Carbon Pulse

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

European carbon prices dropped heavily for the second straight session, as a weak auction and slumping power prices triggered selling in choppy trade.

EU countries have now handed out nearly 90% of their allocations of free 2018 carbon allowances, data released late Friday showed.

California faces many challenges in guaranteeing a carbon price to help livestock and dairy farmers struggling to cut emissions despite having access to buyers willing to pay over $100/tCO2e for credits.

Ensuring that a change in the Ontario government this June will not lead to the province’s exit from the WCI carbon market will require separating the political elements of cap-and-trade from the pragmatic need to act on climate change, according to stakeholders.

Below is a table of the closing prices, ranges and volumes for China's regional pilot carbon markets this week. All prices are in RMB, and volumes in tonnes of CO2e. Data sourced from local exchanges.

State energy ministers in Australia on Friday agreed to let the Energy Security Board continue work on the National Energy Guarantee (NEG), which would introduce a carbon price signal in the electricity sector, but remained concerned over the scheme’s weak climate ambition.

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

Stakeholder comments on potential updates and revisions to California’s cap-and-trade programme after 2020 have revealed a rift over the levels at which the state should set its various price tiers and how it should address overallocation in the scheme.

North American carbon markets were relatively low-key this week, with east coast prices moving up 3% on a brief surge of buying interest, while WCI prices stagnated amid a lack of interest in outright futures.

The Carbon Pricing Leadership Coalition (CPLC) on Thursday named a new co-chair, while the group’s managing body the World Bank announced a high-level forum on carbon pricing and competitiveness amid the release of a report on decarbonising the global power and chemicals sectors.

EU carbon prices fell to their lowest in a week on Thursday as a breach of a technical support level triggered selling despite a stronger auction.

A lack of technical infrastructure and guidance from the Ontario government regarding its compliance offset programme is holding up the first investment and project submissions, according to stakeholders.

Nova Scotia’s cap-and-trade programme should include auctions not currently part of the province’s market design, while also providing for more industry protection and linkage opportunities, according to stakeholders.

Some countries aren’t waiting until 2020 to make changes to their national climate commitments. As countries ratify the Paris Agreement, some have decided to revise their INDCs and communicate the changes as part of their first NDCs. WRI provides a summary.

Revenues raised from carbon pricing policies rose 45% last year to $32 billion, with most coming from taxes rather than trading and no clear trend emerging on where the money is spent, a report found on Thursday.

China’s State Council has approved an allocation plan for the power sector’s trial emissions trading system, local media reported Thursday, a sign that the government is on track to launch the simulated market this year as planned.

China will cut power prices for industrial and commercial users by around 10%, a move likely to squeeze the profits of monopoly grid companies and major generators and pave the way for further power market reforms.

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

Ontario and Quebec’s offset protocol development is back on track after a policy debate delayed around half of the 13 being designed, but concerns remain on the approach the provinces have decided to take.