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TOP STORY
WCI sale unaffected by Ontario departure as auction sells out yet again
The third quarterly WCI auction of 2018 cleared far above the floor price as buyers snapped up all current and future vintage units available, in line with trader and analyst predictions and quelling any lingering concerns that the linked market’s first sale this year without Ontario would hamper demand.
EMEA
EUA prices set to soar towards €40 by 2021 as fuel-switching takes hold -analysts
EU carbon prices could average €35-40 over 2019-2023, accelerating coal-to-gas power switching and potentially questioning the rationale for keeping old coal and lignite power plants running beyond 2021, analysts said on Tuesday.
EU Market: EUAs surge 5% to extend 10-yr high once more amid power gains
EU carbon prices surged by almost a euro to extend their 10-year high for a second successive session on Tuesday, as power prices climbed and analysts revised their near-term forecasts upwards after underestimating the year’s stellar gains.
AMERICAS
US EPA’s Clean Power Plan replacement omits minimum emissions standard, uncertain on trading
The US EPA released its proposed rulemaking to replace the Obama-era Clean Power Plan (CPP) on Tuesday, giving states more leeway on regulating coal-fired power plants but still considering whether trading would be an eligible compliance mechanism under the new programme.
Oil, corn ethanol stir controversy as California addresses rising transport sector emissions
Whether cutting oil production or crediting corn ethanol under the LCFS would help achieve carbon cuts in the transport sector emerged as contentious issues as California regulator ARB on Monday sought advice on how to deal with rising emissions from the sector.
ASIA PACIFIC
Leadership crisis could pull Australia to the right on climate, pave way for Paris exit
Australian Prime Minister Malcolm Turnbull on Tuesday narrowly survived a snap leadership challenge from climate sceptic Peter Dutton, but the latter is expected to try again and if he succeeds, climate change would likely slink even further down on the government’s agenda.
NZ Market: NZUs extend record highs again amid lack of supply, uncertainty
New Zealand carbon allowances took another step towards the price ceiling in Tuesday trade, adding pressure on the government to act quickly to raise the fixed price option.
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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
Counting on coal – A mandated German coal exit by 2040 would shift power generation and related CO₂ emissions to neighbouring countries and lead to a €9/MWh hike in power costs for consumers, according to a report by consultancy Frontier Economics commissioned by Germany utility RWE, Europe’s biggest corporate emitter. The study is notably different from findings last week by think-tank DIW projecting a potential 10-17% cut in emissions on a European level should Germany enforce a coal exit. (Handelsblatt, Clean Energy Wire)
Dry drama – Less rain and longer droughts are the major cause behind larger and more intense wildfires in the US West, not higher temperatures and early snowmelt as previously thought, according to research by the US Forest Service and University of Montana. That could help scientists better predict the severity of fire seasons, said the study published in the Proceedings of the National Academy of Sciences. The study comes as tens of thousands of firefighters battle more than 100 blazes that have charred more than 770,000 hectares in the Western US. (Reuters)
Green clean – More companies are being forced to admit to greenwashing. Fewer than 10% of large companies have third-parties sign off on their sustainability data, according to a report by environmental advocacy group Ceres. But a lack of standardised sustainability data are becoming more of an issue for portfolio managers who want to use the information to build strategies and are increasingly making their own sustainability assessments. As investors develop more sophisticated tools to measure corporate environmental stewardship, even just a slightly misleading ad campaign can stir up activists. (Bloomberg)
Climate case crunch – A new paper from George Washington University scholars analysed almost 900-climate related lawsuits between 1990 and 2016, finding that decisions around renewable energy and energy efficiency favoured pro-regulatory litigants more often than cases around coal-fired power plants. The research, published in the journal Nature Climate Change, also found that “proregulatory” litigants won most often in cases brought under the Clean Air Act and California Environmental Quality Act, while antiregulatory litigants had the most success in cases that raised issues under the public trust and other common law doctrines. The paper comes after federal courts threw out cases in New York and California that sought to use nuisance claims to force major oil companies to pay damages for climate change, with the study’s lead author noting that those outcomes were consistent with other cases using similar tactics. (Axios)
And finally… Pole position – A Berlin-based company was named the first winner of the NYCx Climate Action Challenge for its technology that can convert existing light poles into electric vehicle (EV) chargers. Ubricity beat out nearly three dozen companies in the New York City contest, and will launch a pilot project in the metropolis and potentially roll out a multi-year demonstration projects to install chargers around the city. The technology, which has been used effectively in cities like Calais, France and London, allows New Yorkers without access to residential parking the ability to get charging infrastructure without having to go out of their way. The technology relies on smart charging cables with built-in meters, allowing the city or utilities to charge users (Utility Dive)
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