Thomson Reuters Point Carbon is out with its assessment of global carbon markets, finding a total 38.4 billion euro worth of allowances and credits exchanged hands during 2013, a 38% decrease from the 62bn euro the previous year, in a continuation of the decline that started after the market peaked at 96bn euro in 2011. Since then, the key European reference price of emissions has fallen from 18 to 5 euro per tonne of carbon dioxide. As for volume, it dropped from 10.7 billion to 9.2 billion emission units – the first drop in traded volumes since 2010. Coverage of the report, and more, below.

Quote of the Day:

“Without ambitious climate targets there is no need for deep emission reductions and carbon prices will remain at low levels.”

–Point Carbon analyst Anders Nordeng in Reuters’ Value of global CO2 markets drops 38 pct in 2013”

Lead Stories

Value of global CO2 markets drops 38 pct in 2013
The value of global carbon markets dropped 38 percent to 38.4 billion euros ($52.9 billion) in 2013, as prices slid in the main EU and U.N. schemes and trade limited in new programmes, analysts at Thomson Reuters Point Carbon said on Thursday.
http://bit.ly/190BRRn
**RKB – Highlights from the Point Carbon press release:
–The decline is most dramatic for the UN-led ‘flexible mechanisms’ that were created to incentivize emission abatement investments such as renewable energy in developing countries. Until recently, these markets – known as CDM and JI – accounted for roughly 20% of the volume and 10% of the value of the world’s carbon markets. After prices collapsed from 2012 to 2013, they now represent only 7% of volume and 1% of value.
–The only segment to have seen a growth in volume and value last year was the North American market, driven by trade in California, and by the resurrection of emission trading in the North-Eastern states.
–Another source of growth is the new pilot emission trading schemes in China, which launched the first of seven regional trading schemes in June, five of which are now operational. Although the traded volumes are still modest, the sheer size of some of the covered provinces and cities (Guangdong, Beijing, Shanghai), points to a great potential.

The Year in Forest Carbon: Supply-Side Success, Demand-Side Dilemmas
Ecosystem Marketplace
2013 saw global agreement on rules for implementing REDD projects under the UNFCCC and an unprecedented expansion of projects that harness private funding for forest conservation – but many of those private initiatives could backslide if buyers don’t step up to purchase credits, and fast. Here’s a look at our coverage from the past year.
http://bit.ly/19NoH5y

The world watches as California focuses on cap and trade
Gannett
It was an important year for California’s ambitious efforts to limit greenhouse gases, one in which the buying and trading of pollution credits brought in big money but left lingering questions about how the money should be spent.
http://bit.ly/19OPwtg

Businesses urge Kazakhstan to halt Asia’s first carbon trading scheme
Thomson Reuters Foundation
While Kazakhstan’s environment minister, Nurlan Kapparov, was promoting his country’s efforts to halt global warming at November’s U.N. climate talks in Warsaw, back home big business was piling pressure on the government to put a key green initiative on hold.
http://bit.ly/JxpZeo

Worries in the Path of China’s Air
The New York Times
When China’s skies darken with pollution, it is not the only nation to suffer. Soot, ozone-forming compounds and other pollutants from China can blow east to Korea and Japan. Ultimately, some even reach the west coast of the United States, scientists say.
http://bit.ly/JMLQ0U

China to Assign Some Credit Ratings on Environmental Protection
Bloomberg
China, the world’s biggest emitter of greenhouse gases, will assign credit ratings to companies in industries with heavy pollution or overcapacity based on their efforts to protect the environment.
http://bit.ly/JwDR8H

Bunge ethanol plant sale reflects doubt over EPA mandate
Reuters
Bunge North America Inc, a division of Bunge Ltd, has sold its stake in a Mississippi ethanol plant in what is likely to be the first a spate of industry deals amid uncertainty over biofuel use in the United States, analysts said on Thursday.
http://bit.ly/1cpMFDH

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

GLOBE 2014
13th Biennial Conference and Trade Fair on Business and Sustainability
March 26-28, 2014
Vancouver, British Columbia
http://jlne.ws/1cAETLI

Power

U.K. Wind Farms Generated Record Electricity in December
Bloomberg
U.K. wind farms generated a record amount of electricity in December as well as hitting weekly and daily highs after installed capacity rose 45 percent in a year, a lobby group said.
http://bit.ly/19DLEh3

U.S. Solar Panel Maker Seeks to Close Loophole in Duties on Chinese Products
The New York Times
A major maker of solar panels opened another chapter in a long-simmering trade dispute on Tuesday, asking the Commerce Department to impose new duties on imported modules made of certain components from China or Taiwan.
http://bit.ly/1l5uj2M

Water

Water Bonds Shrivel as California Sees Driest Year
Bloomberg
The driest year on record for Los Angeles and San Francisco is threatening water supplies to the world’s most productive agricultural region and almost doubling borrowing costs on some bonds issued by California water agencies.
http://bit.ly/KmAj91

India’s $960 Million Drinking Water Project Gets World Bank Aid
Bloomberg
The World Bank is helping offset almost half of the costs of a $960 million drinking-water project to bring piped supplies to rural residents of four low-income states in India, the government said today.
http://bit.ly/1ds3fr8

Chile Debates Bill Making Mines Use Desalinated Seawater
Bloomberg
Chilean lawmakers have presented a bill that would force mining companies including Anglo American Plc and BHP Billiton Plc to run all of their copper mines in Chile using desalinated water from the Pacific Ocean.
http://bit.ly/1bCGpIv

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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