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TOP STORY
EU Market: EUAs hit 10-year high amid auction shortfall
European carbon prices reached their highest level in a decade on Wednesday, as traders anticipated further gains during a rare auction-free session amid a month of halved supply.
EMEA
German auction postponement could push prices above €20 by year-end -analysts
The postponement of weekly German EUA auctions from November could be enough to push prices above €20 before the end of the year as the market tightens, analysts said on Wednesday.
AMERICAS
Government repeal of Ontario ETS, GHG targets delayed until September
An Ontario summer legislative session scheduled to repeal the law underpinning the province’s carbon market and GHG targets ended on Tuesday without having achieved its goal, delaying Premier Doug Ford’s anti-carbon pricing agenda.
California appeal on bankrupt facility’s emissions liability thrown out by court
California regulator ARB’s attempt to reverse a November court ruling on successor liability under the state’s cap-and-trade programme was rejected by a US District Court judge late last month, who argued the appeal would affect the validity of the natural gas facility’s sale.
ASIA PACIFIC
NZ Market: NZUs break through NZ$24 as price ceiling uncertainty fuels fresh record run
NZUs continued to rise on Wednesday, breaking through the NZ$24 level for the first time as concerns that the government might increase the NZ$25 fixed price option during the current compliance year spread through the market.
VOLUNTARY
Voluntary carbon market activity poised to hit record levels -report
Activity in the voluntary carbon market in the first quarter put 2018 on pace to meet or exceed last year’s record, as business commitments to reduce carbon emissions kept increasing, according to a report published Wednesday.
VIEWS
COMMENT: Working with the private sector – can the GCF make it work?
It is clear that there needs to be a fundamental overhaul of the governance and decision making processes at the GCF to make its cooperation with the private sector work, writes Alexandra Tracy, a GCF board member representing the private sector.
ECOSYSTEM MARKETPLACE: The market for grassland carbon credits is on the rise. Here’s why.
A new study from UC Davis found that “grasslands and rangelands are more resilient carbon sinks than forests in 21st century California.” While forests remain vital to global climate mitigation efforts, the increasing frequency and severity of wildfires has heightened the need to explore additional carbon sinks in fire-prone regions. Grasslands lock carbon into the soil, and they don’t release it during wildfires.
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TECHNICAL ANALYSIS COURSE
PRACTICAL & RELEVANT CPD BY FUTURESTECHS
City of London, Royal Exchange – Thursday Sep. 6, 12pm to 6pm
This “intro” course will cover Support and Resistance, Trendlines, Chart Patterns, Fibonacci, Candlestick Charts, Moving Averages, Bollinger Bands, Momentum Studies, and an introduction to Market Profile.
Clive Lambert has been teaching traders about Technical Analysis for over 20 years. He is widely regarded as one of the best Technical Analysis trainers you will find. As well as a practical approach Clive is also able to share how to apply the charts to specific markets in the energy complex. All attendees will also receive a signed copy of Clive’s book “Candlestick Charts”.
SPECIAL CARBON PULSE READER RATE: £695 +VAT per person (Save £100!)
Places will be limited so book now!
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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
Powered down – The replacement rule for the US Clean Power Plan (CPP) will give states more leeway to write their own modest regulations for coal plants or even seek permission to opt out, according to a portion of the unpublished draft seen by Politico. The rule, which was sent back to the EPA after a review by the White House Office of Management and Budget this month, intends to argue that the Obama administration rule illegally sought to regulate the broader power sector and would have resulted in high compliance costs and negligible climate benefits. Instead, the new draft would allow states to write rules to make coal plants more efficient, permitting them to burn less of the fossil fuel to produce the same amount of electricity. However, observers familiar with state air programmes said that such a change would be worse for the planet by incentivising plant owners to run those facilities more often. Additionally, a source who reviewed a different section of the document said that states will be able to present reasons for why they don’t want to follow the regulations, including a consideration of how many years the plants would have left before shutting down.
Nordic mileage – Norway’s total greenhouse gas emissions were down 1.7% in 2017, government data showed. Manufacturing and mining had the greatest increase with 4.3% from 2016, while emissions from road transportation had the greatest decrease with 9.6%. There were 142,490 total electric cars registered in the country at the beginning of the year, up more than 40% from one year ago and making up 5% of the passenger fleet amid tax exemptions, extended range and more access to charging stations. (UPI)
German struggle – Germany, the nation that did more than any other to unleash the modern renewable-energy industry, is likely to fall short of its goals for reducing emissions even after spending over $580 billion by 2025 to overhaul its energy system. A shortfall in Germany is an ominous signal for other nations struggling to reach their own targets. (Bloomberg)
Coal borders – A 2030 German coal power phaseout would promote decarbonisation and the expansion of renewable energies throughout Europe and not lead to increased coal-fired output in neighbouring countries, according to an analysis from a German think-tank. It shows that DIW estimated that a 2030 coal exit would cut the EU’s overall power sector emissions by 10-17%. (DIW)
Wild and coal-free – The UK is on the verge of generating its electricity without coal during the summer, according to new research conducted by Imperial College London on behalf of the energy group Drax. Coal produced less then 1% of the nation’s electricity supply in June, and wasn’t used at all for 12 days during that month. The latest quarterly report also discovered that there were twice as many coal-free hours between April and June this year as in the whole of 2016 and 2017 combined. (Carbon Brief)
Take action – The Canadian government on Wednesday launched its Climate Action Fund (CAF), providing up to C$3 million to support projects that make investments in climate solutions and achieve the objectives of country’s clean growth and climate action plan. Among the goals of the CAF are ensuring that Canadians are more aware of actions to address climate change, engaging youth, students and Indigenous Peoples and organisations on climate change initiatives, and making communities better able to reduce GHGs and build resilience to the impacts of climate change. Submissions for the 2018-2019 intake period are due on Sep. 21, with funding decisions slated for mid-autumn.
Cross-border buy – Provincial utility Ontario Power Generation (OPG) will spend nearly $300 million (C$394 million) to purchase Eagle Creek Renewable Energy, which owns and operates 63 small hydropower facilities in 13 US states. The purchase will be funded by the company’s corporate public debt programme or other available credit facilities, with the utility’s statement promising to avoid any ratepayer impacts. The 216 MW of capacity at the Eagle Creek facilities is only a fraction of OPG’s 66 Ontario hydropower plants with a combined capacity of 7,468 MW. (Utility Dive)
More of the same – Extreme temperatures and intense heatwaves are likely to persist over the next four years, according to new research published Tuesday in Nature Communications. The study predicts that natural trends, including the climate’s internal variability, will continue to exacerbate the impacts of anthropogenic climate change until at least 2022. Additionally, the authors noted that their model correctly retroactively predicted the relative slowdown in global warming from 1998 to 2010. (Climate Nexus)
Suck it up – Scientists have managed to produce a carbon-storing mineral known as magnesite in a lab, an advancement which “could boost the burgeoning field of carbon capture and storage”, the Independent reports. Every ton of magnesite is capable of removing around half a ton of CO2 from the atmosphere, a process that normally takes thousands of years. But the researchers managed to condense it into a few days by using polystyrene microspheres as a catalyst to speed up the reactions that form this rock. (Carbon Brief)
And finally… Log off – US Interior Secretary Ryan Zinke has blamed the massive fires roaring throughout the Western US on environmentalists refusing to allow more logging operations in federal forests, rather than on climate change. During tours of fire-ravaged areas in California this week and in a newspaper op-ed, both Zinke and Agriculture Secretary Sonny Perdue avoided emphasising climate change as a major contributor to the crisis. In an interview with right-wing Breitbart radio over the weekend, Zinke put the blame on “environmental terrorist groups” that have refused to allow access to timber. But according to data from the US National Oceanic and Atmospheric Administration, this July was California’s hottest month of all time, while spring and summer temperatures in the state have warmed by 5.4 F (3 C) since 1980. (Axios)
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