In this edition, coverage of California’s latest carbon auction and Thomson Reuters Point Carbon analysis on that sale in the Carbon section. Elsewhere, EU Urges Energy Market as U.S. Shale Gas Widens Price Gap, Bloomberg reports.

Quote of the Day:

“This makes it all the more important to have a well-functioning carbon market and a predictable climate and energy policy framework post-2020 which is conducive to mobilizing private capital and to bringing down costs for energy investment.”

–Quote from EU statement covered in Bloomberg’s “EU Urges Energy Market as U.S. Shale Gas Widens Price Gap”

Lead Stories

Airlines May Delay Emissions Measure for Extra Year: ICAO
Bloomberg
Airline industry agreement on a standard measure of aircraft greenhouse-gas emissions may be delayed at least a year for more research, according to the International Civil Aviation Organization.
http://jlne.ws/14SPtI3

China to cap carbon emissions by 2016
RTCC.org
China will apply a cap on its greenhouse gas emissions by 2016, according to local media. The National Development and Reform Council (NDRC) has sent a proposal to the State Council for approval that would place a limit on the world’s biggest emitter. It is expected to be supportive of the plan.
The new regime in Beijing has backed climate and environmental action in the country calling for the development of an “ecological civilisation”, offering hope for the new UN climate deal. Tomas Wyns is director of the Center for Clean Air Policy-Europe (CCAP) and has recently consulted on the development of carbon markets in China. “The NDRC is growing a little impatient with how the regional schemes are progressing so they have started designing components of the national scheme such as emissions registries, measuring, reporting and verification,” he told RTCC.
http://jlne.ws/14T2Urs

California carbon permits sell for record high price
Climate Spectator
California’s largest greenhouse gas-emitting businesses paid $14 per metric tonne (1.1 tonnes) for the right to release carbon this year, a record-high price that narrowly beat market expectations, the state said on Tuesday.
http://jlne.ws/10RDvyc
**More coverage in Carbon section

Opinion: Global inaction shows that the climate sceptics have already won
FT.com
Humanity has decided to yawn and let the real and present dangers of climate change mount. That was the argument I made in last week’s column. Nothing in the responses to it undermined that conclusion. If anything, they reinforced it. Judged by the world’s inaction, climate sceptics have won. That makes their sense of grievance more remarkable. For the rest of us, the question that remains is whether anything can still be done and, if so, what?
http://jlne.ws/ZeyPEg

EU Urges Energy Market as U.S. Shale Gas Widens Price Gap
Bloomberg
European Union leaders urged faster integration of the bloc’s power and natural-gas markets to lower energy prices as the U.S. shale-gas revolution widens the EU’s cost gap with its largest trading partner.
http://jlne.ws/Z0VaD0

EU Panel Penalties to Hurt Solar Firms From China to U.K.
Bloomberg
The European Union is poised to penalize imports of Chinese solar products, a move that would increase Europe’s cost for most photovoltaic panels an estimated 45 percent overnight.
http://jlne.ws/10Ri8x8

Analysis: Oil saving win-win drives Saudi solar power boom
Reuters
A slide in solar power costs and a surge in oil prices over the last few years has made solar power a win-win strategy for Saudi Arabia: saving billions of dollars of crude for export while making electricity at less than half the cost.
http://jlne.ws/10RmXXc

Events

World Environmental & Water Resources Congress
Cincinnati, Ohio
May 19-23
http://jlne.ws/ZnwHsU

Tackling Climate Related Risks in Endowment & Pension Fund Portfolios
Association of Climate Change Officers
May 21, 2013 – 11:30am – 1:30pm EST – Free Webinar
http://jlne.ws/18YGwQX

Waste Conversion Congress East Coast
Boston, Massachusetts
June 17-18
http://jlne.ws/104mJZx

2013 Rising Seas Summit
Association of Climate Change Officers
Fort Lauderdale, Florida
June 18-20
http://jlne.ws/16i3JOk

New York Energy Week
New York, NY
June 24 -28
http://jlne.ws/ZB89bL

Carbon

Demand remains high at third California carbon auction
Thomson Reuters Point Carbon
Yesterday, California regulators announced the results of the third auction of California carbon allowances (CCAs) held on May 16.

Market participants bought all available vintage 2013 (V13) allowances for a price of $14.00/t, up three percent from the clearing price at the last auction, and in line with previous estimates from Thomson Reuters Point Carbon, the leading provider of market intelligence, news, analysis, forecasting and advisory services for the energy and environmental markets.“The clearing price at last week’s auction shows that market players are taking market fundamentals more seriously when generating bids at auction, compared to when allowances cleared at the price floor in the first auction last November”, commented Olga Chistyakova, senior analyst at Thomson Reuters Point Carbon.

Demand for V13 allowances remained strong, but fell slightly from the previous auction – the ratio of bids to available allowances dipped from 2.47 in February to 1.78 last week – but the picture remains positive. “The bullish subscription rate and price results display an absence of short term fears of various outstanding lawsuits against the cap-and-trade program. The results demonstrate that market players are confident the program will go forward, and that CARB would be able to defend it against the lawsuits”, said Chistyakova.

Demand for V16 allowances nearly doubled since the previous auction in February, “showing increased market confidence in the program’s longevity” according to Ashley Lawson, senior analyst at Thomson Reuters Point Carbon. Financial buyers showed much stronger interest in vintage 2016 allowances, buying 13 percent or just over 1 Mt of the future auction volume, compared to the previous auction where they did not buy any future allowances.
**No Link

Xenophon will save carbon trading
Climate Spectator
Recent Nielsen polling analysis suggests the Coalition might be able to gain control of the Senate in conjunction with two conservative leaning politicians – one being John Madigan and the other possibly a member of the Katter Australia Party. If this were to transpire the carbon price would be dead as a dodo.
http://jlne.ws/12XCWBN

Credits grow on future farms
Stock Journal
POLITICAL instability may have caused uncertainties but carbon farming is still set to play a big part in agricultural enterprises, according to Australian Carbon Traders managing director Ben Keough.
http://jlne.ws/10m3MFe

Facts On Ground Contradict BC Auditor General
Ecosystem Marketplace
The Kootenay Land District – or “the Kootenays”, as people there call it – is the heavily-forested southeastern part of British Columbia. More than 90% of it is government-owned, and on this land, logging is kept to a minimum.
http://jlne.ws/12O3kzb

Natural Gas/Coal

Fracking Role for Environmental Defense Fund Splits Green Groups
Bloomberg
A coalition of 67 grassroots groups criticized the Environmental Defense Fund for its ties to natural gas drillers in setting voluntary standards for hydraulic fracturing, a process opposed by many green advocates.
http://jlne.ws/10MN1hX

Italy’s Eni chips away at monolithic French gas market
Reuters
Every day about 500 French consumers sign up with Italian gas vendor Eni as it chips away at the near-total domination of the French gas market by GDF Suez.
http://jlne.ws/11d4fuO

Power

Energy transition in the Eifel: 1 MW Conergy solar plant supplies industrial estate
Conergy and partner Renew HGmbH expand their collaboration with citizens’ solar park
Press Release
Conergy and its long-time partner Renew HGmbH are supporting the local energy transition in the German Eifel with a solar power plant with a capacity of around 1 megawatt. The investor of the solar park is the local energy cooperative MEHR Energie eG. Its members, now numbering more than 100, have made it their aim to promote the supply of electricity from renewable energy sources in their region of Mosel-Eifel-Hunsrück, and they are now laying the foundations with this first major solar project in Ulmen. On an area of some 6 acres, equivalent to three soccer fields, the citizens’ solar park (Bürgersolarpark) will be generating around 845,000 kilowatt hours of clean electricity every year. This is sufficient energy for supplying around 240 households and therefore nearly a quarter of Ulmen’s residents.
**No Link

Brazil Plans to Auction 6,900 Megawatts of Wind-Farm Power Lines
Bloomberg
Brazil will auction by December contracts to build power lines connecting as much as 6,900 megawatts of planned wind farms in an effort to ensure the turbines will be able to send electricity to the grid once they’re installed.
http://jlne.ws/11ZQIbF

Polish renewables: Investors await legislation details to see which way the wind blows
FT.com
Growth in Poland’s booming wind energy industry is expected to slow this year, as developers hold off on investment decisions because of uncertainty over a proposed green law.
http://jlne.ws/12Xn2aN

CleanTech

Kroger to power distribution center with spoiled food
GreenBiz.com
Kroger has come up with a solution that will put a dent in the food waste generated by the supermarket chain — it will turn it into biogas energy that powers a distribution center.
http://jlne.ws/10Re6F3

Water

U.S. Grants $21 Million for Water-Saving Projects
Bloomberg
The U.S. awarded $20.8 million in grants for projects in 11 states to reduce water use, including new pipe systems in Northern California and rebates to Las Vegas homeowners who give up their grass lawns.
http://jlne.ws/12NOSrd

Reports

Extreme Weather and Climate Change in the American Mind April 2013 (Posted May 1, 2013)
Yale Project on Climate Change
http://jlne.ws/ZWPD1Z

Clearing the Air: Reducing Upstream Greenhouse Gas Emissions from U.S. Natural Gas Systems (Posted April 8, 2013)
World Resources Institute
http://jlne.ws/10M9Um3

The State of Green Business 2013 (Posted February 12, 2013)
GreenBiz.com
http://jlne.ws/12K3WYL

Can the US Get There from Here? (Posted February 6, 2013)
WRI
http://jlne.ws/X5PgyQ

The Billion Euro Aviation Bonanza – Aviation’s Participation in the EU ETS (Posted January 22, 2013)
http://jlne.ws/WHQez7

View all reports >

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