Carbon Pulse

A European Commission proposal to adopt a border adjustment mechanism to prevent carbon leakage will need to wait until spring 2021, despite demands from member states and industry to deliver earlier, a senior EU official said on Wednesday.

The US federal government missed a deadline on Tuesday to challenge a court’s ruling that limits the EPA’s use of Renewable Fuel Standard (RFS) compliance waivers, though refiners involved in the lawsuit will forge ahead with their own appeal.

The UK’s only EU Aviation Allowance (EUAA) auction of 2020 was cancelled on Wednesday, sale host ICE Futures Europe said, after bidding interest failed to exceed the amount of spot carbon units on offer.

EU carbon prices raced to a one-week high early on Wednesday as markets were buoyed by US lawmakers agreeing a virus-busting stimulus package, but EUAs then fell back after buyers struggled to absorb a bumper auction.

Australia’s Clean Energy Regulator opened the latest two-day auction under the Emissions Reduction Fund on Wednesday, but with little indication of a resurgence in interest from project developers.

New Zealand allowances edged up 30 cents in Wednesday trade after previously posting losses over six consecutive sessions, as some market participants said the rapid decrease had been an overreaction.

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ICAO should not have unconditionally accepted the CDM or China’s GHG Voluntary Emission Reduction Program to supply the pilot phase of its global aviation offset system CORSIA due to environmental integrity concerns and a lack of transparency in their applications, according to public comments released Monday.

The US Department of Justice (DOJ) missed a deadline to appeal a federal judge’s ruling that found the California-Quebec cap-and-trade linkage did not violate the US Constitution’s Compact or Treaty Clauses, a lawyer involved in the case said.

California Carbon Allowance (CCA) prices rallied for a second straight day on Tuesday morning, though retraced somewhat after exchange ICE announced further margin rate increases.

Emissions trading systems covered just under 9% of the world’s total GHG emissions in 2020, increasing their global coverage as climate ambition grows and governments consider net zero emission targets, a report published on Tuesday found.

The European Commission will examine the extension of the EU ETS to other sectors as part of its impact assessment for raising the bloc's 2030 emissions reduction target, a senior EU official said on Tuesday. 

California Low Carbon Fuel Standard (LCFS) prices swung back from 2018 lows this week as a result of higher demand, though some traders questioned the higher values amid the economic impacts of the COVD-19 pandemic.

EUAs climbed above €16 early on Tuesday, rising further from the previous session's 22-month low in line with wider market optimism about a slowdown in new coronavirus cases in some countries and the effect of government stimulus measures.

Ryanair, Europe’s largest airline, does not expect to operate any flights during April or May, it announced on Tuesday, as the carrier and the aviation sector as a whole struggles to deal with the COVID-19 outbreak.

Beijing on Tuesday became the third Chinese region to bring the aviation sector into its local pilot emissions trading scheme, including the capital's massive new Daxing International Airport.

Australia should not make it easier for coal-fired power stations to earn carbon credits, even though that may rule out supporting genuine efforts to reduce emissions in some cases, an advisory committee to the government has said.

New Zealand carbon allowances fell another 2.2% on Tuesday, as traders continued to offload volumes ahead of the impending shutdown of the economy while some expressed doubts the government will carry out expected ETS market reforms.

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

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