CP Daily: Wednesday September 25, 2019

Published 23:02 on September 25, 2019  /  Last updated at 23:02 on September 25, 2019  /  Newsletter  /  No Comments

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

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TOP STORY

New York LCFS may come through one of three separate channels in 2020

Three potential pathways exist for New York to approve a low-carbon fuel standard (LCFS) next year as support builds for the programme, an industry source said.

INTERNATIONAL

IHS Markit launches global carbon index amid growing investor interest

Information provider IHS Markit has launched a global carbon index, reflecting the rise in investor interest in environmental commodities.

ASIA PACIFIC

New South Wales coal mine ruling could spur offset interest

A decision by Australia’s New South Wales to reject a coal mine application partly over climate concerns might signal regulators’ intention to investigate offset options in the future, lawfirm Clayton Utz said Wednesday.

SK Market: KAUs fly through $30 as compliance pressure intensifies

Compliance pressure in the South Korea emissions trading scheme is not letting up as KAU18s added another 3.9% on Wednesday to hit a record high for the eighth straight day.

AMERICAS

California mints 1.3 mln offsets as CCO-3 issuances rise

California regulator ARB issued nearly 1.3 million compliance offsets (CCOs) across seven projects this week and reduced the invalidation period on another 1.1 mln existing credits, according to data released Wednesday.

EMEA

EU Market: EUAs slip back towards €25 as weaker energy complex weighs

EUAs sank towards €25 on Wednesday, getting closer to key support levels below that as signs of stronger demand at Poland’s bumper allowance auction were eclipsed by weakness in the energy complex.

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BITE-SIZED UPDATES FROM AROUND THE WORLD

Water works – The world has already experienced 1C of warming, which has made the oceans warmer and more acidic and affected fish stocks, while melting glaciers and ice sheets are currently causing sea levels to rise twice as fast as during the last century, a report by UN-backed scientific panel IPCC science report released Wednesday said. Sea levels could rise by around 30-60 cm by 2100 even if GHGs are rapidly cut to the Paris Agreement’s 2C limit, and by around 60-110 cm if emissions continue to increase. (Press Association)

Cuts ahoy – A coalition of Pacific island nations wants to raise $500 mln to make all shipping in the Pacific Ocean zero carbon by the middle of the century. The Pacific Blue Shipping Partnership, announced on Tuesday by the governments of Fiji, the Marshall Islands, Samoa, Vanuatu, the Solomon Islands and Tuvalu, has set an emissions reduction target of 40% by 2030, and full decarbonisation by 2050. The partnership intends to raise money through grants from multinational institutions, concessional loans, direct private sector investment, and through issuing regional “blue bonds”. The money would be used to retrofit existing passenger and cargo ferries with low-carbon technologies, and to buy new zero-emissions vessels. (Guardian)

Green cred – The UK’s main opposition Labour party has committed to cut emissions to net zero by 2030 and to nationalise major energy companies if elected in a poll that could be just weeks away given Britain’s Brexit deadline. The ruling Conservative party passed a law earlier this year to reach net zero by 2050, in a move applauded by business, which reportedly mostly think a 2030 date is not credible.  (Financial Times)

Taxing taxonomy – EU nations agreed to delay by more than two years to the end of 2022 application of the bloc’s “green taxonomy” to classify sustainable financial products, while not ruling out nuclear and coal power outright. They must reach a deal with the EU Parliament, which wants investments in those fuel sources banned. (Reuters)

Taking the PiS – Poland’s ruling and poll-leading PiS party plans to introduce legislation after the country’s Oct. 13 election that will allow the government to open new coal mines without the approval of local authorities. PiS is trying to secure coal miners’ votes and has said that reducing the fuel’s use in power production to 50% by 2050 from around 80% now is all Poland can do without extra funds. The biggest opposition party Civic Coalition wants to cut out coal completely by 2040. (Reuters)

Backing the AAU horse – The Australian government’s plan to use up to 370 million carryover Kyoto credits to meet its Paris targets has been the subject of much criticism both at home and abroad, but that didn’t stop mining major BHP Billiton Andrew Mackenzie from backing it in a recent private call with investors, the Australian Financial Review newspaper reported ($). Climate activists have slammed Mackenzie’s statement, as using the credits would effectively nearly halve the emission reductions Australia needs to make in order to meet its obligations under Paris.

Teaming up – BHP’s rival Rio Tinto has struck a deal with its biggest Chinese iron ore customer, China Baowu Steel Group, to develop hydrogen-based technology to reduce steelmaking and shipping emissions. The partnership is an attempt by Rio Tinto to curb its scope 3 emissions. (The Guardian)

Pricey pointEDF said on Wednesday its Hinkley Point C nuclear plant in Britain could cost up to £2.9 billion more than its last estimate, and face further delays. The French state-owned utility said Hinkley was estimated to cost £21.5-22.5 billion ($26.8-$28 billion), up £1.9-2.9 billion from its latest estimate. The hike also comes just days after the country saw an auction for offshore wind projects clear at a record low, raising questions of the cost competitiveness of new nuclear. (Reuters)

Join the fun – The governors of New Mexico and Minnesota in recent days announced they will seek to join California and fourteen other jurisdictions in setting more ambitious vehicle GHG standards than the federal government. That comes after the Trump administration last week revoked California’s Clean Air Act waiver authority to set its own more stringent fuel economy standards than the federal government, with the Golden State and its allied Democratic administrations subsequently filing a legal challenge against the US EPA’s move on Friday. (Santa Fe New Mexican ($), Mankato Free Press)

Off the deep end – California-based Climate Action Reserve has released a draft ‘Pool Cover Project Forecast Methodology’ for public comment under its Climate Forward programme. If approved, it would allow owners of commercial, residential, or municipal swimming pools to earn carbon offsets. The forecast methodology estimates ex-ante emission reductions associated with energy efficiency improvements from the installation of eligible pool covers on eligible pools in eligible project areas. It will be available for public comment until Oct. 25, and CAR is hosting a webinar to discuss it on Oct. 10. Under Climate Forward, CAR approves standardised and conservative quantification methodologies for assessing the forecast emissions reductions of projects and issues credits (FMUs) for the mitigation measures. These forward-looking credits can then be used to mitigate the GHG emissions impact of future projects that a company or organisation might undertake. CAR has also published final methodologies and is inviting submissions for solar PV projects, dairy digester facilities, and improved cookstove programmes.

All in the wording – A new Emerson College poll suggests that the wording around carbon pricing could matter a lot. Just over 500 voters were asked if they would support or oppose a carbon tax. 35% said yes, 27% said no, and 38% were unsure. A similar group was asked if they would support or oppose a fine on corporations that pollute the air with CO2. 52% supported that, 25% opposed it, and 24% were unsure. (Axios)

And finally… Footy forest – European football’s governing body UEFA said it will plant 600,000 trees across the 12 host countries of next year’s expanded European Championships as part of its commitment to offset emissions from travel. However, it conceded it may have to do more due to the new format. The body is also offsetting some 405,000 tonnes of CO2 via developers South Pole. (Reuters)

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