China, the latest carbon market participant, features in this edition’s Leads section. Bloomberg reports China’s Guangdong province to debut carbon market with highest price. Reuters cites unnamed sources suggesting Guangdong may withhold free permits in China’s 4th emissions scheme. According to the article, China’s Guangdong province has warned emitters that unless they bid for carbon permits in government auctions at a regulated minimum price, they will not receive any free permits under the nation’s fourth emissions trading scheme. Meanwhile, China approves new coal projects despite environmental concerns. And, The Economist, in its print edition and a rerun online, weighs in with Carbon Copy: Some firms are preparing for a carbon price that would make a big difference.
Quote of the Day:
“Voluntary cancellation of credits is all well and good but it is highly unlikely to make a dent in the oversupply of UN offsets. COP delegates seem to agree that the CDM can’t be allowed to die, but they can’t decide on how it could be saved.”
–Richard Chatterton, an analyst at New Energy Finance in London, in Bloomberg’s “UN Carbon Plan Won’t Reverse 99% Price Decline, New Energy Says”
UN Carbon Plan Won’t Reverse 99% Price Decline, New Energy Says
Support for voluntary retirement of United Nations carbon credits at last month’s global climate talks is unlikely to dent a surplus that drove prices to record lows, according to Bloomberg New Energy Finance.
The markets for CO2 have had about as good a year as Obamacare. Europe’s emissions-trading system (ETS), the world’s largest carbon market, collapsed in April. Australia’s new government is killing off that country’s fledgling market. Yet companies are blithe. “Internal carbon prices”, the price of a tonne of CO2 used for planning purposes within firms, are becoming an increasingly common business tool. Perhaps firms know something that markets and politicians do not.
China’s Guangdong province to debut carbon market with highest price
China’s southern province of Guangdong will start auctioning 3 million metric tons of carbon permits on Dec. 16 with the highest debut price in the nation.
Guangdong may withhold free permits in China’s 4th emissions scheme: sources
China’s Guangdong province has warned emitters that unless they bid for carbon permits in government auctions at a regulated minimum price, they will not receive any free permits under the nation’s fourth emissions trading scheme, sources said.
Carbon trading sees a surge in China
China Economic Net
Since June, Chinese mega-cities of Shenzhen, Shanghai, and Beijing have in succession launched carbon emissions trading schemes, and carbon trading enter the markets of Tianjin and other cities in Guangdong by the end of the year.
China approves new coal projects despite environmental concerns
China, the world top energy user, has given the go-ahead to build six new coal mines together with a massive thermal power plant in its northwest, despite warnings about local water shortages as well as the growing risk of pollution.
North American Shale to Exceed Most OPEC Nations’ Output
Oil production from North American shale fields will outpace every member of OPEC except Saudi Arabia within two years, according to Exxon Mobil Corp. (XOM), the world’s biggest energy company by market value. Globally, crude output from shale and similar rock formations that require intensive drilling techniques will increase 11-fold by the end of 2040, led by explorers in the U.S., Canada and Russia, Exxon said today in its annual long-term forecast for global energy.
Wetlands Carbon Credits Could Swim Into California Market
Carbon finance could soon play a critical role in the restoration of California’s wetlands, with a coalition of stakeholders developing a methodology that would allow wetlands restoration projects in the state to generate credits for both the voluntary carbon market and California’s cap-and-trade program.
BitCarbon founder says Bitcoin’s carbon footprint a ‘clear and present danger’ to Earth
Upstart Business Journal
The UpTake: Environmental scientist and entrepreneur Guy Lane says that mining Bitcoin is having a huge impact on the environment and if we don’t find a more efficient way to create the currency the damage could soon be greater than that created by entire nations.
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
Groups Call for Repayment of Loan From Cap-and-Trade Auction Proceeds
Capital Public Radio
A coalition of environmental and business groups says California Governor Jerry Brown must repay a $500-million loan from the state’s cap-and-trade auction proceeds. It says the money should go to programs that reduce greenhouse gas emissions.
ICIS Launches New, Improved EU ETS Portal
ICIS is pleased to announce a range of improvements to its EU ETS Portal which is re-launched today (11 December). The newly enhanced portal provides comprehensive data on developments and price movements in the carbon market based on market fundamentals and behavioural patterns.
Carbon capture technology could be vital for climate targets
Green Building Elements
The future availability of carbon capture and storage (CCS) will be pivotal in reaching ambitious climate targets, according to a new comprehensive study of future energy technologies from IIASA, the Potsdam Institute for Climate Change, and the Stanford Energy Modeling Forum.
Natural Gas/Coal/Alternative Fuels
As U.S. gov’t cuts back on biofuel, some rue ‘collateral damage’
Ben Wootton was just getting ready to bring his company out of bankruptcy last month when word from Washington stopped him in his tracks.
Japan’s Inpex to make Singapore a hub for trading oil, LNG -sources
Japan’s top oil and gas explorer Inpex Corp has set up an office in Singapore to market its rising output of crude and condensate and trade liquefied natural gas (LNG), sources said.
Ireland selects Centrica consortium for 1.1 bln euro energy deal
Ireland selected a consortium led by Centrica as its preferred bidder for a 1.12 billion euro ($1.5 billion) acquisition of the retail unit of gas utility Bord Gais.
E.ON Climate & Renewables closes financing for Panther Creek Wind Farm I&II, LLC
E.ON Climate & Renewables North America (EC&R) announced today it has secured institutional equity financing for approximately $96.2 million and a commitment to fund further capital contributions from JPM Capital Corporation (J.P. Morgan) in exchange for a partial interest in EC&R’s Panther Creek I&II Wind Farm (Panther Creek).
Use of internal carbon price by companies as incentive and strategic planning tool (Posted December 11, 2013)
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)