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Beijing emitters ‘ignoring carbon scheme’

Posted on 18 June 2014 by VRS  |  Email |Print

More than a quarter of all companies covered by Beijing’s municipal carbon laws ignored a key reporting deadline, local media reported Friday, with some powerful companies questioning the local government trading body’s authority to regulate them.
Beijing’s carbon trading market, one of six set up in China to rein in rapidly growing greenhouse gas emissions, caps carbon dioxide from nearly 500 local enterprises. Most of them must hand over permits to the government to cover for their emissions, while some must only report their CO2 levels………………………………………..Full Article: Source

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We can turn the tide of climate change by working with China

Posted on 18 June 2014 by VRS  |  Email |Print

A joint statement brings together the UK’s broad science base and experience with China’s scale and ability to innovate. Much has been written about the nuclear agreements signed at the UK-China summit. Given the boost to low-carbon electricity, to energy security and to jobs, the Chinese interest in taking forward investment at Hinkley Point C, the UK’s first nuclear station in a generation – is hugely welcome.
But equally important is that both China and the UK recognise that climate change is one of the greatest global challenges we face. For the first time ever, the UK and China have released a joint statement, committing our governments to work even more closely together on a response to climate change………………………………………..Full Article: Source

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U.N. climate talks fracture over future of carbon markets

Posted on 17 June 2014 by VRS  |  Email |Print

The use of carbon markets to curb rising greenhouse gas emissions was dealt a blow on Sunday after two weeks of United Nations talks on designing and reforming the mechanisms ended in deadlock.
The negotiations, held as part of U.N. climate negotiations in Bonn, Germany, made scant progress as envoys representing almost 200 nations tied reforms to progress under the wider discussions and remained entrenched in diverse positions………………………………………..Full Article: Source

EU Energy, Carbon Plan Set for Talks With Leaders’ Envoys

Posted on 17 June 2014 by VRS  |  Email |Print

European Union negotiations this week on planned energy and climate policies will focus on ways to share the burden of carbon reductions after 2020, according to an EU document prepared for the talks.
In the series of bilateral discussions, the bloc’s senior officials and representatives of EU heads of state and government will also discuss ways to boost the share of renewable energy and the need for an energy-efficiency target, according to the document, which was obtained by Bloomberg News………………………………………..Full Article: Source

U.N. climate talks fracture over future of carbon markets

Posted on 16 June 2014 by VRS  |  Email |Print

The use of carbon markets to curb rising greenhouse gas emissions was dealt a blow on Sunday after two weeks of United Nations talks on designing and reforming the mechanisms ended in deadlock.
The negotiations, held as part of U.N. climate negotiations in Bonn, Germany, made scant progress as envoys representing almost 200 nations tied reforms to progress under the wider discussions and remained entrenched in diverse positions………………………………………..Full Article: Source

U.S. EPA chief: Carbon rules to lower consumer bills

Posted on 13 June 2014 by VRS  |  Email |Print

Environmental Protection Agency chief Gina McCarthy said on Thursday that newly proposed rules to slash carbon emissions from U.S. power plants will cut electricity bills after 2030 by forcing power plants to become more efficient.
Speaking at a forum on energy efficiency in Washington, which she likened to “preaching to the choir,” McCarthy took issue with critics’ claims that the EPA’s clean power plan will cause consumer electricity prices to skyrocket, in part by forcing older coal-fired plants to close………………………………………..Full Article: Source

ABN Amro Becomes Latest Bank to Withdraw From Carbon Trading

Posted on 13 June 2014 by VRS  |  Email |Print

ABN Amro Bank NV, the Dutch state-owned lender, withdrew from carbon trading, becoming the latest bank to exit the market after prices slumped.
ABN Amro closed its carbon desk after reviewing market activities and is working with clients to dispose of its portfolio of business, spokesman Arien Bikker said by phone today. The bank will continue to offer clearing services for carbon permits and offsets, he said. It has been active in the European Union emissions market since at least 2005………………………………………..Full Article: Source

Germany backs EU carbon market reform by 2017

Posted on 13 June 2014 by VRS  |  Email |Print

The German government wants the EU’s carbon market reform plan to be implemented by 2017, four years earlier than the European Commission has proposed, Germany’s Environment Minister Barbara Hendricks said on Thursday.
The European Commission, the EU executive, has proposed setting up a so-called market stability reserve from 2021 to hold and release permits to balance supply in the bloc’s Emissions Trading System (ETS) and better respond to economic changes………………………………………..Full Article: Source

EU May Decide on Carbon Reform by Mid-2015, Delbeke Says

Posted on 13 June 2014 by VRS  |  Email |Print

European Union policy makers may reach a decision in the first half of next year on a proposal to strenthen the world’s biggest emissions market by curbing oversupply, according to a senior EU official.
EU governments and the European Parliament are unlikely to finish work on the reform proposed by the European Commission before the end of this year, said Jos Delbeke, director general for climate at the EU’s regulatory arm………………………………………..Full Article: Source

Climate change: An offer they can’t refuse

Posted on 12 June 2014 by VRS  |  Email |Print

On June 2nd, Barack Obama announced that he wanted total emissions from American power stations to fall by 30% from 2005 levels in the next 15 years. This has (correctly) been interpreted as a potshot at the coal industry. States will have to come up with plans to meet specific emission-reduction targets; scrapping coal plants (and replacing them with gas-fired ones, say) is an obvious avenue to get there.
The goal is laudable, but even if the act makes it through inevitable legal challenges its global impact may be limited. Part of the trouble is that scrapping an American coal plant serves little purpose if the black stuff is then put on a ship to China and burned there instead………………………………………..Full Article: Source

China’s Shenzhen to punish firms if carbon targets not met

Posted on 12 June 2014 by VRS  |  Email |Print

China’s Shenzhen will impose sanctions on companies that fail to comply with targets under the city’s carbon trading scheme, an official said according to a local media outlet, despite criticism about the rules.
The Shenzhen government, hosting the oldest of China’s six pilot carbon trading markets, last week arranged a special CO2 permit auction to help local emitters meet their targets for 2013 by the June 30 deadline………………………………………..Full Article: Source

China becomes world No. 2 carbon trader

Posted on 11 June 2014 by VRS  |  Email |Print

China is the world’s second largest carbon trading market following the European Union (EU), according to data released on Tuesday. Xie Zhenhua, deputy head of the National Development and Reform Commission, said Chinese enterprises traded over 3.85 million tonnes of carbon emission quotas as of May 23.
These quotas were sold for 125 million yuan (20.2 million U.S. dollars), making China a major carbon trader only second to the EU. China began pilot carbon trading in 2011 and has approved seven trading schemes in Beijing, Tianjin, Shanghai, Chongqing, Shenzhen, Guangdong and Hubei………………………………………..Full Article: Source

Tony Abbott missing signs of world’s switch to carbon trading, experts say

Posted on 11 June 2014 by VRS  |  Email |Print

The world’s two largest economies - China and the US - are increasingly adopting carbon trading to cut greenhouse gas emissions, contrary to suggestions by Prime Minister Tony Abbott that other countries are not introducing schemes. Speaking in Canada, Mr Abbott said carbon taxes and emissions trading were the wrong way to address climate change.
He said the debate was not about the existence of climate change, but the best approach to respond to it and he backed ”direct action measures” such as improving energy efficiency and planting more trees………………………………………..Full Article: Source

US states consider carbon trading schemes

Posted on 10 June 2014 by VRS  |  Email |Print

A number of US states are starting to consider carbon trading schemes to meet limits on greenhouse gas emissions put forward in President Barack Obama’s latest climate change initiative.
The signs of interest show that although Mr Obama’s proposals for more sweeping cuts in power plant carbon emissions have been criticised in parts of the US, particularly coal-producing regions, there are others that accept his strategy………………………………………..Full Article: Source

Tony Abbott missing signs of world’s switch to carbon trading, experts say

Posted on 10 June 2014 by VRS  |  Email |Print

Tony Abbott has praised Canada’s approach to climate change, and emphasised the close ties shared between the two countries. The world’s two largest economies - China and the US - are increasingly adopting carbon trading to cut greenhouse gas emissions, contrary to suggestions by Prime Minister Tony Abbott that other countries are not introducing schemes.
Speaking in Canada, Mr Abbott said carbon taxes and emissions trading were the wrong way to address climate change. He said the debate was not about the existence of climate change, but the best approach to respond to it and he backed ”direct action measures” such as improving energy efficiency and planting more trees………………………………………..Full Article: Source

Korea: Businesses object to carbon trading introduction

Posted on 10 June 2014 by VRS  |  Email |Print

Companies are strongly protesting the government’s plan to introduce a greenhouse gas emissions trading system. Analysts say the government should take into account diverse factors instead of just pushing the plan forward.
The Ministry of Environment announced Wednesday that the country will start the emissions rights trading on the Korea Exchange from next year. The ministry will set quotas for energy-intensive businesses, and those successfully cutting emissions can sell the remaining rights to those failing to meet their obligations………………………………………..Full Article: Source

China caught in a currency conundrum, Stanford economist says

Posted on 09 June 2014 by VRS  |  Email |Print

Stanford economist Ronald McKinnon argues that China is caught in a currency trap because of its own savings surplus, the U.S. fiscal deficit and near-zero interest rates on dollar assets. As a result, China cannot at this time move toward a more market-driven economy with liberalized interest rates and private banking.
Until the global economy improves dramatically, China’s policymakers will have no easy way out of their currency trap, argues a Stanford economist. In a new research paper, Ronald McKinnon, professor emeritus of economics, concludes that China is hostage to its own savings surplus – and the United States’ lack of savings – and almost-zero interest rates on dollar assets………………………………………..Full Article: Source

US concern over Australia’s climate stance

Posted on 09 June 2014 by VRS  |  Email |Print

Australia’s lack of action on greenhouse gases is of deep concern to everyone except climate change deniers, a former adviser to Barack Obama has warned ahead of a meeting between the Australian and US leaders.
The concern over Australia’s stance came as the leaders of the Group of Seven major economies expressed their ‘’strong determination” to adopt a global climate treaty that was ”ambitious, inclusive and reflects changing global circumstances” at a summit in Paris next year………………………………………..Full Article: Source

China’s New CO2 Offset Market Set for Conversion of UN Projects

Posted on 09 June 2014 by VRS  |  Email |Print

United Nations carbon regulators will consider new rules next month to make it easier for China to switch emission-reduction projects from the Clean Development Mechanism to a new domestic offset program.
China’s National Development and Reform Commission, the chief regulator, has so far approved 16 projects designed to cut annual emissions by almost 8 million metric tons, according to data on its website. Credits from the projects, originally intended for the UN market, may instead be used against limits set for China’s first seven emissions trading programs, according to Bloomberg New Energy Finance………………………………………..Full Article: Source

China’s Chongqing to launch carbon market trading on June 13

Posted on 06 June 2014 by VRS  |  Email |Print

The southwestern city of Chongqing will be the seventh region in China to launch carbon trading when its market opens on June 13, the local carbon exchange said Thursday, in a move designed to curb the city’s greenhouse gas emissions.
The market is the last of China’s planned pilot CO2 markets ahead of the launch of a nationwide scheme later this decade as the world’s biggest-emitting nation steps up efforts to slow down rapid emissions growth………………………………………..Full Article: Source

The economics of carbon emissions

Posted on 06 June 2014 by VRS  |  Email |Print

Leaders the world over are moving to ensure their countries are reducing their carbon emissions, and the latest change along these lines has come from US president Barack Obama. South Africa, like it or not, has a seat on the bus of the global economy and this bus is heading slowly but surely in the direction of taxing or pricing carbon-dioxide emissions. And no, we can’t get off.
In a long-anticipated move, President Obama announced a new proposed rule that will look to reduce the carbon dioxide emissions of the United States by 30% from 2005 levels. Under this proposed rule, states will have until June 2016 to make their own rules on how to reduce their average emissions per megawatt-hour of electricity on pain of having an Environmental Protection Agency plan imposed upon them………………………………………..Full Article: Source

Will India and China Join The U.S. Push for Carbon Cuts?

Posted on 05 June 2014 by VRS  |  Email |Print

America’s push to cut carbon-dioxide emissions is partly intended to spur other large emitters—especially China—to cut their own emissions more aggressively to tackle climate change. But will it work?
Other countries already have national policies aimed at cutting carbon-dioxide emissions, and they are much further along than the U.S. The world’s largest system for trading emission allowances is operated by the European Union, which covers more than 11,000 power stations and industrial plants in 31 countries, as well as airlines. And some countries have implemented carbon taxes………………………………………..Full Article: Source

EU CO2 prices to average Eur5-10/mt to 2020: survey

Posted on 05 June 2014 by VRS  |  Email |Print

EU carbon dioxide allowances are expected to trade in a range of Eur5-10/mt ($6.80-13.60/mt) on average in the period to 2020, according to a majority of carbon market participants in a survey released May 28.
“In Europe, while price expectations for the EU Emissions Trading System continued to fall in this year’s survey, the rate of decline is slowing, suggesting that some participants see the downward trend stabilizing,” said the International Emissions Trading Association, which commissioned the survey………………………………………..Full Article: Source

Interstate Trading Likely Most Cost-Effective Carbon-Reduction Strategy, McCarthy Says

Posted on 05 June 2014 by VRS  |  Email |Print

Interstate emissions trading programs are likely to provide the most cost-effective carbon dioxide reductions under power plant standards proposed by the Environmental Protection Agency, Administrator Gina McCarthy said June 3.
“Clearly it’s much more cost effective with other states,” she told Bloomberg reporters and editors. “So it would not surprise me if states took a close look at whether they can marry with others, whether it’s a cap-and-trade program or other mechanism, I don’t know.”……………………………………….Full Article: Source

China to limit carbon emissions for first time

Posted on 04 June 2014 by VRS  |  Email |Print

Absolute cap to come into effect, climate adviser says on the day after US announces ambitious carbon plan. China, the world’s biggest greenhouse gas emitter, will limit its total emissions for the first time by the end of this decade, according to a top government advisor.
He Jiankun, chairman of China’s Advisory Committee on Climate Change, told a conference in Beijing on Tuesday that an absolute cap on carbon emissions will be introduced………………………………………..Full Article: Source

Will Developing World Join EPA Push for Carbon Cuts?

Posted on 04 June 2014 by VRS  |  Email |Print

America’s push to cut carbon-dioxide emissions is partly intended to spur other large emitters—especially China—to cut their own emissions more aggressively to tackle climate change. But will it work?
Other countries already have national policies aimed at cutting carbon-dioxide emissions, and they are much further along than the U.S. The world’s largest system for trading emission allowances is operated by the European Union, which covers more than 11,000 power stations and industrial plants in 31 countries, as well as airlines. And some countries have implemented carbon taxes………………………………………..Full Article: Source

Politics May Sour Cap-And-Trade Sweeteners in Obama Plan

Posted on 04 June 2014 by VRS  |  Email |Print

Obama administration officials gave new life to cap-and-trade yesterday. Just don’t expect them to say so.
Republicans championed the approach decades ago then rejected it when President Barack Obama pushed it in 2009. States may now view the politically toxic concept as a way to comply with limits on carbon emissions from power plants Obama proposed……………………………………….Full Article: Source

EPA Issues Proposed Carbon Emissions Rules

Posted on 03 June 2014 by VRS  |  Email |Print

The Obama administration took its most forceful step yet on climate change with an EPA proposal to curb greenhouse gases from existing power plants. The most likely impact from the rules, if they survive legal challenges, will be an accelerated shift to natural gas and more energy efficiency measures in coal-heavy states.
EPA director Gina McCarthy on Monday unveiled the Clean Power Plan to reduce carbon dioxide emissions from power generation 30 percent by 2030 compared to 2005. The EPA expects to finalize the rules in one year and give states one year to submit an initial compliance plan. Final plans would be approved by 2017 or 2018 if it’s a multistate approach………………………………………..Full Article: Source

Maori warn of carbon policy problems

Posted on 03 June 2014 by VRS  |  Email |Print

The Green Party’s carbon tax policy is hitting turbulence just two days after getting airborne with the Labour Party opposed it and Maori interests fearing it will cost them money. The Greens plan to campaign for the election on phasing out the Emissions Trading Scheme, and instead taxing industrial polluters $25 a tonne on their carbon emissions.
The party said the ETS was not deterring greenhouse gas emissions as intended and a carbon charge was a simple and transparent tax on pollution. Labour, the Greens’ prospective coalition partner, introduced emissions trading in the first place, and its finance spokesperson David Parker wants the scheme retained………………………………………..Full Article: Source

Obama to propose rules to curb carbon emissions

Posted on 02 June 2014 by VRS  |  Email |Print

President Barack Obama will use his executive authority to cut carbon emissions from the nation’s coal-fired power plants by up to 20 percent, according to people familiar with his plans, and will force industry to pay for the pollution it creates through cap-and-trade programs across the country.
Obama will unveil his plans in a new regulation, written by the Environmental Protection Agency, at the White House on Monday. It would be the strongest action ever taken by a U.S. president to tackle climate change and could become one of the defining elements of Obama’s legacy…………………………………….Full Article: Source

Carbon Capture Is the Best Answer

Posted on 02 June 2014 by VRS  |  Email |Print

If all we had to do to solve the problem of climate change were to reduce the flow of greenhouse gases into the atmosphere to a sustainable level, then a cap and trade regime, or simply putting a price on carbon, would indeed be a good way to start. But it isn’t.
The risk of dangerous climate change is overwhelmingly determined by the cumulative stock of carbon emissions over all time, not the rate of flow in any given decade. Carbon pricing and cap and trade are a great way of slowing down the rate at which we burn fossil carbon, but burning carbon slower won’t make a blind bit of difference if we still burn too much in the end…………………………………….Full Article: Source

The state of carbon pricing: Around the world in 46 carbon markets

Posted on 30 May 2014 by VRS  |  Email |Print

Carbon markets, designed to make polluters pay and reduce emissions, are more common than ever. But the economic slump and the structural flaws mean they’re stumbling, a new report suggests. We take a whistlestop tour of the schemes.
As eight new markets opened in 2013, and both the US and China established programmes, there was some hope that carbon pricing was coming of age. But only 12 per cent of the world’s emissions are covered by the projects. And the last 12 months have been tough for some flagship schemes………………………………………..Full Article: Source

China’s Tianjin extends carbon compliance deadline

Posted on 30 May 2014 by VRS  |  Email |Print

Energy producers and industrial emitters covered by a carbon trading market in China’s Tianjin have been given an extra six weeks to comply with the scheme as many have yet to verify their 2013 emissions.
The setback marks the latest delay in China’s drive to force heavy industry to use market mechanisms to rein in rapid growth in greenhouse gases in the world’s biggest-emitting nation. The 114 firms in the scheme in the northern city of Tianjin were supposed to be the first in the country to hand over permits to the government to cover for their 2013 emissions………………………………………..Full Article: Source

US emissions trading schemes poised for wider role

Posted on 29 May 2014 by VRS  |  Email |Print

One consequence of the Environmental Protection Agency’s new carbon dioxide rules may be a wider role for the fledgling US emissions trading schemes such as the Regional Greenhouse Gas Initiative, which covers nine states in the northeast of the country.
It has not yet been formally confirmed, but it seems very likely that participation in the RGGI or a similar scheme would be accepted by the EPA as a way to comply with its regulations………………………………………..Full Article: Source

IEA Graphic Shows How to Radically Reduce CO2

Posted on 29 May 2014 by VRS  |  Email |Print

Worldwide, nations are going to have to slash their greenhouse gas emissions drastically to prevent average global temperatures from warming beyond the point of no return, which many scientists consider to be 2°C warmer than average temperatures just before the industrial age.
In fact, the International Energy Agency in a new report says “radical action” is needed to transform how we produce and consume energy in order to prevent the worst of global warming………………………………………..Full Article: Source

S. Korea to launch world’s 2nd biggest carbon market

Posted on 29 May 2014 by VRS  |  Email |Print

South Korea plans to impose tough caps on CO2 emissions from utilities and industry as part of a carbon trading scheme that will be the world’s second biggest when it opens at the start of next year. The country on Wednesday announced detailed plans for the market, the backbone of its strategy to restrict greenhouse gas emissions in 2020 to 30 per cent below business-as-usual levels.
Under the trading scheme, carbon dioxide emissions from power generators and manufacturers will be capped at 1.64 billion tonnes over the 2015 to 2017 period, the Ministry of Environment plan showed………………………………………..Full Article: Source

Kazakhstan wins support for carbon market

Posted on 28 May 2014 by VRS  |  Email |Print

The European Energy Exchange (EEX) said it signed an agreement with Kazakh exchange Caspi JSC to provide support and technology for exchange-based trading of carbon permits, supporting Kazakhstan’s new emissions market, EEX said.
“We welcome Kazakhstan’s initiative to launch a national CO2 market as the first country in Asia and are happy to support Caspi JSC as operator of this market in its development,” EEX Chief Executive Peter Reitz said in a statement on Tuesday………………………………………..Full Article: Source

EPA Set to Unveil Climate Proposal for Existing Power Plants

Posted on 28 May 2014 by VRS  |  Email |Print

Next week, the U.S. Environmental Protection Agency (EPA) will unveil its climate rule for existing power plants. The details of the plan have not been released, but they will require reductions in carbon emissions although states will have flexibility in how they make those cuts, according to news reports.
The proposal will likely create regional carbon-trading programs, according to The Washington Post. No matter what the details, there will likely be a challenge from utilities, especially those that rely heavily on coal-fired power plants for generation. Utilities are responsible for about one-third of greenhouse gas emissions in the United States………………………………………..Full Article: Source

China And EU Launches Carbon-Emissions Trading Scheme

Posted on 27 May 2014 by VRS  |  Email |Print

China and the EU launched a three-year cooperation on a carbon emissions trading scheme during the China-EU bilateral dialogue on climate change held on May 20. The EU will contribute 5 million euros to the project.
Carbon emissions trading schemes are a new way for the world to reduce greenhouse gases. They treat greenhouse gas emissions allowances as commodities and allow high-emissions companies to buy emissions allowances from companies with low emissions………………………………………..Full Article: Source

Could Australia really dismantle its carbon price?

Posted on 27 May 2014 by VRS  |  Email |Print

The conservative government in Australia proposes to be the first country in the world to abolish a legislated price on carbon emissions. Could Australia really go down this path? The new conservative government in Australia proposes to be the first country in the world to abolish a legislated price on carbon emissions.
Could Australia really go down this path? First, a bit of background. The former Labor government was elected in 2007 in a historic landslide. The defeated prime minister had refused to ratify the Kyoto Protocol for over a decade, and the new Rudd government made a symbolic gesture with its first official act to ratify the protocol………………………………………..Full Article: Source

EPA Set to Unveil Climate Proposal

Posted on 27 May 2014 by VRS  |  Email |Print

The Obama administration will next week unveil a cornerstone of its climate-change initiative with a proposed rule aimed at allowing states to use cap-and-trade systems, renewable energy and other measures to meet aggressive goals for reducing carbon emissions by existing power plants.
Energy companies and others affected by the proposal will be watching for key details, including the percentage by which companies and states must reduce carbon emissions, which is expected to be proposed in a range instead of a single number. The baseline year against which those reductions are calculated will also be closely monitored………………………………………..Full Article: Source

The role of forests in cutting carbon

Posted on 26 May 2014 by VRS  |  Email |Print

Last September the world’s climate change experts presented the latest scientific evidence of the extent of global warming. They were unequivocal in their judgment: the world has been heating up at a remarkable rate since the 1950s and this has largely been the result of greenhouse gas emissions by industrialised nations.
A substantial amount of harmful emissions, however, result not from industrial activity but the destruction of forests, mainly in the developing world. The burning of trees for fuel directly emits carbon. But more importantly, the destruction of forests removes a vital part of the world’s natural carbon cycle, releasing the carbon stored in their soil. An area the size of Greece is estimated by the UN to be lost each year………………………………………..Full Article: Source

China Finds It’s Hard to Trade Global Warming Pollution

Posted on 26 May 2014 by VRS  |  Email |Print

China has made progress in its carbon trading pilot programs but still has a long way to go, government officials and industry players believe. China, the world’s biggest emitter of greenhouse gases, is betting on carbon trading as a key measure to cut its emissions for each unit of economic output 40 to 45 percent below 2005 levels by 2020.
Already, five regional carbon markets have been up and running in the Guangdong province and cities of Shenzhen, Beijing, Shanghai and Tianjin since 2013. Central China’s Hubei province last month also kicked in its cap-and-trade system………………………………………..Full Article: Source

UBS slashes EU carbon price forecast

Posted on 23 May 2014 by VRS  |  Email |Print

Swiss investment bank UBS slashed its year-end EU carbon price forecast by 23 per cent due to the weaker-than-expected market impact of the bloc’s plan to cut the supply of carbon permits. Analysts at the bank now predict front-year EU Allowance (EUA) prices will end the year at around 10 euros per tonne, down from a previous forecast of 13 euros.
With prices at around 4.70 euros on Tuesday, the updated view still represents a more-than 100 per cent premium on current levels. The bank said in a report published on Monday that it expected prices to average 7 euros this year before rising to 13 euros by the end of 2015, below its former estimate of 15 euros……………………………………..Full Article: Source

Carbon market continues faltering march into the mainstream

Posted on 23 May 2014 by VRS  |  Email |Print

Confidence in the EU emissions trading scheme (ETS) appears to be gradually returning, with investors heartened by the recent steps taken by Brussels to bolster the market’s previously rock bottom carbon price, a new survey has found.
A tonne of carbon currently costs around €5 in the EU system, which sets carbon limits for 12,000 power plants and factories requiring them to purchase allowances (EUAs) should they breach their cap. The price represents a drastic reduction on the €22/t peak achieved in the second half of 2008, but it also marks a significant improvement on the record low prices recorded last year……………………………………..Full Article: Source

UK carbon compensation plan in line with EU rules

Posted on 22 May 2014 by VRS  |  Email |Print

A British plan to compensate certain energy-intensive industries for higher energy costs resulting from its carbon price floor is in line with EU state aid rules, the European Commission said on Wednesday.
Britain’s carbon price floor, which was raised in April to 9.55 pounds ($16.09) per tonne of carbon dioxide, is effectively a tax on companies’ consumption of power produced from fossil fuels and is aimed at reducing greenhouse gas emissions………………………………………Full Article: Source

Carbon debt launch signals progress of China carbon derivatives

Posted on 21 May 2014 by VRS  |  Email |Print

MTNs issued by China General Nuclear Power Group are a first step for China’s carbon trading market but significant structural barriers remain in place. The launch of a carbon-linked financial product by China General Nuclear Power Group (CGN) marks the first attempt by Chinese enterprises to exploring issuing carbon derivatives, however the advent of a robust carbon derivatives market remains a long way off, according to market experts.
CGN Wind Energy, a subsidiary of China’s central government-controlled nuclear power group CGN, launched a batch of medium-term debt notes with a total value of 1 billion yuan ($160 million) two weeks ago. The notes will be issued on the interbank bond market with a tenor of five years…………………………………..Full Article: Source

Keeping carbon tax could avert controversial budget cuts: Garnaut

Posted on 21 May 2014 by VRS  |  Email |Print

The federal government could achieve the same improvement in the country’s bottom line by keeping the carbon tax and ditching its Direct Action policy as it would through implementing the most controversial budget savings measures, says leading economist Ross Garnaut.
The rapid repeal of the carbon tax after the arrival of the new Senate on July 1 has been complicated by an ­outcry about the budget. And Clive Palmer said that his party’s voting position was up for review…………………………………..Full Article: Source

EU figures show carbon credit glut persists, but offset data withheld

Posted on 20 May 2014 by VRS  |  Email |Print

Environmentalists reacted with dismay after new EU figures for 2013 showed that the flagship Emissions Trading System (ETS) was still over-supplied by 2.1 billion carbon allowances and data on carbon offsetting was partially withheld.
The ETS is supposed to drive carbon dioxide emissions reductions in Europe and help EU states meet the bloc’s climate targets. But at €5 per tonne of CO2, carbon allowances provide industry with little incentive to switch from cheap coal to more expensive alternatives, such as renewable energy, or gas…………………………………….Full Article: Source

Steel firms top carbon permit surplus list for 2013

Posted on 20 May 2014 by VRS  |  Email |Print

Three steelmakers had the biggest surplus of free carbon credits in the EU carbon market last year, an analyst report said on Monday, potentially netting the firms tens of millions of euros.
ArcelorMittal chalked up a surplus of 10 million EU Allowances (EUAs) in 2013 while Riva Group, which owns Italy ILVA, had a surplus of 8 million and Tata Steel a surplus of 4.7 million EUAs, said the report by France-based analysts at Carbon Market Data…………………………………….Full Article: Source

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