Ethanol Gains Second Day on Speculation Fed Will Boost Economy

Ethanol Gains Second Day on Speculation Fed Will Boost Economy - Bloomberg
Ethanol gained for a second day in Chicago on speculation that a sputtering U.S. economy will lead the Federal Reserve to loosen monetary policy.  Futures rose after the Labor Department said jobless benefit claims climbed by 6,000 to 386,000 in the week ended June 9 and consumer prices fell by the most in three years. Ethanol followed equities higher on predictions that the Fed will act to stimulate growth.  “That’s what we’ve been conditioned to think,” said Peyton Feltus, president of Randolph Risk Management Inc. in Dallas. “Not just the Fed, but central banks in general. That’s what everybody thinks will happen.”  Denatured ethanol for July delivery gained 1.5 cents, or 0.7 percent, to settle at $2.065 a gallon on the Chicago Board of Trade. Prices have fallen 6.3 percent this year.  In spot market trading, ethanol in New York soared 7 cents, or 3.4 percent, to $2.115 a gallon and in Chicago the additive rose 5.5 cents, or 2.8 percent, to $2.045, according to data compiled by Bloomberg.  Ethanol in the U.S. Gulf gained 4.5 cents, or 2.2 percent, to $2.105 a gallon and on the West Coast the biofuel increased 2 cents, or 0.9 percent, to $2.175.  The biofuel is made from corn in the U.S. and blended with gasoline to stretch supply and meet federal mandates to decrease consumption of fossil fuels.

Unpredictable Clean-Energy Policies Hurt U.S., Senator Says

Unpredictable Clean-Energy Policies Hurt U.S., Senator Says - Bloomberg
The lack of consistent U.S. support for clean-energy production has put the nation at a disadvantage with China, where the government has been investing in companies, a senior Senate Democrat said.
“The U.S. cannot compete on a level playing field with countries that have strong industrial policies when our own policies have been so inconsistent and erratic,” Senator Jeff Bingaman of New Mexico, chairman of the Energy and Natural Resources committee, said today at a hearing in Washington.  Clean-energy manufacturers in China and the U.S. are grappling with an economic downturn, and government aid to boost production has added to tensions between the nations. The Obama administration in May imposed duties on solar- and wind-energy imports from China, while the Beijing government filed a complaint with the World Trade Organization alleging that U.S. anti-subsidy measures undercut $7.3 billion in Chinese goods, including solar panels.

Rio+20 Earth summit: walkout at 'green economy' talks

Rio+20 Earth summit: walkout at 'green economy' talks | Environment | guardian.co.uk
Europe's financial crisis should not be used as an excuse for inaction and underfunding of moves towards a more sustainable global economy, a senior Brazilian diplomat warned at the Rio+20 conference on Thursday as the UN talks suffered a disruption over money.  Negotiators from developing nations walked out of a core working group on the "green economy" because wealthy countries were refusing to include the transfer of money and technology that might achieve this goal.  The wobble was temporary but it bodes ill for the conference because negotiators were already running short of time to draft an agreement ahead of an Earth Summit next week that is billed as a once-in-a-generation opportunity to set mankind on a more sustainable path of development.  The G77 bloc of developing countries and China said cash and intellectual property were crucial to implement the changes envisaged, such as phasing out fossil fuel subsidies, boosting "green jobs" in the fields of renewable energy, moving towards more sustainable agriculture and incorporating social and economic indicators into GDP measurements.  They have proposed a global fund for sustainable development with an initial annual budget of US$30bn (£19bn). But amid a global economic slowdown and austerity in Europe rich nations are reluctant to put cash on the table.

PPR, Allianz, Nedbank to make ‘multi-million’ pledges to buy forest carbon

Environmental Finance | News | PPR, Allianz, Nedbank to make ‘multi-million’ pledges to buy forest carbon
Five major companies have joined a campaign to boost corporate demand for offsets from projects that reduce deforestation and forest degradation (REDD) and are set to make “multi-million dollar pledges” to buy such carbon credits.  Financial services provider Allianz, luxury brands giant PPR, Dutch utility Eneco, German renewable energy provider Entega and South African bank Nedbank have all pledged to buy credits from projects approved by the Code REDD campaign, said founders of the initiative.  The campaign will be launched on 19 June, ahead of the Rio+20 UN conference on sustainable development, when a group of pioneering REDD+ project developers are joining the campaign.

MLPs for renewables not happening this year, says ACORE

Environmental Finance | News | MLPs for renewables not happening this year, says ACORE
The American Council on Renewable Energy (ACORE) does not expect Congress to adopt legislation to allow renewable energy projects to use master limited partnerships (MLP) this year even though a companion bill to the Senate proposal may soon be introduced in the House of Representatives.  Senators Chris Coons (D-Delaware) and Jerry Moran (R-Kansas) introduced proposed legislation last week to open up the tax code to allow renewable energy projects to access the MLP, a limited partnership that is publicly traded on a securities exchange, which combines the tax benefits of a limited partnership with the liquidity of publicly traded securities. The US tax code currently limits these partnerships to specific sectors such as oil and gas infrastructure.   “This legislation is a very important milestone that would essentially level the playing field allowing renewable energy to participate in the benefit of MLPs,” Todd Foley, Washington, DC-based ACORE’s senior vice-president of policy and government relations, said during an ACORE webinar on Wednesday.

EU agrees landmark energy efficiency law

Environmental Finance | News | EU agrees landmark energy efficiency law
European policymakers reached agreement late on Wednesday night on the EU’s first-ever energy efficiency law, which should deliver a 15% energy saving below business-as-usual in 2020, up from the 9% expected from current policies.  Many doubted a deal was possible, as member states had been drastically diluting the European Commission’s original proposal, while the European Parliament had strengthened it.  At the heart of Wednesday’s deal – which is due to be signed off by member state representatives today, energy ministers on Friday and the Parliament in July – is a hard-fought compromise over annual energy saving obligations for energy suppliers.

Capital markets leaders explore sustainability at Rio+20 side-event | Reuters

Sustainable Stock Exchanges Initiative: Capital markets leaders explore sustainability at Rio+20 side-event | Reuters

Over 20 capital markets leaders from developed and emerging markets are due to convene ahead of the upcoming the United Nations Conference on Sustainable Development (Rio+20), in order to find ways to increase the sustainability of listed companies.  The leaders will meet as part of the Sustainable Stock Exchanges (SSE) Global Dialogue, taking place on 18 June at the Windsor Barra Hotel, Rio de Janeiro. The meeting comes ahead of Rio+20 which will gather global policy-makers in Rio de Janeiro, Brazil, between 20-22 June. Participants include the Chairperson of the Brazilian SEC, the Commissioner of the Securities and Futures Commission of Korea, CEOs and high-level representatives from BM&FBovespa, Egyptian Stock Exchange, Istanbul Stock Exchange, Johannesburg Stock Exchange, and NASDAQ OMX, along with major investors and asset managers from Aviva in the UK to the Public Investment Corporation of South Africa. 

EU Carbon Needs Set-Aside, Auction Reserve Price, Cyprus Says

EU Carbon Needs Set-Aside, Auction Reserve Price, Cyprus Says - Businessweek

Europe should consider improving its carbon market by curbing an oversupply of permits, imposing a reserve price at auctions and setting 2030 emission-cutting goals, said Cyprus’s Environment Minister Sofocles Aletraris.  Policy-makers in the 27-nation European Union are considering options to strengthen the world’s biggest emissions- trading program after the price of allowances slumped to a record on April 4 amid a recession and debt crises in the region.

Lower Supplies Launch Gas Futures

Lower Supplies Launch Gas Futures - WSJ.com
Natural-gas futures surged more than 14% after the government reported a smaller-than-expected increase in gas stockpiles last week, suggesting demand is stronger than forecast.  The gain, the biggest in percentage terms in more than two years, followed a report from the U.S. Energy Information Administration that gas in storage increased just 67 billion cubic feet last week.  The modest increase suggests that demand for natural gas among power utilities—which spent much of the spring switching their fuel from coal to cheaper natural gas—remains brisk, said Kent Bayazitoglu, an analyst at Gelber Associates in Houston.

Carbon emissions: U.S. fares better when considering climate

Carbon emissions: U.S. fares better when considering climate | R&D Mag
The U.S. has long been among the world's worst emitters of carbon dioxide, but when accounting for climate in addition to GDP, it is nowhere near the bottom of that list, according to University of Michigan researchers.  "Increased concern about carbon dioxide emissions has resulted in efforts to create methods for ranking countries according to their emissions," said Michael Sivak, director of Sustainable Worldwide Transportation at the U-M Transportation Research Institute. "Such rankings inform policy decisions on an international scale. The more comprehensive these rankings are, the better our chances of reducing emissions."

Latest Carbon News Headlines

Thomson Reuters Point Carbon's OTC price assessments

		Close	+/-
EUA	Dec 2012	6.94	0.19
sCER	Dec 2012	3.36	0.06

 

Latest Carbon Market News

Policy

14 Jun 2012 14:15

EU Commission debates size of carbon auction delay -sources

European Commission draft proposals to try to prop up the EU's Emissions Trading Scheme (ETS) could…

Buy/Free trial

EU ETS

14 Jun 2012 18:04

EU carbon edges close to 7 euros, hits 3 week high

LONDON, June 14 (Reuters Point Carbon) – EU carbon permits on Thursday hit their highest point since…

Buy/Free trial

EU ETS

14 Jun 2012 17:27

Slovakian court suspends CO2 permit tax

LONDON, June 14, (Reuters Point Carbon) - A Slovakian court on Wednesday lifted a tax on surplus car…

Buy/Free trial

Markets

14 Jun 2012 11:29

Final Dutch EUA auction clears at 6.59 euros

LONDON, June 14 (Reuters Point Carbon) – The Netherlands sold 1 million spot EU Allowances for 6.59…

Buy/Free trial

Policy

14 Jun 2012 09:50

EU agrees energy savings law without set-aside

LONDON, June 14 (Reuters Point Carbon) - EU lawmakers have struck a deal to improve energy efficienc…

Buy/Free trial

Policy

14 Jun 2012 10:34

U.S. carbon price inevitable: Duke CEO

SAN FRANCISCO, June 13 (Reuters Point Carbon) – The CEO of the U.S.’s third largest electric utility…

Buy/Free trial

Markets

14 Jun 2012 10:37

NZ carbon falls 2.4 percent

BEIJING, June 14 (Reuters Point Carbon) - Carbon permits for spot delivery in New Zealand’s emission…

Buy/Free trial

China Sees Red At Europe's Airline Emissions Tax

China Sees Red At Europe's Airline Emissions Tax - Forbes
At last, a trade dispute that unites, not divides, China and the U.S. Both countries believe that Europe has gone too far in its latest effort to curb greenhouse gas emissions. The burden falls on airlines flying in Europe, one of the world’s busiest air travel markets. Starting next year, all airlines will be charged for their carbon emissions on routes to and from Europe. China, India and the U.S. have all argued that this amounts to a global industry tax that oversteps EU jurisdiction. The EU set a Mar. 31 deadline for collecting data on carbon emissions.