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With all eyes on the political uncertainty stemming from Ontario’s upcoming election, experts say many WCI market participants are overlooking other risks to the programme.
European carbon prices dipped back from a four-day peak towards €13 on Tuesday as the market struggled to absorb units from a bigger-than-normal auction.
EU lawmakers urged countries to agree to a more ambitious deal to curb global shipping emissions, warning on Tuesday that the bloc will otherwise go further on its own.
Ontario is beginning to experience beneficial effects from its cap-and-trade programme, both on the economy and GHG emissions, that are expected to continue over the next several years, according to two related studies released on Monday.
South Korean carbon allowances have edged down to their lowest levels since Jan. 29 this week as available supply is slowly emerging.
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BITE-SIZED UPDATES FROM AROUND THE WORLD
Pricing pass – Argentina will not discuss carbon pricing at the G20’s climate sustainability group meeting in Buenos Aires next week. The decision marks a shift from when last year’s German presidency progressed the “Climate and Energy Action Plan”, which called for the use of market-based mechanisms like carbon pricing to address climate change, despite US opposition. Argentina denied claims that its decision to drop carbon pricing from the agenda stemmed from US pressure, instead stating that it was still very committed to climate action while having an independent position on every issue. (Climate Home)
Make room – Marketplace operator ICE revealed on Monday that it will begin listing future and options contracts for California Low Carbon Fuel Standard (LCFS) and D6 Renewable Identification Number (RIN) credits for the first time on May 21. RGGI allowances (RGAs) for the 2020 and 2021 vintages will also be included in the release, along with nine other oil and gas contracts.
Pellet power – UK utility Drax has signed up to the Powering Past Coal Alliance, the UK-Canadian voluntary initiative seeking to end coal power by 2030 in developed nations. Under the EU ETS and UK carbon price floor, the company has converted 3 of its 6 coal-burning units to fire wood pellets and its due to complete a fourth this year. It has plans to replace the other two with gas-fired plants and battery.
Ratchet research – Researchers at I4CE and Enerdata have published an policy briefing updating their position on seeking stronger alignment of the EU’s 2030 energy and climate framework with the Paris Agreement and concrete provisions to mitigate the effect of “counterproductive” policies on the EU ETS.
Funding Africa – Kenya has urged African countries to establish their own climate change funding mechanism to save the continent from huge burdens on their economies. The call came at the Africa Regional Forum on Climate Technology, organised by the Climate Technology Centre and Network (CTCN), an implementation arm of the technology mechanism of the UNFCCC. (Xinhua)
Forgot something – The Environmental Commissioner of Ontario released a report on Tuesday that says the province’s 2017 Long-Term Energy Plan does not align with its climate change goals. While meeting the province’s GHG reduction goal would require fossil fuel use to decline by 40 to 50% through 2030, Ontario Environmental Commissioner Dianne Sax says that the 2017 plan does not specify how the province will reduce the use of these fossil fuels. Recommendations include cutting the use of fossil fuels in cars, trucks, and home heating. (CTV News)
Fully charged – Apple announced on Monday that the entirety of its global direct operations are now 100% renewable-powered. The software giant also said that nine of its suppliers had achieved full use of renewables for their Apple-related work, making 23 in total. The company expects that it will utilise 1.4 GW of renewable generation spanning 11 countries by the time it has completed all clean energy projects in its pipeline. (Axios)
And finally… Thanks but no thanks – Hundreds of political, environmental, and civil society groups across the full gamut of jurisdictional levels penned a letter to US Senators on Tuesday opposing the nomination of Mike Pompeo as Secretary of State. The organisations criticise Pompeo as a climate sceptic who was a top recipient of funding from the industrialist Koch brothers, who have a history of financing efforts to block climate change legislation and shed doubt on the impact of humans on climate change. The groups also cite Pompeo’s actions to expedite the approval of pipelines to move fracked natural gas and permanently eliminate wind power production tax credits during his time as a Congressman. President Trump picked the CIA director to lead the foreign affairs department in March after ousting former ExxonMobil CEO Rex Tillerson from the position in March.
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