CP Daily: Friday July 7, 2017

Published 01:06 on July 8, 2017  /  Last updated at 01:06 on July 8, 2017  /  Newsletters

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

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EXCLUSIVE: California Republicans, Democrats team up on competing cap-and-trade extension bill

A bipartisan group of legislators is working on an effort to extend California’s cap-and-trade programme post-2020, drafting a competing solution to the proposals being worked on by the office of Governor Jerry Brown.

IMO sets course for shipping emission cuts, but without final destination

The International Maritime Organisation (IMO) on Friday sketched an outline under which it will flesh out its initial strategy to address shipping emissions by 2018, but it stopped short of committing to decarbonise the sector this century.


Germany launches EU ETS money laundering study as crime threats linger

Germany’s emissions trading agency (DEHSt) has launched a study into money laundering in the EU ETS in order to improve detection and response processes.

EU Market: Solid auction, technical breach send EUAs to 4-month high

European carbon prices vaulted to a four-month high on Friday after a solid result in the day’s German auction prompted buyers to push the front-year contract above a major technical barrier.


NZ Market: NZUs extend gains to hit 3-month high

New Zealand carbon allowances recorded further gains on Friday, hitting three-month highs as emitters continued to pick up limited available supply.

CN Markets: Pilot market data for week ending July 7, 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.


Ontario to offer 28.4 million allowances in third auction

Ontario will auction 25.3 million current allowances and 3.1 million V2020 allowances in its third auction, taking place on Sep. 6.


Voluntary carbon market data from CTX for July 7, 2017

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



**Calling all EU carbon analysts – Carbon Pulse is preparing its Q3 EUA price poll and is looking for more participants. If you’re interested, you have price forecasting experience, and have previously published research supporting your views (either publicly or privately), please get in touch.**

G20 – World leaders at the G20 summit are preparing to agree to disagree with the US over climate change. According to reports, negotiators are drafting a communique that will acknowledge the US decision to withdraw from the Paris Agreement, while emphasising other nations’ commitment to the accord. Despite the appearance of compromise, world leaders aren’t letting up on Trump: EU countries are expected to lead on climate at the summit, while Brazil, Russia, India and China issued a communique calling for implementation of the Paris Agreement. An index released by Climate Action Network this week shows that, among G20 countries, Italy, France, Germany and Brazil are closest to meeting their Paris targets, while the US joins Saudi Arabia at the bottom of the list. (Climate Nexus)

Q2 investments – The second quarter of 2017 saw $64.8 billion invested in clean energy around the world, up 21% from 1Q this year but down 12% compared to 2Q 2016, according to the latest clean energy investment numbers by Bloomberg New Energy Finance. The financing of two huge photovoltaic projects in the UAE helped to drive a recovery, though investment in the UK was the weakest, where investment slumped more than 90% compared to 2Q 2016. Overall, solar was the top sector in 2Q, notching up investment of $35.6 billion, up 19% year-on-year and 20% quarter-on-quarter. Wind had a weaker three months, seeing investment slip 29% year-on-year to $26.2 billion, although it was 43% higher than in the first quarter of this year.

CCS-hydrogen – European utilities Statoil, Vattenfall and Gasunie have signed an MoU to evaluate the possibilities of converting Vattenfall’s 1.3GW Magnum gas-fired power plant in the Netherlands into a hydrogen-powered plant. The companies also agreed to explore the possibility of combining hydrogen production with CCS. The Magnum plant in Eemshaven has three units and the companies will investigate how to convert one to run on hydrogen. The project is estimated to reduce 4 million tonnes of CO2.

Tesla down underSouth Australia has picked Tesla to install the world’s largest grid-scale battery, which would be paired with a wind farm provided by France’s Neoen, in a major test of the reliability of large-scale renewable energy use. (Reuters)

Top German worry – For Germans, climate change topped the list of the most pressing global issues for G20 to fix, a poll by public broadcaster ZDF showed. A third put solutions to climate change at the top of the list, 29% said the migrant crisis was the most urgent issue, followed by terrorism (27%) and free trade (7%). But 78% of those polled expected no impetus from the G20 on those issues, only 10% expected progress, while 10% feared the G20 would be fall back on the matter. (Clean Energy Wire)

And for Americans too? – Nearly 4 in 10 Americans think there’s a good chance climate change will cause human extinction, according to a poll released Wednesday. The survey from the Yale Program on Climate Change Communication found that 39% think the odds of global warming ending the human race are at least 50%. (The Hill)

Error – The estimated value of over-the-counter trade in EUA and their derivatives was €2.49 billion in the second half of 2016, and not €460 billion as previously suggested, EU financial authority ESMA said Thursday. This impacts non-financial companies checking to see if they will have to comply with MiFID 2. ESMA said the values for emissions and the “other” commodity derivatives category were transposed in error in its June 30 estimates of EU commodity derivative market sizes. (Platts)

And finally… Perry’s little lesson in supply & demand – US Secretary of Energy Rick Perry was roundly mocked on Twitter on Thursday for his definition of supply & demand economics, which he gave during a visit to a coal-fired power plant in Morgantown, West Virginia. “Here’s a little economics lesson: supply and demand. You put the supply out there, and the demand will follow,” he said, according to reports. Critics were quick to find fault with Perry’s use of the term, though one suggested that Perry was referring to Say’s Law of Markets, which states that production is the source of demand. During his visit, Perry also said that coal-fired power plants are important for the country’s future because of their contribution to meeting baseload power demand. (The Hill)

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