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* New US-listed carbon ETF launched amid growing investor interest
A new US-listed exchange-traded fund (ETF) that tracks carbon prices in three markets was launched Thursday, allowing retail investors for the first time to hold cross-continental stakes in cap-and-trade schemes.
*EMEA* EU industrials see recovery from COVID shutdowns, but outlook uncertain
Some of the EU’s largest cement and steel producers have seen production rebound late in H1 following initial coronavirus lockdowns in Q1, but they say prospects of a second wave make their outlooks for the rest of the year impossible to predict. EU utilities advance hedging over Q2 as thermal output hit hard by virus slump
EU utilities advanced their hedging positions over the second quarter, even as their ETS-covered output slumped considerably as coronavirus restrictions took effect, according to financial results published on Thursday. EU Market: EUAs slip back below €26 as economy woes loom large
EUAs fell back below €26 on Thursday, giving back the previous day’s gains as markets sank on worse-than-expected GDP and corporate data, hitting home how badly the pandemic has struck the wider economy.
*ASIA PACIFIC* NZ Market: NZUs leap to new record high as demand persists
NZUs have gained almost a dollar over the past two days to climb past NZ$34.00 ($22.53) for the first time, as steady demand and limited supply keep sellers eyeing higher levels. Chinese pilot ETS coal companies to benefit from switch to national market, analysts say
Coal-fired power generators participating in China’s pilot carbon markets are set to find life easier in the national emissions trading scheme due to more generous allocation, said a report released Thursday.
*AMERICAS* NA Markets: RGGI allowances soar to new highs, California prices decline on higher volume
RGGI allowance (RGA) prices surged to a four-year high on the secondary market this week on increased compliance buying, while California Carbon Allowance (CCA) values slid despite more trading activity. Pennsylvania state senator introduces legislation supporting RGGI-modelled ETS
Pennsylvania Senate Minority Leader Jay Costa (D) on Thursday unveiled a bill to implement a power sector ETS that could link with the RGGI programme, in a rebuttal to other state lawmakers’ attempts to stop Governor Tom Wolf (D) from joining the Northeast US carbon market.
*COMMENT* Bridging the gap in EU carbon prices?
EUAs hit a 14-year high in July before immediately nosediving as the market suffered altitude sickness. Now we’re back in the €25-26s, roughly where we were before the Great Covid Sell-Off, and it feels like prices aren’t sure where to go next. According to Alessandro Vitelli, August looks pretty finely balanced in terms of price outlook: a supply cut may mitigate some potential weakness, but there are darker clouds on the horizon.
*PODCAST* CARBON PULSE CONVERSATIONS 015: Sheppard Mullin
In the latest episode of our Carbon Pulse Conservations podcast, we speak with Sheppard Mullin Partner Nico Van Aelstyn about the recent federal court rulings in the US Department of Justice’s (DOJ) legal challenges to the California-Quebec carbon market linkage.
*BITE-SIZED UPDATES FROM AROUND THE WORLD*
*Flooded funds – *As much as 20% of global GDP could be threatened by coastal flooding
*Going giga* – The European Investment Bank will back the EU’s plans to build its first gigafactory for the manufacturing of lithium-ion battery cells in Sweden with a €350 mln loan, the European Commission announced on Wednesday
*Resilient wind *- The installation of new EU wind farms over the first half of 2020 remained comparable to previous years
*Resurrected –* Even before the country’s coal phaseout law enters into force, Germany’s Economy Minister Peter Altmaier is facing legal headwinds
*Total loss – *French energy giant Total is writing off C$9.3 bln ($7 bln) worth of stranded oil assets in Alberta
*Pension pushback – *US House Democrats, investors, and state pension fund operators are pushing back against a proposal from President Donald Trump’s administration guiding how pension fund managers can pursue sustainable investments, saying it could expose retirees to shrinking nest eggs as climate change worsens. The Department of Labor’s proposal would forbid pension fund managers from allowing ESG factors to tip the balance in deciding how to invest employee retirement funds. Labor Secretary Eugene Scalia believes some fund managers are using ESG as a means of virtue signalling that threatens investor returns, while opponents of the proposal contend that the measures narrowly defines risks, restricting fund managers from weighing how climate change, human rights, and other issues negatively affect portfolio performance. A group of 21 House Democrats called Labor’s proposal a “solution in search of a problem,” given that ESG funds have generally fared no worse and often better than competing funds and stock indices. (Politico)
*Bank buds – *Bank of America and Citi separately announced Wednesday they’re joining the Partnership for Carbon Accounting, a global consortium of financial companies that agrees to count GHG emissions stemming from their investments. The banks’ move follows fellow US-based institution Morgan Stanley joining the partnership earlier this month. (Axios)
*Renewable replacement –* New Mexico regulators on Wednesday unanimously approved a plan
*And finally… **Lube up – *UK-based Silverstream Technologies has signed a framework agreement
*Got a tip? Email us at email@example.com <firstname.lastname@example.org>* *Carbon Pulse*
*Our mailing address is:* Carbon Pulse 70 Royal Hill London, SE108RF United Kingdom
Add us to your address book
unsubscribe from this list