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By Mathew Carr March 5, 2021 — LONDON: There was record volume of EU carbon options traded in February, said exchange operator ICE. There was a total volume of more than 412,000 options contracts, a record average of more than 20,500 per day.See link: https://ir.theice.com/press/news-details/2021/ICE-Announces-Update-on-Global-Environmental-Complex-as-the-ICE-Global-Carbon-Futures-Index-Hits-Record-High-and-EUA-Options-Reaches-Record-Volume/default.aspx The ICE Global Carbon Futures Index value (ICECRBN) reached a record on Feb. 12, with a weighted average price of $39.08/ton, the exchange said. EU allowances, which make up most of the index, closed that day above 40 euros for the first time, as policy makers in the region and beyond are seen tightening climateContinue reading “EU Carbon Options Had Record Volume in February as Price Hit All-Time High (1)”

–Hydrogen supply chain companies eg Siemens and Alstom: “like selling picks and shovels in the California gold rush”–Clever contracts for difference, emissions market seen bringing investment forward, needed to meet Paris-climate-deal goals–China and U.S. could jump on board, as Europe leads way ANALYSIS SUMMARY By Mathew Carr March 4, 2021 –LONDON: Hydrogen, including its green variety, will increasingly replace carbon as the dominant energy carrier on the planet, according to Morgan Stanley analysts. Cumulative investments in renewable hydrogen in Europe, which has the most developed policy to encourage H2, could be up to €180-470 billion by 2050, and in theContinue reading “New Gold Rush?: Hydrogen Seen Replacing Fossil Fuels as World’s Dominant Energy Carrier: Morgan Stanley”

–Push for carbon border adjustments seen in drive for climate justice, higher CO2 prices and steeper tax rates–Governments can also “nudge” change, not just force it–Post-Brexit British system can be model for the world By Mathew Carr March 2-3, 2021 — LONDON: British Prime Minister Boris Johnson and Chancellor Rishi Sunak have a chance to change U.K. and global history today; there’s only a small chance they’ll take it. Challenging the people (Conservative Party members) who put you in power takes courage. I’m not sure these gentlemen have enough bravery, but I hope I’m wrong. What the pandemic has clearlyContinue reading “Nudges, Tax and Trade: Boris Johnson, Rishi Sunak Can Set Their Legacy Today; There’s a Small Chance They’ll Do it (2)”

By Mathew Carr Feb. 26, 2021 — LONDON: ICE Futures Europe said it would start auctioning new U.K. emissions allowances on May 19. On the same day, it will begin offering futures contracts and two days later a prompt contract, UKA Daily Futures, subject to regulatory approval, ICE said in an e-mailed statement. The first of fortnightly auctions would include 6.05 million tons of allowances. Britain was forced out of the EU carbon market, the world’s biggest by traded volume, following its vote in the middle of 2016 to leave the union. Some U.K. generators have been using EU allowancesContinue reading “ICE to Begin U.K.’s New Carbon Market on May 19 (2)”

By Mathew Carr Feb. 26-27, 2021 — LONDON: A former climate negotiator for India, one of the huge developing countries least to blame for the climate crisis, looked on as the U.S. Energy Information Administration apparently missed Joe Biden’s plan to cut emissions to net zero by the middle of the century. See this chart from earlier this month, showing U.S. energy emissions doing very little over the next three decades: Are big-consuming western countries and China, which are most to blame for global warming, really serious about protecting the climate? asked 72-year old Surya Sethi, former climate negotiator forContinue reading “India Climate Negotiator Looks on With Dismay as U.S. Energy Data Provider Misses Biden’s Net-Zero Memo (1)”

By Mathew Carr Feb. 25, 2021 — LONDON: The mother of all market regulators says global markets are in a mess on sustainability. Investors wanting clear disclosure on the climate and natural-environment impact of the bonds and shares they buy are not being well served, the International Organization of Securities Commissions said yesterday. “Companies often report sustainability-related information selectively, referencing different frameworks,” the organization said in a statement on its website:https://www.iosco.org/news/pdf/IOSCONEWS594.pdf IOSCO said there was an “urgent need” for globally consistent, comparable and reliable sustainability disclosure standards. On the same day, the Division of Corporation Finance of the Securities ExchangeContinue reading “Markets Are Failing Investors on Sustainability: Mother of All Market Regulators”

By Mathew Carr Feb. 24, 2021: LONDON — As utilities with U.K. coal and natural gas generation switch to new British carbon allowances during the next few months, the value of those permits and the European Union ones are set to fluctuate wildly, according to traders. The U.K. carbon price seems likely to be higher than that in the EU following Brexit, based on current indications. The expected implementation of the post-Brexit U.K. market by June will be complicated by the country’s floor support. Adding the U.K. floor of 18 pounds a ton to the U.K’s upgraded auction reserve ofContinue reading “Five Years Later, Brexit’s Still Set to Roil Europe’s Carbon Market (1)”

By Mathew Carr Feb. 18, 2021 — LONDON: The problem with existing carbon markets is that they are tainted by complication. It’s hard to know if you are getting good value for money or even if you understand what the heck you’re buying. Market Stability Reserves (MSRs), Certified Emission Reductions (CERs), corresponding adjustments (CAs), additionality, carbon border adjustment mechanisms (CBAMs), Reducing Emissions from Deforestation and Forest Degradation (REDD), sustainable development goals (SDGs), Verified Carbon Standard (VCS) and one of my personal favorites: common but differentiated responsibilities and respective capabilities (CBDR-RCs). Here are eight pages of acronyms – don’t be shy:https://www.ipcc.ch/site/assets/uploads/sites/2/2019/05/SR15_AnnexII_Acronymes.pdfContinue reading “Artificial Intelligence Will Make Carbon Markets Work Better This Time — if it Truly is Intelligent”

–G7 outcome highlights chance of climate deal, multilateralism, new system of planet-friendly trade via G20 by June By Mathew Carr Feb. 18-20, 2021 — LONDON: OPINION: The world now needs carbon prices of about $100 a ton in 2030 to spur sufficient climate action to meet the 1.5C temperature increase goal in the Paris climate deal. That is about double the level targeted just a couple of years ago by the Obama administration. The higher price is required because global emissions are still very high, even though nations have become more ambitious, with many adopting mid-century net-zero targets. The requiredContinue reading “Ten Republican Senators Will be Convinced on Ambitious U.S. Climate Action as Global Trade Rules Rewritten (1)”

By Mathew Carr Feb. 15, 2021 — LONDON: Milder temperatures are set to curb demand for EU carbon allowances, even as interest from compliance buyers and investors apparently pushed prices to record levels last week. Still, there’s plenty of chilly weather around Europe the next two weeks, especially in the east. See this minimum-temperature loop from Weatheronline: https://www.weatheronline.co.uk/cgi-app/weathercharts?LANG=en&MAPS=vtn&CONT=euro&LAND=__&ZEIT=202102150229&LOOP=1 Peak gusts loop here: https://www.weatheronline.co.uk/cgi-app/weathercharts?LANG=en&MAPS=wsp&CONT=euro&LAND=__&ZEIT=202102150250&LOOP=1 Some context and price chart here: https://carrzee.org/2021/02/09/eu-carbon-price-needs-to-triple-because-climate-disclosure-governance-measures-havent-worked-aviva/ Plus more context for U.K. energy markets here: https://carrzee.org/2021/02/15/milder-temperatures-to-curb-bullish-eu-carbon-trajectory/

Utility EDF was paid more in 3 days than in all of Q3 by National Grid to balance the system, energy trader Hartree says in emailed market insight covering January. National Grid forced to buy power at £4,000/MWh, some 70 times greater than the average price paid over 2020 EPH achieved the highest average sales price for any day in the Balancing Mechanism of over £3,600/MWh A perfect storm of peak winter demand, low wind generation and delays to supplies from the continent saw record prices for UK power last month, Hartree Solutions says. European Union carbon permits have jumpedContinue reading “U.K. Utilities Get Huge 4,000 Quid/MWh Windfall as Low-Wind Winter Demand Means Fossil Fuels Win: Hartree (2)”

PRESS SUMMARY Feb. 10, 2021 — US Chamber of Commerce names Suzanne Clark as new CEO, replacing Thomas Donohue, who led the organisation for more than two decades, WSJ reported. Days before Mr. Biden was sworn into office, the Chamber took its strongest position yet in favor of climate-change legislation: WSJ Another fascinating two sentences: In 2019, the Chamber said Mr. Donahue would step down in 2022—an announcement that came moments after The Wall Street Journal published a story reporting that Mr. Donohue regularly used the Chamber’s corporate jet service to travel on business and personal trips, including a weeklongContinue reading “Key US Business Group Gets First Female Leader and Pro-Climate Outlook (1)”

By Mathew Carr Feb. 9-March 5, 2021 — LONDON: The UN Framework Convention on Climate Change is to resume talks on March 29-30 on measures that may allow countries to cut the cost of climate action via cooperation. It held talks last month on adaptation. Consultations are listed here:https://unfccc.int/process-and-meetings/bodies/supreme-bodies/conference-of-the-parties-cop/presidency-consultations-and-other-presidency-meetings/informal-consultations-by-the-cop-25-presidency-and-the-cop-26-incoming-presidency#eq-5 The negotiations are needed ahead of a planned climate meeting in November in Glasgow, which was delayed a year because of the global coronavirus pandemic. Cooperation rules on market cooperation and via non-market measures are negotiated under Article 6 of Paris. See this:https://unfccc.int/sites/default/files/resource/January%20consultations_co%20chairs%20summary%20by%20the%20Presidencies.pdf Here are some of the relevant sections ofContinue reading “United Nations to Resume Global Carbon Market Talks March 29-30 (1)”

By Mathew Carr Feb. 9-13, 2021 – LONDON: The European Union’s carbon price is seen needing to triple to force changes in corporate behavior because climate disclosure and governance measures haven’t worked quickly enough. The CO2 allowance price “needs to be three times where it is today, even though it’s at record levels,” said Steve Waygood, chief responsible investment officer at Aviva, the funds manager. Disclosing climate risks and requiring board members to focus on other stakeholders such as society have not protected the climate and nature adequately and they probably won’t do alone, he said. That’s why politicians needContinue reading “Carbon Hits Record 40 Euros; Needs to Surge as Climate Disclosure, Governance Measures Haven’t Worked: Aviva (3)”

— The climate transition is set to be better managed— Climate activist Greta Thunberg will be pleased By Mathew Carr OPINION, Feb. 9-13, 2021 — LONDON: Not before time, the right things are becoming desirable in the previously cut-throat world of financial markets. The push-pull for climate-friendly products has become so strong, pension funds are starting to ignore profits made from burning coal, crude oil or even natural gas. Instead of black gold, examples of emissions-cutting market innovation are gushing thick and fast. Green is the new black in the commodity world. A few days ago research and rating providerContinue reading “The Era of Climate Brinkmanship is Ending as Carbon-Free Cashflow Rises (2)”

By Mathew Carr Feb. 4, 2021 — LONDON: EU carbon allowances surged for a third day in a row, after the Times of London newspaper said putting a price on climate pollution “made sense” even though it was politically risky. The allowances rose above 38 euros a ton before falling back. See this chart from the IG website: Intraday here from ICE: Here are some reasons for carbon’s gain, by Alessandro Vitelli, a long-time market watcher and analyst:https://www.carbonreporter.com/post/may-you-live-in-interesting-times The Times wrote an editorial which included a headline that could be read in two ways “Costing the Earth”: https://www.thetimes.co.uk/article/the-times-view-on-carbon-taxes-costing-the-earth-wkbm92p8z: New taxesContinue reading “Carbon Allowances Spike to Record Above 38 Euros as Murdoch’s Times Newspaper Endorses Pollution Pricing (1)”

–Carbon neutral* deal won’t help buyers’ particulate-pollution, but will help the climate, assuming offsetting’s done well–Further details not immediately available By Mathew Carr Jan. 30-Feb. 5, 2021 –LONDON: The story of Occidental Petroleum’s delivery of carbon-neutral crude oil to India’s Reliance Industries has taken a twist or two. Oxy said Jan. 28 that under a “transaction,” Reliance would receive the shipment. Now, it’s up for sale, according to a person familiar with the situation. That India’s biggest listed company was taking the oil — produced in the U.S. Permian Basin — was surprising, because the energy transition is meant toContinue reading “TECH-LED OIL SHIFT: Historic First Net-Zero Crude Shipment Up For Sale: Person (2)”

By Mathew Carr Jan. 29-31, 2021 –LONDON: OPINION — Call me an optimist (plenty have), but the diplomatic foxtrot taking place across the globe right now seems like some sort of delicate-aggressive climate-trade negotiation. The U.S., China and the European Union know it’s time to cooperate aggressively on climate action and on the trade of goods. Doing so would tackle half the world’s heat-trapping gas and give us all an outside chance of keeping temperatures from rising 1.5C. As climate activist Greta Thunberg rightly keeps reminding us, it seems very unlikely. But take a ride in my green-hydrogen-fueled helicopter forContinue reading “The Stage is Set for A Single Deal to Tackle Half of the World’s Emissions. Actors? (5)”

By Mathew Carr NEWS SUMMARY Jan. 29, 2021 — LONDON: Special U.S. climate envoy John Kerry is on a roll. Not only is he invoking “humility” in his country’s newly invigorated climate fight, he’s calling out former President Donald Trump’s stance as “reckless.” Now, he’s gone even further. “There’s no room for BS anymore — from anyone in the debate,” he told Amanda Little (I think oyster-mushroom steaks are great, fame), in a story published by Bloomberg News. Call ME reckless, but I’m taking BS as bullshit, and I’m also taking it as a reference to Mr Trump (although there’sContinue reading “The U.S. Calls Out (Its Own?) Climate Bullshit”

–Taskforce comes up with voluntary-carbon-market blueprint–While far from ideal, net-zero companies from Google to Shell see a way forward and want its risk-management potential–RWE case shows how EU’s decent market helps polluters shift By Mathew Carr Jan. 28, 2021 — LONDON: Companies from Royal Dutch Shell to Google who want to lead the pack on climate action realise they need a way of reducing the risk of doing so. While they may have flirted with carbon markets, companies buying and selling emissions credits have had a patchy time for much of the last decade. The main problem is the lackContinue reading “Complex Voluntary Carbon Blueprint Highlights Need for a Better System (2)”

By Mathew Carr Jan. 27, 2021 — LONDON: U.S. President Joe Biden and Vice President Kamala Harris issued a slew of executive orders to help protect the climate at home and across the world. They ordered federal agencies to eliminate fossil fuel subsidies “as consistent with applicable law and identify new opportunities to spur innovation, commercialization, and deployment of clean energy technologies and infrastructure.” The orders direct the Director of National Intelligence to prepare a“National Intelligence Estimate on the security implications of climate change,” according to a statement from the White House. The U.S., China and the EU are seenContinue reading “U.S. to Scale Back Fossil-Fuel Subsidies Among Slew of Climate Orders: Biden-Harris (1)”

By Mathew Carr Jan. 26, 2021 — LONDON: China continues to slowly turn the screws on greenhouse gas, saying Shanghai is to peak its emissions before 2025, according to China Daily. Having the city begin cutting emissions soonish indicates the most populous country is looking closely at what it can do as nations are meant to be boosting the ambition of their climate targets before the Glasgow UNFCCC talks in November. It comes as John Kerry, special U.S. climate envoy asks China to try to reach net zero by 2050 instead of 2060. The U.S. has only 4% of theContinue reading “Shanghai Strives to Hit Carbon Dioxide Peak before 2025, as China Considers Ambition; Biden Tackles Oil, Gas”

–Finance sector shift to sustainability continues?–Subnational finance in emerging nations gets support By Mathew Carr Jan. 26, 2021 — LONDON: Can the private equity model help save the climate? We’re about to find out. The $750 million Global Subnational Climate Fund is investing in clean-energy, land management and waste projects in states and cities in 42 emerging countries. See this 71 page proposal, approved late last year by the Green Climate Fund based in South Korea: https://www.greenclimate.fund/sites/default/files/document/funding-proposal-fp152.pdf The subnational fund is not private equity because there’s a taxpayer element, but it’s overseen by Pegasus Capital Advisors LP, a green andContinue reading “It’s Private Equity, But Not as You Know it; Gold Standard, Arnie, DiCaprio Watch On (1)”

By Mathew Carr Jan. 24, 2021 — LONDON: China’s plans to cut emissions to net zero by 2060 should not stand, according to John Kerry, the U.S. climate envoy. “We don’t want that to stand. We need to get down from 2060,” Kerry told a virtual meeting with U.S. mayors on the weekend. “If that’s happening with the largest emitter in the world, we’re all going to lose credibility,” Kerry said. See this, about 37 minutes in: https://www.youtube.com/watch?v=6rSNSsWC-Yg Thirty eight states covering 80% of the U.S. population “kept going” on emission cuts despite Trump’s anti-climate-action stance, Kerry said. The nationContinue reading “While Trump’s Exit from the Paris Climate Deal was Reckless, China’s Net Zero Target for 2060 is not Soon Enough: Kerry”

–Humility and justice on climate begin emitting from U.S. officials for the first time in four years –The foundation of a global carbon market is laid, with the voluntary system immediately providing some glue and investment incentive by Mathew Carr Jan. 20-27, 2021 — LONDON: On Donald Trump’s last day in office, it was becoming clearer that the European Union’s push to link climate action and trade policy is rapidly paying dividends. Portugal has taken over the presidency of the EU for this six-month period ending June, and one of its priorities is to focus on the region’s plan toContinue reading “The EU’s Gambit to Link Trade and Climate Action Pays Off, Drawing China and the U.S. (3)”

Mathew Carr Jan. 19, 2021 (London) — As the world examines Mr Donald Trump’s legacy, it’ll certainly remember his tendency to say one thing and do another. This is what the White House is saying about some of his achievements in the environmental realm: “In 2019, America achieved the largest decline in carbon emissions of any country on earth. Since withdrawing from the Paris Climate Accord, the United States has reduced carbon emissions more than any nation,” is one key claim. Let’s take a look. It’s not clear exactly what data Mr Trump is using. BP Plc data for energyContinue reading “Will Trump Claim Credit for a Second Year of U.S. Emission Declines? Surely Not”

–Rich-country green lobbyists are being enabled by western-based news media, countries … and even academics–Global business, emerging countries are being unfairly downplayed, causing the climate crisis to worsen By Mathew Carr Jan. 16-21, 2021 — LONDON: When Trafigura Group explained how it plans to meet its sparkling new 2023 emissions-reduction target, the Singapore commodities giant is at pains to highlight that it plans to use carbon credits only in a limited way. To meet its limited-scope 30% emission-reduction plan in the next three years, “we’ll consider offsetting them through the purchase of carbon offsets, although this will be a smallContinue reading “Western Environmental Lobby Groups Are Slowing Climate Action (5)”

–The reduction in 2020 alone is more than Canada’s entire energy emissions in 2019 By Mathew Carr Jan. 12, 2021 — (LONDON): The United States cut carbon dioxide emissions by the largest amount ever for a single nation last year, as the coronavirus pandemic forced a massive reduction in the transport of its people. The U.S. emissions probably fell around 630 million tons of CO2, according to this Tweet from scientist Glen Peters, research director at @CICERO_klima: I highlight the relevant part of the chart here with a large red arrow: The reduction alone is more than the entire energyContinue reading “The U.S. Has Cut Emissions by the Biggest Amount in History for a Single Nation (1)”

–China’s carbon market officially starts in two days (Feb. 1)–Precise date of carbon cap remains unclear–EU welcomes China’s moves By Mathew Carr Jan. 9-29, 2021 — LONDON: China is seen capping its national emissions of greenhouse gas for the first time. It will strive to do so in the five years starting 2026, after beginning experiments on caps in regional areas, according to a China Daily report. Precisely when the cap will start remains a mystery. But, importantly, it’s the first time the nation has said it will probably agree to a physical cap. Until now it’s been only willingContinue reading “China Seen Capping Emissions in the Five Years From 2026 in Boost for Global Climate Fight (6)”

By Mathew Carr Dec. 8, 2021 — LONDON: Open interest, a measure of trading positions that have not closed, advanced 23% to 157,470 EU carbon futures contracts by the end of the year vs the same time in 2019, according to EEX. The exchange uses the measure “synthetic net OI futures,” which has advanced slightly since then to 158,754 contracts, according to the EEX website. Still, the exchange has a small portion of the market versus ICE Futures Europe, based in London, which had open interest of 1.18 million lots at the end of the year, including options. So, asContinue reading “EEX’s Open Positions in EU Carbon Futures Rise Year on Year Amid Brexit (1)”

–Climate fight gathers steam but thorny issues remain, especially those around global trade in energy-intensive goods (consumption emissions) By Mathew Carr Jan. 7-8, 2021– LONDON: The world has suddenly got a better chance of hitting the targets in the Paris climate deal after Democrats won control of the U.S. senate. It’s now more likely the nation, most to blame for the climate crisis, can get to grips with its own wasteful energy, household and transport systems. The U.S. also plans to use its diplomatic and economic muscle to spur faster climate action across the globe. The world can now attackContinue reading “Boxing Gloves Are Off in Global Climate Fight As Democrats to Control U.S. Senate (4)”

By Mathew Carr Jan. 7-8, 2021 — LONDON: The market for European Union carbon allowances jumped to record after so far coming away largely unscathed by Brexit. The volume of open interest, a measure of trading positions that have not closed, has grown from the end of 2019, according to data from ICE Futures Europe, the main exchange for emissions trading. Here are futures and options positions opened but not closed, measured by the number of contracts for the past five years: Note the Dec. future is the most commonly traded, so interest drops each year from end of Nov.Continue reading “UPDATED: EU CO2 Jumps to Record as Market Comes Away Unscathed; Brexit Otherwise Takes Toll (4)”

By Mathew Carr Jan. 5, 2021 — LONDON: I wanted to highlight this key opinion — of a reporter who’s followed the development of China’s national carbon market for many years. My response: A not-stupid question: Another not-stupid question: Hefty shove the whole world doesn’t want? (More to come. I will seek responses from the China and the U.S. governments) See this:https://carrzee.org/2020/12/18/china-vows-to-seize-time-and-set-plan-to-peak-emissions-by-2030-and-cooperate-globally/

By Mathew Carr Jan. 4, 2021 — LONDON: European Union Carbon permits rise above 34 euros for the first time ever, getting a bullish start to 2021 ahead of a two-week cold snap. They were up 3.4% to 33.82 euros a ton as of 11:19am, according to data on the website of the ICE Futures Europe exchange, having reached 34.24 euros earlier in the morning. The region’s cold snap will boost demand for heating and electricity. Click link for loop here: Carbon is rising as lawmakers consider how to tighten the program and the region’s emissions targets. The move comesContinue reading “EU Carbon Permits Have Bullish Start to Year, Rising Above 34 Euros a Ton (1)”

By Mathew Carr Dec. 31, 2020 — LONDON: Australia updated its “pledge” to the Paris climate agreement before a deadline today, yet failed to boost its ambition compared with its plan in 2016. The nation plans to cut emissions 26%-28% vs 2005 levels by 2030, which provides a “budget,” or cap, of roughly 4.8 billion tons of carbon dioxide equivalent, according to its Nationally Determined Contribution: Under previous governments, Australia began a national carbon trading system and sought to link with the EU emissions market, the world’s biggest. But that was abandoned as governments changed. Setting a cap could beContinue reading “Australia Fails to Boost Climate Ambition; Sets Out Carbon Cap Through 2030”

By Mathew Carr Dec. 30, 2020-Jan. 2, 2021 — LONDON: A mere eight countries have bothered to submit their second “pledges” under the Paris climate deal on time so far, even though the global warming crisis is worsening and business is betting real money that governments will get their act together. While it’s true there have been about 180 updates to the so-called “nationally determined contributions” the past four years, according to the UN Framework Convention on Climate Change website, there is little evidence that countries have so far boosted ambition anywhere near the required amount. Increased ambition was toContinue reading “In a Bitter End to 2020, Back-Slapping Nations Fail to Respect the UN on Climate Yet Again (6)”

By Mathew Carr Dec. 29, 2020-Jan. 2, 2021 — LONDON: A law designed to improve disclosure by companies out of the reach of U.S. financial oversight is seen boosting climate action, potentially sooner than the Paris climate deal. The Holding Foreign Companies Accountable Act, which came into law Dec. 18 after being signed by President Trump, will require companies, especially those with operations in China, to show who owns them and how they operate. Anti-money laundering laws will also bite at the same time. Companies, such as those logging in Asia, risk having their access to financial markets cut off,Continue reading “New Trump Law Seen Boosting Climate Action, Even Outside the U.S. (2)”

–China retains access to EU markets and gets investment possibilities in renewable energy, the Financial Times reports By Mathew Carr Dec. 28-29, 2020– LONDON: Agreement ‘could be reached as early as Tuesday’ following movement on major sticking point, Newspapers reported. “No country had raised ‘stop sign’ clearing way for political endorsement, source says,” according to the South China Morning Post. For China, it retains access to EU markets and offers investment possibilities in renewable energy, the Financial Times reports. The endorsement of the deal came after EU negotiators said there were “positive developments” on Beijing’s commitments on labour standards, oneContinue reading “Climate in the Frame as EU members back China investment deal (2)”

By Mathew Carr Dec. 28, 2020 (LONDON) — EU carbon prices rose to their highest ever ahead of a period of freezing weather across much of Europe early next week. Natural gas contracts surged. EU December 2021 allowances advanced as high as 33.50 euros a ton and were up 2.5% at 32.98 euros at 1pm in London, according to data from the website of the ICE Futures Europe exchange. (The price might have been even higher as the data provided on the website does not include every trade.) The gain also followed the striking of a Brexit trade deal Dec.Continue reading “EU Carbon Surges to Record After Brexit Deal, as Freezing Weather Approaches; Natural Gas Jumps to Year High (1)”

–Young bear hit by oil drilling, dashing hopes for ambitious January By Mathew Carr and others Dec. 27, 2020-Jan. 9, 2021 — LONDON: Since nearly 200 nations were supposedly set to finish tightening their contributions to the Paris agreement by the end of last year (Dec. 31 — we assume, because there’s a deadline under that ratified UN deal), they’ll be up for getting cracking on unprecedented climate action starting January 2021. Here’s how a fictional baby polar bear, let’s call him Yao, would like to see humans play January out, day by day … but it hasn’t gone soContinue reading “A Polar Bear Dreams Up January 2021 Climate Resolutions –Not All of 2021 (2)”

— Parties not obliged to link carbon markets but will consider doing so–U.K.-EU carbon link seen announced in November–WTO signals tension on climate coming By Mathew Carr Dec. 25-28, 2020 — LONDON: The Brexit trade agreement between the EU and the U.K. includes reciprocal commitments not to reduce the level of environmental or climate protection. Disputes on climate, environment and trade is “not subject to the agreement’s main dispute resolution mechanism but will instead be governed by a bespoke Panel of Experts procedure.” Disputes between nations are set to become more common as climate and energy policy impacts trade andContinue reading “U.K.-EU Disputes on Climate to be Heard by ‘Bespoke Panel of Experts’ After Brexit; 2021 Link Seen (4)”

By Mathew Carr Dec. 24, 2020 — LONDON: Countries are seen setting both emissions limits and targets for removing heat-trapping gas from the atmosphere. The idea is important as countries set their contributions to the Paris climate agreement, ideally by the end of this month. Such a move would eliminate the false compensation arguments being made by companies and countries seeking to “offset” their emissions and hit “net zero” targets, said Niklas Höhne, a founding partner of NewClimate Institute. He is also Special Professor “mitigation of greenhouse gas emissions” at Wageningen University in the Netherlands. “To find a balance between the removal target and theContinue reading “Countries Seen Setting Emissions AND Removals Targets Separately: the Price of Carbon ‘Needs to be Higher Than the Cost of Capturing it Later’ (1)”

–Brexit trade talks run to the wire — here’s how Britain will probably push, with or without an EU trade deal By Mathew Carr Dec. 22, 2020 — LONDON: The environment and the levels of industrial assistance are apparently two of the issues holding up the trade negotiations between the U.K. and the EU. British PM Boris Johnson said talks remain in trouble about a week from the end of the year and the end of the Brexit transition period, according to the BBC. If there’s no deal, Britain might exit under World Trade Organization rules (or the fraught talksContinue reading “Boris Brexit Bullsh!t? No. Six Ways U.K. Will Literally Lead the EU and the World on Climate and Energy”

By Mathew Carr Dec. 18, 2020 — LONDON: China’s Central Economic Work Conference on Friday vowed to “formulate an action plan for peaking carbon dioxide emissions before 2030,” Xinhua said. China will support ways to “peak emissions ahead of schedule.” The world’s most populous nation and biggest emitter previously announced it would peak emissions by 2030 and achieve carbon neutrality by 2060. At the same time China would build more “independent and controllable” industrial supply chains as it forms a new development model. The nation would “stimulate the vitality of market entities” as it opens up in an “all-round way.”Continue reading “China Vows to ‘Seize Time’ and Set Plan to Peak Emissions by 2030 Plus Cooperate Globally on Trade (1)”

–Developing countries, where emission cuts come cheaper, will probably get accounting benefit under Paris climate deal: Carney By Mathew Carr Dec. 17-18, 2020 — (LONDON): Emerging countries could become a key beneficiary of the voluntary carbon market being promoted by Mark Carney as a key part of the climate solution. That’s because well-meaning global companies might be about to double down on that market. A businesses buying emission credits from an Indonesia forest project, for instance, would ideally get to put the emission-reduction into its annual report as it seeks to hit its net-zero target, Carney said Thursday in anContinue reading “Carney: Here is How Large Global Companies Like Google and Swiss Re Will Solve an Extra 10% of the Climate Crisis (5)”

By Mathew Carr Dec. 17-22 –LONDON: The volume of open positions on environmental markets in the U.S. and Europe together surged to a record near the end of the year, after President Donald Trump lost the U.S. vote. The volume of open positions on ICE, the biggest exchange for environmental commodities, advanced by approximately 16% from the end of 2019 to about 2.8 million contracts, said ICE spokeswoman Rebecca Mitchell, by phone. The open positions are measured by the metric “open interest.” Average daily volume in the environmental complex is up by approximately 20%, ICE said. The complex includes EUContinue reading “Global Bets on Environmental Markets Surge to Record After Trump Loses: ICE (2)”

By Mathew Carr Dec. 17, 2020 — LONDON: Global exchange group ICE won a deal to hold auctions of U.K. carbon allowances for Britain, once the nation bows out of the EU at the end of the month and leaves Europe’s emissions market. The sales of British carbon allowances would start by the middle of next year and ICE would offer futures in the same time frame, giving British emitters some idea of when they’ll be able to manage the risks of their exposure to the program, ICE said in a statement. The U.K. hopes to link its market withContinue reading “ICE to Auction Carbon Allowances for U.K. After Brexit, to Offer Futures by June 30 (2)”

By Mathew Carr Dec. 17, 2020 — LONDON: The value of selected carbon credits has surged by about a third during the coronavirus pandemic, as companies bet on a green buildback. NATURE-based credits have jumped by about $2 a ton to $8 a metric ton since March, said Eddie Listorti, chief executive officer at carbon advisory firm Viridios Capital in Sydney, Australia. “It’s a steal at $6-$8,” Listorti said by phone. That’s because credits at that price can include attributes of about 12 UN sustainable development goals. Also, EU carbon allowances, traded in the world’s biggest carbon market by tradedContinue reading “EXCLUSIVE: Selected Carbon Credits Surge by One Third During Coronaviris Pandemic”

By Mathew Carr Dec. 17, 2020 — LONDON: Standards that require companies to disclose their climate risks and measures to ensure a clean exit to the coronavirus pandemic are seen boosting demand for carbon credits. “A number of large multinationals including Unilever, Microsoft, Mars, Maple Leaf Foods, Google, Nike, HSBC, Swiss Re have committed to making their business operations carbon neutral,” said Lisa DeMarco, senior partner at DeMarco Allan LLP and others, in an article published Wednesday on the Energy Regulation Quarterly website. The firm specialises in climate law. “And any number of entities are purchasing carbon offsets in theContinue reading “Business Net Zero Limits, Climate Disclosure Spurring CO2 Credit Demand”

By Mathew Carr Dec. 15, 2020 — LONDON: Seven carbon markets, existing and possible, could link and cover most of the world’s emissions, according to a key China academic. China, the U.S., the EU, Russia, South Africa, Korea and Southeast Asia could link carbon markets, providing an incentive to reduce climate-damaging emissions, said Xiliang Zhang of the Institute of Energy, Environment & Economy at Tsinghua University. The tokenisation of commodities and products, blockchain may help spur linking of carbon markets, Zhang told the online European Climate Summit. Speakers on the summit panel discussing carbon-market linking expressed doubt linkages were likelyContinue reading “Seven Carbon Markets Seen Linking and Covering Much of the World’s Emissions (3)”

–Transition from Kyoto to Paris set (sort of) By Mathew Carr Dec. 15, 2020 — LONDON: The board overseeing the main UN carbon market agreed to extend the program into next year, at least temporarily, creating a transition into the era of the Paris climate deal. The move gives investors in carbon credits created in developing countries under the Kyoto Protocol a chance to get a return on their investment, which is currently threatened by low demand and near-zero prices. The panel, the executive board of the Clean Development Mechanism, will continue registering emission-cutting projects and issuing credits on aContinue reading “Panel Extends UN Carbon Market Until Glasgow Climate Talks”

–Carbon-market links come into sharper focus, but first–The world’s biggest market sadly shrinks because of Brexit–U.S., Canada and even China focus on aggressive effort for 2030–Companies, too, get on board By Mathew Carr Dec. 14-21, 2020 — LONDON: Britain is calling for countries to partner with its proposed new carbon market as it leaves the European Union’s program and its touted price aligns with other nations. It’s a terribly sad state of affairs that the EU market is shrinking as the fractured world seeks to align on its climate effort during the next several years. While the U.K. has saidContinue reading “RECAST EXCLUSIVE: Richer Net Zero Countries Tout 2030 Carbon Prices That Align (4)”

By Mathew Carr Dec. 12, 2020 — LONDON: The world’s most populous nation said it would reduce carbon dioxide emissions per unit of GDP by 65% by 2030 vs 2005 levels, a new and ambitious target. Nations held a virtual climate ambition summit Saturday ahead of a Dec. 31, 2020 deadline by which countries should tighten their climate contributions to the Paris climate agreement. See this:https://www.climateambitionsummit2020.org/index.php#programme China would boost use of renewable power so non-fossil fuel primary energy would reach 25% by 2030, said Chinese president Xi Jinping, speaking at the virtual Climate Ambition Summit. The nation would increase theContinue reading “China Proposes to Cut CO2 per Unit of GDP 65% by 2030 as Other Nations Tighten Climate Pledges (3)”

–The U.K. could store EU emissions for 18 years, handy when Europe’s seeking net zero by 2050 By Mathew Carr Dec. 11-13, 2020 — LONDON: Contracts for difference, measures being considered in climate policy circles to help decarbonize industry, have already pulled offshore-wind-energy investment forward in Britain. They could now help to level the “state-aid” playing field after Brexit in sectors other than energy, as well as speed global decarbonization. “The U.K. is already using CfD contracts in the space of renewable energy and has the expertise to extend them to other technologies,” according to report published by Vivid EconomicsContinue reading “OPINION: Clever Climate Contracts Already Levelled the Energy Playing Field and They Could Help Ease Brexit (2)”

By Mathew Carr Dec. 11, 2020 — LONDON : Four former United Nations climate diplomats are getting a little undiplomatic. Four senior UN figures have outlined in an opinion piece what’s going on with global climate protection and why. No one comes away unscathed, even the UN process itself. Richard Kinley, Michael Zammit Cutajar, Yvo de Boer and Christiana Figueres co-authored a piece published on Taylor & Francis online. See link below. Here are some highlights, comments on the dire climate situation …and a splash of hope: ‘For the global North, it challenges complacent democracies to look beyond their electoralContinue reading “Climate Diplomats Get Undiplomatic in Public: The ‘Dark Cloud’ Hanging Over the UNFCCC: T&F (1)”

By Mathew Carr Dec. 10-11, 2020 — LONDON: European Union carbon allowances advance to a record Friday after member nations agreed to cut emissions by at least 55% vs 1990 levels by the end of the decade. The previous target was for a 40% cut. Futures for December 2021 rise to about 31.30 euros a ton, according to ICE Futures Europe, before easing back. The previous record was 31 euros, a level matched Thursday. A tighter target means a smaller supply of allowances and when they become more scarce they also become more valuable. Other factors are boosting prices. ThereContinue reading “European Carbon Advances to Record High as EU Agrees Tighter 2030 Target (3)”

By Mathew Carr NEWS/OPINION: Nov. 10-11, 2020 — LONDON: Big emission cuts hinge on three technologies and how they link together, and on how the biggest countries incentivise them. The world — big emitters the EU, the U.S. and China at least — seems to be, finally, getting on board, but it still might be too late. Natural gas, carbon capture and hydrogen, working together, are set to change the world, cutting emissions, according to an influential group advising the British government. Number 1 technology: Gas will provide a bridge to much lower emissions, but ONLY if it’s used toContinue reading “UPDATED: The 3 New Friends of Aggressive Climate Action, Their 2 Enablers: What it Means for Investors Globally (2)”

By Mathew Carr EXCLUSIVE: Dec. 9-10, 2020 — LONDON: Britain has tightened its emissions-reduction target for 2030 quite dramatically, but arguably it should be much tighter still. This chart shows that based on historical responsibility and its capability, Britain should be going for a cut of about 91% by 2030 if the world is serious about limiting global warming to 1.5C. That is one-third stricter than what it is going for — a 68% cut: Check out the small green line on the top right. Here is the open source document, cited in the chart:https://iopscience.iop.org/article/10.1088/1748-9326/11/5/054005/pdf The ‘Greenhouse Development Rights’ (GDR)Continue reading “The U.K. 2030 Emissions Target ‘Should be’ One-Third Stricter – a 91% Cut, Perhaps (1)”

By Mathew Carr Nov. 9, 2020 — LONDON: Should the U.K. build its own carbon market, it might get very small very quickly. Britain is due to Brexit at the end of the month and last-minute wrangling continues. It’s new CO2 market may link in with the EU emissions trading system, the world’s biggest carbon market. See this chart published Wednesday by the U.K.’s Climate Change Committee: See this story:https://carrzee.org/2020/11/26/exclusive-heres-a-brexit-idea-from-a-key-carbon-market-player-keep-britain-in-the-eu-emissions-trading-system/

By Mathew Carr  Dec. 9, 2020 — LONDON: Britain is tackling one of the hardest parts of its energy transition in the mid 2030s, and it’s finding a way to shield taxpayers/consumers/voters from the huge shifts in store for them. Taken separately, some of the numbers look enormous, and politically scary. The country is set to raise 27 billion pounds ($36 billion) a year via a 75 pounds a ton carbon price across most domestic sectors. That price is about double current levels — at the moment the country’s carbon price does not apply to transport and household emissions. ItContinue reading “Britain’s Cunning Plan to Take the Political Sting Out of Massive Emission Cuts (1)”

By Mathew Carr Nov. 8, 2020: LONDON — Emissions reductions by the EU since 1990 were achieved because of a fall in the greenhouse gas output of lower-and-middle-income Europeans, while pollution produced by the richest 10% rose, charity group Oxfam revealed. Tackling an inequality of blame for the climate crisis is key to delivering the new EU 2030 climate target, which is due to be discussed by EU leaders later this week, the group said in a report. “Confronting Carbon Inequality in the European Union” is based on research conducted with the Stockholm Environment Institute on the consumption emissions of different income groupsContinue reading “Poorer Europeans Cut Emissions as Richest Boost Transport Pollution (1)”

–U.K. climate push tainted by overseas development aid cut: former UNFCCC leader –Climate being added to profit in goal of markets By Mathew Carr Dec. 6-8, 2020 — LONDON: Markets have evolved for decades, but the evolution over the next 10 years is looking like it might resemble something more like a revolution. Britain’s plan to cut emissions by 68% in the four decades to 2030 seems improbably ambitious. Up until now goals have been much-less punchy. What has made such deep cuts possible for the U.K. has been its higher carbon prices. With its so-called “carbon floor support,” Britain’sContinue reading “Capitalism 2.0 in Sight But Here’s Why We are Not Quite There Yet (3)”

–How to shut down a whole industry, German style By Mathew Carr Dec. 6, 2020 — LONDON: Germany’s phase out of coal and lignite power stations won’t cause an oversupply in the European Union’s carbon market because a reduction in the nation’s carbon allowance sales is enshrined in law, according to an official. The nation’s Coal Exit Act from July 2020 will ensure a reduction in carbon supply takes place, the official said by email. On Friday, EU carbon allowances closed above 30 euros a ton for the first time since Sept. 14, according to data from ICE Futures Europe.Continue reading “German Law ‘Ensures Coal Decline Won’t Drive Oversupply in EU Carbon Market’”

By Mathew Carr Dec. 4, 2020 — LONDON: As India seeks to erode its reliance on coal, exchange giant ICE is offering an LNG contract from next week that will help it cut the risk of energy diversification. From Dec. 7, ICE will offer financially-settled futures based on the Platts West India Marker (WIM) Liquefied Natural Gas (LNG) price assessment. The WIM LNG (Platts) futures, as a contract focused on South Asia, will develop “natural gas markets east of Suez and will complement the already established the Japan Korea Marker (JKM) LNG contract, which has become a leading natural gas benchmark forContinue reading “ICE Offers India LNG Contract as Nation Boosts Climate Action”

–U.K. to give boost to global carbon markets By Mathew Carr Dec. 3-4, 2020 — LONDON: Climate activist Greta Thunberg was at her powerful best when she asked the world’s leaders “How dare you” not take the climate crisis more seriously? Now, Britain’s rising to the challenge, adopting an emissions target that’s the most ambitious of any major economy and seeks to cooperate with poorer nations via carbon markets. Placing the EU under some Brexit pressure, the Prime Minister Boris Johnson wants to cut emissions by at least 68% by the end of the decade versus 1990 levels. It was previouslyContinue reading “Greta Asked “How Dare You?” Then Britain Got Bold (4)”

By Mathew Carr Dec. 3, 2020 — LONDON: CEO Vicki Hollub at Occidental Petroleum is simultaneously ending the period of “big oil” and beginning the era of “big carbon.” Oxy said Wednesday its plan to get to to net zero greenhouse gas emissions by mid century was bold. Not only would it use its plentiful carbon capture and storage assets and expertise, but it would tap currently expensive direct-air capture to help save the climate. The Houston Chronicle said the company would open its first commercial-scale carbon storage site and a facility to remove carbon dioxide directly from the atmosphereContinue reading “As the era of “big oil” ends, so begins “big carbon””

By Mathew Carr  Dec. 3-4, 2020 — LONDON: The strong close for EU carbon futures Wednesday hinted at the potential for allowances to reach a record level very soon indeed, as Germany will probably confirm it’ll cut supply. December allowances advanced after surging by almost one quarter in November. They advanced above 30 euros Friday and need to print above 31 euros to beat their record. The region’s biggest economy said this week it plans to close coal-fired stations as it seeks to spur emission cuts. That will ease an oversupply in power markets, allowing electricity prices to advance, butContinue reading “OPINION: EU CO2 Prices Head for Record High as Germany Set to Cancel Supply (2)”

By Mathew Carr Dec. 1, 2020 — LONDON: EU carbon futures rose to their highest since the middle of September, hitting 30 euros a ton and close to a record level, on colder weather and temporarily limited supply in the primary market for allowances. See this intraday chart (euros/metric ton): December 2021 futures also rose above 30 euros a ton, according to ICE. See this earlier story flagging the market’s rise, citing Redshaw Advisors:https://carrzee.org/2020/12/01/more-eu-carbon-gains-seen-after-24-surge-in-november/ See this story saying the freeze in the Brexit talks is holding carbon allowances down; resolution of those talks would see prices rise, according to some/Continue reading “EU CO2 Jumps to Highest in More Than Two Months; Near Record as Options Change Hands (Correct)”

By Mathew Carr Dec. 1, 2020 — LONDON: More gains in EU carbon allowance futures are seen after a 24% jump in November. Colder temperatures and low primary supply are seen stoking the further increases. See this European minimum temperature forecast loop: See this commentary from Redshaw Advisors from late Monday (subscribe below): Price Action: After the indecision seen on Friday, it was one-way traffic higher today as carbon rose more than 3%. Further cold weather forecasts coupled with positive COVID vaccine news buoyed European equities and wider energy markets, pushing prices higher during early trading and above €29. A lullContinue reading “More EU Carbon Gains Seen After 24% Surge in November”

By Mathew Carr Nov. 29, 2020 — LONDON: Listen to Andrew Horvath for just a few minutes and you get the impression the climate crisis is solved. His answer is not Elon Musk’s shiny electric sports cars. But rather, Horvath has found a new way to use hydrogen, the most abundant substance in the universe. Since the industrial revolution, coal-fired heat has turned steam turbines, churning out heat-trapping greenhouse gas as it powered humanity’s progress. Now, Horvath says he has found a catalyst — catchily named, the Hydrogen Energy Release Optimizer or HERO — that enables the creation of industrial-strengthContinue reading “EXCLUSIVE: Australia’s Answer to Elon Musk Reckons the Climate Fight is Almost Won; Disagrees With Musk on Key Point (2)”

By Mathew Carr Nov. 27, 2020 — LONDON: A further update on industrial carbon capture contracts for difference is due to be issued “shortly,” according to the U.K. Department for Business, Energy and Industrial Strategy. The update is expected to set out the U.K. government’s approach to allocated initial contracts, a BEIS official said in an emailed response to questions. Germany is considering its first auctions around 2022, according to a person close to those negotiations. That seems to fit with the U.K.’s timing below. Britain is seeking to deploy carbon capture, storage and utilization incentives through the next decade.Continue reading “EXCLUSIVE: U.K. to Issue Update “Shortly” on Carbon Capture Contracts for Difference”

–High carbon prices seen providing billions of euros of government revenue for social needs By Mathew Carr Nov. 27, 2020 — LONDON: Big European business is now firmly behind more aggressive climate action, including huge increases in carbon prices that will add revenue for governments. See this from Herbert Diess, Chairman of the Board of Management of Volkswagen Group, who’s calling for prices more than three times current levels in the EU of about 28 euros a ton (Link to full LinkedIn post below) “In Germany, the carbon price is set to be 25 euro per ton in 2021, byContinue reading “Volkswagen Pushes for Huge Carbon Price Jump – More Than Tripling in Six Years”

By Mathew Carr Nov. 26-28, 2020 — LONDON: The U.K.’s threat to walk away from carbon markets may simply be a negotiation stance. Fairly ridiculous negotiation stances have become part and parcel of Brexit negotiations. See this for some context:https://www.bloomberg.com/news/articles/2020-11-25/brexit-deal-will-leave-carbon-market-question-wide-open?sref=fcMjhrdB One person who has not given up on the notion that Britain may actually remain in the European Union’s carbon market after the end of the Brexit transition next month is Ken Schneider, president of Grey Epoch LLC, an environmental markets options outfit near Chicago and key participant in the market. “If we find that out by the end of the yearContinue reading “EXCLUSIVE: Here’s a Brexit idea from a key carbon-market player: Keep Britain in the EU emissions trading system (2)”

By Mathew Carr Nov. 26, 2020 — LONDON: South Korea will adjust the rules of its electricity market to discourage the use of fossil-fuel generation, an official from the Ministry of Trade, Industry and Energy said at an online event hosted by the International Energy Agency. South Korea has scope to boost its share of renewables to about 20% by 2030, from about 4% now, IEA said. The current level is below the global average for IEA members. Nations in Asia, the most populous of the world’s regions, are seeking to reduce emissions in a bid to limit damage fromContinue reading “South Korea Plans to Disadvantage Fossil Fuels in its High-Emitting Power Market (1)”

By Mathew Carr Nov. 25-28, 2020 — LONDON: For Adam Smith, the Scottish-born father of economics, a regulatory framework was necessary to steer humans toward productive pursuits that benefit society. He’d be turning in his grave if he noticed the United Kingdom, the country that led the industrial revolution, is still now in 2020 considering taxing carbon emissions instead of allowing people to make money cutting them in a free market. Britain might be considering a post-Brexit carbon tax instead of an emissions-trading market, but I doubt it. The U.K.’s threat to walk away from carbon markets may simply beContinue reading “OPINION: Let Investors Make Money Cutting Emissions; It’s the ONLY Way to Save the Climate (1)”

By Mathew Carr Nov. 25, 2020: LONDON: Click this link for an interactive chart that shows how much it will cost to offset or even double offset your tank of gasoline: https://grid.is/@ngogerty/cost-to-carbon-offset-fuel-1x-2x-per-gallon-kZFI4sQQShy1Nu67U_6Oww It’s courtesy of Carbon Finance Labs, a unit of U.S. oil company Occidental A common tank size can be about 60 litres, or 13 gallons. THE CHART was first published in this story on how to improve the global offsetting market. Please read and share: https://carrzee.org/2020/11/10/three-ways-to-add-credibility-to-the-fragile-market-for-emission-credits/ See also this story on Shell’s offsetting moves in the U.K.:https://carrzee.org/2020/11/05/shell-will-charge-only-30-pence-0-39-a-ton-to-offset-your-whole-tank-of-fuel/

By Mathew Carr Nov. 22-23, 2020 — LONDON: China and the EU should consider linking their planned carbon markets to help each other reach their goals of becoming carbon-neutral by 2060, the South China Morning Post reported, citing a former central-bank governor. The U.S. was set to appoint a carbon-pricing enthusiast as Treasury secretary. It bodes well for cost-effective climate action. China’s Zhou Xiaochuan told the International Finance Forum in Guangzhou on Saturday the net-zero target announced by President Xi Jinping in September was “ambitious but difficult,” the newspaper said. “Carbon markets should be the main incentive mechanism as thisContinue reading “Link Between EU and China Carbon Markets Seen Needed to Spur Net Zero; U.S. Might Embrace Carbon Pricing (1)”

By Mathew Carr Nov. 22, 2020 — LONDON: Chinese President Xi Jinping on Saturday addressed the 15th G20 Leaders’ Summit via video link. Here are some key highlights for me, since the world is right now and through Nov. 2021 negotiating the Paris climate deal to give it some teeth for the first time, including Article 6, which will set the crucial terms of global cooperation on the climate crisis. China is the world’s biggest emitter of greenhouse gas and most populous nation. Link to full statement below, from Xinhua. I’ve added emphasis to ease the read: “We need toContinue reading “China Says World Needs Proper Climate Policy, Proper Role for United Nations, Proper Global Trade Rules Under WTO”

By Mathew Carr Nov. 21-25, 2020 — LONDON: Here below is my messy list of the power companies/enterprises that China’s putting in its carbon market this year (formatting is not easy. This is not China’s fault, but mine). Published Friday. I’m putting it here to show the scale of China’s challenge. Here is the Website from where the Google-translated list below was obtained:http://www.mee.gov.cn/xxgk2018/xxgk/xxgk06/202011/t20201120_809087.html Annex 3 Included in the 2019-2020 national carbon emissions trading List of key emission units for quota management Reported by each region to be included in the 2019-2020 national carbon emission trading market (Hereinafter referred to asContinue reading “MASSIVE CHALLENGE: This is What China’s 2,267 Fossil-Fuel Power Companies Look Like on Paper (2)”

— Germany confirms it’s considering funky new carbon contracts to spur green hydrogen sooner than expected —Trade union umbrella group says carbon contracts for difference can soon support the wide investment that workers need, cutting anxiety about the energy shift –New state-aid rules next year seen giving boost to green shift By Mathew Carr Nov. 20-25, 2020 — LONDON: The EU and Germany are serious about using markets to cut the cost of their transition to cleaner tech. Big changes are seen during the next several months. The largest economy in the EU confirmed Friday it’s considering offering carbon contractsContinue reading “EXCLUSIVE: EU Widely Seen Tweaking its Market Structure, Cutting the Risk of a Dramatic Cut in Emissions (4)”

— Germany seen having twice as much coal-transition money as the rest of Europe combined— A just transition is “not cheap as a policy” KEY VOICE By Mathew Carr Nov. 20, 2020 — LONDON — Europe’s energy transition has already caused social unrest and it’s about to get worse unless lawmakers lift their game, according to a key trade unionist. European Union politicians appear to be underestimating the challenge of retraining and redeploying workers who will probably be displaced amid a rapid shift away from coal, oil, natural gas during the next 30 years, said Judith Kirton-Darling, deputy general secretaryContinue reading “EXCLUSIVE: EU Seen Underestimating Worker Anger at Rapid Climate Transition (1)”

By Mathew CarrNov. 18, 2020 — LONDON — The EU’s Innovation Fund could be used to stoke CCfDs and win deep decarbonization, said Antoine Colombani, a green-deal official in the European Commission. Carbon prices by themselves will probably not be high enough to spur decarbonisation in a “spontaneous” way, Colombani said in an online event held by German think tank Agora Energiewende. Pilots for the carbon contracts for difference, measures designed to protect factories from a fall in carbon prices, could be deployed to assist refineries and fertiliser factories: Colombani. “I think there is broad support for them,” said AdolfoContinue reading “EU Innovation Fund Seen Stoking Carbon Contracts for Difference in Industrial Decarbonisation (1)”

By Mathew Carr Nov. 15-18, 2020 (London) — The energy transition is about to be placed on steroids. That’s because the EU and the U.K. are preparing to hand out a series of new market incentives that may well take a good portion of the political AND financial risk of climate action out of government hands. The carbon contracts for difference (or CCfDs) will rewrite the energy landscape by driving ever-cleaner hydrogren into the mix, replacing natural gas and cutting emissions from cement and steel making. Green hydrogen is one of several key silver bullets the energy transition has beenContinue reading “New Carbon Contracts Will Place Europe’s Energy Transition on Steroids (4)”

By Mathew Carr ANALYSIS – feedback welcomed (see the bottom). Nov. 14-19, 2020 — LONDON — China’s anger toward the U.S. on slow climate action is set to abate. The most populous nation’s recognition of Joe Biden as the probable winner of the U.S. presidential election could well spur much closer cooperation between the world’s two biggest superpowers on climate action and trade. Their cooperation was key when the world agreed the Paris climate deal in 2015, an agreement that’s so far a weak and unfinished framework, but the only one we have. Nothing is guaranteed, but there’s at leastContinue reading “Big-Beast Climate Fight, or is it?: China’s Criticism of U.S. to Ease as Trump-Term Ends (3)”

—EU’s stance on UN emission credits is ‘double speak’ By Mathew Carr Nov. 12, 2020 (LONDON) — Yvo De Boer likes an analogy, but surely, this time he’s gone too far. The former executive secretary of the United Nations Framework Convention on Climate Change has just criticised one of the European Union’s stances on global warming. But the EU is a leader on climate action, isn’t it? It may not have everything exactly right, De Boer said in a phone interview from the Hague. Its reluctance so far to demand any existing United Nations emission credits as it seeks toContinue reading “A Former UN Climate Leader Says the EU’s Behaviour is Bordering on Trumpism (1)”

By Mathew Carr Nov. 10, 2020 — LONDON: Germany, other EU nations are seen using carbon contracts for difference, to spur billions of euros of investments in hydrogen and hasten the region’s climate transition. Carbon contracts are one way to minimize price uncertainty. They are formed where a government or institution agrees with an investor (or a builder of a hydrogen-production plant) on a fixed carbon price over a given time period, according to consultancy Climate Strategies. https://climatestrategies.org/wp-content/uploads/2020/09/Carbon-Contracts_CFMP-Policy-Brief-2020.pdf Carbon Contracts for Difference (CCfD) pay out the difference between the price of EU emissions allowances and the contract price, thus effectivelyContinue reading “EU, U.K. Seen Striking Carbon Contracts that will Spur a Huge Hydrogen Investment (2)”

By Mathew Carr Nov. 10, 2020 — LONDON: The market for voluntary carbon credits is under regulated and that’s why it’s much too small. The coronavirus pandemic has dealt a further huge blow to the industry because airlines are one of its biggest sources of demand growth. Mark Carney, former Bank of England governor, said yesterday (Monday) the market needs to turn over about $300 billion a year instead of the $300 million annually that it currently delivers. Ultimately, the offsetting industry “will soar” to help nations and companies hit net-zero emission targets by the middle of the century, CarneyContinue reading “Three Ways to Add Credibility to the Fragile Market for Emission Credits (2)”

By Mathew Carr Nov. 8, 2020 (LONDON): — If Joe Biden is able to implement his net-zero emissions pledge for 2050, & the U.S. meets it, it could shave 0.1 of a degree C off global warming by 2100, according to a credible climate-scenario expert. When combined with existing pledges, the U.S. & China stated contributions put the world on track for and increase of about 2.3-2.4°C in 2100, according to Glen Peters. See this: Previously, the world was headed for at least 4C of warming. Biden has many challenges, but global 2030 emissions could now be much lower thanContinue reading “Biden’s (Probable) Win Reduces the Risk of Global Warming (especially when combined with net-zero moves by China, Japan, South Korea, EU)”

By Mathew Carr for Foresight Climate & Energy (free-of-charge excerpt) (Oct. 30, 2020) The structure of the European Union’s 15-year-old carbon trading market is long overdue for an update if it is to keep pace with growing national ambitions to halt climate-destroying activity and geopolitical shifts BREXIT BLUES The UK has been a world leader in free-trade solutions to the climate crisis, making its departure from the EU a big blow to the trading bloc’s ability to keep its carbon reduction efforts on an affordable track  CHINA CONFIDENCE Announcement by China of its goal to achieve net-zero emissions by 2060Continue reading “FORESIGHT PAYWALL: Potential for EU to pivot to China on carbon trade as U.S. and U.K. pull back”

By Mathew Carr Nov. 6, 2020 — LONDON— The European Union continues to push for linkages to its carbon market, the world’s biggest by traded value, as it considers a much tighter emissions-reduction target for 2030. As the U.S. is set to resume participation in the United Nations Paris climate deal, the EU is getting ambitious with its 2030 emissions-reduction agreement. The target of a 60% emission reduction target vs 1990 levels is being flagged by the European Parliament, 5 points tighter than that proposed by the European Commission and a full 20 points more than the current level ofContinue reading “EU’s Ambitious 2030 Emissions Cap Ain’t Ambitious Enough (1)”

By Mathew Carr Nov. 5, 2020 — LONDON: Royal Dutch Shell Group is planning to charge only about 30 pence ($0.39) to counter the emissions produced by a tank of fuel for one of its British customers from November next year, according to a product email. The energy company will offset for free for users of its mobile app until October next year and afterwards charge half a pence per litre. A common tank size can be about 60 litres, or 13 gallons. Shell, which is seeking to reinvent itself as a cleaner energy company, says it will subsidize theContinue reading “Shell Will Charge Only 30 Pence ($0.39) to Offset Your Whole Tank of Fuel”

—Pandemic’s impact on emissions could present the EU with an opportunity to improve global climate politics By Mathew Carr Nov. 5, 2020 — LONDON, EXCLUSIVE: The adoption of emission-reduction targets by Canada, China, Japan and South Korea, including some net-zero limits mid century, has apparently come too late for the European Union to tighten its objective for 2020. That’s despite the fact that Europe is probably going to meet that target anyway — because coronavirus-pandemic lockdowns are slashing emissions from electricity, transport and industry. Back in 2012, the EU was trying to get the world interested in protecting the climate.Continue reading “Zero Emission Plans Come Too Late for the EU”

By Mathew Carr Nov. 1-6, 2020 — LONDON: The climate dominos are teetering. The not-so-little push by U.S. voters toward Joe Biden just might do the trick — limit global warming and stop the planet from becoming uninhabitable. Biden, knowing climate protection can be demonised, has been a little vague about what he has in mind. But it’s clear from his policy stance that he’s going to be a whole lot more ambitious than Donald Trump, if he wins office. The Biden/Kamala Harris ticket says this: They will demand that Congress enact legislation in the first year of the presidencyContinue reading “Here’s the Deal — A Biden Win Means the U.S. Isn’t a Lost Cause on Climate (5)”

Oct. 30, 2020 — LONDON — Collapsing climate and plunging employment — the world’s supposedly smartest politicians still don’t seem to get it. Desperate to deal with a global pandemic that’s shuttered huge chunks of their economies, governments are STILL favoring the fossil fuels that are threatening the future health of their voters and the pleasant existence of the climate as we know it. This fascinating chart from Wartsila, the Finnish energy-technology company, shows just how dire the situation is: Don’t get me wrong. I fully realise fossil fuels are needed for years, even decades, to come. Many environmentalists don’tContinue reading “U.S. and U.K. Coronavirus Stimulus Money Focuses on Fossil Fuels Rather Than Clean Energy, Missing a Jobs Rebound”

Oct. 25, 2020 — LONDON — Listen to climate activist Greta Thunberg (and many others), and you’d think the world is way too greedy and selfish to save the climate. Global cooperation is close to dead, they say. And until now, I might have agreed … but something’s happening in the world of United Nations climate politics to make me much less certain. What’s cool is that Switzerland and Peru, for instance, are allowing at least some international — UN level — scrutiny of a trail-blazing carbon-trading arrangement, according to the contract published on the Swiss-government website. Sure, things areContinue reading “Here’s How Proper Climate Action Can Help Right a Few of the World’s Wrongs, Including Racism and Protectionism (3)”

— Seven Countries on a Fast-Track Energy Transition Will Boost Demand For Compliance AND Voluntary Carbon Credits —Agribusiness and Mining Companies Can Tap Even Cheaper Loans if They Buy UN, Gold Standard and Other Carbon Credits By Mathew Carr Oct. 20, 2020 — LONDON — A $1 billion finance package to help cut emissions in seven emerging countries has been structured also to stoke demand in struggling carbon markets. It shows how at least some governments are inclined to try new types of relationships with industrial companies, development institutions and private banks to win finance that will speed up theContinue reading “The Game-Changing Carbon Pricing Program That Nearly Didn’t Get Off the Ground (1)”

Oct. 20, 2020 — LONDON — Rich countries’ preference for offering climate finance via loans and carbon markets is seen getting in the way of an ambitious global climate deal next year. When developed nations promised in 2009 to pay $100 billion of climate assistance a year by 2020 to developing countries, the emerging nations mostly expected to get the money in the form of grants, Tracy Carty, senior policy adviser, climate change, at charity Oxfam, said in an interview. Instead, the true value of money provided by developed countries to help developing nations respond to the climate crisis mayContinue reading “Rich World Seen on Notice to Justify its Frugal Climate-Finance Habit”

By Mathew Carr Oct. 13, 2020 — LONDON: The future of energy and climate policy around the world is still hazy, but it’s coming into much sharper focus. That’s a relief for investors, who are pushing politicians and industry leaders to become more brave and more ambitious as they consider climate action. A global template is beginning to fall into place. Politicians in Europe have used a mix of policies to achieve big reductions in emissions the past few decades. Germany subsidised solar power, while Britain supported offshore wind generation. While this government assistance was indeed costly, those forms ofContinue reading “Taking the Political and Financial Fear Out of Climate Action — How Carbon Pricing Will Help Decarbonise Asia Like It’s Already Cleaning Europe (2)”

SHORT REPORT:Oct. 9, 2020 – London – The European Union has about 1 trillion euros of “shovel ready” green projects in its pipeline that could reach financial close within two years, according to a survey by management and accounting firm EY. The survey covered respondents including about a quarter of the top 30 European construction companies and demonstrates the opportunity available to politicians and investors from the coronavirus pandemic recovery: Climate & Strategy Chief Executive Peter Sweatman, speaking at an online OECD green finance event on Friday about the EY study. The EU is seeking to shift away from fossilContinue reading “Europe Has About 1 Trillion Euros of Green Projects Ready to Go Within Two Years: EY (2)”

By Mathew Carr Oct. 7, 2020 — London — European carbon allowances fluctuated after members of the European Parliament voted for the world’s biggest trade block to adopt a 60% emission-reduction target for 2030. The target, versus 1990 levels, would be 5 points tighter than that proposed by the European Commission. EU carbon allowances immediately surged more than 4%, then erased the increase by the close of the market at 5pm London time, partly because of concern about Brexit negotiations, according to newsletter Carbon Pulse. Finland was among nations immediately on board with the higher level of ambition for 2030,Continue reading “EU Carbon Allowances Jump Briefly After Parliamentarians Push Nations to Adopt Surprisingly Ambitious 2030 Target (2)”