CP Daily: Monday August 6, 2018

Published 23:00 on August 6, 2018  /  Last updated at 23:00 on August 6, 2018  / Carbon Pulse /  Newsletters

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

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Australian states dig in against NEG ahead of crucial vote

Three Australian state governments on Monday refused to commit to backing the National Energy Guarantee (NEG) proposal ahead of this week’s crunch meeting, even as federal Environment and Energy Minister Josh Frydenberg accused them of “politicking and posturing”.


New York grid operator releases draft recommendations for CO2 price

New York’s Independent System Operator (NYISO) on Friday published its draft recommendations for adding a carbon price to the state’s wholesale power markets next decade that would deduct the cost of RGGI allowances purchased at quarterly auctions.

Quebec to hold “mutual agreement” carbon allowance sale on Oct. 3

Quebec’s environment ministry announced on Friday that the province will hold its second anticipated sale of carbon units by mutual agreement on Oct. 3, giving firms covered under the province’s cap-and-trade programme an additional opportunity to meet the scheme’s upcoming compliance deadline.


EU Market: EUAs slip as observers target €18 mark

EU carbon prices dipped slightly on Monday but kept within reach of last week’s seven-year high as observers expect further gains this week to push carbon above €18.



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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Heatwave opportunity – Germany’s Green Party is calling for a climate adaptation fund of at least €2 billion to help cope with the effects of extreme weather in the country, including health care and flood protection. The fund could be generated from a floor price on German ETS sectors and a carbon tax for non-ETS sectors such as transport, heat and agriculture. (Zeit Online)

Tax up – Ireland’s prime minister Leo Varadkar has indicated his government will increase its carbon tax in its next budget in October and over the next couple of years, with compensatory measures for poorer citizens, reports The Irish Times. The tax on non-ETS sectors began at €10/tonne in 2010 and has been €20/t since 2014.

No action – The US Securities and Exchange Commissions (SEC) ended its two-year investigation into oil giant ExxonMobil on Friday, which was originally intended to decipher whether or not the company was truthful enough in disclosing the financial risks of climate change and climate policies to shareholders. The company provided a letter from the government financial watchdog that said the investigation had been closed with no action taken, though the notification was not an exoneration. Exxon still faces lawsuits from the New York and Massachusetts attorneys general to hold the company liable for its contribution to climate change. (The Hill)

Covering coal – The world’s biggest reinsurer Munich RE will stop investing in bonds and shares of companies that generate more than 30% of their sales with coal-related business, its chief executive said, caving to pressure from investors after initially saying Munich RE would not follow number 2 reinsurer Swiss RE in limiting coal-based cover. (Reuters)

Clean companies – Corporations have purchased 7.2 GW of clean energy in 2018, already breaking last year’s record by nearly 2GW, according to BNEF’s New Energy Outlook 2018 released on Friday. The purchases are also estimated to reach 10 GW by the end of the year, with roughly 400 MW of additional procurement deals signed in the two days between the report’s cut-off date and its release. Currently, 140 companies have signed 100% renewable pledges, and BNEF predicted that they will need to purchase another 197 TWh of clean energy to meet their targets by 2030, which will lead to an additional 100 GW of global solar and wind capacity. (Utility Dive)

Fire and fury – Fires continued to rage across California, with eighteen active blazes having burned 290,000 acres (117,400 hectares) across the state last week. That is roughly double the five-year average number for the same time period, with a fire complex in Mendocino County having become the fourth-largest on record after torching over 260,000 acres (105,200 ha) by Sunday morning. While the federal government approved a disaster declaration on Sunday for residents of Shasta County to receive emergency federal funds, President Trump blamed “bad environmental laws” that “diverted” water to the Pacific Ocean for the crisis. It’s not clear what policies Trump was referring to, and firefighters combatting the conflagrations have not reported a lack of water. (Climate Nexus)

Floods and fury – The risk of devasting “rain-on-snow” floods in the American West could triple by 2100 if GHG emissions are left unchecked, according to new research published in Nature Climate Change. These types of floods occur when heavy rains fall on top of deep mountain snowpack, melting it and triggering intense floods such as the one that damaged the Oroville Dam in Northern California in Feb. 2017, causing estimated damage of $870 million and triggering the evacuation of 188,000 people. The authors found that the risks of these floods occurring on 10 Western rivers would triple by 2100 due to rising temperatures, while lower elevations in coastal regions would see a decreased risk as there will not be much snow left in these areas. (Inside Climate News)

And finally… Fizz adapts – Bloomberg profiles winegrower’s in France’s Champagne region, who are adapting their processes amid climate change that is making grape buds appear earlier, so spring frosts are more destructive. Warmer nights push maturity but also encourage new pests and diseases and the grape harvest is two weeks earlier than it was 20 years ago.

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