CP Daily: Monday May 4, 2020

Published 01:56 on May 5, 2020  /  Last updated at 01:56 on May 5, 2020  /  Newsletter  /  No Comments

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

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TOP STORY

EU ETS non-compliance rises in 2019

More than 300 installations and airlines failed to meet their obligations under the EU ETS in 2019, according to data published by the European Commission on Monday, with the non-compliance rate jumping by nearly 50% since last year.

PODCAST

CARBON PULSE CONVERSATIONS 006: Oregon legislators

In the latest Carbon Pulse Conversations podcast, we speak to Oregon Senator Michael Dembrow (D) and Representative Karin Power (D) about the state’s challenges to pass WCI-modelled carbon market legislation, as well as the new GHG reduction programme ordered by the governor.

EMEA

MEPs rebuff call to pause EU efforts towards net zero emissions

MEPs from the European Parliament’s environment committee on Monday dismissed calls to postpone work on the EU’s 2050 climate neutrality goal, an idea pushed by a eurosceptic MEP responsible for drafting the committee’s opinion on the 27-nation bloc’s Just Transition Fund.

EU Commission launches work to study extending ETS to transport, buildings

The European Commission has launched a project deploying several research bodies to evaluate the extension of the EU ETS to cover emissions from fossil fuel use, in particular in the road transport and buildings sectors.

EU Market: EUAs climb back above €19 after hitting 4-wk low

EUAs hit a four-week low early on Monday but recovered to a key technical level despite more signs  pointing to a slow post-pandemic economic recovery.

EU carbon trader leaves Redshaw Advisors for offsetter Climate Care

A trading and risk management analyst at London-based consultancy Redshaw Advisors has left the firm to join Oxford-headquartered offset project developer Climate Care.

AMERICAS

California’s ARB grants offset verification flexibility amid coronavirus pandemic

State regulator ARB is granting some off-site verifications for California Carbon Offset (CCO) projects to mitigate the impacts of ‘shelter-in-place’ orders across the US, the agency said.

Virginia’s Dominion plans higher renewables capacity ahead of RGGI linkage

Dominion Energy intends to increase its wind and solar energy capacity as the company participates in the Northeast US RGGI cap-and-trade programme over the next decade, but the Virginia utility still plans to maintain natural gas-fired generation through the state’s 2045 deadline for decarbonising the grid, it said in a filing on Friday.

ASIA PACIFIC

New Zealand opposition wants to delay ETS reform bill by a year

New Zealand’s opposition National party wants to delay the ongoing emissions trading scheme reform by a year due to the COVID-19 crisis, it stated in a House committee review of the bill released Monday, though the committee majority proposed only minor changes to the legislation.

Woolworths, funds among beneficiaries in Australia’s latest offset issuance

Australia’s Clean Energy Regulator has issued nearly 800,000 new carbon credits over the past week, it said Monday, more than doubling the number from the previous week.

COMMENT

*NEW* MARCU MY WORDS: Europe’s Climate Law – Locking in the Future?

The EU Climate Law, with its sweeping scope and ambitious objectives, will recalibrate the parameters of economic activity across the continent. In particular, it will dramatically narrow the options available to member states when they decide on how to meet their current and future energy demand.

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BITE-SIZED UPDATES FROM AROUND THE WORLD

Recovery requirements – The world’s richest nations must ensure their COVID-19 recovery plans are sustainable and help meet the goals of the Paris Agreement, according to leading global investor groups that together manage trillions of dollars in assets. The Institutional Investor Group on Climate Change in a statement Monday said private capital would play a key role in the recovery, but noted investors needed long-term policies to be put in place that reflected the agreed move to a low-carbon economy. Recovery money would be best spent on creating jobs and sustainable infrastructure that helped meet the goal of net zero carbon emissions across sectors including energy, industrials, buildings, and transport, the group added. (Reuters)

Another door closes – Australia’s Westpac on Monday became the latest bank to outline plans to end its relationship with the coal industry, saying it will not make any further investments or loans to the coal industry beyond 2030, the Guardian reports. That leaves ANZ the only major Australian bank to still support the coal industry. Westpac also said it would continue to back a nationwide carbon market and would also purchase carbon credits to offset the emissions it’s unable to eliminate.

Plane proposal – The US EPA on Friday sent a proposed rule to set a CO2 standard for jet engines to the White House Office of Management and Budget (OMB) for review, nearing the end of a 2.5-year process of working on the regulation. The standard, created under a 2016 ICAO deal under President Obama, is critical for aerospace manufacturer Boeing, which will need the Transportation Department to certify its engines if it is to sell to international airlines or domestic airlines seeking to make international flights. Without the rule, Boeing would otherwise need to get its engines certified by another country, which would be an embarrassment for the US’ largest exporter. (Politico)

Signed on the dotted line – California utility Southern California Edison on Friday announced it has signed seven contracts for a combined 770 MW of battery storage to adhere to a California Public Utilities Commission (CPUC) order, with roughly half due to come online in Aug. 2021. The projects, which still need final approval, would help meet the CPUC’s requirement that state utilities procure 3.3 GW of carbon-free resources to help offset the retirement of natural gas-fired generation. SCE reached agreements with Southern Power, TerraGen Power, NextEra Energy Resources, and LS Power, with contracts ranging from 10-20 years. Most of those resources would utilise an adjacent solar power plant to charge the battery over the term of the contract.

Clean stream – California regulator ARB on May 15 will host a virtual public workshop on the development of the Clean Miles Standard, which aims to reduce GHG emissions from transportation network companies (TNCs) like Uber and Lyft. The workshop will present and request stakeholder feedback on regulatory concepts and analysis, and will include assumptions used in electric vehicle miles travelled (eVMT) cost modelling, preliminary eVMT targets, progress developing the GHG targets, requirements for smaller TNCs, compliance reporting requirements, and a request for alternatives to the proposed regulation targets.

Nifty 150 – California-based offset registry Climate Action Reserve (CAR) on Friday announced it has surpassed the milestone of issuing 150 million offsets across 486 projects registered since 2008. The amount of GHGs prevented or sequestered is equivalent to over 372 billion miles driven by an average passenger vehicle or charging over 19 trillion smartphones, CAR said. Over 70 million of those credits have been generated for use under California’s carbon market.

And finally… Battery will get you everywhere – Tesla has taken a significant step forward in its efforts to become a full-blown energy provider, applying to the UK’s gas and Electricity Markets Authority, the country’s energy regulator, for a licence to generate electricity. Tesla did not disclose the reason for its application but a source cited by the Telegraph said the company may be planning on introducing its Autobidder platform in the UK.  It functions as a real-time trading and control platform that enables power producers to monetise their battery assets. (Teslarati)

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