Carbon Pulse

Five entities have opened RGGI CO2 Allowance Tracking System (COATS) accounts over the past month as allowance prices skyrocketed to an all-time high in the carbon market before retracing much of those gains, data shows.

US biofuel credit prices (RINs) retraced this week from highs not seen since 2013 as a gasoline import arbitrage closed and soybean oil prices held firm.

RGGI Allowance (RGA) prices recovered on the secondary market this week as colder weather in the Northeast US prompted more carbon-intensive units to come online, while California Carbon Allowance (CCA) prices remained roughly unchanged.

Utility RWE has filed an arbitration claim against the Netherlands, seeking more compensation for the forced closing of its coal-fire power plant under the country’s coal phaseout law.

Swedish utility Vattenfall’s EU ETS-covered power output dropped 28% year-on-year in 2020, outpacing an overall drop in generation as a major coal unit closed and hydro power flourished, the company said in its full-year results on Thursday.

EUAs extended the previous session's all-time high above €38 early on Thursday, before a much weaker auction caused prices to tumble.

Well, this has been an interesting week. In the space of 72 hours carbon has risen 14%, reached a new all-time record and if things keep going like they have been, it’s just a matter of time before the EU ETS starts becoming the subject of $GME-type memes. There have been a number of explanations for the nearly €5 spike in EUA prices; I’ll list them and if I missed any, please shout.

Shanghai on Thursday released the 2020 allocation plan for its municipal emissions trading scheme, with the overall CO2 cap shrinking by a third as more than 20 coal-fired power plans will exit the local scheme to join the national market.

Australian Carbon Credit Units (ACCUs) rose past A$17/t this week, with a slight shift in messaging on climate change by Prime Minister Scott Morrison sparking greater voluntary interest, according to analysts, as depicted by a bump in voluntary cancellations driven by Qantas Airways.

South Korea will drop its planned monthly KAU auctions in February and March amid poor market liquidity and low prices, and will instead add the volume from those events to its June sale, the environment ministry has said.

A daily summary of our news plus bite-sized updates from around the world.

President Joe Biden’s (D) administration has a “clean state” on developing a regulation to reduce power sector emissions, EPA administrator nominee Michael Regan said Wednesday, as he committed to let states implement more ambitious vehicle GHG standards than the federal government and bring greater transparency to the Renewable Fuel Standard (RFS) if confirmed as head of the agency. 

An UK appeals court has upheld convictions against seven men charged with committing fraud via various carbon markets, rejecting challenges over the prosecution's use of an expert witness who was later discredited.

Republican Senators took aim at a suite of climate-related executive orders signed by President Joe Biden (D) during a committee hearing on Wednesday, saying the policies would provide little environmental benefit and negatively impact the economy.

France is not doing enough to tackle climate change, a Paris court ruled on Wednesday, becoming the third EU nation to be held legally responsible for its climate inaction.

The German government has ‘named and shamed’ another group of companies for failing to comply with the EU ETS, including a pair of Egyptian airlines.

Danish utility Orsted reported an uptick in its coal power use over 2020 as its grid-balancing services were called upon more due to a pandemic-induced shift in power demand, the company said on Wednesday.

EU carbon prices prices jumped over 7% to a new all-time high on Wednesday as traders scrambled to secure allowances, which led to a record auction clearance.

Nearly 80% of all new coal-fired capacity commissioned in 2020 was in China, propping up the nation’s fossil fuel industry despite the promise to become carbon neutral in four decades, according to a report released Wednesday.

A daily summary of our news plus bite-sized updates from around the world.