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”

Lead Stories

UN Carbon Plan Won’t Reverse 99% Price Decline, New Energy Says
Bloomberg
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.
http://jlne.ws/19GpgO8

Carbon copy
The Economist
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.
http://jlne.ws/1db7Hbk

China’s Guangdong province to debut carbon market with highest price
Bloomberg
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.
http://jlne.ws/1kFtD0V

Guangdong may withhold free permits in China’s 4th emissions scheme: sources
Reuters
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.
http://jlne.ws/19Ft2an

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.
http://jlne.ws/1bClatB

China approves new coal projects despite environmental concerns
Reuters
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.
http://jlne.ws/19GngFI

North American Shale to Exceed Most OPEC Nations’ Output
Bloomberg
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.
http://jlne.ws/1bKpfwM

Wetlands Carbon Credits Could Swim Into California Market
Ecosystem Marketplace
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.
http://jlne.ws/1c0Of4A

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.
http://jlne.ws/1cFFzz4

Events

Climate Leadership Conference
Association of Climate Change Officers
February 24-26, 2014
San Diego, CA
climateleadershipconference.org/

Navigating the American Carbon World (NACW) 2014
March 26-28, 2014
San Francisco, California
www.nacw2014.org

Carbon

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.
http://jlne.ws/1fppqhr

ICIS Launches New, Improved EU ETS Portal
Press Release
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.
http://jlne.ws/19lRAcb

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.
http://jlne.ws/1db82uF

Natural Gas/Coal/Alternative Fuels

As U.S. gov’t cuts back on biofuel, some rue ‘collateral damage’
Reuters
Ben Wootton was just getting ready to bring his company out of bankruptcy last month when word from Washington stopped him in his tracks.
http://jlne.ws/19lPede

Japan’s Inpex to make Singapore a hub for trading oil, LNG -sources
Reuters
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.
http://jlne.ws/19GnBIr

Power

Ireland selects Centrica consortium for 1.1 bln euro energy deal
Reuters
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.
http://jlne.ws/IJ9afU

E.ON Climate & Renewables closes financing for Panther Creek Wind Farm I&II, LLC
Press Release
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).
http://jlne.ws/1guyFAf

Reports

Use of internal carbon price by companies as incentive and strategic planning tool (Posted December 11, 2013)
CDP
http://jlne.ws/1dspD1J

OECD: Effective carbon prices (November 4, 2013)
http://jlne.ws/176gahP

Global 500 Climate Change Report 2013 (Posted September 12, 2013)
CDP
http://bit.ly/16mBo8p

The Future of China’s Power Sector (posted August 27, 2013)
Bloomberg New Energy Finance
http://bit.ly/14Bk1k2

Sub-national involvement in NAMA development (posted August 7, 2013)
Ecofys’ International Climate Policies Unit
http://bit.ly/19LKChs

U.S. Energy Sector Vulnerabilities to Climate Change and Extreme Weather (Posted July 14, 2013)
U.S. Dept. of Energy
http://bit.ly/12z1YK5

Turn down the heat: climate extremes, regional impacts, and the case for resilience (Posted June 19, 2013)
World Bank
http://bit.ly/14KrLza

Four energy policies can keep the 2 Degree C climate goal alive (Posted June 10, 2013)
IEA
http://bit.ly/12Bpk41

Maneuvering the Mosaic: State of the Voluntary Carbon Markets 2013 (Posted June 10, 2013)
Ecosystem Marketplace
http://bit.ly/12Cyi0X

View all reports >

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