In this edition, continuing coverage of consolidation in the stock and commodities space with ICE’s nab of NYSE Euronext. Beyond that, some not-so-positive coverage of the carbon markets, in EU carbon market seen shrinking by a third in 2012 from Point Carbon and Bloomberg’s Edison Snafu Skews Demand in California Carbon Permit Sale.

From the editors: JLN Environmental/Energy is on break through January 2. Our best to you and yours this holiday season. See you in the new year!

Quote of the Day:

“Utilities are the predator of the market. Their skills and knowledge will allow them to get the maximum out of it, in any circumstance. Big banks follow. Less prepared and less focused operators, like small and medium enterprises and small traders, are the ones who are having to try more.”

–Nomisma Energia Carbon Analyst Matteo Mazzoni in Reuters’ “EU carbon market seen shrinking by a third in 2012”

Lead Stories

IntercontinentalExchange to Acquire NYSE for $8.2 Billion
IntercontinentalExchange Inc., the 12-year-old energy and commodity futures bourse, agreed to acquire NYSE Euronext (NYX) for cash and stock worth $8.2 billion, moving to take control of the world’s biggest equities market.
**RKB — From the article, derivatives market details: Liffe will be merged into London-based ICE Clear Europe. “Putting ICE and Liffe together would create a major London-based derivatives exchange, specializing in interest rates, commodities and credit,” said Richard Perrott, exchange analyst at Berenberg Bank in London.

ICE to buy NYSE Euronext for $8.2 billion
In October, Jeff Sprecher, chief executive of upstart IntercontinentalExchange, approached NYSE Euronext CEO Duncan Niederauer with a modest proposal to team up on clearing trades in London.
**RKB — Carbon trading mart NYSE Euronext’s Bluenext closed earlier this month, leaving rival EEX to navigate declining carbon market value. See the related price article from Reuters Point Carbon below.

EU carbon market seen shrinking by a third in 2012
Europe’s carbon market is set to lose a third of its value this year as an oversupply of permits worsened, battering average prices and increasing pressure on European governments to provide support.
**RKB — A 70 percent drop this year in the average price of United Nations carbon credits, which can be used to comply with the ETS, also impacted the EU market’s value.   

2012 another record-setter, fits climate forecasts
As 2012 began, winter in the U.S. went AWOL. Spring and summer arrived early with wildfires, blistering heat and drought. And fall hit the eastern third of the country with the ferocity of Superstorm Sandy.

Americans’ Actions to Limit Global Warming in September 2012
Yale Project on Climate Change Communication
The number of Americans who say they “always” or “often” walk or bike instead of driving is at its highest recorded level (25%) and has risen considerably since March (up 14 points). Americans today are also more likely say they use public transportation or carpool (17%), returning to a level last observed in November 2008 (18%).

Court won’t revisit greenhouse gas ruling
The Hill’s E2 Wire
A federal appeals court on Thursday declined to revisit a decision that allowed the Environmental Protection Agency (EPA) to regulate greenhouse gas emissions.

Green, labor coalition urges Obama to tackle climate change
The Hill’s E2 Wire
A coalition of green groups and labor organizations want President Obama to ramp up climate change efforts in his second term.
**RKB – The letter.

Carlyle buys into smaller peer in U.S. energy bet
Private equity firm Carlyle Group LP said on Thursday it has bought nearly half of an energy-focused peer, NGP Energy Capital Management LLC, as it seeks to capitalize on a revolution in U.S. energy markets.


Aviation Carbon 2013
February 19-20, 2012

2013 Climate Leadership Conference
Washington D.C.
February 27-March 1, 2013


Czech Republic, Hungary get EU approval for carbon schemes
The European Commission has approved state aid of 1.88 billion euros for the Czech Republic and 56 million euros for Hungary in the form of free carbon allowances, it said on Wednesday.

Edison Snafu Skews Demand in California Carbon Permit Sale
California, the world’s ninth- largest economy, has Edison International (EIX) to thank for selling all of its carbon permits in the state’s first auction. The company unintentionally bid for twice as many allowances as were for sale.

Natural Gas/Coal

Coal export trade raises alarms for Western states
Western states that rely on receipts from coal sales to help fund their governments are concerned the mining industry is dodging royalty payments on lucrative U.S. exports to Asia.

Australia abandons budget plans as tax take tumbles
Australia’s government abandoned a long-held pledge to return its budget to surplus, blaming a painfully high local currency, lower export earnings and lower company profits for blowing a massive hole in tax takings.

Census: Oil-and-gas heavy North Dakota is fastest-growing state
The Hill’s E2 Wire
The U.S. Census Bureau said Thursday that North Dakota experienced the nation’s greatest population growth this year, with the domestic oil-and-gas boom a likely reason for the gains.

Baoshan Steel to Buy Stake in Natural Gas Pipeline
The Wall Street Journal
Baoshan Iron and Steel Co. will buy a 12.8% stake in a natural gas pipeline in China for 8 billion yuan ($1.3 billion), China’s largest listed steelmaker said in a statement Thursday.


U.K. Green Investment Bank Strikes Its First Offshore Wind Deal
The U.K.’s Green Investment Bank struck its first offshore wind power-funding deal, contributing to a 224 million-pound ($365 million) loan for a facility off the coast of England that’s the largest operating in the world.

Pattern Energy Buys Finavera’s Wind Portfolio for $40 Million
Pattern Energy Group LP, a wind- project developer, agreed to buy Finavera Wind Energy Inc. (FVR)’s 300-megawatt British Columbia wind-farm assets for about C$40 million ($40 million).

Enbridge Agrees to Buy 50% of Quebec Wind Farm
Enbridge Inc. (ENB), Canada’s largest oil- pipeline operator, agreed to buy a 50 percent stake in an EDF EN Canada Inc. Quebec wind farm for C$170 million ($172 million.)

Gamesa Agrees to Sell 183 Megawatts of German Wind to Impax
Gamesa Corp. Tecnologica SA (GAM), Spain’s biggest maker of wind turbines, agreed to sell 183 megawatts of wind projects under development in Germany to Impax Asset Management Group Plc. (IPX)

Clean Tech

How enzyme technology can help companies clean up
Business Green
Swapping the chemical compounds in detergents for biodegradable enzymes is not only an environmentally friendly alternative to conventional cleaning products, it can also save money right the way up the value chain.


Water gets smart to cut consumption
Business Green
New technologies capable of monitoring the water cycle is key to managing our use of water in the most optimal way, according to experts speaking at the recent Investment Week climate change conference in London.


Germany’s Tilt at Windmills Ditches Steel for 1,000-Tree Tower
A German wind-power developer has opened the world’s tallest wooden turbine tower, rejecting the use of modern steel and concrete for a construction made from 1,000 spruce trees, used for centuries in traditional windmills.

This old prison in Illinois may be transformed into a farming paradise
It’s not every day that a former prison work camp is given new life as a place to grow food. But that’s exactly what’s happening in Peoria, Ill., where Hanna City, the shuttered facility that was also once a home for delinquent boys and a 1950s Air Force radar base, is being reborn as a food hub and farm incubator site.


Power Forward: Why the World’s Largest Companies are Investing in Renewable Energy (Posted Dec. 11, 2012)

Stock Exchange Benchmark On Non-Financial Reporting Rules (Posted Dec. 6, 2012)

Regional Investment of RGGI CO2 Allowance Proceeds, 2011 (Posted Nov. 27, 2012)

2012 Report on Sustainable and Responsible Investing Trends in the US (Posted Nov. 27, 2012)
The Forum for Sustainable and Responsible Investment

Climate Change Report Warns of Dramatically Warmer World This Century (Posted Nov. 19, 2012)
World Bank

Americans’ Global Warming Beliefs and Attitudes in September 2012 (Posted Oct. 21, 2012)
Yale Project on Climate Change Communication

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