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TOP STORY

UK unveils post-Brexit ETS plans featuring price floor, tighter emissions cap

Britain is aiming to establish its own domestic carbon market from 2021 that may or may not link to the EU ETS, the UK government confirmed on Monday as part of its long-awaited response to a public consultation, proposing a few ambitious features of its own.

ASIA PACIFIC

New Zealand ups fixed price option, sets inaugural ETS cap

New Zealand’s government on Tuesday announced an increase in the fixed price option for compliance with its ETS for 2020, as it also published final details for its carbon market reforms which include setting its first ever GHG caps and holding auctions.

China extends key national ETS deadline

China has given provincial and regional authorities an additional two months to submit lists of companies in their jurisdictions that will be included in the national emissions trading scheme and their 2019 CO2 emissions data, extending the deadline to July 31 as the COVID-19 outbreak has made it difficult to stick to the original timetable.

China set provincial renewable targets as REC scheme nears launch

China’s National Development and Reform Commission (NDRC) has distributed provincial-level renewable energy targets for 2020, pushing a slight increase in wind and solar this year as the nation prepares the launch of its mandatory market for renewable energy credits.

China’s Tianjin to auction 2 mln CO2 allowances on June 10

The Tianjin municipal government will auction off 2 million carbon permits under its pilot emissions trading scheme on June 10 to help firms meet 2019 compliance, with prices likely to come in well below current secondary market levels due to how the price floor is calculated.

Australian developer agrees to strict oversight to remain in carbon business

Australian project developer Country Carbon has agreed to having its business practices strictly monitored by the government for a two-year period to address ‘compliance issues’ with regulations under the nation’s carbon offset market.

AMERICAS

California gasoline volumes rose ahead of COVID-19 pandemic, though drops expected in March

California’s WCI-capped fuel consumption rose year-on-year during February, but federal data shows the March figure significantly dropped off amid the economic fallout from the coronavirus scourge.

British Columbia still planning near-term updates to large emitter programme, LCFS

British Columbia will soon release new product-based emissions benchmarks for the Canadian province’s industrial CO2 pricing mechanism, as it also updates the low carbon fuel standard (LCFS) regulation for changes slated to take effect next year, the environment ministry told Carbon Pulse.

EMEA

EU Market: EUAs slip below €21 as US-China concerns weigh on markets

EUAs dipped below €21 in quiet holiday trade on Monday, as wider market jitters about worsening US-China relations weighed across financial markets.

Investment and advisory group snaps up EIB climate finance expert

A climate finance expert with the European Investment Bank is joining a London climate advisory and investment business, Carbon Pulse has learned.

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Job listings this week

• Head of Climate Centre of Excellence and Environment, RBS – London
• Program Officer, American Carbon Registry – US (Remote Working)
• Climate Change Specialist, Senior Manager or Associate Director, IIGCC – London
• Carbon Project Manager, UpEnergy – Kampala, Uganda

Or click here to see all our job adverts

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BITE-SIZED UPDATES FROM AROUND THE WORLD

Share shortage – Investors worldwide are underestimating the climate risk that may cost $1 trillion annually starting in 2050, and companies need to start disclosing their exposure, according to the IMF in the latest chapter released from its Global Financial Stability Report. At present, share prices fail to reflect the risk of extreme weather events and investors should demand a premium for holding climate-risky assets, the IMF said. (Bloomberg)

Platform proposal – Japan is seeking to bolster global momentum for climate action by hosting an online platform and high-level political event on greening the post-coronavirus economic recovery, Environment Minister Shinjiro Koizumi said Monday. During an online discussion hosted by UN Climate Change, Koizumi said Japan would host a virtual public ministerial meeting in early September for governments to exchange views on how to use carbon-cutting measures to reboot their economies. He urged governments to take part in the initiative, saying invitations to contribute to the platform and join the meeting will be sent out “as soon as possible”. (Climate Home)

Take it to the limit – US EPA chief Andrew Wheeler signed a rule on Monday limiting state powers to block pipelines, coal terminals, and other energy infrastructure projects, setting up a fight with some Democratic governors who say the Trump administration is stripping their ability to protect their states’ interests. Under the rule, first proposed in August, the EPA will alter Section 401 of the US Clean Water Act to make it impossible for a state to block a water permit for a project for reasons other than direct impacts of discharges into state waters and will set a one-year deadline for a decision. Wheeler said in a statement that the change would prevent states from holding “our nation’s energy infrastructure projects hostage”, as several states have hinted that they would take legal action against the EPA if it moves to curtail state authority. (Reuters)

Shock block – A new report recommends a series of steps US regulators and institutions should take to insulate the financial system from climate change shocks. The suggestions from business sustainability group Ceres include the Federal Reserve requiring stress tests to ensure financial health across a range of climate and policy scenarios, the Securities and Exchange Commission mandating climate risk disclosure rules and clarifying when such risks are considered material information for investors, and the Federal Housing Finance Authority researching climate risk to federally backed mortgages, among other things. The report comes as the Federal Reserve has taken heat from climate activists and some in the finance world, who allege the central bank’s corporate debt-purchasing programmes that Congress created to combat the coronavirus-fuelled economic crisis potentially prop up oil and gas firms that were ailing before the crisis. (Politico)

And finally…  Special delivery – American parcel delivery company UPS on Monday announced that it will match all shipments made through its carbon neutral programme through the month of June with offsets. The announcement, made to commemorate World Earth Day on June 5, follows the company’s CO2 neutral programme having offset more than 60 million parcels annually, or roughly 100,000 tonnes of GHGs. UPS’s carbon neutral programme also adheres to the Carbon Neutral Protocol from Natural Capital Partners.  (Air Cargo News)

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