Carbon Pulse

California regulator ARB has not made a determination about the role of cap-and-trade or the programme’s future allowance supply, despite comments from a state official that the WCI-linked scheme would play a “smaller role” in reaching long-term climate goals, numerous regulatory sources told Carbon Pulse. 

The 11 member states participating in the US Northeast and Mid-Atlantic RGGI cap-and-trade market are aiming to begin the power sector scheme’s 2021 review later this summer, the programme announced Tuesday.

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A Virginia power utilities commission could not determine that Dominion Energy’s Integrated Resource Plan to achieve long-term climate goals is reasonable, and as a result has asked the RGGI-regulated company to do additional analysis on future demand, efforts to boost reliability, and customer bill impacts.

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Out of London or Nyon, Switzerland, the successful candidate will work to develop new revenue streams in the Environmental Commodities market for the Carbon Desk.

UK utility SSE expects to pause its forward hedging of thermal generation until the UK carbon market starts issuing units, it said on Tuesday, in contrast to other British operators continuing to use EU Allowances to hedge their post-Brexit production.

The European Parliament’s environment (ENVI) committee is due to vote this week on its position on a carbon border adjustment mechanism (CBAM), with a large majority of political groups endorsing a gradual phaseout of the free EU carbon allowances currently given to the bloc’s heavy industry.

The largest holder of California Low Carbon Fuel Standard (LCFS) credits reduced its share of the surplus bank to the lowest level in nearly three years, programme data showed.

Uzbekistan’s energy ministry plans to carry out a subsidy reform in its gas-dominated electricity generation sector to be followed by the introduction of a carbon pricing mechanism in a bid to cut energy-related carbon output to net zero by 2050.

Singapore is preparing a multi-ministerial climate plan, with MPs pushing for the government to speed up the review of the nation’s carbon tax in order to increase levels sooner than previously planned.

NZUs jumped by a dollar on Tuesday to nearly NZ$40, as the market responded to carbon budget proposals by the government’s independent advisors that would tighten the ETS cap. 

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EU carbon’s correlation to European power and gas prices has strengthened in recent weeks as temperatures have dropped, analysis by Carbon Pulse shows, while EUAs' relationship to coal has slackened as demand for the fuel has diminished.

The UK’s main political opposition has urged the British government to impose tougher regulations on offshore gas flaring following campaigners’ showcasing of the phenomenon's climate impact.

The Architecture for REDD+ Transactions (ART) programme began a public consultation period on Monday for the new version of its deforestation reduction standard, which will now aim to also issue carbon credits from planting or restoring forests and change the method for rewarding high-forest, low-deforestation (HFLD) jurisdictions.

Voluntary carbon market (VCM) credit prices largely stagnated over the week as an influential taskforce backed a drastic scaling up in offset use and Microsoft’s disclosure of its buying activities emphasised a shift towards removal-based projects. 

EUAs slipped slightly lower on Monday as weaker energy prices weighed, with observers expecting carbon to remain firm this week despite the resumption of auctions.

Massachusetts electricity generators regulated under the state's Global Warming Solutions Act (GWSA) cap-and-trade programme posted their first annual deficit in 2020 as hotter weather and remote working pushed CO2 output above the scheme's adjusted cap, data showed.

China’s national emissions trading scheme formally entered into force on Monday, creating a sharp divide in outlook between those pilot carbon markets where power plants transition to the federal scheme immediately and those that will keep coal units in the local programmes for another year.