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A group of major South Korean companies has petitioned the government asking officials to sort out the demand-supply imbalance in the market that has pushed prices to record levels.
New Zealand carbon allowances rose 2.3% in Wednesday trade to hit a fresh 6.5-year high after buyers were finally tempted to push towards the NZ$20 barrier.
Analysts have further reduced their 2017 emissions forecasts for Ontario’s cap-and-trade scheme, pointing to an even larger supply glut than was previously projected.
European carbon prices are likely to hold in their current trading range through the rest of the year, analysts said, as the anticipated unwinding of some proprietary long positions will offset reduced auction volumes next month, keeping EUAs from scaling new heights above €8.
European carbon finished higher on Wednesday, recovering ground lost on Tuesday after being buoyed by this morning’s bullish UK auction.
The world’s first programmatic carbon market is targeting its first approvals of developing world GHG-cutting activities late next year and has a shortlist of five projects that will generate emission reduction units for five rich European nations.
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BITE-SIZED UPDATES FROM AROUND THE WORLD
Hey big spender – Oil major Royal Dutch Shell has pledged to cut the net carbon footprint of its energy products by around half by 2050, with an interim reduction goal of 20% by 2035. The measure will be monitored with reviews every five years to ensure Shell is progressing in line with the targets of the Paris Agreement. In addition, Shell said it would boost spending on its alternative energies division from $1 billion to $2 billion per year until 2020, though even double that amount still makes it a small part of the company’s overall investment portfolio.
Annulled – In the wake of the likely re-election of the Queensland Labor Government, Premier Annastacia Palaszczuk has vowed to cancel her state government’s support of a taxpayer-funded loan for Adani’s Carmichael coal project, which emerged as a major issue in the campaign. The Liberal National Party’s support for the project damaged their appeal, and Palaszczuk was forced to rule out the loan. The Greens, which oppose the Adani project outright, may narrowly win their first ever seat in the state parliament. Without the loan, Adani will be reliant on international funding, with Chinese banks tipped as a contender. (CoalWire)
Failure to capture – SaskPower’s Boundary Dam CCS plant has captured an average of just 46% of the plant’s emissions since Jan. 2015, according to an economist at the University of Regina. The plant, which has been widely touted by the coal industry as a success story, emits more CO2 than a gas plant and runs at twice the cost. SaskPower is due to decide by early 2018 on whether to upgrade two other units at the Boundary Dam plant with CCS. (CoalWire)
Boat gloat – Belgium-based CMB has built the first commercial ship that runs on hydrogen and produces zero pollution, taking the world a step closer to cargo without emissions. Its Hydroville passenger shuttle can operate on compressed hydrogen as well as regular fuel oil. CMB will expand the technology to engines on cargo ships after initial testing and believes converting a ship to burn hydrogen is a relatively simple retrofit. (Bloomberg)
X wings – Industrial conglomerate Siemens has partnered with planemaker Airbus and engine supplier Rolls Royce to test a hybrid-electric jet system for commercial aircraft. The “E-Fan X” is anticipated to fly in 2020 with one of four gas turbine engines replaced by a 2 MW electric motor. (Reuters)
And finally… Crimes by fashion – The fashion industry is on track to use up a quarter of the world’s Paris carbon budget by 2050 if consumption and production patterns go unchanged, according to new research. A report released Tuesday from the Ellen MacArthur Foundation finds that the fashion industry currently creates 1.2 billion tonnes of emissions per year – more than emissions from international flights and shipping combined. The report explains that the average number of times a garment is worn has decreased by 36% over the past 15 years, as sales have skyrocketed and textile recycling rates have remained drastically low. Fashion designer Stella McCartney has joined forces with the Ellen MacArthur Foundation to call for industry change, while giants H&M and Nike have also backed the report’s findings. (Climate Nexus)
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