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Stakeholder comments on potential updates and revisions to California’s cap-and-trade programme after 2020 have revealed a rift over the levels at which the state should set its various price tiers and how it should address overallocation in the scheme.
A lack of technical infrastructure and guidance from the Ontario government regarding its compliance offset programme is holding up the first investment and project submissions, according to stakeholders.
China’s State Council has approved an allocation plan for the power sector’s trial emissions trading system, local media reported Thursday, a sign that the government is on track to launch the simulated market this year as planned.
China will cut power prices for industrial and commercial users by around 10%, a move likely to squeeze the profits of monopoly grid companies and major generators and pave the way for further power market reforms.
Revenues raised from carbon pricing policies rose 45% last year to $32 billion, with most coming from taxes rather than trading and no clear trend emerging on where the money is spent, a report found on Thursday.
The Carbon Pricing Leadership Coalition (CPLC) on Thursday named a new co-chair, while the group’s managing body the World Bank announced a high-level forum on carbon pricing and competitiveness amid the release of a report on decarbonising the global power and chemicals sectors.
Nova Scotia’s cap-and-trade programme should include auctions, while also providing for more industry protection and linkage opportunities, according to stakeholders.
North American carbon markets were relatively low-key this week, with east coast prices moving up 3% on a brief surge of buying interest, while WCI prices stagnated amid a lack of interest in outright futures.
EU carbon prices fell to their lowest in a week on Thursday as a breach of a technical support level triggered selling despite a stronger auction.
Some countries aren’t waiting until 2020 to make changes to their national climate commitments. As countries ratify the Paris Agreement, some have decided to revise their INDCs and communicate the changes as part of their first NDCs. WRI provides a summary.
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BITE-SIZED UPDATES FROM AROUND THE WORLD
Last resort – Months into the Korean War, President Truman capped wages and imposed price controls on the steel industry, seizing authority under a newly passed law to take action in the name of national defense. Now, more than a half century later, Trump administration officials are considering using the same statute to keep struggling coal and nuclear power plants online, Bloomberg reports. Under the approach, the administration would invoke sweeping authority in the 68-year-old Defense Production Act, which allows the president to effectively nationalise private industry to ensure the US has the resources that could be needed amid a war or after a disaster. President Trump campaigned on a promise to bring back coal that is increasingly being edged out of the US power market by cheap, cleaner-burning natural gas. But the administration has struggled to find an approach that can survive scrutiny from the courts and independent energy regulators. A proposal to subsidize some power plants was unanimously rejected by the Federal Energy Regulatory Commission in January. And doubts have risen within the White House about a
request by a FirstEnergy Corp. subsidiary for the government to declare a grid emergency and guarantee profits for coal and nuclear plants using a legal authority generally reserved for emergencies such as war.
Port pricing – Shipping carbon pricing is already in place, according to a report by OECD-affiliated think-tank ITF. It found 28 of world’s 100 largest ports apply a green port fee, but less than 5% of ships have them applied as incentives and auditing is weak.
Choc-a-bloc – The world’s biggest cocoa producer Ivory Coast has partnered with major chocolate makers to try to halt the spread of cocoa plantations in protected national parks and reserves. The details of the plan have yet to be worked out but cocoa exporters are pinning hopes on GPS mapping and relationships with cooperatives producing beans under certified schemes such as the Rainforest Alliance. (Reuters)
And finally… Lyft my emissions – US-based ride-share operator Lyft will start purchasing carbon offsets to cover its emissions, the company announced on Thursday. Lyft says that its offsets, managed by project developer 3Degrees, will all be located within the US and near its largest markets. The company didn’t disclose the size of its investment in these projects, but it will tap its more than $4 billion in venture capital funding to pay for them. Lyft has a commitment to reducing its transportation-based emissions by 5 Mt per year by 2025. (Green Biz)
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