In this edition, exchange and market news takes top billing in our Leads section. Beijing Starts China’s Third Carbon Exchange With First Trades, reports Bloomberg. It’s the third of seven carbon exchanges planned in China and Beijing’s first trades fetched higher prices than the launch in Shenzhen and Shanghai. On the other side of the globe, Mexico launches its first carbon exchange last week, a voluntary initiative that allows polluters to offset their emissions with tradeable certificates in the electronic platform known as MEXICO2, says Reuters. In Germany, the European Energy Exchange (EEX) plans to push further into emerging Europe as the German-based bourse looks to introduce new products and tap new markets. Meanwhile, Climate Munial says European Union carbon permits may advance in the next five months as 37 nations in the Kyoto Protocol consider tightening emission limits before 2020. Find this coverage, and more, below.
Quote of the Day:
“With renewables it is harder for traders to predict what will happen. Trading will never be the same and we are seeing a good chance for other opportunities [beyond long-term power contracts].”
–EEX COO Steffen Koehler said on the sidelines of an energy conference in Berlin, in Reuters’ “Germany’s EEX exchange sees scope to push into new markets”
Beijing Starts China’s Third Carbon Exchange With First Trades
Beijing opened the third of seven carbon exchanges planned in China, with first trades in the capital fetching higher prices than debuts in Shenzhen and Shanghai.
**more coverage in Carbon section
Mexico launches its first carbon exchange
Mexico’s stock exchange launched its first platform to trade carbon credits on Tuesday, a voluntary initiative that allows polluters to offset their emissions with tradeable certificates. The new platform, called MEXICO2, provides an electronic forum for certificates conferring the right to emit one tonne of carbon dioxide, thereby attaching a cost to pollution.
EU Carbon May Advance as EU Nations Consider Tightening Limits
European Union carbon permits may advance in the next five months as 37 nations in the Kyoto Protocol consider tightening emission limits before 2020, according to Climate Mundial Ltd. in London.
Germany’s EEX exchange sees scope to push into new markets
The European Energy Exchange plans to push further into emerging Europe as the German-based bourse looks to introduce new products and tap new markets, the exchange’s chief operating officer said.
**RKB — The EEX has seen record volumes of forward contracts traded on its platform this year, increasing its share of the German power market from 14 percent in mid-2012 to 25 percent as of September.
U.N. carbon offset market seen ‘in a coma’ for years after Warsaw
The U.N.’s carbon offset market is likely to remain “in a coma” for years, project developers said, after countries failed to agree on measures to encourage demand at last week’s climate talks in Warsaw.
Europe’s energy price headache becoming a migraine – IEA
Europe’s energy prices will stay up to three times higher than in the United States for the next 20 years, unless the region can develop domestic supplies and increase efficiency, the International Energy Agency’s chief economist said.
Sealing Kyoto, Raising EU Climate Ambition Complex, Poland Says
Pawel Mikusek, spokesman on climate protection for the Polish government, comments on the prospects for tighter emission restrictions in the European Union.
EU Power Network Integration Seen Delayed Again: Energy Markets
The biggest changes to Europe’s energy market since it was liberalized in the 1990s probably will miss a third deadline, traders and analysts said as the second target date passed.
Britain’s PM hits back at opposition with energy bill promise
British Prime Minister David Cameron promised on Sunday to cut rising energy costs, seeking to regain the initiative from an opposition Labour Party that has pledged to freeze bills if it wins the next election in 2015.
Sustainable banking starts with determining human needs
“Sustainable banks start by determining basic human needs to be met and then deliver financial services which meet those needs,” said David Korslund, senior advisor to the Global Alliance for Banking on Values (GABV). “In contrast”, he suggests, “most banks start by asking: ‘How can we make as much money as possible?'”
Agriculture, energy ministers need voice in climate decisions – experts
Thomson Reuters Foundation
For the past 20 years, negotiations on how to combat and adapt to climate change have been led by environmental ministers. But the decisions made affect a country’s agriculture, energy and finance systems as well.
Commentary: To cut more emissions, raise less revenue
Carbon (emissions) taxes have proved unpalatable worldwide, compared to (carbon) emissions trading schemes.
But taxes give stable carbon prices while prices in emissions trading schemes yo-yo, plunge, and sometimes do little to cut emissions. In a Nature Climate Change paperout this week, Frank Jotzo and I propose a more palatable tax: charge it at a sizeable rate, but only on emissions above fixed thresholds. Emissions would be lowered, but less revenue raised.
**RKB — The Nature Climate Change paper follows.
Carbon tax needs thresholds to reach its full potential
Nature Climate Change
The political opportunities for implementing a carbon tax high enough to induce large emission cuts will be better if at first the tax is charged on the difference between emissions and fixed thresholds, rather than on all emissions as is now practised.
CarbonExpo Australia 2013
December 2-4, 2013
Climate Leadership Conference
Association of Climate Change Officers
February 24-26, 2014
San Diego, CA
Navigating the American Carbon World (NACW) 2014
March 26-28, 2014
San Francisco, California
PetroChina, Longyuan strike first Chinese carbon offset deal
State-owned PetroChina bought 10,000 Chinese carbon offsets from wind power producer Longyuan on Friday for 16 yuan ($2.62) each, six times higher than international prices, in the first publicly known trade in the country’s fledgling carbon market.
How China’s carbon markets work
The Sydney Morning Herald
China’s most populous province, Guangdong, will launch a CO2 emissions trading scheme in mid-December, hot on the heels of Shanghai and Beijing this week. A market in Shenzhen was launched in June.
EU carbon soars on German unity
EU carbon prices climbed to their highest in almost two weeks overnight as news that Germany’s two main political parties had reached a deal on forming a government increased the chance that a measure to cut permit supply would pass, traders said. The December 2013 EU Allowance climbed 2 per cent or 9 cents to 4.58 euros, the highest since November 15.
Natural Gas/Coal/Alternative Fuels
Governments seek to raise the EU cap on food-based biofuels
European Union governments are trying to raise a planned limit on the use of transport fuels made from food crops, despite warnings that the fuels can harm the environment and push up food prices.
Brazil gas auctions stoke concern
Brazil has awarded 72 onshore natural gas and shale gas exploration blocks in a controversial auction marked by complaints from environmentalists about a lack of regulation.
Resources investment falling: BREE
The value of investment in Australia’s resources industry is falling as major developments are completed and companies scale back spending on new projects, according to the government’s commodities forecaster.
Fukushima Floating Offshore Wind Project Seeks to Halve Cost
Operators of a wind farm in waters off Fukushima prefecture, site of the March 2011 nuclear disaster, aim to cut the cost of setting up the floating turbines by half as they push to commercialize the technology.
U.K.’s Labour Vows to Overhaul Energy Market in Push for Votes
The U.K. opposition Labour Party vowed to break up energy companies, replace the regulator and overhaul charges in a program seeking to intensify government discomfort over inflation-busting gains in voters’ energy bills.
U.K.’s Davey Sees ‘Major’ Offshore Wind Investments Soon
The U.K. will soon see “major investments” in offshore wind projects, Energy and Climate Change Secretary Ed Davey said, signaling the country’s push to expand low-carbon power isn’t derailing.
EDF and GDF compete in French offshore wind tender
EDF Energies Nouvelles said on Friday it had submitted two bids in a second French tender for offshore wind power capacity as the country seeks to become a leading player in the sector and cut its reliance on nuclear energy.
EDF Competes With GDF Suez to Win French Wind-Power Projects
Electricite de France SA and GDF Suez SA (GSZ), the country’s biggest gas and power utilities, are vying to develop two 500-megawatt wind projects off northwestern France in a push to expand clean-energy output.
Czech regulator sees avg household electricity price down 10.9 pct in 2014
The Czech energy regulator expects the average household electricity rate to fall by 10.9 percent in 2014 due to weaker wholesale prices and consumers needing to pay less for renewable power support, it said on Friday.
IC Power wins $1 bln power plant deal in Peru
IC Power has won a government tender worth $1 billion over 20 years to build a power plant in Peru that will provide reserves for the national power grid, IC Power’s parent company Israel Corp said on Sunday.
Raise water spending, get $1.0 trillion benefits – U.N.
Sharply higher spending on water supplies, twinned with a crackdown on corruption, would yield more than a trillion dollars a year in economic, health and environmental benefits, a U.N.-backed study said on Wednesday.
San Miguel to Join Bidding for 24.4 Billion-Peso Water Project
San Miguel Corp., the biggest Philippine company, will bid for a 24.4 billion-peso ($558 million) bulk water-supply project in Bulacan province, north of the capital.
Monterrey, Mexico Uses Fund Mechanism For Clean Water and Storm Protection
During the Atlantic hurricane season of 1988, Hurricane Gilbert tore through the Caribbean and the Gulf of Mexico, making landfall first on the Yucatán Peninsulaand then moving into mainland Mexico – vacillating all the while between Category 3 and 5 on the Saffir-Simpson Hurricane Wind Scale.
Solar Data Trove Cutting Power Use in Threat to Utilities
Andrew Greenfield checks his home’s solar power output against consumption through his computer and mobile phone dozens of times each day. The International Business Machines Corp. storage engineer enjoys trying to match the power he consumes to heat his pool in Arizona with what he produces during the day from the panels on his roof.
OECD: Effective carbon prices (November 4, 2013)
Global 500 Climate Change Report 2013 (Posted September 12, 2013)
The Future of China’s Power Sector (posted August 27, 2013)
Bloomberg New Energy Finance
Sub-national involvement in NAMA development (posted August 7, 2013)
Ecofys’ International Climate Policies Unit
U.S. Energy Sector Vulnerabilities to Climate Change and Extreme Weather (Posted July 14, 2013)
U.S. Dept. of Energy
Turn down the heat: climate extremes, regional impacts, and the case for resilience (Posted June 19, 2013)
Four energy policies can keep the 2 Degree C climate goal alive (Posted June 10, 2013)
Maneuvering the Mosaic: State of the Voluntary Carbon Markets 2013 (Posted June 10, 2013)