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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, 2020 — LONDON: Here below is my messy list of the power stations 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 as the NationalContinue reading “MASSIVE CHALLENGE: This is What China’s 2,267 Fossil-Fuel Power Plants Look Like on Paper (1)”

— 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, 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 (Correct)”

— 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)”

By Mathew Carr Oct. 7, 2020 — London — Traders are making record bets on North American carbon and renewable futures, as Joe Biden leads in polls ahead of next month’s presidential vote. Open interest, a measure of trades that have not yet been closed, is at record levels for the time of year, according to data from ICE, the exchange group with most environmental business. See this snip of a chart on ICE’s website: The chart shows open positions and trading volume for California carbon allowances, Regional Greenhouse Gas Initiative contracts and Renewable Energy Certificates, by month. While theContinue reading “Open Bets on Carbon Futures in North America Are at Record Levels Ahead of Presidential Election”

Oct. 6, 2020 — London: The panel overseeing the main United Nations carbon market delayed key decisions that would have overcome a potential gap in the market’s operation at the end of the year. The Clean Development Mechanism Executive Board considered the implications of the postponement of UN climate talks to November next year because of the coronavirus pandemic, it said in a report detailing the outcome of meetings that took place during the past two weeks in Bonn and virtually. The panel would further consider at a meeting scheduled through Dec. 14 whether emission credits generated “on or after”Continue reading “Risk of Gap in UN Carbon Markets Persists After Panel Delays Key Decisions”

By Mathew Carr London — Oct. 2: Patricia Espinosa, executive secretary at the UNFCCC, said Friday the Kyoto Protocol would be extended through this year. The missive shows multilateral climate talks have not completely fallen off track. With the extension (known as the Doha amendment) secure, UN climate envoys can more easily finish the complicated task of agreeing international accounting and carbon-trading rules under the Paris climate deal. This will stop two countries claiming the same emission reduction, for instance. At talks in Madrid late last year, UN envoys considered allowing a certain portion of emission credits created during theContinue reading “The Paris Climate Deal Might be About to Get a Bit Bitey … Finally (2)”

REPORT SHORT:Oct. 2, 2020 — London — More money in a small United Nations loan program to encourage renewable energy in developing nations was written off than repaid. The Clean Development Mechanism Loan Scheme was launched in April 2012. About $1.6 million was written off, while $1.3 million was repaid, according to a report being considered through Monday at a meeting of administrators of the CDM, the UN carbon offsetting market. A fundamental assumption underpinning the program was that once the CDM projects had achieved registration, the loans would be repaid using the proceeds from selling Certified Emission Reduction creditsContinue reading “Attempt to Loan Money Against UN Emission Credits Hit by Defaults”