US ELECTIONS PREVIEW – PART 1: Policy implementation hurdles constrain WCI market schemes across US West as elections near
US West Coast states envisioned additional emissions reduction policies in the past legislative year, but implementation challenges have placed Washington’s carbon market on the ballot, with close elections in Arizona and Nevada that could dictate the future of environmental policy at a state and federal level.
Read MoreLCFS surplus bank nears 30 mln with record Q2 net credit build, ahead of crucial board vote
California’s Low Carbon Fuel Standard (LCFS) cumulative credit surplus surged to a new record over 3.1 million in Q2, clocking historic highs in renewable diesel (RD) and renewable natural gas (RNG) net credits ahead of the regulator’s board voting to increase programme stringency later this week, according to state data.
Read MoreCFTC: Financial entities build net CCA length ahead of Q4 auction, WCA holdings pick up as repeal vote nears
Financial entities increased their California Carbon Allowance (CCA) holdings ahead of the final WCI quarterly auction, while Washington Carbon Allowance (WCA) holdings rose amid expectations that a voter initiative to repeal the carbon market will fail at the Nov. 5 election.
Read MoreNew York fiscal watchdog says NYCI design falls short, potential economic impacts $12 bln/yr by 2030
A state civil non-profit found New York’s proposed cap-and-invest programme, or ‘NYCI’, lacked sufficient analysis of potential fiscal and economic impacts of up to $12 billion per year by 2030, recommending a more robust, publicly available assessment and recalibration of the emissions reduction goal.
Read MoreANALYSIS: RGGI’s Third Program Review modelling updates under fire
RGGI states released feedback on proposed programme review changes, with compliance entities questioning modelling inputs, leakage considerations, and consumer impacts of higher ambition, while investors and environment justice groups pushed back against cost containment plans and delayed implementation.
Read MoreLCFS Market: Credit prices swoon amid scrutiny of retail gas price impacts
California Low Carbon Fuel Standard (LCFS) credit prices abruptly sold off nearly 13% last week from year-to-date (YtD) highs reached earlier this month, after backlash on the potential impact that proposed changes to the scheme may have on retail gasoline prices, which the regulator continues to challenge.
Read MoreCFTC: Traders roll to V25 CCAs, reducing V24 exposure
Traders continue to roll into V25 California Carbon Allowance (CCA) holdings, reducing V24 exposure over the last week, while producers increased RGGI Allowance (RGA) net length as futures prices briefly caught a headwind in a relatively illiquid market, according to data released Friday from the US Commodity Futures Trading Commission (CFTC).
Read MoreWCI Markets: CCAs swoon with LCFS scrutiny
California Carbon Allowances (CCA) futures reversed sharply in tandem with a sell-off in Low Carbon Fuel Standard (LCFS) credits this week ahead of a board vote on proposed changes to the state’s clean fuels programme, while Washington Carbon Allowances (WCA) remained out of the spotlight.
Read MoreLess than 20% ARB bi-weekly issuance awarded to DEBs offsets, valued higher
California regulator ARB’s latest issuance of compliance-eligible offsets continues to trail 2023 levels year-to-date (YtD), with less than 20% of the two-week distribution with direct environmental benefits (DEBs) to the state, agency data released Wednesday showed.
Read MoreCalifornia EJAC demands ‘no’ vote on LCFS changes
California’s Environmental Justice Advisory Committee (EJAC) has urged state regulator ARB to vote no on the proposed Low Carbon Fuel Standard (LCFS) revisions, citing concerns that the agency has completely disregarded their recommendations.
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