CP Daily: Wednesday October 25, 2017

Published 23:48 on October 25, 2017  /  Last updated at 23:51 on October 25, 2017  /  Newsletter  /  No Comments

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

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TOP STORIES

China ETS financials’ ban dims future for carbon brokers but power companies poised to benefit

China’s proposal to ban financials from trading in the national CO2 market is sending carbon brokers scrambling for other business opportunities while power companies stand to gain from the move.

EMEA

UK energy review makes “overwhelming” case to harmonise carbon pricing

There is an “overwhelming” case for the UK to harmonise its carbon pricing instruments to help minimise energy bills and meet emission goals more cheaply, according to a government-commissioned energy cost review on Wednesday.

EU Market: EUAs ignore bullish dark spreads to close at 1-week low

European carbon prices fell for the fourth time in five days on Wednesday, closing at a one-week low and further receding from the 21-high above €8 touched last week.

Germany launches second phase of EU ETS money laundering study

Germany this week kicked off the second phase of its study into money laundering in the EU ETS, launching an online questionnaire for market participants.

ASIA PACIFIC

NZ Market: NZUs rise to six-year high on government change

New Zealand carbon allowances edged up a mere 2 cents in cautious trade on Wednesday, but that was enough to push prices to a level not seen since June 2011.

AMERICAS

Three projects receive California offsets in latest issuance

California’s Air Resources Board issued nearly 210,000 offset credits to three projects this week.

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BITE-SIZED UPDATES FROM AROUND THE WORLD

No thanks – Australia’s government won’t be acting on the Productivity Commission’s recommendation to urgently implement a carbon price, Energy and Environment Minister Josh Frydenberg said Wednesday. “We have said a national energy guarantee (NEG) involves no taxes, no subsidies, no trading schemes and no carbon prices and offers the best way forward,” he told Sky News. The government has previously dismissed the same recommendation by a number of other commissions and experts.

Broken fund – With the Caribbean still reeling from the destruction left behind by category five Hurricanes Irma and Maria, concerns have been raised by lawmakers about sourcing additional funds for the UN’s Adaptation Fund. The fund is resourced by a 2% levy on the monetisation of CERs, and also relies on voluntary contributions by donor countries.  But due to the collapse of the CDM market, it has been faced with a severe cash drought to even finance already approved projects, said Barbados’ Acting Deputy Permanent Secretary of the Ministry of the Environment and Drainage Nicole Taylor.  She said the fund’s “uncertainty, unpredictability and insufficiency of resources” was of great concern to small island states, and urged a similar levy be placed on any new international market mechanisms that may emerge under the Paris Agreement. (Nation News)

Make it a market -The PEI Federation of Agriculture is urging the Canadian province’s government to follow Nova Scotia’s lead by instituting a cap-and-trade system as a means of helping the province meet its climate change emission targets.  The tiny Atlantic province has yet to decide whether it will implement a carbon tax or emissions trading scheme to meet the federal government’s carbon pricing requirements. “There would be opportunities there for farmers to generate some revenue,” said Robert Godfrey, the federation’s executive director, according to PEIcanada.com.

Show some respect – Meanwhile in neighbouring New Brunswick, Premier Brian Gallant said his government will introduce a carbon pricing model that respects the province’s economic realities. “We will establish a carbon price that minimizes the impact on consumers, calls on large industry to reduce emissions or pay its fair share, and establishes a climate fund with dedicated investments to combat the effects of climate change,” he said, without giving further details.  The Canadian Press reports that New Brunswick has yet to decide whether to pursue a tax or market ahead of Ottawa’s 2018 to implement carbon pricing.  The province has two major emissions sources: power plants owned by NB Power and an Irving Oil refinery. Irving Oil responded to Gallant urging him to ensure his plan allows the province to remain competitive, as 80% of the company’s production is shipped to the US, where competitors don’t face similar costs.

Mongolian credits – A second project in Mongolia – a solar power scheme in the city of Dalhan – has been awarded carbon credits under the Japan-Mongolia Joint Crediting Mechanism. The project was issued 8,947 offsets for emission cuts achieved over a seven-month period, the biggest JCM issuance so far. The Japanese government will retain 6,263 of the credits, said the Ministry of Environment.

Going, going… – The Tianjin Climate Exchange earlier this week announced it was about to hold its first-ever carbon permit auction, and two more were announced on Wednesday. On behalf of one unnamed company, the exchange will offer 3,944 permits on Oct. 26, and 5,000 on Nov. 3 – all of them at an average of 12.50 yuan. That’s 50% above current market levels but well below the asking price in the previously announced auction.

Acquired – UK-based Aggregated Micro Power Holdings plc (AMPH), a seller of wood fuels and distributor of biomass boilers and battery storage facilities, has agreed to acquire Billington Bioenergy Ltd from Drax Smart Supply HoldCo Limited for £2 million. Billingtons supplies around 40,000 tonnes of premium wood pellet to commercial customers per annum. AMPH is a minority owner of emissions trading platform developers IncubEx.

And finally… Don’t burn your trash. (This message was brought to you by Norway) – Poland is hoping a media campaign will help it clean up some of its cities, which are amongst the most polluted in Europe, Bloomberg reports. The bloc’s biggest eastern economy will try to teach its citizens not to burn poor-quality coal or even trash to keep their homes warm this winter. The 3 million-zloty ($830,000) campaign, funded by Norwegian grants, is part of a wider government effort to tackle smog that last year at times rivalled that in Calcutta and Beijing. The WHO said last year that 16 of the EU’s 20 most-polluted towns and cities are located in Poland, with pollution causing more than 45,000 premature deaths in the country.

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