A daily summary of our news plus bite-sized updates from around the world View this email in your browser
Presenting CP Daily, Carbon Pulse’s free newsletter. It’s a daily summary of our news plus bite-sized updates from around the world. Subscribe here
*TOP STORY* RGGI Q2 sale settles at discount despite Dominion participation
The Q2 RGGI auction settled below the secondary market, results published Friday showed, with a subsidiary of Virginia-based Dominion Energy participating in the sale prior to the state’s official entrance in the Northeast US power sector ETS next year.
*AMERICAS* California launches investigation into 15K livestock credits for regulatory violations
California regulator ARB opened an investigation on Friday into a Wisconsin-based livestock project for failing to meet regulatory compliance during its fourth reporting period, with nearly all the 15,000 credits under review used last year by an oil major. California ETS rulemaking language necessary, though changes unlikely before 2022 -senator
A California budget proposal to amend the state’s WCI-linked carbon market would likely not make any near-term changes to allowance prices, but is necessary to ensure the scheme helps the state reach its long-term climate goals, a state senator told Carbon Pulse on Friday. WCI regulated entities reduce California carbon positions as speculators’ holdings flatline
CI compliance entities cut California Carbon Allowance (CCA) holdings after the Q2 auction, while speculators’ kept their net long position roughly unchanged from the previous week, according to US Commodity Futures Trading Commission (CFTC) data released Friday. LCFS Market: California credits approach price ceiling after amendments finalised
California Low Carbon Fuel Standard (LCFS) credits have closed in on the transportation programme’s impending price cap over the past week after a state agency gave final approval for that cost containment mechanism to take effect.
*EMEA* EU Market: EUAs surge nearly 5% to pre-lockdown levels above €23
EUAs surged by almost 5% to a three-month high on Friday, climbing back to pre-lockdown levels as oil gains and surprise US jobs numbers helped lift the wider energy complex and carbon’s technical signals continued to point north. EU’s €10bln Innovation Fund corrects past mistakes, but inconsistencies remain, experts say
The European Commission has toughened its requirements to finance emissions reduction projects under its yet-to-be-launched Innovation Fund, but some stakeholders pointed out inconsistencies after the EU’s executive unveiled the mechanism’s funding criteria on Friday.
*ASIA PACIFIC* SK Market: CO2 prices sink to 9-month low as traders adjust to virus impact
South Korean CO2 allowances have slumped to their lowest level since last September on bearish economic data and plentiful supply ahead of 2019 compliance. NZ Market: NZUs take another leap as buyers chase limited supply
New Zealand carbon allowances rose again in Friday trade, ending the week almost 16% above levels seen prior to the government’s Tuesday announcement on moving the fixed price option level. CN Markets: Pilot market data for week ending June 5, 2020
Closing prices, ranges and volumes for China’s regional pilot carbon markets this week.
*PODCAST* CARBON PULSE CONVERSATIONS 012: RGGI Commissioners
In the latest installment of our Carbon Pulse Conversations podcast, we speak with former RGGI Commissioners Justin Johnson and David Littel about the upcoming 2021 programme review for the Northeast US power sector cap-and-trade scheme.
*CARBON FAST FORWARD: ONLINE CONFERENCE*
*BITE-SIZED UPDATES FROM AROUND THE WORLD*
*Zeroing up -* The UNFCCC launched its ‘Race to Zero’ campaign
*Metal health’ll drive you mad -* The London Metal Exchange – the world’s major metal trading hub – plans to launch next year a platform to trade spot ‘low-carbon’ aluminium
*Colombia cash* – COP26 President and UK Business Secretary Alok Sharma marked World Environment Day with a £64 mln package
*It’s still on* – Climate change has been pushed off the front page in recent months amid the COVID-19 pandemic, but in South Korea on Friday, 226 of the nation’s 228 local governments joined together to declare a climate emergency. They said their jurisdictions would take the lead in guiding the country out of the crisis, and pledged to all set emissions targets in line with keeping global temperature growth to 1.5C. They also called on the National Assembly to set a path to net-zero emissions by 2050 as soon as possible.
*Air dud – *The US EPA on Thursday announced a change in how cost-benefit analyses are calculated for Clean Air Act regulations, in the midst of a pandemic made worse by polluted air. The rule change would mean the cost savings from the environmental and health benefits of new regulations, also known as co-benefits, couldn’t be factored into decisions. Co-benefits were often used by the Obama administration to justify new pollution restrictions, and critics say the move would make it harder to pass future limits on air pollution. Also yesterday, President Donald Trump signed an executive order that would allow agencies to ignore environmental laws such as the Endangered Species Act and the National Environmental Policy Act when approving new infrastructure projects because of the “economic emergency” created by the pandemic. However, critics say the move is legally shaky and will likely be challenged in court. (Climate Nexus)
*The truck stops here –* California regulator ARB will conduct a public hearing on June 25 to consider adopting the state’s proposed Advanced Clean Trucks Regulation, the agency announced Friday. This is the second of two board hearings on the item, with ARB staff slated to release the Final Environmental Analysis and its Response to Comments on the Draft Environmental Analysis for the proposed regulation before the meeting. It has not yet been determined if the meeting will take place in person at the ARB’s Sacramento headquarters or remotely.
*The clearing price is right –* ICE on Friday announced amendments
*Clean deal* – Clean energy firm ReNew Power on Thursday said it has inked a definitive agreement
*And finally… **Trash talk – *Scientists announced Thursday that they had measured the highest monthly reading ever recorded of atmospheric CO2 in May. According to the scientists from NOAA and Scripps Institution of Oceanography, atmospheric CO2 measured at Hawaii’s Mauna Loa Observatory reached a seasonal peak of 417.1 parts per mln for 2020 in May – 2.4 ppm higher than the 2019 peak of 414.7 ppm recorded in May 2019. The scientists said the rate of increase during 2020 came despite the reduction in emissions due to the coronavirus pandemic, since the drop has not been wide enough to stand out from natural CO2 variability. “People may be surprised to hear that the response to the coronavirus outbreak hasn’t done more to influence CO2 levels,” said Scripps geochemist Ralph Keeling in a statement. “But the build-up of CO2 is a bit like trash in a landfill. As we keep emitting, it keeps piling up.” (Politico)
*Got a tip? Email us at email@example.com <firstname.lastname@example.org>* *Carbon Pulse*
*Our mailing address is:* Carbon Pulse 70 Royal Hill
Add us to your address book
unsubscribe from this list