Carbon Pulse

The EU should earmark revenue from its carbon border adjustment mechanism (CBAM) and provide additional funding to help Western Balkan nations transition to clean energy, a German think-tank said in a report published this week.

EUAs struggled on Friday to hold on to the previous session's big rally as buyer interest appeared to diminish, while energy prices rallied on renewed concerns over escalating tensions in Ukraine.

Activity in the Chinese carbon market has fallen off a cliff in recent days after the last stragglers finalised their 2019 and 2020 ETS compliance, while the government has yet to make a decision on allocation and offset rules going forward.

China will explore the possibility of connecting its CO2 emissions trading scheme with the recently launched green power market, regulators said Friday, a move that could provide additional compliance pathways for emitters but spell the end for renewables-backed carbon offsets.

China will reduce by more than 8% the amount of CO2 permits per MWh of generated electricity handed out to coal-fired power plants in the national emissions trading scheme, analysts said Friday, citing exclusive information from the government.

New Zealand carbon allowances touched the NZ$74 ($50.48) level for the first time in Friday trade, as sentiment remains bullish and permit holders are reluctant to part ways with their units.

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An accelerated energy transition that aligns with a 1.5C pathway would result in global GDP being shaved by 2% by 2050, according to a report from energy consultants Wood Mackenzie.

Germany's environment agency has published a legal opinion it commissioned over the constitutionality of the country's new domestic emissions trading scheme for non-EU ETS sectors, and its compatibility with EU law.

Alberta compliance offset values are expected to stagnate over the next several months as they exceed the 2021 excess emissions charge under the province’s large emitter programme, but the extent of future price increases remains challenging to predict as the energy mix changes and the Canadian federal government pursues an updated carbon pricing benchmark, traders said.

California Carbon Allowance (CCA) values retraced for the second straight week on what traders attributed to bearish macroeconomic factors and a potential pre-auction lull, while RGGI Allowances (RGAs) stagnated even as new Virginia Governor Glenn Youngkin began the process of trying to remove the state from the power sector scheme.

US President Joe Biden propelled the likelihood of divvying up the $1.8 trillion Build Back Better (BBB) Act on Wednesday, an avenue that could see its $555 billion in climate and clean energy spending advance ahead of other elements of the troubled social spending package.

The EU should set a steadily increasing price corridor for its new emissions trading system for buildings and road transport to ease concerns about the measure unfairly hitting poorer people, according to an NGO-commissioned report published on Thursday.

A new global cross-stakeholder initiative aims to set out in April initial guidelines on how companies should use carbon credits as part of credible climate strategies, a senior director told Carbon Pulse.

EUA prices jumped sharply on Thursday after the day's auction received the highest number of bids in nearly a year, ignoring weaker energy markets as unsuccessful bidders were forced into the secondary market.

Business group IETA has set up a taskforce to explore and work on guidelines for ensuring integrity in the fast-emerging blockchain-based carbon market, the latest sign that traditional emissions market participants are seeking to work with the crypto space rather than trying to subdue it.

As Australian offset prices rose to yet another record high on Thursday, there are increasing expectations that the Clean Energy Regulator could make fixed delivery deals optional in order to avoid project developers breaking contracts.

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A London-based sustainability consultancy has agreed a merger with a Dutch-headquartered offset project developer and net zero authority.

US biofuel credit (RIN) values fell to a one-month low on Wednesday, as some participants attributed the slide to obligated entities potentially taking a breather in the Renewable Fuel Standard (RFS) market.