Carbon Pulse

Most EU ETS-covered industries are likely to face the maximum possible tightening of their free allocation benchmarks over the next five years, a German government official said on Thursday.

Obligated parties under the Renewable Fuel Standard (RFS) have submitted 52 compliance waiver applications in order to sidestep a federal court ruling this year that could otherwise pare back the EPA’s small refinery exemption (SRE) programme, agency data showed Thursday.

Pressure is mounting on the Danish government to introduce a carbon tax to help achieve the country’s emissions reduction targets, despite its climate minister ruling out the idea amid coronavirus concerns.

The UK is more likely to next year launch a standalone ETS rather than one linked to the EU scheme, and as such prices are expected to be far lower than in the continental market, a conference heard on Thursday.

The governor of Jalisco this week announced that the jurisdiction will apply a CO2 levy starting next year, becoming the latest Mexican state to forge ahead on carbon pricing.

The coronavirus pandemic is making it easier for the EU to raise its 2030 emissions target and tighten the EU ETS cap due to energy market dynamics and stronger political will, experts told the Carbon Fast Forward Online conference on Thursday. 

The International Energy Agency on Thursday outlined a $3-trillion plan to recover from the coronavirus pandemic that it says would reduce global 2023 GHG emissions 4.5 billion tonnes of CO2e below BAU levels while adding to economic growth, and saving or creating millions of jobs.

European carbon prices spiked to a three-month high on Thursday, as positive coronavirus news out of China helped lifted wider markets and send EUAs above their 200-day moving average for the first time since late last year.

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

A lack of standardisation and transparency across eligible offset programmes under the international aviation offset market CORSIA is presenting a barrier to entry for participants and making it difficult to estimate credit supply, according to a new report.  

The EU carbon market’s Market Stability Reserve (MSR) should shift its focus to allowance prices rather than supply, researchers have proposed, highlighting a number of shortcomings identified in the 18-month old mechanism.

EU lawmakers have insisted on the role of EUAs and a carbon border adjustment mechanism to help finance the continent’s green recovery, hoping to sway leaders from the 27 nations when they negotiate the Union-wide 2021-2027 budget on Friday.

California natural gas-fired power generation is outpacing 2019 levels despite lower consumption due to the COVID-19 pandemic, while imports are also beginning to make up a greater share of Golden State’s electricity grid, data showed.

Nova Scotia’s first ETS auction sold all carbon allowances on offer 20% above the programme’s floor price, an auction participant confirmed Wednesday morning.

EUAs failed to sustain another move above €23 early on Wednesday, slipping back after a weak auction as markets weigh whether stimulus measures outweigh prospects of a second wave of COVID-19 infections.

New Zealand carbon allowances saw their fourth consecutive session of losses on Wednesday as market participants have calmed down after the bull run that took prices to unprecedented levels last week.

Global CO2 emissions from energy use grew by 0.5% in 2019, only partially unwinding the unusually strong 2.1% rise in 2018, oil major BP said in its annual energy review published on Wednesday.

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

Indigo is preparing to expand its carbon business in Europe and the development of its first carbon offsets projects. To that end, we are looking to hire a Carbon Offset Project Designer to lead the functions related to carbon offset project design. The role can be performed as staff (Carbon Project Design Manager) or as an individual consultant depending on the individual’s preference.

EU carbon prices could double or even triple from current levels within a decade should European lawmakers agree to raise the bloc’s 2030 emissions reduction target, analysts said Tuesday.