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- MSR fix risks draining EU ETS market liquidity -analyst
- With regulatory approval, Poland’s TGE a step closer to hosting EUA auctions
- EU Market: EUA rally continues towards €6 as auction gap leaves supply void
- EU utilities included on Norway’s latest watchlist for environmental bans
- EU’s top court rules regulation of Swiss flights under EU ETS is legal
- Guangdong to auction 500k allowances on Jan. 4
A proposal to double the MSR’s annual rate of withdrawal could require re-drafting the measure’s other rules to avoid draining EU carbon market supply far below the intended upper limit, according to an analyst.
Polish energy exchange Towarowa Giełda Energii (TGE) has been approved by the country’s financial watchdog to operate an auction platform for CO2 permits, taking it a step closer to becoming Poland’s official EUA auction host.
EU carbon prices surged on Wednesday to notch a fourth straight day of gains as traders bet that a three-week auction hiatus will tighten the market.
Norway’s sovereign wealth fund is putting under observation several EU ETS-regulated firms after banning a further 15 companies from its portfolio due to their coal-related output, the country’s central bank and fund manager Norges Bank said on Wednesday.
*** For more information on climate finance, see Carbon Pulse’s 71-page international dossier. It also provides an overview of global climate policy relating to carbon pricing, a detailed breakdown of the Paris Agreement and concise summaries of all its INDCs, global themes in carbon markets, internal carbon pricing, and international climate initiatives ***
The EU is not obligated to treat equally under its ETS flights between Switzerland and the bloc and those to and from countries outside of Europe, the bloc’s top court ruled Wednesday, upholding the opinion of one of its advisors and ensuring Swiss aviation emissions stay regulated by the scheme.
Guangdong’s government will hold its second carbon allowance auction of the 2016 compliance year on Jan. 4, offering up 500,000 units, the provincial emissions exchange announced Wednesday.
BITE-SIZED UPDATES FROM AROUND THE WORLD
Drilling the point home – The US and Canadian presidents moved to ban new offshore oil and gas drilling in a huge expanse of Arctic waters. The move is certain to provoke a fight with the US Republican-led Congress and the incoming President Donald Trump, but Obama’s announcement in the last month of his presidency lacks a reversal provision and could therefore tie any efforts to remove it up in legal battles for years. (Bloomberg)
India’s great coal gap – India’s demand for electricity has trailed forecasts for years, data compiled by India’s Central Electricity Authority shows. And while the reasons for the mismatch are complex, the gap raises the prospect that India won’t need to burn as much coal to meet its future energy needs. Rather, much of it is going to come from solar panels and lanterns, both of which can be supplied off grid, greatly reducing the carbon footprint of the world’s no. 2 population. (Bloomberg)
German investment – German manufacturing companies have invested a record €7.9 billion in 2014 in environment and climate protection measures to reduce, avoid or clean up emissions and save resources, according to Germany’s statistics agency Destatis. The investments were up by 5.7% compared to 2013 and accounted for 10.3% of all corporate investments in 2014, according to Destatis. The largest share (42.7%) of investments was made in water protection, while investments in climate protection came in second with 36%. Around €1.9 billion in investments were made by energy providers, Destatis added. (H/T Clean Energy Wire)
Gas to coal – The US power sector’s demand for natural gas has spiked significantly above the five-year average in 2016, but analysts say rising prices will reverse some of that trend and open the door for more coal and renewable energy, Utility Dive reports. According to S&P Global Platts, gas demand from the power sector was 4.8 billion cubic feet/d higher this year than normal. However, with gas prices poised to rise from $2.40/MMBu to $3.30/MMBtu, the firm believes the fuel will lose about half of that bump in 2017, resulting in coal gaining some ground back in the country’s energy mix.
And finally… The kids are alright – Eight Seattle children should have “their day in court” to argue that Washington state and others aren’t protecting them from climate change, a judge ruled. King County Superior Court Judge Hollis Hill on Monday allowed the young petitioners to move ahead in their case against the state, writing that “it is time for these youth to have the opportunity to address their concerns in a court of law, concerns raised under statute and under the state and federal constitutions.” According to AP, the petitioners – between 12 and 16 years old – had asked the judge last month to find Washington’s Department of Ecology in contempt for failing to adequately protect them and future generations from global warming.
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