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Ontario sold 20.9 million of a total 25.3 million current allowances on offer during its fourth auction, the first time a quarterly sale has failed to sell out.
The UK has published its fast-track legislative changes to bring forward its EU compliance date for 2018 emissions, giving its emitters a very tight timeline to fulfil their 2018 obligations should the country be headed for the ETS exit amid a failure of wider Brexit negotiations.
EU power industry association Eurelectic has committed to making European power generation carbon neutral “well before 2050” and to aid the bloc’s decarbonising goals by electrifying other parts of the economy such as transport and heating.
EU carbon prices dipped for the third consecutive session, hitting a two-week low as weak auction demand signals and a bearish energy complex weighed on an anxious market approaching contract deliveries.
Emissions exchange EEX is offering traders using its platform help with their Market Abuse Regulation (MAR) reporting obligations, which kick in for EUAs for the first time in the new year.
After a week of pushing against the NZ$20 threshold, New Zealand carbon permits on Wednesday finally broke above that resistance level, rising 2.2% to close at their highest levels since May 17, 2011.
Chinese officials this week called a meeting with LNG market participants to urge them to contain prices that have hit record highs on the back of air pollution policies, highlighting some of the risks associated with far-reaching regulatory moves such as the country’s impending CO2 emissions trading scheme.
Complementary policies needed to help California’s non-power sectors carry more of GHG abatement burden -analysts
California carbon prices will likely remain at or near the market floor through 2020, according to a new analysis, but will then need to rise swiftly over the next decade, with non-power sectors bolstered by complementary policies becoming key to meeting the state’s long-term emissions reduction targets.
Emissions trading association IETA has hired a new representative in California, naming a veteran carbon market expert to the role.
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BITE-SIZED UPDATES FROM AROUND THE WORLD
Webinar – On Monday 11th Dec at 14:00 GMT, ICIS analysts will host a free webinar discussing the recent EU ETS post-2020 reforms. Register here.
Mayoral might – 50 US mayors at the 2017 North American Climate Summit in Chicago signed on to a “Chicago Climate Charter” to create emissions reductions plans to equal to or greater than the US’s Paris Agreement targets, track and publicly report city emissions, incorporate climate change into infrastructure and emergency planning and incorporate “voices that have not been traditionally a part of discussions regarding climate change,” like racial and ethnic minorities and economically marginalized communities, into policy discussions. 25 of the 50 mayors are part of We Are Still In, a cross-sectoral network formed after the Trump administration’s announcement that it intended to pull out of the Paris Agreement. (Climate Nexus)
SGER to CCR – The Alberta government rolled out its new framework of climate incentives, regulations and levies that it says will result in the province reducing its GHGs by 50 Mt by 2030. As Carbon Pulse has previously reported, the new framework includes the Carbon Competitive Incentive Regulation (CCR), which will replace the existing Specified Gas Emitters Regulation (SGER) on Jan. 1, 2018. It will cover any facility that emitted 100,000 tonnes or more in 2003 or any subsequent year, and sets benchmarks for emissions per product. Companies below a given benchmark generate tradable performance credits, while those above can surrender credits, offsets, or must pay $30 per tonne. The government earlier this week provided details of another key plank of its Climate Leadership Plan, introducing C$1.3 billion in grant and loan guarantee programmes over seven years to help big emitters adapt to a lower-carbon future. The CCR’s per-tonne levy aligns with the province’s economy-wide carbon tax, which applies to most other sectors and is due to rise to C$30/t from C$20 in January.
More floor – German policymakers could agree to a EU carbon floor price of €20, according to Patrick Pouyanne, CEO of French oil company Total. He said French President Emmanuel Macron suggested minimum of €25-30 would be “too fast and too hard” to accept for some countries in Europe but Germany might go with the lower figure and was sufficient to push a switch from coal to gas power. (Reuters)
Bridge to nowhere – Gas is unlikely to play a major bridging role in decarbonising the UK energy mix, reflecting both its limited scope for displacing coal out of the system, and that unabated gas generation results in emission levels that are not consistent with emission reductions required in 2030. That’s according to Steve Pye at the UCL Energy Institute in a new paper published in the journal Energy Policy. (Carbon Brief)
Don’t force it – The world’s largest asset managers Vanguard, BlackRock, BNYMellon and Invesco all voted against resolutions aimed at forcing US utility companies to report on how efforts to keep a global temperature rise to below 2C will affect them, according to campaign group Preventable Surprises. (Financial Times)
Tough sell – Vermont lawmakers plan to resurrect efforts to introduce a carbon tax in the state, which would see revenues recycled into lowering electricity bills by an estimated 27%. Previous attempts have fallen flat though, with the governor remaining firmly against the idea, saying there is no guarantee it would help lower emissions. Vermont is a member of RGGI, though it represents a tiny share of the power-only cap-and-trade programme’s overall emissions cap. (WCAX)
All talk – Canada’s Auditor General has taken the Yukon government to task for creating plenty of reports on climate change, but not following through with clear action. A report from the AG’s office presented to the territory’s legislative assembly this week said Yukon government departments had produced information spanning 2006 to 2017 on the matter, but they failed to implement measures, set milestones or completion dates, prioritize any of its programmes or estimate their impacts. The reports also had no cost estimates either for the overall plan or individual commitments. The audit mostly covers years when the Yukon Party was in power, with the Liberals now in control of the government and pledging to adopt Ottawa’s federal carbon tax model. (Yukon News)
Resignation – Canada’s ambassador for climate change has resigned due to the sudden death of her husband, CTV reports. Jennifer MacIntyre, a former Canadian ambassador to Switzerland and Liechtenstein, was appointed to the post by Prime Minister Justin Trudeau in late June. A successor is expected to be named in the coming months.
Methodology magic – The American Carbon Registry (ACR) is soliciting public comments on two voluntary offset methodologies. One is a new methodology for emissions reductions from the re-refining of used lubricating oils. The other is an existing methodology targeting the transition to advanced formulation blowing agents in foam manufacturing and use. An update to that protocol proposes a new eligible foam application, retail food refrigeration, which is a broad category that has been shown to have very low adoption rates for low-GHG foam blowing agents. Stakeholders are invited to review the methodologies and submit comments to ACR@Winrock.org by Jan. 12, 2018.
And finally… Grub’s up! – Climate-conscious foodies are swapping cows for crickets. Thomson Reuters Foundation reports on the wave of social enterprises, with an eye on a global looming protein shortage and climate change, that are tempting people to eat insects instead of meat.
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