CARBON IN THE NEWS
WEEK 6 2012
Airlines face $670 mln carbon pollution charge in 2012
Airlines face a carbon pollution bill of 505 million euros for this year under a controversial EU emissions trading scheme, an analysis by Thomson Reuters Point Carbon on Thursday shows.
Carriers joined the scheme, which covers carbon emissions from European and foreign airlines flying into and from EU airports, on Jan 1. The scheme has triggered widespread anger among foreign governments and carriers because the cost is calculated on the emissions from the point of origin, not just in Europe. This has led to accusations the European Union is exceeding its jurisdiction in a row that risks escalating into a full-blown trade war. China this week banned its airlines from participating without its permission and, along with India and the United States, warned of retaliatory steps. The latest analysis by Point Carbon, which provides market intelligence, news and advisory services, calculated the cost based on the price of EU emissions allowances traded as of Monday at 8.56 euros and the latest emissions forecasts for carriers. Each allowance represents a tonne of emissions. The latest estimate is half Point Carbon's 1.1 billion euro forecast in September when EU carbon permit prices were 12 euros. In that analysis, Point Carbon forecast a total carbon cost to airlines of 10.4 billion euros by 2020. To read this article in full click here
The tangier plant emits zero carbon and zero industrial liquid discharges thanks to joint efforts of Morocco, Renault and Veolia Environnement. These staggering results are achieved through the latest innovative manufacturing processes, the use of renewable energy and the optimization of the water cycle, according to Renault’s website. CO2 emissions from the Tangier plant are cut by 98%, a figure that represents 135,000 fewer tons of CO2 every year, by optimizing energy consumption and using renewable energies. The few remaining tons of CO2are offset either by buying carbon credits or by generating renewable energy on site. The plant does not discharge any industrial liquids and cuts its water consumption for manufacturing processes by 70% in comparison with a plant with equivalent output capacity. To read this article in full click here
Russia issues 462 mln Kyoto permits
Russia has issued 462 million CO2 permits that it can use to meet its international goal to cut emissions, according to government documents, a move that one trader said could further depress U.N.-backed Certified Emission Reductions (CERs) prices. Moscow issued the so-called removal units (RMUs) last month for cutting emissions by improving forest management in 2008, according to a document dated Feb. 7 and published on the national carbon registry website. “They were just issued without any aim on the next movement to any other registry,” an official with the Russian carbon credit registry said in response to a question about whether the government planned to sell the units. The permits cannot be used by EU companies to meet caps in the European carbon market. But one trader said that, if sold, they could displace demand for U.N.-backed CERs outside of Europe’s market and indirectly increase offset supply at a time when prices are hovering near record lows. To read this article in full click here
Should airlines keep fighting the EU cap-and-trade?
For over six months, US and China have been strongly opposing the EU plan to include their airlines in the European Trading Scheme (ETS). Yesterday, China took the next step on this opposition by banning its airlines from paying such a tax. Here is a quick refresher on the ETS ruling that went into effect January 2012. All airlines are expected to reduce total CO2 emissions of flights landing or departing from European airports. To achieve this, the EU computed a baseline CO2 emissions using 2004-2006 averages. This baseline was then used as a reference point to calculate a “cap” on the total airline emissions: for 2012 this “cap” was set to 97% of the baseline and will be reduced to 95% starting in 2013. The cap was split among the various airlines that operate in EU airports. Airlines are allowed to emit 85% of their annual cap for free (82% starting in 2013). They have to buy permits to emit the remaining CO2 of their cap. The EU rational is simple: airlines that are more efficient in reducing their emissions (e.g. have newer airplanes, more efficient operations) may end up with extra permits to sell in the market, to keep for a rainy day or to support future growth. As those extra permits are sold and traded, a “price” signal is created for airlines that are emitting more than expected. To read this article in full click here
KfW delivers $13m boost for African low-carbon investment
Florian Sekinger, who is head of KfW’s carbon fund, says the new Future of the Carbon Market Foundation will provide finance for Clean Development Mechanism (CDM) projects at an early stage, bridging one of the barriers that has stymied the development of renewables in poorer areas of the world. The fund will back a carefully selected number of CDM projects, which bundle together thousands of similar emissions-reduction activities — such as household biogas plants, or replacing incandescent light bulbs with energy-saving ones — into a single project.
Such projects, known as Programmes of Activities (PoAs), are seen as a way of scaling up emissions reductions in countries that lack the ability to develop big wind farms or curb emissions from industrial flue gases. To read this article in full click here
Spain Needs $466 Million in Carbon Credits to Meet Kyoto Limit
Spain may need to buy at least 355 million euros ($466 million) of carbon emissions permits to meet its obligations under the Kyoto Protocol, Agriculture Minister Miguel Arias-Canete said. The country will need at least 67 million metric tons of emissions permits to cover greenhouse gas emissions that exceed the volume allowed under the 1997 Kyoto agreement, Arias-Canete told a parliamentary committee last week. “The government needs a lot of permits,” the minister said. Its liabilities “are far higher than forecast by the previous government so the situation is really worrying.” Under the Kyoto Protocol, developed nations can meet their goals by buying so-called Assigned Amount Units from other countries with surplus permits, or by investing in emissions reductions in developing countries in exchange for carbon offsets. Spain has already spent about 750 million euros over the past five years accumulating emission permits and offsets after the economic boom that followed the Kyoto negotiations saw Spanish emissions overshoot. Spain’s 2010 greenhouse gas emissions are about 22 percent higher than they were in 1990 compared with a Kyoto-mandated ceiling of a 15 percent rise over 1990 levels by 2012, Arias-Canete said. United Nations carbon futures for December 2012 delivery gained 3.9 percent to 4.24 euros a ton on the ICE Futures Europe exchange at 4:45 p.m. in London. To read this article in full click here
t: +44 (0) 20 3384 8680
www.gmouk.com
No comments:
Post a Comment