Carbon Pulse

*FREE READ* - There are hundreds of millions of tonnes in open interest across the Dec-18 EUA options. Beyond spawning more volatility, options trading veteran Tobias Munk says this massive build-up may yield additional risks in the form of unwanted exercises and 'pin risk' ahead of next week's expiry.

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

The British Columbia provincial government outlined a long-term climate strategy Wednesday aimed at electrifying its transportation sector, increasing its energy efficiency from buildings and reducing emissions from its industrial sector.

Dip-buyers failed to support EU carbon prices on Wednesday as the benchmark contract fell more than 5% to a four-day low below €20.

Poland intends to auction 55.8 million unallocated EU Allowances that it had set aside during 2013-2017 to help decarbonise its power sector, roughly doubling the number of permits the country had been expected to sell next year, the European Commission said late Wednesday.

California utilities are asking regulator ARB to withdraw its proposal to regulate indirect emissions from the Energy Imbalance Market (EIM) and continue its existing policy through 2019, according to public comments.

Negotiators substantially cut down the draft text of the Paris Agreement’s Article 6 concerning international emissions trading on Wednesday, though sources said that much work remains to be done over the next week-and-a-half of UN talks in Katowice.

Emitters increased their buying of German EUAs in October, taking advantage of sinking prices, a new report shows.

Some 40 companies, business group and environmental organisations on Wednesday released the ‘Katowice Declaration on Sound Carbon Accounting’ to avoid double counting of emission cuts in carbon markets set up under the Paris Agreement and ICAO.

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

California’s ARB is slated to discuss the cap-and-trade amendments at its December board meeting, potentially enabling the state agency to approve those changes this year.

UN aviation body ICAO has once again postponed decisions on eligible credits and cleaner fuels under its CORSIA global offsetting mechanism, miring it in further uncertainty as the EU takes steps to safeguard its ability to continue regulating flight emissions.

EU carbon prices nudged higher for a second straight day on Tuesday, boosted by a strong auction result, though market participants remained braced for more volatility ahead.

The continuation of the CDM and its CER credits when the Paris Agreement takes effect in 2021 has emerged as a major point of contention in the early days of the UN climate summit in Poland, as developers and NGOs remain widely split on the issue.

New Mexico should impose an escalating carbon tax or install a cap-and-trade programme across large emitting sectors if it wants to reach its long-term emissions goals, a new report has proposed.

Market participants anticipate Wednesday's RGGI auction will clear at a 10- to 15-cent discount to the secondary market, bucking a recent trend of above-market settlements.

The French government is suspending the imminent increase of its domestic carbon tax on fuel and power, backing down to pressure following weeks of violent protests in Paris.

The UN has identified six action areas with a high potential to drive GHG reductions and resilience as it encourages countries to bump up their Paris Agreement targets at a New York conference next September, Secretary-General Antonio Guterres announced on Tuesday.

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

New York Independent System Operator’s (NYISO) proposed carbon charge for its wholesale power market could extend the lifespan of nuclear generation and shift renewable energy downstate, according to new analysis.