CP Daily: Wednesday November 27, 2019

Published 00:43 on November 28, 2019  /  Last updated at 00:49 on November 28, 2019  /  Newsletter  /  No Comments

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

Presenting CP Daily, Carbon Pulse’s free newsletter. It’s a daily summary of our news plus bite-sized updates from around the world. Subscribe here

TOP STORY

None of 14 offset standard contenders meet CORSIA aviation scheme criteria -report

None of the 14 carbon credit standards that have applied for eligibility under the UN’s global CORSIA aviation offsetting scheme meet the criteria set out by governments, while some of the candidates may not even be considered offset programmes.

AMERICAS

Mexico reveals emissions cap levels for pilot ETS ahead of 2020 start

Mexico published emissions limits and sectoral breakdowns for the first two years of its pilot cap-and-trade programme on Wednesday, bringing the long-awaited start of the market’s trial phase a step closer.

California reduces invalidation period on 1 mln offsets, while new credits languish

California regulator ARB granted more than 253,000 new offset credits across two protocols this week as issuances stayed low, while the agency reduced the invalidation period on nearly 1 million credits, according to data released Wednesday.

ASIA PACIFIC

China lashes out at EU carbon border adjustment initiative ahead of climate talks

China on Wednesday said an EU plan to impose carbon border adjustments on nations failing to act on climate change would “seriously undermine” international efforts to fight global warming.

Hubei CO2 auction clears below market as a quarter of units go unsold

China’s Hubei province on Wednesday sold three quarters of the 2 million CO2 allowances on offer to ETS participants at an average price 2% below secondary market prices, pushing just over half a million permits on to Friday’s more open sale.

EMEA

New EU Commission chief promises rapid climate ambition after belated approval

Germany’s Ursula von der Leyen vowed to provide rapid but just climate ambition on Wednesday after the EU Parliament gave final approval for her new five-year European Commission to take office from Dec. 1.

EU Market: EUAs lift to two-week high above €25 as new Brussels chief confirmed

EUA prices climbed back towards €25 on Wednesday, rising amid supportive technical signals, a pause in new supply, and the confirmation of a new European Commission promising greater climate ambition.

———————————

BITE-SIZED UPDATES FROM AROUND THE WORLD

Lending light – Brussels is exploring a proposal to cut capital charges imposed on banks’ climate-friendly lending in a bid to spur green investment in Europe, but the plans are likely to stoke a battle with the European Central Bank, where officials have warned against tampering with rules designed to make bank lending less risky. (Financial Times)

Quadruple quandary – Canada needs a carbon price of C$210/tonne by 2030 if it is to meet its Paris Agreement GHG reduction target exclusively through carbon pricing, according to the final report released by think-tank Ecofiscal Commission. The organisation modelled various policy options – including carbon pricing, steeper regulations, and subsidies – and found that a more stringent carbon tax, coupled with rising rebates, would inflict the least amount of economic damage on Canadians. Ecofiscal’s preferred option would involve quadrupling the federal government’s ‘backstop’ carbon price of C$50 in 2022, with the ruling Liberal Party having not decided if it will raise the CO2 tax past that year. (CBC)

Cash stop – UniCredit, Italy’s largest bank by assets, has announced it will halt all lending for thermal coal projects by 2023. The new policy would take effect immediately but existing deals would gradually expire by 2023. Separately, French bank BNP Paribas last week announced it would cease financing thermal coal plants in the EU by 2030 and worldwide by 2040, stating that it would cease support for companies planning new projects. However, the bank’s new policy was silent on withdrawing support for coal mining or infrastructure projects and committed only to “intensify its dialogue” with utilities that operate existing coal plants. (CoalWire)

45Q quandary – New Jersey Senator Bob Menendez (D) called on the US Internal Revenue Services’ (IRS) watchdog to open an investigation into potentially fraudulent claims for federal ‘45Q’ carbon capture and storage tax credits. In a letter dated Nov. 19 to Treasury Inspector General for Tax Administration J. Russell George, Menendez wrote that publicly available data showed the vast majority of 45Q credits have come without proper monitoring, reporting, and verification systems in place for storing the carbon, potentially allowing companies to claim millions of dollars while being out of compliance. (Politico)

PAF payments – The World Bank has made the fourth repayment of bonds issued under the Pilot Auction Facility for Methane and Climate Change Mitigation (PAF) in exchange for eligible emission reductions. The repayment amount of $13 million is linked to the reduction of emissions from methane and N2O at 20 project sites in Brazil, Chile, Egypt, Malaysia, Mexico, and Thailand, representing over 5 Mt of eligible carbon credits. The PAF is an innovative program introduced in 2015 that uses auctions and price guarantees, delivered in the form of bonds, to promote private sector investment in climate action. To date, $37.3 mln has been paid to investors in exchange for carbon credits representing 14.1 Mt CO2. The PAF recently announced that it will host a fourth auction next year that will focus on methane-reducing projects from landfill, animal waste, and wastewater sites. (Devdiscourse)

In memoriam – William Ruckelshaus, the first head of the US EPA and a key figure in the Watergate scandal, passed away on Wednesday. Ruckelshaus started as EPA administrator during the agency’s inception in 1970, guiding the it through the enactment of the first federal environment statutes. However, Ruckelshaus is perhaps best known for his role in the Watergate scandal and the “Saturday Night Massacre of 1973”. While serving as deputy attorney general, Ruckelshaus, along with Attorney General Elliot Richardson, refused to carry out President Richard Nixon’s (R) orders to fire special prosecutor Archibald Cox, who was investigating the scandal that ultimately forced Nixon from office. (CNN)

And finally… Reality bites – A virtual reality start-up is helping communities from California to Maryland envision how sea level rise may affect their towns and coastlines. Virtual Planet last week installed VR headsets in one of the Santa Cruz library branches so visitors could take a virtual tour to see the projected worst impacts of sea level rise on the city’s coastline. The company also helped host a recent community meeting on sea level rise in Turner Station, Maryland, which already faces routine flooding. The goal of the project is “to start a conversation and help folks visualise the impacts [of climate change] and the solutions, and also discuss the trade-offs between them,” programme developer Juliano Calil told NPR. (Climate Nexus)

Got a tip? Email us at news@carbon-pulse.com

Comment