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Australia’s Coalition party room backs NEG, but its passage remains tricky
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.
EU Market: EUAs rebound from weak auction to set new 7-yr high
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.
RWE ramps up hedging over Q2 as power output, sales fall
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.
Analysts see mixed signals on WCI auction, trim price forecasts
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.
NZ Market: NZUs rally 3.2% to hit new highs after govt ETS proposals
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.
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.
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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