California Lawmakers Pass Measure Limiting Cap-And-Trade Links

California Lawmakers Pass Measure Limiting Cap-And-Trade Links - Bloomberg
California lawmakers passed a bill that may stall plans for a link of the state’s cap-and-trade system with Quebec that would allow companies to exchange carbon permits across the borders.  The measure, approved as part of the legislature’s $95.1 billion budget package, requires the state’s air resources board to gain approval from the governor before linking cap-and-trade systems with other jurisdictions. The board was expected to decide tomorrow on a link with Quebec that would allow companies to use carbon offsets and permits issued by the province to meet California’s greenhouse-gas emissions targets.  Dave Clegern, a spokesman for the air resources board in Sacramento, declined in an e-mail to comment on the bill’s approval, saying the agency is “withholding any comment until after the governor signs” the legislation.  California, which established a carbon program after U.S. policy makers failed to develop a federal plan, is set to join more than 30 other governments operating emissions-trading programs worldwide next year, including 27 European Union member-states, Norway, Switzerland and New Zealand, as well as Quebec. The state’s air board has supported a link with Quebec to strengthen its carbon market and drive down emissions by larger volumes.

Will Carbon Capture Be Ready on Time?

Will Carbon Capture Be Ready on Time? - Technology Review
Many long-term strategies for combating climate change count heavily on the ability to capture huge amounts of carbon dioxide from the burning of fossil fuels and store it permanently in deep underground rock formations. But high costs and lingering technical uncertainties mean the technology, so-called carbon capture and storage (CCS), might not be able to play a significant role in cutting carbon emissions.  A recent report from the International Energy Agency warns that the development and deployment of CCS is "seriously off pace" as a way to prevent the average global temperature from rising more than 2 °C—a widely used target in climate strategy. The window to begin applying CCS toward consequential emissions reduction is "shrinking fast," says the agency, which has declared that CCS must supply over a fifth of the emissions reductions needed by 2050 to keep the temperature rise below 2 °C.

Court ruling to shift greenhouse gas fight back to Congress

Court ruling to shift greenhouse gas fight back to Congress: Scientific American
An appeals court decision to uphold proposed federal greenhouse gas rules may shift the fight over regulating the heat-trapping emissions back to Congress, where lawmakers may step up efforts to diminish the EPA's power or renew efforts to set a price on carbon, experts said.  The U.S. Court of Appeals for the District of Columbia on Monday unanimously ruled that the Environmental Protection Agency's (EPA) finding that carbon dioxide is a public danger and the decision to set limits for emissions from cars and light trucks were legal.  The ruling upheld the underpinnings of the Obama administration's push to regulate carbon dioxide emissions, dealing a blow to the heavy industries including electric utilities and states like Texas who have sought to strip the EPA of its authority.  Despite the legal victory by the EPA, experts are expecting opponents to continue their challenge to the greenhouse gas regulations in Congress, where both industry and environmental groups are expected to try to torpedo or protect the controversial rules.

New Zealand CO2 prices hit two-month high

New Zealand CO2 prices hit two-month high: Scientific American
New Zealand carbon prices hit a two-month high this week, extending gains as ongoing speculation of tighter liquidity in the European carbon market was expected to bolster the New Zealand market in the longer term.  New Zealand permits for spot delivery (NZUs) rose as high as NZ$7.00, traders said, their strongest since late April, while light selling by forestry-related participants around that level prevented any further gains.  NZUs traded in a NZ$6.60-7.00 range this week and closed at NZ$6.95 on Thursday, up 35 cents on the previous week.  Prices pulled further away from NZ$5.95 hit earlier this month, around the lowest on record according to Point Carbon data dating back to July 2010.
NZUs are on course for a 14 percent rise this month, tracking broad gains in the European market ahead of a European Commission plan due next month that could delay sales of up to 1.2 billion allowances and push prices higher.  "Given that in Europe they're about to restrict supply, the market's going to be relatively tight over the next six to 12 months," said a trader in Wellington, adding that this would support the New Zealand market.

Europe's Cities Plan to Combat Mounting Climate Risk

Europe's Cities Plan to Combat Mounting Climate Risk: Scientific American
European cities are planning to adapt to climate change as the risks become more severe, a report by UK-based emissions measurement organization the Carbon Disclosure Project (CDP) and consultancy Accenture showed on Thursday.  Cities increasingly have to plan flood defenses, ways to manage water in times of drought, ensure new buildings provide natural cooling to occupants and adapt old buildings and infrastructure to become more energy efficient.  The report surveyed 22 European cities - including Amsterdam, Berlin, Istanbul, London, Manchester, Moscow, Paris and Rome - about their greenhouse gas emissions and climate change strategies.  The report comes less than a week after a United Nations' summit in Rio de Janeiro failed to define clear sustainable development goals and left many convinced that local governments and businesses will have to lead efforts to improve the environment.

Colombia eyes greenhouse gas cuts through forest protection

Colombia eyes greenhouse gas cuts through forest protection: Scientific American
Colombia plans to have in place 10 months from now a new system to measure deforestation, which it hopes will drastically improve its ability to establish a national policy to reduce emissions from deforestation (REDD), the country's environmental minister said.  Tropical forests cover one-third of the Andean country and according to Colombia's latest greenhouse gas (GHG) inventory, emissions from land-use change shot up 132 percent from 1990 to 2004, the largest increase in all the country's sectors.  "It's a high rate for a country the size of Colombia. In reality, the country has failed in the last 10 years in controlling deforestation," said Marcelo Rodriguez Becerra, a professor at Universidad de los Andes and a former Colombian environment minister.  Current Environment Minister Frank Pearl told Reuters Point Carbon that the ministry is preparing to establish a better system to track the rate of deforestation.

NY adopts CO2 rules that limit new coal power plants

NY adopts CO2 rules that limit new coal power plants: Scientific American
New York environmental regulators on Thursday adopted carbon dioxide emissions (CO2) limits for new and expanded power plants that are slightly stricter than proposed federal limits and make it nearly impossible to build a new coal unit in the state.  There are no coal plants under active development in New York, which currently has about two dozen coal units -- some very old, small and rarely operated -- capable of generating about 2,800 megawatts (MW) of power.  "By preventing new high-carbon sources of energy, this performance standard will serve to further minimize the power sector's contribution to climate change, which poses a substantial threat to public health and the environment," Joseph Martens, Commissioner of the New York State Department of Environmental Conservation (DEC), said in a release.

Germany Set to Try Out Carbon Capture and Storage

Germany Set to Try Out Carbon Capture and Storage: Scientific American
Germany's parliamentary mediation committee on Wednesday approved a compromise that would allow carbon capture and storage (CCS) in Germany on a test basis, Environment Minister Peter Altmaier said.  CCS is seen as a vital technology to help reduce climate-warming carbon emissions from power plants in order to achieve legally binding climate change targets, but the technology remains commercially unproven and costly to develop.  Through CCS, CO2 emissions are captured and stored underground, reducing the environmental burden of power plants.  Germany's draft law on CCS was approved by the Bundestag (lower house) last year but rejected by the Bundesrat (upper house) due to safety concerns.  Many citizen groups have protested against the idea of CCS as they fear the emissions, which are fatal in high concentrations, could leak and rise to the surface.  The mediation committee on Wednesday approved the new compromise with a close majority, meaning the law's passage through parliament is still not guaranteed.  According to the compromise, only half of the originally planned 3 million metric tons (3.3 million tons) of CO2 emissions can be captured and stored underground.

Latest Carbon News Headlines

Thomson Reuters Point Carbon's OTC price assessments

		Close	+/-
EUA	Dec 2012	7.93	-0.03
sCER	Dec 2012	3.97	0.03

 

 

Latest Carbon Market News

Policy

28 Jun 2012 14:37

EU climate boss calls for early U.N. carbon plan

BRUSSELS, June 28 (Reuters) - The European Union is looking to a U.N. body to decide on a global sch…

Buy/Free trial

EU ETS

28 Jun 2012 17:22

RWE seeks damages, free CO2 permits in long-running case

LONDON, June 28 (Reuters Point Carbon) – Power company RWE has asked a German court to rule the coun…

Buy/Free trial

Markets

28 Jun 2012 18:38

Norway pledges $8.2-bln to drive industry CO2 cuts

Norway is building a massive cash pool to help its big emitters design and build clean technology to…

Buy/Free trial

Policy

28 Jun 2012 10:15

California lawmakers set rules for CO2 market linkage

SAN FRANCISCO, June 27 (Reuters Point Carbon) – California’s lawmakers on Wednesday added new requir…

Buy/Free trial

Markets

28 Jun 2012 10:20

New Zealand CO2 prices hit 2-mth high

WELLINGTON, June 28 (Reuters) - New Zealand carbon prices hit a two-month high this week, extending…

Buy/Free trial

Policy

28 Jun 2012 00:35

Court ruling to shift greenhouse gas fight back to Congress

WASHINGTON, June 27 (Reuters Point Carbon) – An appeals court decision to uphold proposed federal gr…

Buy/Free trial

Domestic policy

28 Jun 2012 01:07

CORRECTION: Colombia eyes greenhouse gas cuts through forest protection

SAO PAULO, June 27 (Reuters Point Carbon) – Colombia plans to have in place 10 months from now a new…

Buy/Free trial

Carbon Errors Make Australia Wiser as Gillard Sets Price Record

Carbon Errors Make Australia Wiser as Gillard Sets Price Record - Businessweek
Australia is setting the world’s highest price on carbon emissions as it seeks to avoid mistakes made when Europe started the biggest cap-and-trade system seven years ago.  The country of 22.5 million people, with the most emissions per capita among developed nations, will charge almost 300 of Australia’s largest polluters a fixed price of A$23 ($23.15) a metric ton for their greenhouse gases for the year starting July 1. European Union carbon allowances closed yesterday at 7.97 euros ($10) a ton on London’s ICE Futures Europe exchange.

BlackRock tackles discount on New Energy trust

Environmental Finance | News | BlackRock tackles discount on New Energy trust

Asset management firm BlackRock is to offer investors in its New Energy Investment Trust a cash exit in 2014 at the net asset value (NAV) of the fund – a move that should reduce the persistently large gap between the NAV and the market price, the company says.  Shares in the £80 million ($124 million) London-listed trust have been trading at discounts of up to 20% to the NAV, despite the fact that the majority of its assets are invested in transparently priced and liquid listed equities.  In its half-year report published this week, BlackRock said it will seek to change the trust’s articles of association, removing the current requirement for shareholders to vote annually to continue the fund. In its place, the board is recommending that shareholders be given the option to cash in their holdings at NAV in February 2014, minus some administration costs, rather than the market price. The proposal will be put to the vote at a general meeting on 25 July.

Rio emissions trading delay seen likely to be short

Environmental Finance | News | Rio emissions trading delay seen likely to be short
The passing of a law to create an emissions trading scheme (ETS) in the State of Rio de Janeiro is only likely to be delayed by a few months, according to the state’s environment ministry.  “[The programme] definitely won’t be derailed and we have received support from other secretariats,” said Walter Figueiredo De Simoni, green economy superintendent in the state’s environment ministry. “We expect the ETS to still be launched in 2013 and we will be starting once again contacts with the local companies.”   “We are sure that, in the next few months, we’ll have good news regarding the creation of emission targets and a cap and trade system for industries,” he added.  The Brazilian state is set to be the first jurisdiction in South America to introduce a cap-and-trade programme, which is due to start – as a three-year trial phase – from 2013. It has set a target to reduce emissions by unit of production below 2005 levels by 2030 – a level estimated at 281.68 tonnes of carbon dioxide equivalent per million reais ($570,000).   However, opposition from industry, which claimed it had not been sufficiently consulted, scuppered plans for the state’s governor to sign the scheme into law during the Rio+20 conference last week.
Figueiredo De Simoni said that “this staunch opposition came as a surprise to us” as the ministry had been liaising with industry since October 2011.
But Pedro Moura Costa, a Rio-based pioneer of the UN’s Clean Development Mechanism, and now founder of the Bolsa Verde Rio (BVRio) environmental exchange, said that industry opposition was not unexpected. “They never like targets. But I expect [the signing into law] to happen in the next couple of months.”  Figueiredo De Simoni said that the Federation of Industries for the State of Rio de Janeiro had led the opposition, and so he was unaware of individual companies’ opposition.
Moura Costa’s BVRio venture plans to list carbon contracts for participants in the Rio ETS, although Moura Costa said that the exchange is currently focusing on developing a market for Creditos Reserve Legal credits, which Brazilian landowners can use to meet forest cover targets.  “[The programme] definitely won’t be derailed and we have received support from other secretariats,” said Walter Figueiredo De Simoni, green economy superintendent in the state’s environment ministry. “We expect the ETS to still be launched in 2013 and we will be starting once again contacts with the local companies.” “We are sure that, in the next few months, we’ll have good news regarding the creation of emission targets and a cap and trade system for industries,” he added.  The Brazilian state is set to be the first jurisdiction in South America to introduce a cap-and-trade programme, which is due to start – as a three-year trial phase – from 2013.