Climate 411

California must defend rules to protect health, especially now

This post was coauthored by Katelyn Roedner Sutter, Pablo Garza and Lauren Navarro.

A man walks his two kids along the road during San Francisco Bike & Roll to School 2018. San Francisco Bicycle Coalition via Flikr.

A public health emergency is precisely the wrong time to undermine measures meant to improve air quality, address environmental health disparities, or ensure the sustainability of our common resources. In fact, the COVID-19 public health crisis makes it more essential that California upholds its bedrock environmental and health rules, and ensures clean air and water for all.

A preliminary nationwide analysis by Harvard University shows COVID death rates are higher in counties that had higher levels of air pollution in advance of the pandemic. This underscores the vital importance of pollution protections for human health, both during and after the COVID-19 crisis.

Understanding the importance of having rules to protect California’s health, environment and natural resources, 37 California legislators, led by Assembly Member Eloise Gomez Reyes, have called on Governor Gavin Newsom to “resist efforts to roll back any current protections” and to focus on the health and environmental impacts in the state’s most vulnerable and disadvantaged communities. They know that weakening these safeguards will mean more cancer, more asthma attacks, more heart and lung problems, and more loss of life for Californians.

The following summarizes some key programs and protections that appear to be under threat, and where California should heed the call of these legislators to stand firm:

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Posted in California, Cars and Pollution, Cities and states, Health / Comments are closed

California-Quebec carbon auction kicks off 2020 with record allowance price

Keywords: Perazzo Meadows, Truckee, CA, California. Natural and working lands are part of California’s climate strategy. EDF/Mathew Grimm

The results of February’s joint California-Quebec auction are in, and 2020 is off to a strong start in the Western Climate Initiative. Fewer allowances were available in this auction than in the past, which could help explain the record high settlement price.

Highs and lows of the February 2020 auction:

  • All 57,090,077 current allowances sold. Notably, this amount is over 10 million fewer allowances than what was offered at the last auction in November 2019. It is also the lowest volume of offered allowances since the very first joint auction in November 2014.
  • Current allowances cleared at $17.87, which is $1.19 above the price floor of $16.68. This is 87 cents higher than the November 2019 clearing price of $17.00 and 42 cents higher than the previous record-high price of $17.45 from the May, 2019 auction.
  • 8,672,250 future vintage allowances were offered for sale, and all of them sold as well. With over 350,000 fewer future allowances than the November 2019 auction, this was the smallest volume of future allowances ever offered.
  • The future allowances cleared at $18.00, $1.32 above the floor. These allowances cannot be used for compliance until 2023.
  • The auction raised approximately $600 million USD for the Greenhouse Gas Reduction Fund, which California will use for programs that further reduce climate and local air pollution and advance environmental equity.
  • Quebec raised over $240 million CAD (approximately $185 million USD) to support climate action in the province.

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Posted in California, Carbon Markets / Comments are closed

California climate program remains solid as transportation emissions fall

Bixby Bridge, California. Photo by Dave Lastovskiy on Unsplash

Today’s solid results from the latest Western Climate Initiative cap-and-trade auction demonstrate once again the resilience of the market. Yet this is not the only interesting news out of the California market this quarter as the state released the preliminary 2018 emissions inventory, which showed that transportation emissions fell for the first time since 2012.

First up, auction results:

  • All 67,435,661 current allowances sold, clearing at $17.00, $1.38 above the floor price of $15.62. This is $.16 lower than the August 2019 clearing price of $17.16.
  • All of the 9,038,000 future vintage allowances offered also sold at $16.80, $1.18 above the $15.62 floor price. These allowances are not available for use until 2022.
  • The auction raised approximately $739 million for the Greenhouse Gas Reduction Fund, which California uses for activities that further decrease greenhouse gas emissions, improve local air quality, and support the state’s most vulnerable communities.
  • Quebec raised over approximately $245 million CAD (approximately $185 million USD) to fund their own climate priorities.

These results are generally consistent with the past several auctions, but there are a couple of points worth noting:

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Posted in California, Carbon Markets / Comments are closed

California releases updated Tropical Forest Standard: Here are the highlights and why CARB should endorse it

The California Air Resources Board (CARB) this week released an updated version of the proposed Tropical Forest Standard (TFS) for consideration at its September 19 Board meeting. CARB made some important changes to the TFS in response to feedback from members of the California Assembly, indigenous leaders, environmental groups, environmental justice advocates, and subject-matter experts.

Endorsement of the TFS would value tropical forests for the extensive climate benefits they provide. It would also be a major step forward for tropical forests and the communities who live in and defend them. And these proposed changes would make the TFS even stronger in the fight against tropical deforestation.

In general, the changes CARB has made – responding to public and policymaker feedback – add detail and clarity that strengthen the accountability built into the TFS. The more specificity, the easier it is to ensure the standard is upheld and ultimately helps deliver the emission reductions from stopping tropical deforestation that the climate so desperately needs.

Here are the key changes to the proposal. (A Tropical Forest Standard refresher may be helpful before diving in.)

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Posted in California, Carbon Markets, Forest protection, Indigenous People / Read 1 Response

In strong WCI auction, prices clear significantly above floor. Here’s why.

shutterstock_574821853 full size

The California coast. Shutterstock.

The strong results of today’s California-Quebec cap-and-trade auction once again illustrate the stability of the market as all current and future allowances sold. At the same time, we are seeing some interesting market trends.

May auction at-a-glance

  • All 66,321,122 current allowances sold, clearing at $17.45, $1.83 above the floor price of $15.62. This is the highest price and highest premium on the floor price seen in a linked Western Climate Initiative (WCI) auction, and $1.72 higher than the February 2019 clearing price.
  • More than 14.5 million fewer allowances were offered for sale than at the February auction because there were no previously unsold allowances from California. This is the first time an offering has not included previously unsold California allowances since August 2017.
  • All of the 9,038,000 future vintage allowances offered also sold at $17.40, $1.78 above the $15.62 floor price. These allowances are not available for use until 2022.
  • The auction raised over approximately $740 million for the Greenhouse Gas Reduction Fund, which California uses to support climate investments in agriculture, transportation electrification, and improving local air quality.
  • Quebec raised over approximately $250 million CAD (approximately $190 million USD) to fund climate investments in the province, adding to the $3 billion CAD in revenue already generated.

So why is the price significantly above the floor price? A couple of different factors could be contributing to the clearing price in May’s auction:  Read More »

Posted in California, Carbon Markets / Read 1 Response

California-Quebec market continues to thrive

California cap and trade, renewable energy

Alta Wind Energy Center, California, Photo source: Steve Boland/flickr

February’s joint California-Quebec cap-and-trade auction demonstrated again that the market is strong. Despite uncertainty over PG&E’s position in the aftermath of its bankruptcy filing last month, all current and two-thirds of future allowances sold.

February’s auction by the numbers:

  • All 80,847,404 current allowances sold, including previously unsold allowances and consigned allowances from utilities like PG&E. This sale cleared at $15.73, 11 cents above the floor price of $15.62.
  • 5,983,000 of the 9,038,000 future vintage allowances offered also sold at the floor price. These allowances are not available for use until 2022. This is the first auction since the floor price increased to $15.62, so businesses have three more auctions at this price floor to purchase allowances that cannot be used for three more years.
  • Approximately $853,508,096 was raised for the Greenhouse Gas Reduction Fund which the state uses to support climate investments in frontline communities, improvements in local air quality, and other projects to further reduce greenhouse gas emissions.

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Posted in California, Carbon Markets / Read 1 Response