CP Daily: Monday January 16, 2017

Published 23:41 on January 16, 2017  /  Last updated at 23:44 on January 16, 2017  /  Newsletters

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

**We’re seeking a conference producer to help us plan Carbon Forward 2017. Check out the job advert**

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CDP forms panel to find right CO2 prices to meet Paris Agreement

Non-profit CDP has formed the world’s first industry-led initiative to define the carbon prices needed for the power generators and other sectors to meet the goals of the Paris Agreement.

Davos summit ramps up the climate talk

This year’s Davos summit will see the world’s elite financiers and industry leaders host a growing number of discussions on climate change compared to years past. Here are some key events to watch.

China halts construction of 85 coal plants in bid to cut over-capacity

China has suspended the construction of 85 coal-fired power plants in a move that is likely to further curb the nation’s CO2 growth but that observers say will have a modest impact on its carbon trading plans.

CN Markets: Shanghai permit prices triple as traders anticipate smooth transition to national ETS

Prices in the Shanghai emissions trading scheme have tripled over the past two months as traders bet on arbitrage opportunities when the national carbon market opens later this year.

Oregon lawmaker to try again with cap-and-trade bill

A Democratic state Senator in Oregon has introduced cap-and-trade legislation for the 2017 legislative session after lawmakers last year commissioned a study into a market-based measure and in the wake of similar bills that have failed to advance.

EU Market: EUAs plunge back below €5 as auction demand weakens

EU carbon prices crashed below €5 on Monday to reach their lowest levels so far in 2017, as last week’s strong auction demand appeared to dissipate and a couple technical levels were breached.

More than three quarters of new entrant EUAs remain at Phase 3’s halfway mark

Free EUA allocations to new and growing EU ETS emitters slowed once again in the second half of 2016, with more than 75% of the allowances set aside for such plants still unclaimed at the halfway point of the current trading phase.

Quebec begins carbon allowance allocations for 2017

Quebec has started allocating emission allowances for 2017 to emitters covered by its carbon market, the government said Monday.

Third ex-Vattenfall carbon expert joins Toronto-based ClearBlue Markets

An ex-Vattenfall emissions market expert has joined Toronto-based carbon trading and advisory firm ClearBlue Markets, the third person to make the move over from the Swedish-owned utility.


Job listings this week:

Senior Conference Producer, Carbon Forward – London
International Fellow/Carbon Markets Fellow, C2ES – Arlington, Virginia
Manager, Climate, Sustainable Business & Markets, WWF – Berlin
Policy Analyst, Climate Change Adaptation, OECD – Paris
Policy Analyst (temporary), Climate, Environment and Development Finance, OECD – Paris
Executive Director, Future Earth – Montreal
Expert, Corporate Climate Action, South Pole Group – London/Stockholm/Zurich
Project Leader, GIZ – Mexico City

Or click here to see all our job adverts



How to spend it – Saudi Arabia is looking for up to $50 billion in clean energy investments over the next six years, oil minister Khalid al-Falih said on Monday.  Speaking at the annual IRENA renewable energy summit in Abu Dhabi, al-Falih reiterated the Kingdom was committed to sourcing 30% of power from non-fossil sources by 2030. (Climate Home)

Closure over CO2 price – Germany can best keep to its 2050 climate targets trajectory of more than halving coal-fired power production by 2030 by switching off the pre-1990 lignite and hard coal power plants instead of increasing the price for CO2 emissions, according to a Oeko-Institut study commissioned by the environment ministry. It favoured this option of four scenarios, but said Germany should also cancel the corresponding amount of EU ETS allowances to prevent oversupply. In the medium to long term, however, the overall ETS cap should be lowered to account for the reduction of emissions. (BMUB statement, German environment ministry, in German. The study has an executive summary in English. H/T Clean Energy Wire)

Germany’s environment ministry will ultimately need to agree on such a measure with the economy ministry, whose lead minister Sigmar Gabriel again signalled a potential clash on the issue by saying that a concrete year for a German coal exit shouldn’t be specified and that the Green Party’s proposed 2025 deadline was “completely illusory”. Rather, Gabriel favours revisiting the issue in 2030 to see how well job creation alternatives and the energy transition had progressed before adjusting the phase-out tempo. (Rheinische Post, H/T Clean Energy Wire)

Enemy of the science – Donald Trump not only threatens US climate science but research across the world, according to a letter from 100 UK scientists to Prime Minister Theresa May.  The scientists said the incoming president represented “potential threats to, and opportunities for, the [UK’s] national interest” and urged May to champion climate science through the UK’s “special relationship” with the US, as well as the G7 and G20 meetings they would both attend. (Climate Home)

Spot on EUAs – Entrants to brokerage Vertis’ annual EU carbon price competition last year predicted spot EUAs would peak anywhere from €7.50 to €10.15, when in fact they moved between €3.93 and €8.04 with an average of €5.35.  The contest’s one winner, a Hungarian client of the firm, was exactly right in guessing the top trade. With prices falling 23% in the opening week of 2017, this year’s pricing contest is hardly getting any easier. (Vertis blog)

And finally… Clean water from thin air – Bloomberg reports on a Chilean startup that has built a machine that can take moisture out of the sky and turn it into super-clean drinking water at the touch of a button. The machine works well enough that it is now being heralded as lifeline for people throughout Chile and South America who need access to clean water. The machines are being tested in Chile’s deserts to the north, with a backpack-sized device now being developed.

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