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*TOP STORY* Green COVID-19 recoveries must not shy away from stringent CO2 prices -experts
Sustainable economic recovery efforts amid the coronavirus pandemic should not only feature CO2 taxes or emissions trading schemes to stimulate a clean and just transition, but also avoid the pitfalls of weak carbon pricing rates that have persisted for years, experts said Monday.
*AMERICAS* Newsom, legislature drop California ETS rulemaking provision, agree to future evaluation
California officials on Monday removed a budget provision to require a cap-and-trade rulemaking by next year as part of a compromise between state lawmakers and Governor Gavin Newsom (D), though they will reassess changes by the Scoping Plan update, a legislative source said. Utah legislature omits California ETS lawsuit funding, but may add during special session
Utah Republicans have removed funding for a lawsuit to challenge the legality of California’s cap-and-trade programme and emissions performance standard (EPS) from the state’s revised budget, but legislators could still restore the allocation during an August special session. PG&E set to exit bankruptcy ahead of California wildfire fund deadline
A judge approved Pacific Gas & Electric’s (PG&E) bankruptcy plan on Saturday ahead of a deadline for the California utility to participate in a fund to ease future wildfire liabilities. Virginia’s revised ETS regulation under evaluation by RGGI states for summer finalisation
RGGI members are evaluating a draft Virginia RGGI regulation for any inconsistencies with the Northeast US cap-and-trade programme ahead of its scheduled 2021 entrance, with the state aiming to complete those changes this summer, a state official said. Canada eases near-term Clean Fuel Standard targets due to COVID-19 concerns
The Canadian government will lessen the short-term carbon intensity reduction targets for its proposed Clean Fuel Standard (CFS) in response to the coronavirus pandemic, while making the GHG abatement goals more ambitious later on in the decade to maintain the stringency of the policy, the federal environment ministry said Monday.
*EMEA* At EU-China summit, Brussels presses Beijing to forge net zero path
EU leaders urged their Chinese counterparts at an online summit on Monday to outline a path towards net zero emissions, though the talks ended without major progress on climate diplomacy. Denmark agrees to increased carbon tax despite virus concerns
Denmark’s political groups have agreed a climate deal that will include an increased domestic carbon tax, the government said on Monday, defying concerns about the impact of the coronavirus on the country’s economy. EU Market: EUAs re-test 4-mth high as technical signals outweigh virus worries
EUAs bounced back from a dip below €24 early on Monday to come within an inch of last week’s four-month high, even as wider markets faltered on signs of a resurgence in COVID-19 infections in Germany and elsewhere.
*ASIA PACIFIC* Major Chinese oil firm buys “carbon neutral” LNG from Shell
One of China’s biggest oil companies has agreed to buy carbon credits along with two shipments of LNG from Shell, seeking to offset all the life cycle emissions associated with the shipment in the first such deal for mainland China. Shanghai ETS firms face marginally tighter allocation, looser offset limits
The Shanghai government has released the 2019 allocation for its emissions trading scheme, keeping the number of allowances in play at the same level as before despite including more companies, while also tripling the amount of offsets emitters can use for compliance.
*INTERNATIONAL* Market stability mechanisms both a necessity and deterrent to ETS linking -study
Mechanisms that help manage unexpected shocks in emissions trading schemes are a necessary consideration when weighing the linking of two carbon markets, however existing ones can also act as a deterrent to connecting systems, according to a study released late Friday. Carbon price support measures bolster clean investment, finds OECD paper
Governments can effectively stabilise their carbon prices using auction reserve prices and supplementary taxes, according to a paper published by OECD advisors on Monday.
*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).
*Job listings this week*
– Senior Sourcing Manager, Carbon Projects, South Pole – London/Amsterdam/Berlin
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*BITE-SIZED UPDATES FROM AROUND THE WORLD*
*Renewable trade -* The Netherlands has agreed to pay Denmark a €100 mln “statistical transfer”
*Flight fancy -* An aviation jet fuel tax
*Coming soon to a big emitter near you* – An investor group that has been campaigning for oil majors to reflect climate risk in their accounting is expanding its selected targets after BP recently became the latest to adjust down the value of its assets, Reuters reports
*Flop* – The Minerals Council – the Australian coal industry’s main lobby group – on Monday launched its first-ever climate policy plan, coming in the form of a four-page leaflet outlining some proposed actions. But observers were less than impressed as there were few specifics and no mention of targets. Investors in particular pointed out the lack of commitments on behalf of the group’s members to improve climate risk disclosure. (Sydney Morning Herald
*Come out and play* – The biggest province in Solomon Islands is eager to join the international carbon market. The provincial premier of Malaita, Daniel Suidani, has encouraged land-owning groups to make preparations to step up the type of land conversation that can generate carbon credits. (Solomon Star
*Cash crop* – Indigo Ag, a Massachusetts-based developer of crop sustainability and carbon offsets, has raised around $300 mln in new Series F funding, Axios has learned. Indigo is the world’s most highly valued agtech startup, with a $3.5 billion post-money valuation. The Series F round total is expected to be around $500 mln, including an initial $200 mln announced in January (of which $175 mln was equity). Return backers include Flagship Pioneering and Alaska Permanent Fund, while Riverstone Holdings is a new investor. Fedex also participated on the initial tranche, while the post-money valuation is flat from a Series E round raised at the end of 2008.
*Registry ready – *UN body ICAO on Monday announced that it has launched the CORSIA Central Registry (CCR)
*And finally… Heat stops play -* The rapidly accelerating climate crisis threatens the future of major sports events
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