In this edition of EMN, the New York Times, San Francisco Chronicle and Reuters cover California and Quebec’s cap-and-trade cooperation draft proposal. Reuters offers some analysis on the Canadian-European oil sands battle. Latin America is in focus with a look at Argentina’s energy crunch and reports on sugar cane financing, from Bloomberg. One here. And one here.

Quote of the Day:

“The world in 1992 is not the same as in 2012. Each country will now have to bear responsibility for ensuring sustainability. The negotiations are worrying at this stage. The pace is relatively slow and there is some lack of focus.”

-European Commissioner for Environment Janez Potocnik in Reuters’ “Analysis – Political shift will make or break Rio+20 summit”

Lead Stories

California and Quebec Near an Agreement for Trading of Carbon Permits
The New York Times
California and Quebec moved to knit together their fledgling carbon markets on Wednesday as California proposed a new regulation allowing cross-border trading of the permits that industries must acquire to cover their emissions of greenhouse gases.
http://jlne.ws/JDQWJU
**RKB — Target date: November. Draft language highlights: calls for mutual acceptance of compliance instruments like allowances and offset credits between the two jurisdictions. Calls for common allowance registry and auction, including provisions for tracking allowances which are designed to enhance market security.

California takes step toward linking CO2 market to Quebec
Reuters
California on Wednesday released an updated draft of its cap-and-trade regulations that for the first time includes language that would link its carbon market to a similar scheme in the Canadian province of Quebec.
http://jlne.ws/JhBOUD

Quebec joins California in cap and trade market
SF Gate
California may not have to go it alone on cap-and-trade after all. Under rules proposed Wednesday by state regulators, the Canadian province of Quebec will link its cap-and-trade system to California’s in November. The joint market will allow businesses in both California and Quebec to trade permits to emit the greenhouse gases behind global warming.
http://jlne.ws/IXbgGX

Insight: Canada’s oil sand battle with Europe
Reuters
There’s a science to using science. On May 9, the government of Alberta released a study into the extra carbon emitted by crude produced using oil sands instead of more conventional sources. The study, by a unit of California-based Jacobs Engineering Group, found that emissions from oil-sand crude are just 12 percent higher than from regular crude.
http://jlne.ws/KqTQRI

EEX to launch GASPOOL Season Contracts
Press Release
The European Energy Exchange (EEX) is expanding the range of tradable maturities on the Natural Gas Derivatives Market. From 18 June on, the trading participants will also have the possibility to trade in GASPOOL Season Futures. These were initially only offered for derivatives trading with delivery into the NetConnect Germany (NCG) market area. Seasons are contracts comprising the delivery period from October to March (winter season) and the period from April to September (summer season).
http://jlne.ws/IMGv83

Dynegy Selects Updata Analytics for Natural Gas and Power Trading
Press Release
Dynegy, a leading US power generator, has chosen to use Updata Professional, a suite of advanced analytics, on their power and natural gas trading desks. Updata Professional helps energy traders optimize trading decisions and increase profits by providing advanced technical analysis, strategy backtesting, and the ability to link multiple external and internal data sources.
http://jlne.ws/J3KpDR 

SAP chief forecasts Brazilian carbon software boom
Business Green
Business software giant SAP hopes to roll out its cloud-based carbon management software to 12 Brazilian companies this year, after making its first sale to supermarket giant Pão de Açúcar.
http://jlne.ws/M266dQ

Sugar Cane Grows on Oil as $71 Billion Bet Outspends D.C.
Bloomberg
BP Plc (BP/) has invested $7 billion in alternative energy since 2005. Exxon Mobil Corp. (XOM) is spending $600 million on a 10-year effort to turn algae into oil. And Royal Dutch Shell Plc (RDSA) has been buying up sugar cane mills, plantations and refineries to make ethanol in Brazil.
http://jlne.ws/KJywKj

Brazil’s $2 Billion Cane Revival Plan Fails: Commodities
Bloomberg
Brazil’s 4 billion-real ($2.1 billion) drive to revive sugar-cane production has faltered as government bureaucracy and a curb on foreign loans choked credit needed to finance planting.
http://jlne.ws/K31guI
**repeats in Latin America

Argentina slows climate action amid energy supply crisis
Reuters
While its Latin American neighbors move forward with national climate laws, Argentina is backsliding on actions to tackle its greenhouse gas emissions as the country struggles to meet energy demand from a fast-growing middle class.
http://jlne.ws/IXa9qN
**repeats in Latin America

Analysis – Political shift will make or break Rio+20 summit
Reuters
The shifting sands of geopolitics, marked by rapid growth of big, emerging economies such as Brazil and China while traditionally rich countries fall behind, could undermine progress to define sustainable development goals at a United Nations conference next month.
http://jlne.ws/Jj1cWc

Scientists urge action on world’s biggest problems
Reuters
Scientists from 15 countries are calling for a better political response to the provision of water and energy to meet the challenge of feeding a world of 9 billion people within 30 years.
http://jlne.ws/J1zG3B

Island Nations Criticize EU Over Kyoto Climate Deal Extension
Bloomberg
A bloc of 42 island nations said the European Union is backtracking on agreements made at the last round of United Nations climate talks in Durban, South Africa, threatening the environmental integrity of an eventual treaty.
http://jlne.ws/INYYAZ

US

McKibben: Activists should be ‘willfully naive’ in oil subsidy, climate battle
The Hill’s E2 Wire
A prominent environmentalist is suggesting an outside-the-box political strategy for climate advocates seeking to end oil-industry tax breaks and stop the Keystone XL pipeline: naivete.
http://jlne.ws/KdMEu1

Mica: ‘Great progress’ on including Keystone pipeline in highway bill
The Hill’s E2 Wire
A top member of the House-Senate team forging a compromise transportation bill sounded optimistic notes Thursday about including construction of the Keystone XL oil pipeline in the measure.
http://jlne.ws/JmUhvw

Sen. DeMint knocks Obama as ‘hypocritical’ on energy tax breaks
The Hill’s E2 Wire
Sen. Jim DeMint (R-S.C.) hit back at President Obama Thursday for suggesting that Republicans are violating Grover Norquist’s tax pledge by opposing the extension of tax credits for the renewable energy industry.
http://jlne.ws/Lu0tT0

Pete Stark, Other Candidates Confuse Solyndra With Country, Car Manufacturer, Keystone XL Pipeline
Huffington Post
Rep. Pete Stark (D-Calif.), the 20-term incumbent facing a surprisingly competitive race in California’s 15th congressional district, drew headlines recently when he confused failed solar energy company Solyndra with the electric car company known as Tesla.
http://jlne.ws/KdMLFY

Canada

Hastings Wins $2.3 Billion Lease for Sydney Desalination Plant
Bloomberg
Hastings Funds Management Pty and Ontario Teachers’ Pension Plan won the right to lease the Sydney Desalination Plant from Australia’s New South Wales state for A$2.3 billion ($2.3 billion).The 50-year lease includes the plant, the pipeline, the site and a 50-year supply agreement with Sydney Water, the state government said today in a statement. The funds will be used to repay debt while A$300 million will be invested in the state’s infrastructure fund.
http://jlne.ws/JkEjjF
**repeats in Asia

Oilsands critics put spotlight on foreign ownership
CBC
Anti-oilsands activists hit back at recent criticism of foreign funding of environmental charities Thursday by releasing a report showing oilsands companies are overwhelmingly foreign-owned.
http://jlne.ws/K3jk84

Europe

Shale Gas Explorer Says U.K. Production May Start in 2014
Bloomberg
Cuadrilla Resources Ltd., a U.K. shale-gas explorer that suspended drilling in northwest England after causing minor earthquakes, expects to resume work this year and said gas production may start in 2014.
http://jlne.ws/KqQVZa

Iberdrola $1.3 Billion First-Quarter Profit Meets Estimates
Bloomberg
Iberdrola SA (IBE), Spain’s biggest utility, reported first-quarter net income of 1 billion euros ($1.3 billion), matching analysts’ estimates.
http://jlne.ws/LtSJQF 

CEZ launches 5MW solar park in Bulgaria
Reuters
Czech power utility CEZ opened a 5.0 megawatt solar energy park in northern Bulgaria, its first investment in renewable energy in the Balkan country, the company said on Thursday.
http://jlne.ws/JkFxv7

Investors call for funding details as UK announces green bank legislation
Environmental Finance
The UK government is to introduce legislation in the coming year to establish its long-planned Green Investment Bank (GIB), but investors and environmentalists have called for clarity over how it will be funded.
http://jlne.ws/JDTx6D

Asia

Hastings Wins $2.3 Billion Lease for Sydney Desalination Plant
Bloomberg
Hastings Funds Management Pty and Ontario Teachers’ Pension Plan won the right to lease the Sydney Desalination Plant from Australia’s New South Wales state for A$2.3 billion ($2.3 billion).The 50-year lease includes the plant, the pipeline, the site and a 50-year supply agreement with Sydney Water, the state government said today in a statement. The funds will be used to repay debt while A$300 million will be invested in the state’s infrastructure fund.
http://jlne.ws/JkEjjF
**repeats in Canada

Former Labor minister slams Gillard’s green building move
The Age
A FORMER state Labor minister has launched a blistering attack on the Gillard government’s green credentials, accusing it of ”breaking its key election promise” by scrapping $1 billion in green building tax breaks.
http://jlne.ws/M27ywJ

Watchdog warns of carbon tax cons
ABC
The Australian Competition and Consumer Commission (ACCC) is warning customers to be wary of businesses claiming excessive price rises due to the carbon tax.
http://jlne.ws/KU88aj

Africa/Middle East

Saudi Arabia Plans $109 Billion Boost for Solar Power
Bloomberg
Saudi Arabia is seeking investors for a $109 billion plan to create a solar industry that generates a third of the nation’s electricity by 2032, according to officials at the agency developing the plan.
http://jlne.ws/JFjRuF

Latin America

Brazil’s $2 Billion Cane Revival Plan Fails: Commodities
Bloomberg
Brazil’s 4 billion-real ($2.1 billion) drive to revive sugar-cane production has faltered as government bureaucracy and a curb on foreign loans choked credit needed to finance planting.
http://jlne.ws/K31guI
**repeats in Leads

Argentina slows climate action amid energy supply crisis
Reuters
While its Latin American neighbors move forward with national climate laws, Argentina is backsliding on actions to tackle its greenhouse gas emissions as the country struggles to meet energy demand from a fast-growing middle class.
http://jlne.ws/IXa9qN
**repeats in Leads

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