SK Market: Year’s first KAU auction fails to sell out
A third of the allowances on offer at 2021’s first South Korean carbon auction were left unsold on Wednesday as the market continues to be gripped by bearish sentiment.
Read MoreSK Market: KAU price caves in after December bull run ends
South Korean carbon allowances have dropped by 38% since mid-December, as bearish sentiment has returned after an end to surging demand from energy companies.
Read MoreANALYSIS: Climate ambition gap following Paris NDC deadline leaves task to major emitters
Most countries have missed a year-end deadline to update and enhance their GHG reduction commitments as the Paris Agreement took effect on Jan. 1, putting more focus on the need for greater climate ambition from large emitters this year to help close the gap to achieving the pact’s temperature goals.
Read MoreSouth Korea releases 2021 carbon auction schedule
South Korea will auction more than 18 million CO2 allowances in 2021, with monthly volumes rising in the second half of the year as tighter regulations for the third phase of the emissions trading scheme kick in, the annual auctioning schedule shows.
Read MoreSouth Korea sets out plans to cut coal consumption, energy sector CO2 emissions
South Korea wants the share of coal in the nation’s energy mix to fall by a quarter over the next 14 years, but an increase in LNG consumption means the power sector’s 2030 emissions reduction target is less ambitious than its goal for the overall economy.
Read MoreBRIEFING: International emissions trading pilots see fourfold funding gain ahead of Paris rulebook
Governments have committed $1.37 billion towards international emissions trading pilot programmes to help meet Paris Agreement goals, according to a report that charts a fourfold rise in finance inside 18 months.
Read MoreSK Market: Generator buying pushes KAUs to five-month high
Year-end demand from state-owned power companies pushed KAUs up by 10% on Tuesday with more upside expected in the next couple of weeks, according to market participants.
Read MoreSouth Korea adopts new 2030 climate target without increasing ambition
South Korea is shifting from a BAU-based 2030 emissions reduction target to an absolute one, though without promising deeper cuts, it confirmed on Tuesday while laying out priorities for where the effort will be made.
Read MoreUN strikes compromise CDM deal in effort to avert shutout ahead of Paris decision
UN officials agreed on Monday “temporary measures” intended to maintain the CDM into 2021 and serve as a stopgap until countries can decide whether the offset mechanism can transition into the Paris Agreement era.
Read MoreClimate Ambition Summit: World leaders strengthen pledges, celebrate Paris anniversary
Over 70 world leaders addressed the Climate Ambition Summit on Saturday, a one-day virtual forum aimed at building momentum for raising national pledges to the 2015 UN Paris Agreement ahead of the pact taking effect next year.
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