CP Daily: Thursday June 6, 2019

Published 22:38 on June 6, 2019  /  Last updated at 15:02 on June 23, 2020  /  Newsletter  /  No Comments

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

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TOP STORY

EUA sale volumes set to swell as states plan to forgo free allocations

At least two Eastern European nations are planning to give up their right to offer utilities free carbon allowances next decade, likely increasing sales of EUAs by hundreds of millions of tonnes as the supply is diverted to auctions.

AMERICAS

Criticism of California forestry protocol misinterprets academic research, author says

Criticism of California’s compliance offset forestry protocol misinterpreted an academic report on emissions leakage, according to the author of that research, who suggested state regulator ARB should fund further studies to gain a more accurate picture.

NA Markets: California allowances inch up, RGGI stagnates ahead of auction

California Carbon Allowance (CCA) prices rose slightly on the secondary market this week as traders continued to process the recent auction result, while RGGI allowance (RGA) prices saw minimal gains in front of the programme’s own quarterly sale.

Canada’s Northwest Territories to delay carbon tax by two months

The Northwest Territories (NWT) government will delay the implementation of its C$20 carbon levy from next month until September as it requires more time to review the policy’s underlying legislation, but it added the Canadian federal government would not fill in the two-month gap with Ottawa’s ‘backstop’ CO2 tax.

IncubEx hires former broker to build out renewable fuels business

Product and business development firm IncubEx has hired a senior vice president from an international biofuels brokerage firm to help expand the company’s offering into renewable fuel-based environmental products.

ASIA PACIFIC

South Korea announces new KAU banking regulations

South Korea on Thursday announced new regulations that will limit the amount of CO2 allowances emitters can bank into the future without offloading some of their surplus, in a bid to address concerns over liquidity on the nation’s emissions trading scheme.

NZ Market: New Zealand carbon extends losses as slump kicks in

New Zealand carbon allowances fell to a 10-month low in Thursday trade as lingering questions about the fixed price option has muted demand.

Australia’s GHG emissions continue to rise on LNG boom

Australia’s greenhouse gas emissions rose again last year, according to new government data, as a massive increase in liquefied natural gas more than offset CO2e cuts from electricity generation and agriculture.

EMEA

EU Market: EUAs dip below €24 to test bullish resolve

EUAs dipped below €24 on Thursday, slipping for a second straight session as bulls remained on the sidelines following the previous day’s slide in the energy complex.

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BITE-SIZED UPDATES FROM AROUND THE WORLD

Net costings – UK finance minister Philip Hammond has warned that a net zero 2050 emission goal could cost the UK some £70 billion a year, higher than the £50 bln projection from the government’s CCC independent climate advisory body. He said the cost would mean less money available for schools, police, hospitals and other areas of public spending and would render some industries ‘economically uncompetitive’ without huge government subsidies. (Financial Times)

Step up – In Australia, an independent advisory group led by former federal climate change minister Greg Combet on Thursday delivered final recommendations for future climate targets commissioned by the Victoria state government. The panel recommended a target of 32-39% below 2005 levels by 2025 and 45-60% by 2030, a target that fell below a pathway to 1.5C even though it was stronger than the one the federal Labor party brought to last month’s election, RenewEconomy reported. The panel did not recommend specific policies, but said its cost estimates had been based on the state introducing a carbon tax, which it considered ideal.

Meet the methodologies – Offset registry Climate Action Reserve (CAR) released three draft forecast methodologies on Thursday for its Climate Forward programme of issuing Forecasted Mitigation Units for projects that reduce or sequester GHGs from new economic developments. The drafts include a dairy digester methodology from offset developer ClimeCo, an improved cookstove methodology from consultants C-Quest Capital, and a Solar PV methodology from consulting engineering group Ramboll US Corporation. CAR will host a series of webinars during the last week of June providing an overview of the methodologies, and public comments are due by July 12. Other methodologies are also under development for efficient pool covers, mature forest management, and reforestation.

Fuel fail – The US Renewable Fuel Standard (RFS) has failed to reduce GHG emissions, largely thanks to the failure of advanced biofuels to reach commercial scale, the federal Government Accountability Office (GAO) said in a report this week. According to the study, the RFS still relies largely on conventional corn ethanol, which has lower emissions than gasoline when burned but is produced in plants with few emissions restrictions. Additionally, producers have been unable to make lower-emitting advanced biofuels, like ethanol produced from the husk of the corn, at commercial scale. (Politico)

Beat the heat – Thousands of potential heat-related deaths in major US cities could be avoided if the world meets out the temperature goals set out in the Paris Agreement, new research shows. A study published Wednesday in the journal Science Advances shows that keeping warming to 2C could prevent between 70 and 1,980 deaths each year per city in 15 municipalities. Keeping warming to just 1.5C, meanwhile, would prevent between 110 to 2,720 deaths, depending on the city. (Climate Nexus)

And finally… Food fight – Plant-based burger upstart Beyond Meat is seeking to quickly carve out its place in the meat section of grocery stores in the face of pushback from meat producers, with US retailers still figuring out its best fit in their shopping aisles. It may be closer to the vegan section than the refrigerated meat department, risking confusing mainstream consumers who want to reduce their meat consumption amid growing concerns over health risks, animal welfare and environmental hazards of industrial animal farming. (Reuters)

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