Climate 411

California-Quebec market continues to thrive

By Katelyn Roedner Sutter / Published: February 27, 2019
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.

Read More »

Also posted in California / Read 1 Response

Will governments disappoint again on carbon accounting at upcoming aviation meetings?

By Kristin Qui / Published: February 4, 2019
https://www.pexels.com/photo/silhouette-of-airplane-during-sunset-99567/

Silhouette of Airplane during Sunset. Pexels.com

Some major companies, including airlines, took the lead last December in Katowice, Poland in rejecting the use of dubious carbon credits toward their climate efforts. Despite this drumbeat against bad rules for cooperative approaches under Article 6 of the Paris agreement, experienced government negotiators fell short and did not finalize these guidelines in Katowice. This month in Montreal, governments could decide the fate of carbon credits for the Carbon Offsetting and Reduction System for International Aviation (CORSIA), but will they ignore business demand for good credits by allowing aviation emissions reductions to be double counted?

Let’s look behind the negotiating curtain and unpack how companies got involved, why governments should pay attention to companies’ push for environmental integrity and what governments can do in Montreal to maintain the integrity of CORSIA.

Read More »

Also posted in Aviation, International, Paris Agreement, United Nations / Read 1 Response

Oregon poised to cap carbon pollution

By Erica Morehouse / Published: January 28, 2019
https://www.flickr.com/photos/jeffgunn/8237668817/in/photolist-cXAqeb-eKtpYD-22HdzME-2aKADbW-j3fACu-rdqUSL-4psFMA-h2pgpG-JLrzPx-2cQryfW-pHj7q7-CnaWpN-dxWcWH-r7SPf-ezHCnq-hyMSjJ-sw97qX-ZxDuR-ssSyRn-sonWuA-q4Mraz-dByjPK-ixGyPj-eZuV1t-rBC5Ao-LrCUZQ-ipr4Ze-jfT1pG-rgTCFb-ejLRAy-nmvBz-fcNTHb-oZGWqn-rBBBZr-ekSVRZ-r7SK44-C6i95A-moDYBA-A7nips-tRD7vz-eczcuJ-pVPQ1S-txYbBh-oN7iF4-sgBqMh-ydRfMa-ejLUy7-kuNYkr-rYC7pz-pXL8dN

Portland, Oregon. Flickr/Jeff Gunn

Federal climate action is in an indefinite holding pattern with a serious risk of major backtracking; but the good news is that non-federal climate action has continued, with states, cities and businesses gearing up to take big strides toward the commitments they have made on climate.

Oregon is one key state with a big opportunity for bold action in 2019. The state Legislature reconvened on January 22 and will consider a “cap and invest” bill that promises to place a firm limit on the state’s climate pollution while ensuring continued investments in resilient communities, green jobs and clean energy. Legislators are expected to release bill language by January 31.

Read More »

Also posted in Cities and states / Read 2 Responses

A growing call for environmental integrity

By Susanne Brooks / Published: December 18, 2018

The recent introduction of bipartisan carbon fee legislation is demonstrating an important pattern taking hold as policymakers focus on climate change solutions. The Energy Innovation and Carbon Dividend Act, like the MARKET CHOICE Act introduced earlier this year by Republican Rep. Curbelo, recognizes that any carbon fee aimed at meeting the challenge of climate change must be designed with environmental performance in mind.

The new legislation is the first time in a decade that lawmakers from both sides of the aisle have come together to put forth serious climate policy. And like the MARKET CHOICE Act, it uses a fee to reduce pollution across the economy and includes “environmental integrity mechanisms” (EIMs) — provisions that tie a carbon fee to clear, measurable pollution reduction goals and keep us on track to meet those goals. EIMs are still a relatively new concept on the climate policy scene, but leading thinkers have begun to pay them significantly more attention, and it is clear they are emerging as a critical component of any serious carbon fee proposal: and with good reason.

A carbon fee – which sets a price per unit of pollution – prompts the economy to respond by providing powerful incentives to reduce that pollution, but it cannot guarantee the environmental result. While energy and economic modeling tools can provide critical insight into possible or likely outcomes, they cannot provide certainty over the magnitude of the impact. That’s why it is critical to include EIMs designed to provide greater assurances that a fee will deliver on its pollution reduction potential. Read More »

Also posted in Cars and Pollution, Climate Change Legislation, Economics, Greenhouse Gas Emissions, Policy / Comments are closed

Could aviation loopholes swallow climate progress?

By Annie Petsonk / Published: December 11, 2018

Letting CDM credits into the aviation climate agreement could cut CORSIA’s effective participation from about three quarters down to less than 20 percent, negating its climate impact.

https://www.flickr.com/photos/dsleeter_2000/5081622399/

Airplane taking off from San Francisco. Flickr/ dsleeter_2000

As bleary-eyed negotiators at the UN Framework Convention on Climate Change Conference of the Parties (COP) in Katowice, Poland, struggle through late nights of haggling over rules for implementing the 2015 Paris Agreement, one challenge they face is how to energize a global competitive market for cutting climate pollution, while ensuring the integrity of that market.

Technical talks in the far recesses of the giant conference center are focused on two key issues: carbon credit quality, and accurate book-keeping.

Read More »

Also posted in Aviation, News, Paris Agreement, United Nations / Read 2 Responses

COP 24: Transparency, ambition and carbon markets on the Paris rulebook agenda in Katowice

By Alex Hanafi / Published: December 3, 2018

See EDF’s COP 24 materials and meet our Katowice team at edf.org/cop24.

As the world’s leading climate scientists made clear in a recent special report, we are in the race of our lives against climate change, and we need to move faster. The Paris Agreement’s rapid entry into force in 2016 broke records, but records are also being broken outside of the UN that emphasize the urgency of action: record wildfires, record temperatures, record storms, record levels of carbon in the atmosphere.

So the stakes are high in Katowice, Poland, as countries meet to finalize the operating manual for the landmark Paris Agreement on climate change. In 2016, countries set themselves a deadline of this year to complete their task. Once agreed, the Paris “rulebook” will guide them in their efforts to implement the Agreement, including how countries will measure, report and hold each other accountable to their Paris commitments.

Two interrelated issues will be particularly important for the rulebook discussions in Katowice.

First is how to operationalize the Paris Agreement’s transparency system; transparency is vital to strengthening ambition and to the success of the agreement itself.

Second is how that transparency system should link to a new framework for international carbon market cooperation designed to spur the deeper emissions cuts that climate science demands. Read More »

Also posted in Paris Agreement, United Nations / Authors: / Comments are closed