Carbon Pulse

EU parliamentarians have proposed multiple amendments designed to weaken EU ETS reforms and to intervene in the market amid record carbon permit prices, documents released Friday showed, in an early sign lawmakers will face a battle to agree measures to tighten the bloc’s flagship climate policy.

California Carbon Allowance (CCA) holdings for speculators burrowed a nearly eight-month low this week as prices dove, while emitters’ net short position dwindled to the thinnest level since May, according to US Commodity Futures Trading Commission (CFTC) data published Friday.

The fossil fuel industry and green groups are at odds with whether the steep linear reduction factor of Washington state’s forthcoming cap-and-trade regulation is appropriate, while free allowance distribution methods to industry and offset eligibility have generated pushback, according to public comments.

A summary of legislative and regulatory action on carbon pricing, clean fuel standards, and clean energy at the US subnational and federal level this week, including budget language to end the RGGI linkage in Virginia.

ESG commodities marketplace Xpansiv’s CBL has announced changes to vintage eligibility for its standardised Nature-Based Global Emissions Offsets (N-GEO) contract, aiming to better align to market demand for greater clarity and adherence to integrity-based principles.

As the staff lead for allowance trading and entity education, you will be responsible for ensuring firms can trade—and participate—in the Cap-and-Invest market. By helping firms get comfortable with this new market and how it works, you will enable them to maintain a primary focus on decreasing emissions so Washington can meet its goal of reducing emissions by 95% by 2050.

As the staff lead for auctions, you will be a crucial member of the Cap-and-Invest team. You will coordinate and implement allowance auctions that firms participate in to meet their emissions compliance obligations. These auctions are the linchpin of the cap-and-invest program and generate significant proceeds applied towards the decarbonization of the transportation industry, improving access to clean energy, and advancing health equity and environmental justice.

With high energy prices dominating the political agenda and politicians in certain EU member states training their sights on the bloc's carbon market, there is one salient fact being missed in all the hubbub: ETS emissions likely increased by 6% in 2021, and are set to rise further again this year. Self-evidently, this means that the price of EUAs is not yet high enough to drive structural decarbonisation, write Pierre Andurand and Mark Lewis in an exclusive piece for Carbon Pulse.

EUAs gave up early gains on Friday after the daily auction cleared below market while UKAs posted a new record high, as energy prices were marginally firmer ahead of a tense geopolitical weekend.

A US-based alliance that focuses on decarbonising agriculture expects to generate upwards of 30 million credits a year by 2030 and plans to expand its regional presence by striking partnerships in India, Brazil and one European country this year.

China on Friday outlined plans to launch and build out a national unified power market this decade, a move considered crucial to make carbon pricing more effective while helping to increase the share of clean power in electricity generation.

Weekly trading volume in China’s national emissions market fell below 500 units over Jan. 21-27, as traders wound down ahead of next week’s Lunar New Year celebrations with no news on the 2021 allocation plan.

Oil major Shell has started operations in China of a 20 MW renewable power-to-hydrogen electrolyser, constructed as part of a joint venture with a local firm, the company announced on Friday.

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

*PREMIUM LISTING - For ICAP’s Secretariat based in Berlin, Germany, we are now seeking to recruit an analyst, consultant or advisor – candidates will be employed in one of these roles based on their level of prior professional experience. You will be employed with the think tank and policy consultancy adelphi, which acts as host to the Secretariat.

*PREMIUM LISTING - We are looking for an enthusiastic and experienced individual to join our Innovation Team at Radicle. As an Advisor within our Methane Innovation team, you would be the point person on specific projects related to methane reductions, have an immediate influence in empowering the adoption of climate action, and align those actions with environmental commodity markets and monetization pathways.

*PREMIUM LISTING - The Manager, Carbon Offset Project Design leads a growing team of project design analysts and associates to develop successful processes, systems, tools, and resources supporting the creation of high-quality carbon offsets at scale, as part of Radicle’s Project Development team.

The fate of the Nord Stream 2 looks bleak after Germany and the US appear to have reached an agreement to scrap the gas pipeline should Russia invade Ukraine – something that President Joe Biden reportedly said is "highly certain".

California Carbon Allowance (CCA) prices tumbled nearly 7% this week as persistent bearish macroeconomic conditions knocked prices below the most recent WCI auction settlement before stabilising, as RGGI Allowances (RGAs) stagnated before a late move up to a new all-time high had some traders raising red flags.

 As the staff lead for auctions, you will be a crucial member of the Cap-and-Invest team. You will coordinate and implement allowance auctions that firms participate in to meet their emissions compliance obligations.