CP Daily: Wednesday July 25, 2018

Published 02:24 on July 26, 2018  /  Last updated at 02:30 on July 26, 2018  /  Newsletter  /  No Comments

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

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TOP STORY

Ontario cap-and-trade repeal bill sees compliance obligations, few refunds for purchased allowances

The Ontario government on Wednesday introduced a bill to formally repeal the province’s cap-and-trade programme, earmarking compensation equivalent to a tiny fraction of the nearly C$3 billion raised through allowance sales and effectively establishing compliance obligations for the scheme’s emitters.

AMERICAS

Ottawa looks to relax benchmarks under Canadian carbon pricing programme

The Canadian government may relax industry production benchmarks under its output-based carbon pricing system (OBPS), which forms part of its backstop carbon pricing plan, as well as introduce a similar metric for the power sector, it said at a workshop on Wednesday.

Oregon lawmakers still at impasse over future of cap-and-trade plans

A bipartisan legislative committee designed to give Oregon lawmakers a chance to more fully understand and shape the future of the state’s climate policy revealed on Tuesday that a wide rift still exists between some members over what carbon pricing strategy Oregon should take, if at all.

California, Quebec hand out total 118k offsets

California state regulator ARB distributed 94,800 compliance-grade offsets this week to livestock projects, while Quebec’s environment ministry awarded 23,100 credits in the agency’s second issuance this month.

Experts testify on RINs market problems at US Congressional hearing

A US Congressional subcommittee on Wednesday heard several experts testify on issues regarding the function and transparency of the biofuels credit market under the federal Renewable Fuel Standard (RFS), which has experienced significant market and policy volatility this year.

ASIA PACIFIC

Australian minister open to reviewing NEG emissions target in 2024

Australian Energy and Environment Minister Josh Frydenberg has told state premiers and ministers that the emissions target under the proposed National Energy Guarantee (NEG) could be open to review in 2024, a move that would allow a future Labor government to strengthen the scheme’s ambition.

NZ Market: NZUs break above NZ$23 as record push continues

New Zealand carbon allowances made another leap on Wednesday to hit NZ$23 ($15.64) for the first time as the supply shortage continued to push up prices.

EMEA

Iberdrola’s ETS-covered thermal output up 5% in H1 despite coal exit

Spain-based utility Iberdrola reported a 5% rise in its ETS-regulated thermal output over H1 2018 as gas-fired output ramped up, the company said in its Q2 results on Wednesday.

EU Market: EUAs leap back towards 7-year high after bumper UK sale clears above market

EU carbon allowances jumped back towards their seven-year high on Wednesday as the market comfortably absorbed an exceptionally large UK auction.

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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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BITE-SIZED UPDATES FROM AROUND THE WORLD

Driving a headache – Regulators are scrambling to close a possible loophole in planned tougher European Union limits on carbon dioxide from cars, highlighting persistent worries about the reliability of emissions data from the industry. The European Commission said it has evidence that carmakers may declare inflated CO2 discharges in order to ease the impact of proposed stricter caps in 2025 and 2030. The EU is currently switching to an emissions-measurement system known as the Worldwide Harmonized Light Vehicles Test Procedure, or WLTP, and the proposed tighter CO2 curbs would be measured as a percentage decrease from average targets in 2021. “Inflated WLTP emissions in 2020 would result in less strict WLTP CO2 emission targets applying in 2021,” Climate and Energy Commissioner Miguel Arias Canete and Industry Commissioner Elzbieta Bienkowska said in a letter to EU lawmakers dated July 18 obtained by Bloomberg. “As the 2021 WLTP targets also act as the starting point for the 2025 and 2030 targets, such inflation would in turn lead to lower real-life emission reductions in the target years.”

Market-driven CCS – If the US government continues to deploy the right policies, markets will drive the growth of CCS, according to a report by ClearPath and the Carbon Utilization Research Council. It suggests that deployment of the technology could add $190bn to US annual GDP by 2040, and add 780,000 jobs over the same period. The report’s rosiest projections show the gains that can be achieved by deploying carbon capture on power plants with a capacity of 87 GW – enough to power 8.7 mln homes. (Quartz)

And finally… No relief – A deadly heatwave is gripping the Northern Hemisphere and forecasters warn that relief is likely weeks away. Record temperatures stretched from Japan to Norway and further west to Texas. In the Arctic, the mercury topped 30 C, while down in Algeria, Ouargla recorded 51.3 C, likely a record on the African continent. The culprit is a weather system that weakens the jet streams churning through the upper atmosphere. Globally at least 170 people have died in fires, floods, and heat. (Bloomberg)

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