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OUR TOP NEWS:
Analysts have on average reduced their estimates for European carbon prices through the rest of the year, after forecast increases failed to materialise in Q2 and due to lower-than-expected demand from utilities so far this year, a survey conducted by Carbon Pulse showed.
The Hubei carbon exchange is threatening to cancel the licenses of trading firms making outlier bids or offers in a bid to root out market manipulation, sparking complaints of government intervention.
EU carbon barely budged on Friday to post a 1.3% weekly loss as trade focused mainly on time spreads, while traders prepared for developments in Greece this weekend and next Wednesday’s MSR vote.
South Korea this week submitted steeper-than-expected greenhouse gas emission reduction targets to the UN, but the pledge is still far weaker than what Seoul should deliver, according to analysts.
Japan’s biggest electricity producers and a group of suppliers plan to cut the carbon intensity of its electricity to 35% below 2013 levels, Nikkei reported.
Governments should rethink the role of coal in energy supply as the scale of new investments being made in unabated coal-fired electricity generation poses the most urgent threat to our climate, OECD Secretary-General Angel Gurria said on Friday.
The EU ETS alone is not suitable for driving investment in low carbon power such as solar and wind but should be the main tool for driving down emissions from thermal power, a report found.
Spot NZUs ended the week 2.5% up on last Friday as there was sufficient buy interest to maintain current price levels near a three-year high.
Closing prices, trading ranges and volumes for China’s regional pilot carbon markets this week.
Bite-sized updates from around the world:
The full EU Parliament sits in Strasbourg next week and will debate the MSR during a Tuesday evening session between 1500-2300 local time. Widely expected to be a formality of adopting the measure, the vote will then take place between 1230-1430 on Wednesday July 8, according to a final draft agenda for next week’s sitting.
Republican Governors signal their intent to thwart Obama’s climate rules – Republican strategists say that rejection of President Obama’s climate policy at the state level could emerge as a conservative litmus test in the 2016 election. Two of the governors who have said that they might defy the regulations — Scott Walker of Wisconsin and Bobby Jindal of Louisiana — are among at least four Republican governors who are expected to vie for the presidential nomination. (New York Times)
Singapore on Friday submitted its INDC to the UN, pledging that its GHG emissions would peak by 2030. The city-state will reduce its carbon intensity 35% below 2005 levels by 2030. It said it will meet its target through domestic efforts, but will “continue to study the potential of international market mechanisms”.
China Carbon Forum has translated into English an analysis of China’s INDC made by government-led think-tank National Center for Climate Change Strategy and International Cooperation (NCSC), giving insight into China’s considerations and motivations for their pledge. You can download it here. They have also published an audio interview with Zou Ji, head of the NCSC, which you can listen to here.
Meanwhile, Climate Action Tracker on Friday released its verdict on China’s INDC, rating it “medium” in general, but the 60-65% carbon intensity target was rated “inadequate”. “If this weak target is taken in isolation from all other aspects of the INDC, it would result in much higher emission levels in 2030 (at 15-16.9 GtCO2e), and require a substantial reversal of present declining trends in coal use and lead to increased air pollution,” it said.
If Australia is going to come anywhere near US-level emission cuts by 2025 it needs to start reducing emissions now rather than rely on Kyoto era carryover credits, writes Tristan Edis. (Business Spectator)
UK’s Department of Energy and Climate Change faces 90% staff budget cuts that risk UK’s climate plans, say experts – Dramatic cuts to Department of Energy and Climate Change budget could damage economic growth and undermine switch to clean energy. (Guardian)
UK wholesale energy costs ‘at five-year low’ – As the competition regulator prepares to deliver its verdict on energy firms, it is revealed raw energy costs are down sharply. (Sky News)
Bulgaria mulls energy security fund as industry demands power prices frozen until 2016 – The Bulgarian government is considering introducing a ‘Fund for Energy Security’ to help tackle deficits at the state-owned National Electricity Company (NEK). The fund would be partly financed through EUA auction revenues. (publics.bg)
And to bid you all a great weekend… Low Carbonara, the whimsically humorous blog on climate negotiations and carbon markets, is back: “June was a frenetic month for the UN climate negotiations with both Heaven and the People’s Republic of China coming forward with unexpectedly strong ‘contributions’. This coincidence of statements from the Celestial and Middle Kingdoms left liberal climate policy wonks in information overload and unsure about whether it was ok to praise the Pope and the Chinese regime.”
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