26 July 2017
The Government has announced a package of decisions that will improve the operation of the New Zealand Emissions Trading Scheme in the 2020s. This email provides an overview of the decisions and where to find further information.
MPI recently emailed their latest bulletin
This edition has information on:
- End of the Mandatory Emissions Return period
- Offsetting pre-1990 forest land
- Amended forestry sector Regulations
- Emissions Trading Scheme review update
- Ratification to the Paris Agreement
Carbon Match recently reported:
Spot NZUs closed the month of October at $18.50 on reasonable volume, then sat still yesterday, bid at $18.45 and offered at $18.55.
Global climate change talks commence formally in Marrakesh next Monday, just a day before the US Presidential election.
Overnight, in an uncharacteristic move, the Chinese have openly criticised Donald Trump’s signalled plan to back out of the Paris agreement, with Reuters reporting China’s top climate negotiator as saying that “”If they resist this trend, I don’t think they’ll win the support of their people, and their country’s economic and social progress will also be affected.”
China and the US co-operate strongly on climate change, with the two countries choosing to jointly table their Paris ratification documents earlier this year and sharing technical details on their respective strategies for mid-century, low-greenhouse gas emission development.
But candidate Trump once tweeted that Climate Change was a concept invented by the Chinese to harm US industry.
It’s not all bad – indeed Trump’s threats might well have contributed to the unprecedented momentum that has underpinned the recent entry into the force of the Paris Agreement. And that Agreement contains provisions which would impose a four year process on any country seeking to withdraw from the Agreement.
Carbon Match is reporting strong interest in NZU above $12NZD http://www.carbonmatch.co.nz
Last week ended on a four year high. Carbon Match reported:
From bid levels that have sat around the $11.80 level most of the day we have seen buyers reach up again and pay better than the ask on opening, with volume being snapped up to $12.06.
This is a market with a lot of buy-side interest below the surface, but likewise real caution among those on the sell side as would-be sellers hope for a continued rise.
As we wrote earlier in the week, it’s important to temper your expectations with a dispassionate view of the risks, not least of which is that until an announcement has been seen about the 2 for 1, the demand profile of this market remains unknown.
It’s exciting to see this level of prices once again after more than 4 years, but uncertainty is running high and now that today’s willing volume has been cleaned out we are bid $11.85 and offered $12.50.
We met Dr Trexler back in 1996 and he continues to offer the best insight into climate change knowledge on the Planet. Climate Web is his latest venture into spreading the word on climate change.We are sharing his latest update:
Climate Web was featured last week on the Yale Climate Connections podcast. It’s only 90 seconds but it’s a great promotion for the Climate Web.
We’ve continued to make rapid progress with the Climate Web, and it’s little exaggeration to say that you can explore and answer almost ANY question having to do with climate change (and through different lenses). We’ve also come up with an exciting way to give people access to it without having to dive head-first into the whole thing, which we know can be disconcerting. There’s plenty of new material to explore at our website, but to give you just a quick flavor here are links to a few specific Climate Spotlight pages that take very different approaches to organizing and communicating information you may be interested in:
These are just 3 of some 20 Spotlights accessible through http://climatographer.com/climate-web/ but hopefully they give you a feel for the versatility the Climate Web now has. We’ve also done a lot more to provide help materials and videos, and even a Hands-On Training Brain within the Climate Web that people can complete in just a couple of minutes!
If you have a chance to check out these materials I’d love to get your feedback! The Climate Web is more like a Climate Knowledge Legos set than a set-in-stone knowledge management system, and the whole point is to be able to customize it for specific audiences and uses. So if you have one, let us know!
CP Daily is Carbon Pulse’s daily newsletter. It’s a free daily summary of their top news plus bite-sized updates from around the world. Our friends at CP have asked us to post this on our blog and offer our readers the opportunity to sign up.
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OUR TOP NEWS:
Using carbon credits would not help global efforts to cut greenhouse gases, according to Pope Francis’s encyclical on climate change released by the Vatican on Thursday.
The EU ETS emissions cap could be reduced by as much as 304 million tonnes in 2021 if some richer member states opt to take advantage of a provision to help them meet climate goals in other non-ETS sectors, according to a report released on Thursday.
The fate of an estimated 700 million unallocated allowances left over from the current phase of the EU ETS will have a negligible effect on post-2020 EUA prices, analysts said on Thursday.
European carbon prices trickled lower on Thursday in very light volumes that squeezed the benchmark contract’s intraday trading range, as concern mounted over evaporating activity in the market.
A last-minute rush to cover short positions ahead of Saturday’s compliance deadline has boosted volumes in Guangdong’s carbon market, with nearly a million allowances changing hands over the past two days.
Utilities RWE, Vattenfall and E.ON held on to their respective rankings as Europe’s top GHG emitters in 2014 despite all three cutting their output, according to a report published Thursday.
The European Commission is not currently planning to propose putting road transport in the EU ETS, and even if it eventually did the measure should not be to replace existing regulations for the sector, EU climate chief Miguel Arias Canete said on Thursday.
Bite-sized updates from around the world:
May 2015 was the hottest on record, say US govt scientists – Record temperatures and impending El Nino set year on course to be warmest since 1880. (RTCC)
Climate aid key to Paris deal, says Amber Rudd – UK’s energy secretary and lead negotiator says financial package for developing countries absolutely essential for global agreement on carbon emissions. (Guardian)
Carbon Glut Limits German Options to Meet Emissions Target – A glut of European Union carbon-emission permits is limiting Germany’s options to meet its 2020 greenhouse gas-reduction target, according to the nation’s environment ministry. (Bloomberg)
Poland Seeks to Balance Pope’s Climate Call With Energy Security – Poland will seek to reconcile its use of coal as a guarantee of energy security with Pope Francis’s warning about the risk of fossil fuels. (Bloomberg)
EPA’s Clean Power Plan a ‘cheap shot’ at Pennsylvania coal – In recent testimony before the Pennsylvania House and Senate Coal Caucuses, Pennsylvania Coal Alliance CEO John Pippy said the U.S. Environmental Protection Agency’s proposed “Clean Power Plan” will be “the cheap shot that cripples the industry.” (Watchdog.org)
Obama admin set to release mandatory carbon cuts for heavy-duty vehicles – Four years ago, in August 2011, U.S. EPA and the National Highway Traffic Safety Administration announced the first federal program to cut carbon emissions from the nation’s biggest vehicles by raising the fuel standards those heavy-duty fleets must meet. (ClimateWire)
From 1 June 2015 CERs, ERUs and RMUs (in fact most Kyoto Protocol units) will no longer be eligible for surrender to meet obligations in the Emissions Trading Scheme (ETS). For more details click here
If you are a forest owner trying to use ERUs to extinguish a qualifying liability, simply purchasing units does not complete the process. Units cna only be surrendered by logging into the emissions unit register, selecting the relevant surrender notification and surrendering the requisite number of then eligible units to the Crown account before the end of May 2015.
Thanks to Carbon Match http://www.carbonmatch.co.nz for parts of this content