CP Daily: Monday October 31, 2016

Published 22:43 on October 31, 2016  /  Last updated at 01:08 on November 2, 2016  /  Newsletter  /  No Comments

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

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China offset restrictions put squeeze on carbon developers

Chinese carbon project developers, recently recovered from the CDM crisis, are facing fresh headwind amid government moves to restrain offset supply in a bid to avoid price suppression for the already over-supplied domestic market.

IFC issues $152m REDD-linked bond

The World Bank’s International Finance Corporation (IFC) has issued a new type of bond listed on the London Stock Exchange that will buy REDD credits from a project in Kenya.

SK Market: Korean CO2 remains firm in face of market expectations

CO2 allowances in the South Korean emissions trading scheme remained firm throughout October despite market expectations that the government will increase allocation to reduce the cost of the programme for participants.

EU Market: EUAs stay pinned near €6 as coal nears two-year high

EU carbon prices were little changed on Monday despite a coal-led surge in the energy complex as analysts doubted that a move above €6 could be sustained this week.

NZ Market: NZUs extend losses as buyers retreat

New Zealand carbon allowances shed another 0.80% in Monday trade as the market is due a correction after hovering near five-year highs for two months.

BITE-SIZED UPDATES FROM AROUND THE WORLD

Tougher for coal – The Shanghai Stock Exchange has told bond underwriters to make it tougher for coal companies struggling with over-capacity and debts to raise cash through issuing bonds, according to the 21st Century Business Herald, yet another government step to cut over-capacity in the sector. Those exceeding the government’s coal production limit will be barred from registering new bonds altogether.

Paris trumps all – Backers of the Paris Agreement that formally comes into force on Friday say they are confident the deal can survive any legal challenges by US Republican candidate Donald Trump if he wins next week’s presidential election. Under a Vienna Convention on the Law of Treaties, Trump could not renounce the US share and then argue that the entire entry into force was invalid but there could be lawsuits over the way President Barack Obama did not submit the deal to the US Senate. (Reuters)

More Canadians say yah – 51% of Canadians approve of Prime Minister Justin Trudeau’s plan to price carbon, according to a Mainstreet/Postmedia poll, with 21% ‘strongly approving’ of the measure. Trudeau says he will hold a first minister’s meeting Dec. 8 to discuss the policy as part of his pan-Canadian climate plan. (CTV)

Talking trade – The debate over the climate impact of regional trade deals could focus on how governments could try to shape trade agreements to meet the goals of the Paris Agreement as well as what is wrong, say climate policy researchers Susanne Dröge and Harro van Asselt, summarising their recent work for Climate Strategies. (Carbon Brief)

Negative needs – Negative emissions technology must be a strong priority for research and development over the next 10 years but the potential limitation of achieving negative emissions highlights the importance of achieving radical reductions in emissions across economy quickly, argues UK academic Nicholas Stern in a speech on the 10th anniversary of his landmark report into climate change economics. (Climate Home)

And finally… a ‘Desperate’ merger – Tesla chief Elon Musk chose the former set of TV show Desperate Housewives to unveil his new product: solar-powered roof tiles, aiming to integrate a low carbon lifestyle by combining with his electric car and home battery unit. However, the billionaire entrepreneur refused to answer a journalist’s question about how the struggling solar installer SolarCity involved would be incorporated onto Tesla balance sheet ahead of a vote on the merger of the two companies. (Reuters)

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