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A large majority of Coalition MPs on Tuesday backed the Australian government’s proposed National Energy Guarantee (NEG), but state governments and the national parliament could still prove difficult obstacles for the plan.
European carbon prices extended further their seven-year peak on Tuesday to match their highest level in a decade, rebounding after a weak auction temporarily sent prices below €18.
German utility RWE advanced its hedging rates considerably over Q2 to take advantage of wider generation margins, it said Tuesday, potentially giving a bearish signal for EUA prices.
Bullish sentiment in recent months could help counteract weaker underlying fundamentals in Tuesday’s WCI auction, while Ontario’s departure from the programme will continue to limit price increases over the next decade, according to analysts.
New Zealand carbon allowances rose more than 3.2% on Tuesday as the market responded to a raft of government proposals to amend the emissions trading scheme.
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BITE-SIZED UPDATES FROM AROUND THE WORLD
Opposed to Paris – Brazilian right-wing presidential candidate Jair Bolsonaro has threatened to take Brazil out of the Paris Agreement if he wins the country’s October election. While Bolsonaro is currently polling second behind jailed former president Luiz Inacio Lula da Silva, Brazil ratified the Paris Agreement through its Congress, a key difference between Bolsonaro’s plight and that of US President Donald Trump. Although Bolsonaro has not elaborated on his decision, in the past he has shared videos and articles sceptical of climate science and the UN pact, while his three eldest sons – all elected officials – have been more outspoken on the issue, including an assertion in 2016 by Rio de Janerio city councillor Carlos Bolsonaro that the world was cooling. (Climate Home)
Deforestation haven – The majority of foreign money used to fund soy and beef farming in the Amazon is channelled through offshore tax havens, according to a study published in the journal Nature Ecology and Evolution. It found that nearly 70% of foreign investments between 2000 and 2011 to nine key companies in the Amazonian soy and beef industry–a major driver of deforestation–flowed through offshore accounts. (The Guardian)
Coast costs – Coastal flooding in Europe could cost up to almost €1 trillion per year without new investment in adaptation to climate change, according to a new study. The research, published in Nature Climate Change, found that the UK would be the worst country hit in absolute economic terms by accounting for 22-28% of all damages, followed by France and Norway. The prediction not only marks a shift since coastal flood risk will take over from river flooding as the most dangerous threat by 2050, but also because global warming instead of socioeconomic changes will be the main reason for the losses this century. (Carbon Brief)
And finally… Coal clearance – More than a dozen villages are to be demolished and thousands of families relocated to make way for the expansion of RWE’s Garzweiler opencast lignite mine in the German state of North Rhine-Westphalia. Germany is making radical changes, but even in the long run, in order to provide energy, we can’t forgo conventional power plants, an RWE spokesman said. (Thomson Reuters Foundation)
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