CP Daily: Friday June 19, 2020

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*TOP STORY* EU aims for 40 GW of clean hydrogen capacity by 2030 -leaked draft
The European Commission is making plans to reach 40 GW in installed electrolyser capacity EU-wide by 2030, according to a leaked copy of the 27-nation bloc’s hydrogen strategy to be unveiled in July.
*PODCAST* CARBON PULSE CONVERSATIONS 013: ClearView Energy Partners
In the latest episode of our Carbon Pulse Conversations podcast, we chat with Neelesh Nerurkar, vice president of Washington DC-based research firm ClearView Energy Partners, to discuss current developments and politics surrounding the US Renewable Fuel Standard (RFS).
*EMEA* EU leaders fail to agree on budget amid strong opposition to earmarking ETS revenues
EU leaders on Friday failed to reach a consensus on their next seven-year budget after several Eastern EU member states came out against a proposal to tap ETS auction revenues. EU Market: EUAs extend 4-mth high above €24, notch 10% weekly gain
EUAs extended their four-month high on Friday, building on the previous session’s peak above €24 amid oil and equity price gains that continue to be influential for carbon.
*VOLUNTARY* Eyeing voluntary market split, Gold Standard seeks firm line on Paris-era offsetting
Offset certifier Gold Standard plans to differentiate post-2020 vintage carbon credits depending on whether host nations make corresponding adjustments to their emissions inventories, a firm line that may force offset buyers to drastically rethink their voluntary climate strategies.
*AMERICAS* WCI Aug. auction supply rises to 59.3 mln with rolled consignment vols, Nov. sale amount set
The California-Quebec Q3 carbon auction will include slightly more current vintage allowances than the May sale that failed to sell out, while the final quarterly auction of 2020 is slated to see the lowest amount on offer this year, according to a notice posted Friday. California compliance entities, speculators maintain positions as WCI prices dip under floor
WCI regulated parties and speculators held their California Carbon Allowance (CCA) holdings largely steady in the week to June 16 as secondary market levels slipped below the 2020 reserve price again this week, according to US Commodity Futures Trading Commission (CFTC) data released Friday. Colombian ETS rulebook expected in coming weeks ahead of 2021 start
Colombia is slated to release its roadmap for its cap-and-trade programme in the near future as the government readies for the market launch next summer, a project development firm said Thursday.
*ASIA PACIFIC* China coal cap warning holds little bite, observers say
Six major Chinese government agencies have issued a joint statement to dampen new coal plant investments, but according to analysts, the effort is unlikely to have any material impact on new coal-fired capacity this year. CN Markets: Pilot market data for week ending June 19, 2020
Closing prices, ranges and volumes for China’s regional pilot carbon markets this week.
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*BITE-SIZED UPDATES FROM AROUND THE WORLD*
*That’s a lot of money* – American investment bank and financial services company Goldman Sachs expects renewable energy spending to overtake that of oil and gas in 2021 for the first time in history, leading to a total investment opportunity of up to $16 trillion by 2030 . In a research note published this week, Goldman Sachs Equity Research said “clean tech has a major role to play in the upcoming economic recovery.” Specifically, the bank expects clean technology to drive as much as $1-2 trillion per annum in infrastructure investments and create between 15-20 million jobs worldwide through public-private collaboration. (Renew Economy)
*Quick peak* – The Financial Times reports that research firm Rystad Energy has adjusted its estimate for the world hitting “peak oil” consumption from “around 2030” to “2027 or 2028”. The paper notes that in its annual report the company has cut its estimate of potential oil production “by an amount that exceeds the reserves of Saudi Arabia” as the coronavirus crisis continues to drive significant structural changes to the market. The American Petroleum Institute has reported demand for petroleum in the US increased by 14% last month over demand in April, after dropping dramatically in the early days of the crisis, according to The Hill. (Carbon Brief)
*Stop choppin’ or we’re walkin’* – Seven major European investment firms told Reuters they will divest from beef producers, grains traders, and even government bonds in Brazil if they do not see progress in resolving the surging destruction of the Amazon rainforest. The rising threats from investors with more than $2 trillion in assets under management, including Finland-based Nordea and the UK’s Legal & General Investment Management (LGIM), show how the private sector is taking global action to protect the world’s largest rainforest. Brazil’s President Jair Bolsonaro has shrugged off diplomatic pressure on the matter. Deforestation of Brazil’s Amazon surged to an 11-year high in 2019, Bolsonaro’s first year in office, and has risen a further 34% in the first five months of 2020, according to preliminary data from government space research agency INPE. The right-wing populist has weakened environmental protections and called for more mining and farming in the Amazon region.
*Open for business* – The Indian government is opening coal mining to private investment in the hope of creating hundreds of thousands of jobs, following an economic slump triggered by the coronavirus pandemic. However, the move threatens valuable forests and indigenous land rights, while expanding a polluting and financially challenged industry. Prime Minister Narendra Modi launched the auction of 41 coal mining blocks to private companies on Thursday, in a major shake-up to the sector which is dominated by state-controlled Coal India. Modi said the move would help reduce India’s reliance on energy imports and develop the eastern and central parts of the country. (Climate Home)
*Climate criteria* – The European Parliament on Thursday adopted a report indicating that acceptance of any post-Brexit trade agreement between the EU and the UK would be conditional on the country enforcing carbon pricing measures that are at least as stringent as the EU ETS. MEPs stressed that Britain’s carbon pricing measures should already be “set and in place” ahead of the vote on whether to give consent to a draft agreement between the UK and the EU. The UK should also implement a system of carbon pricing of “at least the same scope and effectiveness” as the EU ETS, the parliament said. And at the end of the continuing Brexit transition period to Dec. 31 this year, the UK should apply the same principles as the EU for use of offsets. Luckily for the UK, its draft ETS plan covers most of these bases . The whole parliament has also backed the environment committee’s call for the UK to “fully” align itself with the EU’s current and future climate policy framework, including revised 2030 targets, 2040 targets, and trajectories to climate neutrality by 2050. (Argus)
*You down with DCC?* – The Netherlands has introduced an additional risk-mitigating measure for its emissions trading register. All existing and new owners of person holding and trading accounts in the registry will be required to register with the Dutch Chamber of Commerce. “The registration requirement will enter into force on Jan. 1, 2021, which means that for companies that already have an account in the CO2 register, a transition period will apply until Dec. 31, 2020,” the Dutch Emissions Authority (NEA) said.
*Have a seat* – The European Investment Bank (EIB) and the European University Institute (EUI) have announced the launch of a new chair, the EIB Chair on Climate Change Policy and International Carbon Markets (“EIB Climate Chair”). The EIB Climate Chair will connect the EUI’s research and training with the EIB’s expertise in both financial and non-financial aspects of climate interventions, for example through the organisation of joint scientific events. The EIB Climate Chair holder will work alongside researchers at different stages of their careers, carrying out research on carbon markets and sustainable finance; sustainable energy and industrial transition, as well as on the assessment of policies and regulation. (Devdiscourse)
*Green coots* – Pension funds are among the biggest players in the sustainable finance world, a function of their clients’ long-term goals and their massive scale – individual funds may influence where hundreds of billions of dollars are invested in a given year. However, a lack of green pension options is leading some activist investors to mount court challenges against funds that are resisting green investment, while others are agitated that funds with a sustainability focus are sacrificing financial returns on an ideological altar. Read more from Politico .
*No tax, no plan* – The Canadian Taxpayers Federation has secured signed pledges from all four candidates for the leadership of the Conservative Party of Canada to scrap the current Liberal government’s carbon tax if they become prime minister. In addition to committing to scrap the tax, the right-leaning lobby group’s pledge also commits each candidate to reject any future national carbon tax or cap-and-trade scheme. The CTF is staunchly opposed to carbon pricing but it has stopped short of proposing any form of viable alternative solution to fighting climate change.
*And finally… **You hate to CRC it –*A US communication firm’s PR campaign alleging that white environmentalists are hurting black communities by attempting to eliminate fossil fuel jobs accidentally contained then name of a high-profile client, oil major Chevron . The story pitch, sent out to journalists on June 2 by Virginia-based CRC Advisors, offered to connect journalists with black conservatives who oppose the Green New Deal – a sweeping government jobs programme advanced by progressive lawmakers who champion environmental justice issues for communities of colour. However, the email ended with a revealing tagline: “If you would rather not receive future communications from Chevron, let us know by clicking here.” Chevron denied involvement in the messaging campaign, but the email’s accidental nod to the oil giant is renewing suspicions among activists and academics that Chevron’s public statements about climate change fail to match its lobbying activities. While Chevron has promised to do more to slow rising temperatures, observers view the email as a shadowy continuation of the fossil fuel industry’s past efforts to undercut legislation aimed at reducing GHGs. (E&E News)
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