proposals to eliminate fossil-fuel subsidies. None have yet passed the house.
UK’s OK – British PM Theresa May, in her first address to the UN General Assembly, on Tuesday said her government would begin the ratification process for the Paris Agreement, with a view to completing it by year’s end. Canada also recently indicated it would ratify the agreement soon. Separately, the UNFCCC said that Ukraine had submitted its ratification documents, meaning that 29 parties accounting for 40.12% of global emissions had now formally approved the treaty.
ICAO count – Japan joined the 51 other nations that have given declarations of support to a global market-based measure for aviation on ICAO’s website, but unlike the others, it gave no indication as to whether it would join from the 2021 start.
Trade deal risks undermining Paris – The Trade in Services Agreement (TISA) global trade deal could threaten the goals of the Paris Agreement by obliging signatories to work towards “energy neutrality” between renewable energy and fossil fuel, a leak of the latest negotiating text shows. The pact aims to liberalise trade between the EU and 22 countries across the global services sector. (The Guardian)
Banks pilot efficiency mortgages – 13 EU banks under the European Mortgage Federation are to offer cheaper interest rates to people buying energy-efficient homes, and to owners who insulate their draughty properties. Under the two-year pilot, the banks will offer homeowners an additional loan on top of the mortgage to retrofit their property. Once the renovations are complete, interest rates will be lowered to reflect lower home costs. The move could cut power sector emissions under the EU ETS and make it easier for member states to meet non-ETS emission goals as buildings are responsible for over a third of EU CO2 emissions. (Bloomberg)
NYC draws corporate pledges – Apple, Bank of America and Amalgamated Bank were among 10 new corporate pledges to 100% renewable, joining the RE100 group on the sidelines of the Climate Week conference in New York. Bank of America also announced it will be ‘carbon neutral’ by 2020, while Apple announced new commitments to power its supply chain with renewable energy. Dalmia Cement was among four new members of EP100, a new global initiative run in partnership with the Global Alliance for Energy Productivity that works with businesses committed to doubling their energy productivity. (The Climate Group)
The Disrupters – Pressure to reduce GHGs is putting the future of fossil fuel giants in jeopardy, with their survival plans involving CCS and floating wind farms. This is explored in The Disrupters, an original series by Economist Films exploring how major industries – from music and cars to hospitality – are currently being disrupted by the latest wave of digital innovation. As well as enjoying privileged access into the world biggest tech start-ups, we show how industry giants respond when faced with such tech-driven innovation. Do they adapt, or die?
And finally… Dodgy tax dodging – A world-renowned conservation professor and five other men have been accused by UK tax authorities of taking part in a £60 million tax dodge that tempted wealthy investors to pay into schemes tackling the spread of HIV and buying carbon credits, the Daily Mail reports.
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