CP Daily: Monday July 16, 2018

Published 23:41 on July 16, 2018  /  Last updated at 23:41 on July 16, 2018  /  Newsletter  /  No Comments

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

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TOP STORIES

EU, China renew carbon trading partnership

The EU and China on Monday signed a strategic partnership that included a renewed commitment to cooperate on carbon markets, a further sign that China intends to go ahead with its national emissions trading scheme despite delays and government restructuring.

Experts suggest carbon border measures against US as EU, China move closer on climate

The rest of the world should retaliate against the US’ escalating trade tariffs with carbon border adjustments rather than tit-for-tat countermeasures, according to researchers.

EMEA

EU Market: EUAs sink back below €16 as volume drains

European carbon prices dropped back on Monday to settle below €16 for the first time in over a week as a weak auction dissuaded buying in another quiet session.

EU New Entrants’ Reserve carbon allowance allocations limp along in H1 2018

Allocations of free carbon allowances to new and expanding companies in the EU ETS continue to stagnate, with just over two years to go until the potentially hundreds of millions of unused EUAs are moved a step closer to cancellation.

AMERICAS

Oregon floats updates to Clean Fuels Program to align with California LCFS

Oregon officials are considering revisions to the state’s Clean Fuels Programme (OCFP) that would align more closely with potential changes to California’s Low Carbon Fuel Standard (LCFS), a meeting heard on Monday.

ASIA PACIFIC

Shanghai to auction 2 mln CO2 permits to ease ETS compliance process

Shanghai will offer 2 million carbon allowances in an additional auction on July 31 to help local emitters comply with the municipal cap-and-trade programme amid a dearth of supply.

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CARBON FORWARD 2018

SAVE THE DATE: Carbon Forward 2018 – Survive and thrive in the global carbon markets

Don’t miss the 3rd annual Carbon Forward conference and training day – Oct. 16-18, 2018 in London.

Spend two days with top experts, players, and decision-makers from the global carbon markets as they address today’s most attractive opportunities and pressing challenges. And join us for the EU ETS pre-conference training day organised by carbon market experts Redshaw Advisors, where you will learn how to effectively manage your carbon risk ahead of the looming overhaul of the bloc’s emissions trading scheme.

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Job listings this week:

Or click here to see all our job adverts

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BITE-SIZED UPDATES FROM AROUND THE WORLD

Propane pressure – The public-private Global Alliance for Clean Cookstoves has started promoting the sale of fossil fuel burning cookers after its $75 million funding to distribute biomass burning ones to poor countries resulted in less effective, and therefore little used, stoves that barely cut indoor pollution blamed for health problems. Officials of the alliance told ProPublica that they remain optimistic that truly clean wood-burning cookstoves can be designed. (ProPublica)

Price push – Nine German federal states’ ministers of the environment and energy are calling for the introduction of a minimum CO2 price at the federal level, according to Handelsblatt. In a letter to German economy minister Peter Altmaier, the ministers warned time is short for the country to ensure it meets its future emissions reduction targets. The ministers also expressed their support for French President Emmanuel Macron’s push for the imposition at the European level of a minimum price of €30/tonne. This comes after France and Germany last week agreed to build a common position on carbon pricing ahead of December’s UN climate talks, while advancing work on closer energy ties. (Clean Energy Wire)

Nearing capacity – North American forests have reached 78% of their capacity to store carbon, raising a red flag for their ability to limit climate change in the years ahead. According to a study published in the journal Nature Communications on Friday, the authors studied 140,000 forest plots across the US and Canada and based their forest growth projections on observations from 1990-99 and data from 2000-16. They found that in a best-case scenario, forests will only gain 22% additional space to store CO2 over the next 60 years, with disturbances like wildfires and development potentially worsening their growth potential. (Missoula Current).

Out of gas – Ontario gas distributors Epcor and Union Gas have confirmed to the Ontario Energy Board (OEB) that they have ceased all cap-and-trade operations in line with the agency’s order earlier this month. After new Premier Doug Ford revoked Ontario’s participation in the WCI-linked carbon market, the OEB ordered the province’s three natural gas distributors to file a letter stating they were no longer active in cap-and-trade. The third company, Enbridge Gas Distribution, had not yet submitted its letter. The OEB said that the move would save typical residential customers C$6-7 per month on heating bills. (Financial Post­)

Climate campaign – The California Democratic party endorsed state senator Kevin de Leon in his bid to unseat incumbent Diane Feinstein as the state’s US senator this fall. Though many consider de Leon a long shot to beat Feinstein in the November election, the endorsement by the state’s party leadership ensures his campaign access to more voter outreach information and a possibly more funds from the national party headquarters. De Leon has also been endorsed by environmental groups and climate proponents like 350 Action, billionaire environmentalist Tom Steyer, and Climate Hawks Vote Founder RL Miller, who applauded the state senator for his bill moving California towards 100% renewable energy, which now faces a floor vote in the Assembly. (Politico)

Koch block – Koch Industries on Monday offered support for a US House resolution that would oppose any carbon tax, The Hill reports. In a letter to House lawmakers supporting the measure, Koch takes a clear stance that Congress should denounce potential taxes on CO2 emissions. The company’s president of government and public affairs, Philip Ellender, urges support for the GOP-backed resolution that would make clear that “a carbon tax would be detrimental to the American economy.” The House is set to vote this week on the measure from House Majority Whip Steve Scalise (R-LA) and Rep. David McKinley (R-WV) that would condemn the idea of a carbon tax. The legislation would ultimately be non-binding.

Cool to the challenge – As global warming worsens, expanding access to air conditioning systems without compromising climate change goals will become a major challenge, according to a new report from the Sustainable Energy for All group. The study shows that 1.1 billion people worldwide face “cooling access risks”, covering not only home air conditioning but also medical and food supply chains. The authors also identify the nine countries with the largest number of inhabitants facing cooling risks, led by India, Bangladesh, and Brazil. (Axios)

And finally… Situational awareness – Former US presidential candidate Bernie Sanders used one of the largest trade union gatherings in Europe – centred on coal – to say that coal is destroying the planet by driving global warming. In a pre-recorded video played at the Durham Miners Gala on Saturday, Sanders addressed miners attending the event on the dangers of the fossil fuel, “shocking some” according to The Times. Another attendee described the “nervous glances” exchanged between miners at the conference, which took place in the historic coal-producing region of northeast England. (Carbon Brief)

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