CP Daily: Monday April 8, 2019

Published 22:55 on April 8, 2019  /  Last updated at 22:55 on April 8, 2019  /  Newsletter  /  No Comments

A daily summary of our news plus bite-sized updates from around the world.

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TOP STORY

Shell to invest $300 mln in land projects to help meet its own GHG goal

Oil major Shell will spend $300 million over the next three years to help meet its self-imposed short-term emission target by offering drivers the chance to offset their carbon footprint.

AMERICAS

New entrant into WCI programme calls California carbon “underpriced”

Six additional general WCI market participant accounts were opened in California during the first quarter, including a New York-based fund that sees California Carbon Allowance (CCA) futures as underpriced.

Shell, ClimeCo complete first exchange-traded California carbon offset deal

Shell Energy and ClimeCo traded the first California Carbon Offset (CCO) without any invalidation risk on ICE on Monday, the companies said, with the new offering seen bolstering credit transparency and activity in the WCI cap-and-trade programme.

Ohio lawmakers readying proposal for nuclear subsidy programme

Ohio lawmakers are considering a bill to create a new fund to benefit the state’s uneconomical nuclear energy plants, but some believe the proposal could simultaneously undermine the state’s Renewable Portfolio Standard (RPS).

EMEA

BAML turns bearish on EU carbon

Bank of America Merrill Lynch (BAML) has reversed its bullish view on EU carbon amid falling natural gas prices, with growing LNG supplies expected to exert further pressure.

EU Market: EUAs record small decline, holding above €24 after wild day

EU carbon settled slightly lower on Monday after bouncing around in a wide €1 range, as sellers maintained pressure on prices while buyers stepped in at every dip.

INTERNATIONAL

GCF begins quest to replenish funds

The Green Climate Fund has held its first meeting in a process the UN-led entity hopes will lead to an October session where rich countries will refill its coffers.

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BITE-SIZED UPDATES FROM AROUND THE WORLD

Talking down coal – Germany today started talks with 11 European nations about its plan to phase out coal power by 2038, marking the launch of wider regional consultation.  Germany aims for “close co-operation” to avoid pushing up energy bills while keeping the lights on. Energy minister Peter Altmaier met with counterparts from Belgium, the Netherlands, Luxembourg, France, Austria, Switzerland, Norway, Sweden, Denmark, Poland and the Czechia. Only Poland and Czechia currently have no coal-exit plans of their own. (Montel)

Dutch bondage – The Netherlands will become the first country with a AAA credit rating to issue a green bond with the sale of a 20-year security next month by selling up to €6 bln of debt maturing in 2040 via an auction. The proceeds will be allocated to green or climate-related expenditures by the government, according to the Dutch Treasury. It follows Poland, France, Belgium and Ireland and aims to issue a so-called dark green bond focused on long-term mitigation. (Bloomberg)

Life after gas – Two years after Britain had its first coal-free day since the Industrial Revolution, the nation’s network operator is readying itself for life without any fossil fuels. The grid may start dropping its need for natural gas power for short periods in about 2025, coinciding with coal’s complete phaseout. The system wants to be “zero-carbon capable” by then, said Julian Leslie, head of national control at National Grid’s electricity system operator. “In 2025, it may just be for half an hour, it may just be for an hour. Then gradually, in the years that follow, that time period will grow and grow.” (Bloomberg)

Council coup – Brazilian President Jair Bolsonaro is considering a drastic reorganisation of a council overseeing the country’s environmental policy, the AP reports, sparking fears from environmental advocates and indigenous peoples that the move might further strip protections and grant power to industry. Documents obtained by the news outlet showed that the Bolsonaro administration is moving to replace the nearly 100-member National Council of the Environment, which includes independent businesses and environmental representatives, with a five-person council comprised of presidential appointees. (Climate Nexus)

Vying for Vietnam – Former US Secretary of State and Vietnam War veteran John Kerry is working on a model project of how to get the Southeast Asian nation off coal. In an interview with Axios, Kerry says he has enlisted the help of former US Vice President Al Gore on the subject, and Kerry is meeting with Vietnamese officials in Boston this week to negotiate the details. The former secretary said his proposal includes undisclosed private-sector financing for wind and solar along with transmission lines, as well as tapping a domestic natural gas reserve and more efficiently using hydropower. Preliminary data from the International Energy Agency (IEA) showed that coal surpassed hydropower in 2018 to become Vietnam’s biggest electricity source for the first time, and the nation is planning more than 42,000 MW of new coal capacity.

And finally… Costly car pooling – Carmaker Fiat Chrysler is pooling its fleet with cleaner rival Tesla to avoid $2.2 bln in fines for failing to comply with EU CO2 rules in 2020 and 2021, in a deal likely to earn the US electric-car leader $500 mln. “The whole point of a CO2 credit market is to leverage the most cost-effective ways to reduce overall greenhouse gas emissions in the market … The purchase pool provides flexibility to deliver products our customers are willing to buy while managing compliance with the lowest cost approach,” Fiat Chrysler said in a statement. (Bloomberg)

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