CP Daily: Friday November 1, 2019

Published 21:10 on November 1, 2019  /  Last updated at 21:10 on November 1, 2019  /  Newsletter  /  No Comments

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

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TOP STORY

Spain approved as new host of COP25 climate talks, with dates unchanged

Spain’s offer to host this year’s UN climate talks has been approved, the international organisation said Friday, with Madrid set to be the venue after Chile pulled out due to ongoing protests in the country.

AMERICAS

Alberta to negotiate escalating large emitter CO2 price with federal government

Alberta has not committed to raise the province’s carbon price under its proposed output-based pricing system in line with Ottawa’s ‘backstop’ rate for 2021, as a provincial official said Friday that it would instead negotiate with the Canadian federal government on the topic.

Few hiccups seen for California’s interim ETS compliance deadline

California regulated entities are expected to easily comply with Friday’s interim cap-and-trade deadline, as more than enough allowances are being held in compliance accounts to meet projected GHG obligations, Carbon Pulse data suggests.

California LCFS sees 250k deficit as credit bank drops to 8 mln

Regulated entities under the California Low Carbon Fuel Standard drew down nearly 250,000 tonnes on the credit bank in the second quarter of 2019, as record deficits from gasoline and diesel outpaced higher credit generation totals from ethanol and biodiesel.

Two Massachusetts power generators inch above 2019 GWSA allocations, data shows

Two Massachusetts-based generators have emitted more than their initial 2019 permit allocations under the state’s Global Warming Solution Act (GWSA) carbon market through the third quarter, but surplus allowances in the programme could be minimising their need to go into the secondary market.

ASIA PACIFIC

Japan, Laos bring REDD into Joint Crediting Mechanism

Japan and Laos have agreed to include projects that reduce deforestation levels into their Joint Crediting Mechanism (JCM) partnership, as Tokyo searches for ways to ramp up offset generation under the scheme.

South Korea to move forward coal plant closures

South Korea will shut down six of its oldest coal-fired power plants in 2021, a year earlier than previously planned, the prime minister’s office announced Friday, a move that could provide a slightly bearish long-term signal for Korean carbon allowances.

New-built power plants set to swell Guangdong ETS

China’s Guangdong province released the 2019 allocation plan for its emissions trading scheme on Friday, swelling the number of allowances issued due to the inclusion of several new large power plants that according to analysts could boost demand and increase prices.

CN Markets: Pilot market data for week ending Nov. 1, 2019

Closing prices, ranges and volumes for China’s regional pilot carbon markets this week.

EMEA

By the numbers: A snapshot of the EU ETS – 2018-19 edition

The European Commission on Thursday adopted its annual report on the functioning of the EU ETS, which covered the market’s developments in 2018 and into 2019, as well as summarising measures proposed or agreed this year. Here are a few of Carbon Pulse’s main takeaways from the report.

EU Market: EUAs rebound from dive below €25 for 1.3% weekly gain

EUAs dropped to a four-day low below €25 on Friday, coming in choppy trade that defied a strong auction and fairly bullish energy complex as Brexit risk continues to play a role.

INTERNATIONAL

Bank fund repays $1.2 million to Norway after misspending REDD funds

The African Development Bank (AfDB) has over the past few months paid back NOK 11 million ($1.2 mln) to Norway after one of the funds it manages was found to have misspent funds meant to pay for forest protection, Norwegian development agency Norad said this week.

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BITE-SIZED UPDATES FROM AROUND THE WORLD

Dutch miss – The Netherlands looks set to miss its own target for reducing greenhouse gas emissions in the next decade, its main environmental advisory body said on Friday. A recent raft of environmental initiatives would cut emissions to 43%-48% below 1990 levels by 2030, if the plans are all rolled out on time, research institute PBL said. But that would be less than the 49% target that Dutch authorities have set for 2030. The EU-wide goal for CO2 emissions over the next 10 years is a 40% cut. (Reuters)

Shape up or… – Executives at some of the world’s top shipping groups are advocating a levy on carbon emissions from shipping in an effort to shape tightening rules on GHGs while providing a means to fund development of cleaner fuel sources. “To meet international shipping’s decarbonsation challenge, the maritime industry needs a carbon levy, it is coming, and we should shape it,” said Andreas Sohmen-Pao, chairman of BW Group at the Global Maritime Forum in Singapore this week. The comments followed closed working group discussions on the need for a levy on carbon emissions from shipping operations with other executives from other companies including Cargill Ocean Transportation, Euronav, Angelicoussis Group, Torvald Klaveness Group, Norwegian bank DNB, and mining giant BHP. Shipping, which represents about 90% of international trade, accounts for about 2-3% of global CO2 emissions. The UN’s IMO has a goal to cut emissions by 50% from 2008 levels by 2050. (Reuters)

Oil cuts – The world’s seven listed oil majors would need to cut the total amount of oil and gas they produce every day by 35% by 2040 to meet the 1.5C goal of the Paris Agreement, according to a report by non-profit Carbon Tracker Initiative using publicly available oil company data to measure their carbon footprints. It showed that global oil projects that have already been approved are almost enough to meet demand in a 1.5C scenario and there is “very little headroom for new fossil fuel projects”. US majors ExxonMobil and ConocoPhillips would need to make the most ambitious cuts, with Europe’s Shell the smallest reduction at 10%. An investigation by The Guardian earlier this month revealed that many companies are planning to increase their fossil fuel output by more than a third as they aim to meet growing demand. (The Guardian)

1.5 is alive – The Trump administration’s still-to-come federal auto emissions rule may institute annual fuel efficiency increases of 1.5%, The Wall Street Journal reported on Thursday evening, citing “people familiar with the process”. That follows US EPA Administrator Andrew Wheeler having previously said the agency would not follow through with a total freeze of the vehicle fuel economy standards, as was floated in 2018. Consumer Reports’ advocacy branch told Politico that a scenario with 1.5% annual fuel efficiency gains would mean $3,200 in additional fuel costs for a model year 2026 vehicle, and about $300 billion total net cost for consumers for 2021-2035 vehicles compared to the rising Obama-era rules.

Protocol programme – A bipartisan group of US senators introduced legislation this week to give the EPA the authority to regulate high global warming potential HFCs consistent with the 2016 Kigali Amendment to the Montreal Protocol. The American Innovation and Manufacturing Act, co-sponsored equally by Republicans and Democrats, builds on 2018 legislation unveiled by Senators John Kennedy (R) and Tom Carper (D) that would have allowed the US to implement the Kigali deal. However, the new bill would also authorise a new, targeted programme for the EPA to regulate HFCs consistent with the Kigali timeline. The White House has declined to send the agreement, went into effect earlier this year, to the Senate for ratification. (Washington Examiner)

And finally… That’s a fast cuppa – A car that can drive from London to the Scottish Highlands on one charge and accelerate to 50mph using less energy than other electric vehicles has been unveiled by Cambridge University students. The four-seat Helia has a carbon-fibre chassis and body panels and weighs in at 550kg (1,200lb) — compared to the Tesla Model 3’s 1,800kg. The Helia, when fully laden, can reach 50mph using 2.5kW, the power needed to boil a kettle, and up to 10 times less than is needed by consumer electric cars. The Helia achieves its performance at such energy efficiency because of its lightness, streamlined design, and components such as low rolling-resistance tyres. It has a single-charge range of more than 560 miles, without using the 5 square metres of solar cells on its roof. Its range – the distance by road from London to Inverness – is double that of the Tesla Model 3 on a battery a quarter as big. (The Times)

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