CP Daily: Wednesday March 11, 2020

Published 00:45 on March 12, 2020  /  Last updated at 00:51 on March 12, 2020  /  Newsletter  /  No Comments

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

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TOP STORY

UK again eyeing carbon tax as post-Brexit alternative to trading scheme

The UK will in the coming months launch a consultation on a new tax as a post-Brexit carbon pricing alternative to an ETS, the government announced as part of its annual budget on Wednesday, while keeping the country’s domestic carbon levy on power generation frozen for another year.

AVIATION

CORSIA pilot phase to be flush with supply even with vintage limits -report

The international aviation industry’s offset market will have access to ample supply of carbon credits in its three-year pilot phase even if eligible units are restricted to those generated from 2016, according to a study released Wednesday.

EMEA

Spain mulls aviation levy amid EU pressure to tax flights

The Spanish government has launched a consultation until Mar. 14 on its plans to establish an aviation levy, amid EU-wide demands to increase ‘green’ taxation efforts. 

Emissions trade not biggest issue for UN climate summit hosts, says former lead UK official

Clinching an international carbon trading deal on the Paris Agreement’s Article 6 will not be among the major issues for the British hosts of November’s UN climate talks in Glasgow, an ex-lead UK climate negotiator said on Wednesday.

EU Market: EUAs dip back below €24 as world races to tackle virus

EUAs sank back below €24 on Wednesday, though prices ended above technical support that some see as helping carbon defy wider weakness across financial markets on the impact of the coronavirus.

AMERICAS

California offset issuance hits 2020 high on forestry project strength

California Carbon Offset (CCO) issuance attained the highest level so far this year as four existing forestry projects helped boost supply this week under the state’s WCI-linked ETS, according to data published Wednesday.

LCFS price cap expected at $218, CCA floor trending towards $18

California regulator ARB should set the state’s pending Low Carbon Fuel Standard (LCFS) maximum price at just under $218 this year, while the current US inflation figure would place the state’s WCI 2021 auction reserve value close to the $18 level, according to federal data published Wednesday.

ASIA PACIFIC

Shanghai commits to national ETS timetable despite virus

The Shanghai municipal government on Wednesday ordered 73 companies to submit their 2019 emissions data by the end of this month, keeping China on track to launching its national emissions trading scheme before the end of the year despite the massive disruptions caused by the coronavirus.

SK Market: Monthly KAU auction clears higher as demand persists

South Korea’s monthly CO2 allowance auction sold out on Wednesday, with the clearing price moving up nearly 1% from last month’s sale as an overall shortage in the market continues to prop up demand.

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BITE-SIZED UPDATES FROM AROUND THE WORLD

Repair, reuse, review – The European Commission has announced plans to review the EU’s Industrial Emissions Directive (IED) in 2021, which sets emission limits in the industrial sector. This has been included among the legislative proposals that the Commission will put forward as part of its brand new Circular Economy Action Plan unveiled on Wednesday. The Action Plan was supposed to complement the EU Industrial Strategy presented Mar. 10, and has been welcomed by many as it outlines a somewhat more detailed timeline for the implementation of both roadmaps. Read Carbon Pulse’s latest on the EU Industrial Strategy.

Non-committal – Some countries are likely to wait and see whether US President Donald Trump wins another four years in office in November before committing to stepping up their climate ambitions at this year’s UN climate conference, according to Alden Meyer, director of strategy and policy for the Union of Concerned Scientists (UCS). “Everyone knew in 2015 it was the expectation – even though we were not able to get a kind of ‘shall’ language in there – that countries would update their original Paris pledges by 2020,” he told Clean Energy Wire. While a number of smaller countries have already done so, most of the G20 countries have not. If big players like the EU and China give a joint signal at the upcoming leaders’ summit in Leipzig this September, it would be “a huge deal” and would help move countries like India and others, Meyer said. “But with the US on the sidelines and unless you have the EU and China leaders hip, I think it is quite likely that people are going to be waiting to see what the US election outcome in November is before deciding where to go on their Paris commitments.”

The utility of carbon pricing – Utility Workers Union of America (UWUA) President Jim Slevin announced support of a federal carbon pricing policy on Wednesday. In a press release, Slevin said that CO2 pricing offers the chance to empower the energy workforce and their families through the inevitable transition to clean forms of generation. “Without it, the threat of economic devastation as the economy changes rapidly and chaotically around these workers and communities continues,” Slevin added. The UWUA represents some 50,000 workers in the American electricity, gas, and water industries.

And finally … The utility of no carbon pricing – The Indiana legislature on Tuesday passed a bill that will make it harder for utilities in the Midwestern state to retire their coal generation. The Indiana GOP majority reached a compromise on HB-1414 in conference committee after removing Democratic House and Senate members from the discussion. The final bill leaves out a provision from the House that would have allowed utilities to keep up to 90 days of fuel supply on site, but extends the bill’s sunset provision back to May 2021 and keeps other House language that adds layers to the coal plant retirement process. The bill now heads to Governor Eric Holcomb (R) for signature. (Utility Dive)

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