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ICAO should not have unconditionally accepted the CDM or China’s GHG Voluntary Emission Reduction Program to supply the pilot phase of its global aviation offset system CORSIA due to environmental integrity concerns and a lack of transparency in their applications, according to public comments released Monday.
Beijing on Tuesday became the third Chinese region to bring the aviation sector into its local pilot emissions trading scheme, including the capital’s massive new Daxing International Airport.
Australia should not make it easier for coal-fired power stations to earn carbon credits even though that may rule out supporting genuine efforts to reduce emissions in some cases, an advisory committee to the government has said.
New Zealand carbon allowances fell another 2.2% on Tuesday, as traders continued to offload volumes ahead of the impending shutdown of the economy while some expressed doubts the government will carry out expected ETS market reforms.
EUAs climbed by more than a euro to briefly top €17 on Tuesday, rising further from the previous session’s 22-month low in line with wider market optimism about a slowdown in new coronavirus cases in some countries and the effect of government stimulus measures.
The European Commission will examine the extension of the EU ETS to other sectors as part of its impact assessment for raising the bloc’s 2030 emissions reduction target, a senior EU official said on Tuesday.
Ryanair, Europe’s largest airline, does not expect to operate any flights during April or May, it announced on Tuesday, as the carrier and the aviation sector as a whole struggles to deal with the COVID-19 outbreak.
California Carbon Allowance (CCA) prices rallied for a second straight day on Tuesday morning, though retraced somewhat after exchange ICE announced further margin rate increases.
The US Department of Justice (DOJ) missed a deadline to appeal a federal judge’s ruling that found the California-Quebec cap-and-trade linkage did not violate the US Constitution’s Compact or Treaty Clauses, a lawyer involved in the case said.
California Low Carbon Fuel Standard (LCFS) prices swung back from 2018 lows this week as a result of higher demand, though some traders questioned the higher values.
Emissions trading systems covered just under 9% of the world’s total GHG emissions in 2020, increasing their global coverage as climate ambition grows and governments consider net zero emission targets, a report published on Tuesday found.
BITE-SIZED UPDATES FROM AROUND THE WORLD
Going ahead – The Canadian federal government will not postpone a scheduled 50% increase in its ‘backstop’ carbon tax in light of the coronavirus crisis and worries that the country is headed into a recession, according to an Ottawa insider news outlet. Blacklock’s Reporter did not reveal its sources, but reported the revenue-neutral tax on fossil fuels will climb to C$30/tonne as scheduled on Apr. 1.
Coal swaps – At least €4.3 billion of the roughly €40 bln that the German government has earmarked for supporting coal mining regions during the fossil fuel phase-out should be channelled into a green stimulus package to help energy companies weather the coronavirus outbreak, said German energy industry federation BEE. (Clean Energy Wire)
Feeling ‘gilty’ – For Europe’s budget hawks preparing to throw out the traditional fiscal rulebook to fight the coronavirus pandemic, green bonds might be a palatable option. Governments so far represent less than a tenth of the $250 billion green bond market, but Germany plans to issue in the second half of 2020, as does Italy. Other candidates are Spain, Sweden, Denmark, and Britain. (Reuters)
Shale shelled – Roughly half of all shale producers could go out of business if oil prices remain between $20-30 per barrel, according to analysts at investment bank Raymond James Inc. Those figures came as US oil major Chevron said it is slashing its planned 2020 capital spending by $4 billion or 20% and suspending share buybacks. The second largest American oil company said that roughly $2 bln of those cuts would be focused on shale, largely in the US Permian Basin region. (Politico, Axios)
Talks for the Future – While Covid-19 is spreading worldwide, Fridays for Future “is taking responsibility and moving its protests to the internet,” the Greta Thunberg-founded campaign announced Tuesday. Starting this Friday, the movement will hold weekly webinars and discussion rounds with scientists, journalists and activists, as well as other international high-level experts. This week’s guests will be the journalist and activist Naomi Klein and climate change and health team leader at the World Health Organisation Diarmid Campbell-Lendrum.
And finally… Split stimulus – Clean energy and climate advocates say the huge stimulus bill the US Congress is negotiating should address the economy as well as climate change, but a split over that appears to have contributed to delays in passing the bill. Renewable energy groups and Democratic lawmakers have pushed for the extension of green tax credits and GHG reduction measures for the airline and cruise industries the coronavirus response bill currently under development in Washington DC. Those efforts have been criticised by GOP Senate Majority Leader Mitch McConnell, who said it was the wrong time to debate politics and accused Democrats of holding up funding to pass a Green New Deal. The Trump administration also wants $3 billion from Congress to fill the nation’s Strategic Petroleum Reserve, which environmental groups have hit back on. (NPR)
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