All posts by Climate Mundial - London

EU Permits Rebound After Biggest Drop for 10 Months

Speaking today with Bloomberg News, Climate Mundial managing director had the following to say about the recent softening in demand for EU carbon permits after the initial rally in response to the approval of backloading:

“Reasoned caution has begun to catch up with the somewhat euphoric reaction to backloading. Caution comes because the commission’s 2030 package is theset of reforms that can make a difference to fundamentals and it is quite clear this will still face some political obstacles before it can be passed.”

Contact us for full details of the interview.

Green Climate Fund Seen Demanding UN Carbon Credits (Bloomberg)

As the Board of the Green Climate Fund meets in Bali, Indonesia from 19-21 February, Climate Mundial draws attention to the possible design of the Fund’s Private Sector Facility, which will be of interest to participants in the CDM market.

On the CDM the paper states:

“Regardless of the fate of carbon credits as compliance instruments in a post-2020 world, the Clean Development Mechanism (CDM) has created a credible and transparent framework for results-based (pay-for-performance) financing of low cost mitigation activities, in poor rural and urban communities in developing countries. Using reverse auctions to establish required floor prices, the PSF could provide price guarantees on certified emission reductions (CERs) from CDM projects that supply clean efficient cook stoves, high-efficiency lighting, solar photovoltaic supply and solar energy appliances, small-scale biomethanation projects and the like, driving private capital into marketplaces and countries where the product and services are unaffordable and private capital is rarely deployed at scale. The PSF could retire the CERs to avoid double-counting by re-use of these CERs for compliance purposes.”

This item and others related to climate finance were the subject of an interview today by Climate Mundial managing director Daniel Rossetto with Bloomberg News. Contact us for further details about the interview.

EU Carbon May Advance as EU Nations Consider Tightening Limits – Bloomberg

European Union carbon permits may advance in the next five months as 37 nations in the Kyoto Protocol consider tightening emission limits before 2020, according to Climate Mundial Ltd. in London. Each industrialized country in the climate-protection agreement needs to provide United Nations officials by April 30 “information relating to its intention to increase the ambition of its commitment,” according to a decision agreed a year ago in Doha, Qatar. Kyoto’s second-commitment period, which runs from this year, sets nations’ emission limits until 2020 when a new treaty is set to start.

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6 November 2013 – Global Climate Deal Should Include Emissions Budget, CMIA Says (Bloomberg)

There is scant evidence nations are drawing up more ambitious national budgets to include in the 2015 deal, said Daniel Rossetto, managing director of Climate Mundial Ltd in an interview with Bloomberg News. “The absence of prior national approval of carbon budgets and the failure of developed nations to come good on their Copenhagen climate finance pledges are the most important barriers to getting carbon budgets in the deal,” he said today.

To read the full article, please click here.

8 October 2013 – EU Can Keep Airline Carbon Plan Using UN Credits, IETA Says (Bloomberg)

“If the EU can correct some of the shortcomings in its emissions trading system design, there is scope to find agreement” with its trading partners on keeping some international flights, Daniel Rossetto, the managing director of Climate Mundial Ltd. in London, said in an Oct. 4 phone interview with Bloomberg’s Mathew Carr. There’s a “better-than-even” chance the bloc is willing to forgo charging for emissions outside its airspace, he said.

To read the full article, click here.

20 September 2013 – France Revives Push for Carbon Tax on Energy-Intensive Imports (Bloomberg)

Bloomberg News reported today:

French President Francois Hollande said Europe should consider introducing a carbon tax on imported goods from regions without climate protection policies, reviving an idea mooted more than three years ago.

Hollande’s move to protect industry may be sound, Daniel Rossetto, managing director of Climate Mundial Ltd. in London, said today by telephone. “But as we’ve seen with aviation, it can get hostile and lead to threats to export markets,” he said.

To read the full article, click here.

18 September 2013 – Repeat Regulatory Delays Hamper EU Carbon Trade, Steelmakers Say (Bloomberg)

Bloomberg News reports today on the impact of recent regulatory decisions in the EU carbon market on steelmakers:

A series of delays in the European Union carbon market, the world’s largest by traded volume, is hampering business planning, according to a lobby group in Brussels representing steelmakers. EU factories and power stations will be able to exchange United Nations carbon offsets for EU permits from February next year, about 13 months later than indicated by the European Commission last year. The regulator is seeking information allowing it to determine the eligibility of some credits, it said in a Sept. 16 statement. “We are not happy with this delay,” Axel Eggert, a spokesman for Eurofer, the steel industry group representing companies from ArcelorMittal (MT) SA to Tata Steel Ltd. (TATA), said yesterday by phone. “The commission is poorly implementing the directive,” he said, citing a six-month delay in a decision made Sept. 5 on the volume of free permits handed out.

“These unforeseeable and unpredictable regulatory processes are in fact further eroding the level of confidence that investors have in the market,” Daniel Rossetto, managing director of Climate Mundial Ltd. in London, said today by phone. “This is a shame because these markets really do work.”

To read the full article, click here.

11 September – Abbott May Keep Rebadged Australian Carbon Plan (Bloomberg)

Australian Prime Minister-Elect Tony Abbott is likely to keep market-based carbon program after scrapping the current fixed-price system, similar to a plan by outgoing Prime Minister Kevin Rudd, according to Daniel Rossetto, managing director of Climate Mundial in an interview in London today with Bloomberg News.

People forecasting repeal of Clean Energy Act 2011 overlook the difficulty of Abbott’s coalition government getting Senate support to introduce its Direct Action policy. If the coalition repeals the Clean Energy Act 2011, Australia may end up in the highly spurious position of having a climate target of a 5% cut by 2020 but no policy to achieve that goal for several years if at all, said Rossetto, a member of Australian National Emissions Trading Taskforce from 2004-06.

Rudd pledged to remove nation’s fixed carbon price a year ahead of schedule as part of move to market system. According to Rossetto: “Coalition repeal of existing law before introducing new program will fuel speculation that Abbott doubts need for climate-protection policy. This fact alone will be enough to dissuade the public from supporting repeal. I see repeal as becoming quite improbable”.