CP Daily: Friday March 3, 2017

Published 00:37 on March 4, 2017  /  Last updated at 00:44 on March 4, 2017  /  Daily Newsletter  /  No Comments

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

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ANALYSIS: EU carbon prices seen soaring in two years, but risks abound until then

EU ETS reform measures recently agreed by lawmakers are “super bullish” for carbon prices in 2019, but EUAs first risk falling below last year’s lows around €4 on supply pressures and political uncertainty as the proposed changes remain too far off.

China grapples with green standards as foreign investment push underway

China is developing green investment rules for spending abroad, senior officials said this week, amid concerns that the nation’s “One Belt, One Road” strategy could lead to a huge export of pollution and carbon-intensive industries.

China parliamentary advisors pull for carbon trading rule adjustments

The annual conference of an advisory body to China’s parliament kicked off on Friday with some members promoting carbon trading related regulations that would benefit their companies or regions.

First proposals for CORSIA-approved aviation offset criteria due this year -ICAO

Initial recommendations on what emission credits should be allowed in the UN’s new global aviation offset scheme will be made this year, a senior ICAO official said this week, potentially giving airlines and low-CO2 project developers the first investment signals in what is expected to be a multi-billion dollar carbon market.

BHP Billiton calls for carbon price on Australia’s electricity emissions

Australia should set a price on carbon emissions from electricity generation in order to cut greenhouse gas emissions while keeping its energy market reform technology neutral, BHP Billiton said Friday.

Norway’s Statkraft stocks up on carbon units as emissions triple in 2016

Statkraft’s emissions tripled in 2016 compared to the previous year, leading the Norwegian state-owned utility to stock up on carbon allowances.

EU Market: EUAs rebound slightly in choppy trade for 3.9% weekly gain

EU carbon prices nudged higher in a volatile session on Friday, holding on to some of the gains made in the wake of Tuesday’s ambitious ETS reform deal, which helped push EUAs to a two-month peak.

Voluntary exchange CTX gains traction after relaunch, fee cut

Voluntary market hub Carbon Trade Exchange (CTX) is attracting new business following a global re-launch and drastic fee cut, with plans to offer exclusive deals and a move into emerging compliance markets on the horizon, according to CEO Adrian Rimmer.

EU carbon options veteran hangs up his boots

A veteran of the European carbon options market has retired after nearly 25 years as a broker.

Voluntary market data from CTX for Mar. 3, 2017

A table of Verified Emission Reduction (VER) prices and offered volumes, based on voluntary market data provided by Carbon Trade Exchange (CTX).

CN Markets: Pilot market data for week ending Mar. 3, 2017

Below is a table of the closing prices, ranges and volumes for China’s regional pilot carbon markets this week. All prices are in RMB, and volumes in tonnes of CO2e. Data sourced from local exchanges.

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**Navigating the American Carbon World (NACW) 2017: San Francisco, Apr. 19-21 – NACW brings together the most active and influential players in North American climate policy and carbon markets to address the most pressing topics in domestic and international policy, subnational leadership, carbon markets, climate finance, and carbon management initiatives. Visit the website**

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BITE-SIZED UPDATES FROM AROUND THE WORLD

EPA comforts “harassed” fossil fuel industry – The EPA will not require oil and gas producers to provide information on methane emissions at drilling sites, withdrawing a late Obama-era request that was meant to be a first step in a larger crackdown on methane emissions. The EPA withdrew the request a day after receiving a letter from 11 state attorneys general – including Scott Pruitt’s successor in Oklahoma – alleging that the request amounted to “harassment” of fossil fuel companies and asking the EPA to withdraw the “unnecessary and onerous burden” on oil and gas producers. Methane regulations may come under friendly fire during the administration’s budgetary bloodbath as well: a source tells Reuters that the EPA’s budget plan currently includes a 70% budget reduction in a climate program intended to reduce “emissions of greenhouse gases like methane.” (Climate Nexus)

Canada first – The Canadian government has given a clear signal to the Trump Administration that it plans to defend the Paris Agreement, the National Observer reports.  On a Mar. 1 phone call between Canadian Environment Minister Catherine McKenna and new EPA head Scott Pruitt, McKenna raised the issue, emphasising Canada’s commitment to meet its obligations under the treaty.  Amid the uncertainty south of the border, Canada is also working to shore up ties with the EU. Environment minister Catherine McKenna hosted EU climate commissioner Miguel Arias Canete in Ottawa, discussing respective approaches to climate action, including the Clean Energy for All Europeans package and the Pan-Canadian Framework on Clean Growth and Climate Change. They recommitted to hold the Canada-European Union High-Level Dialogue on Climate Change and Environment later in the year.

Survey says – Nearly two-thirds of Canadians want the Liberal government to proceed with climate regulations, including carbon pricing, regardless of a new direction on the environment under US President Donald Trump, a new Nanos Research poll says.  Separately, the Manitoba government has released an online survey to gather opinions from the public on the Canadian federal government’s carbon pricing plan and to gain feedback as the province designs its own scheme.  In the survey, which is open until Mar. 19, respondents will also be able to suggest how carbon revenues are spent.

Read between the contracts – Trade reported to ICIS on the UK Summer-21 baseload power contract in recent sessions has stirred suspicion that the UK will make an announcement on the future trajectory of the country’s carbon price floor in next week’s budget.  ICIS data on the instrument, if hedged speculatively on expectations of an announcement, suggests participants are expecting the rate to be frozen or more likely lowered.

EEX looks west – German energy exchange EEX is looking to get a foothold in North America with its purchase of the US-based Nodal Exchange, a deal valued in the “low triple-digit millions of dollars”.  Headquartered in Virginia, Nodal is a regulated futures exchange that offers a variety of electricity and natural gas contracts but no emissions units at the moment.  EEX is also currently expanding its offerings in China, which are to include new carbon contracts.

And finally… And the Oscar goes to – Just about every award presenter this week got a laugh out of the Oscars’ Best Picture gaffe, but billionaire investor Paul Tudor Jones took it to a whole new level.  The setting was the National Audubon Society’s annual gala in New York, gathering some of the nation’s leading environmentalists at tables decorated with hologram-like birds.  Jones took the stage to present the Lufkin Prize for Environmental Leadership, a $100,000 award that honours doers of good deeds, thinkers and fighters.  “The people actually protecting our natural resources,” Jones said.  “Without further ado, the winner is…” He paused to tear open the envelope. “Scott Pruitt, EPA. Is Scott here?”  Laughter pealed through Gotham Hall as a member of the Audubon staff ran up to the stage with another envelope. (Bloomberg)

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