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California and Quebec sold out all 75.3 million carbon allowances on offer in its latest current auction, at a settlement price well above the sale’s floor, restoring some confidence in the market after a spate of unsubscribed sales.
EUA prices could slip by over €1 if the UK gives little warning of its ETS exit plans, with the bearish impact dampened by industry hoarding and increased buying from continental emitters, according to analysts.
California has handed out more than 5 million offsets in its latest round of issuances, setting a new record and boosting existing supply by an estimated 13%.
Canada’s frozen northern territories are not included in the federal government’s carbon pricing backstop plan for provinces and will be treated separately, a senior official with the environment and climate change ministry has confirmed.
Six out of 10 respondents in the International Emissions Trading Association’s market sentiment survey expect the UK to drop out of the EU ETS, but most are optimistic that new markets will emerge globally driven by China and the aviation sector.
EU carbon prices clawed back all of the previous day’s losses to leave prices within reach of Monday’s one-month peak of €5.00, as the market enters a scheduled three-day auction pause while approaching the slower summer trading period.
South Korea’s Hu-Chems Fine Chemical Corp. this week converted 360,000 CERs into offsets eligible in the Korean ETS, taking the total number of Korean CER cancellations above 14 million.
Guangdong emissions trading scheme regulators will hold the final permit auction for the 2016 compliance year on June 5, the China Emissions Exchange in Guangzhou said Wednesday.
BITE-SIZED UPDATES FROM AROUND THE WORLD
Action-less action plan – The proposal for a G20 energy and climate action plan, prepared for the summit in Hamburg on July 7-8, remains vague and lacks ambition – and might yet be stopped completely by the US, Germany’s taz newspaper reports. The 13-page proposal, also seen by Clean Energy Wire, refers to the Paris Agreement, promises more climate cash, and calls for rapid reduction of emissions. But there is no mention of decarbonisation or a carbon price. And compared to the first version put forward by the German presidency, there is no reference to “human induced” with regards to climate change, and the timetable of net-zero GHG emissions by mid-century has also been dropped. The whole paper carries the disclaimer in form of a footnote: “The United States is currently in the process of reviewing many of its policies related to climate change and continues to reserve its position on this document and its contents.”
We’re in – As many as 2,400 petrochemical and chemical companies will join China’s national emissions trading scheme, according to numbers released by the industry’s trade association Tuesday. However, according to observers the programme is likely to start with a more narrow approach than initially intended, meaning the chemical sector might not join until 2018.
Reaching out – China’s Guangdong province will seek to enhance co-operation with Britain, Canada and the US on building its emissions trading scheme, the provincial government said in its five-year plan. The Guangdong pilot ETS is likely to continue beyond this year in parallel with the national scheme. Guangdong will also study a range of financial tools to improve its CO2 market, as well as promote green technology in local industry. Its two biggest cities – Guangzhou and Shenzhen – will peak their CO2 emissions around 2020, when the government will cap the provincial energy consumption at 338 million tonnes of standard coal equivalent.
Tone it down – Germany’s Social Democratic Party (SPD) has toned down its ambition regarding the introduction of a carbon floor price in its manifesto, which is to be finalised at a federal party conference on June 25. The party, which currently governs together with Chancellor Angela Merkel’s CDU but trails the conservatives in the polls for the upcoming autumn elections, maintains that it wants to develop a national climate protection law. “We will continue to develop European emissions trading so it can fulfil its function as the key instrument to protect the climate. Should this be impossible to achieve, we will start negotiations to agree minimum prices for CO₂ on a European level,” the paper says. A first draft stated the introduction of a minimum price as a goal. (Clean Energy Wire)
Confirmed: a buck short – The ruling BC Liberals have been denied a majority after the final count of ballots from the May 9 election, The Globe & Mail reports, setting the stage for new coalition government that will undoubtedly look at whether to unfreeze the province’s carbon tax. Read Carbon Pulse’s take on the poll results here.
And finally… Here, read this on the plane – Pope Francis and Donald Trump had their much anticipated first in-person meeting on Wednesday, with the Pope handing the president a not-too-subtle parting gift: a copy of his 2015 encyclical on the environment, dubbed Laudato Si’. The two appear diametrically opposed on the subject of climate change, with Trump due to announce this week whether he will withdraw the US from the Paris Agreement. In fact, “almost all of the documents Francis presented to Trump conflict with the president’s agenda in some way (with the possible exception of Amoris Laetitia, a 2016 work on the Catholic church’s developing view of family life),” reported ThinkProgress.
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