Category Archives: Emissions Trading

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”.

29 August 2013 – Shifting Carbon Market Focus Shows Target Success (“The Pulse”, Bloomberg TV)

The European carbon market shows us that emissions trading can deliver greenhouse gas pollution cuts much more cheaply than forecast. The next challenge, which is for all nations of the world to consider, is how to reform carbon markets to realise their full potential to drive investment in cleaner technology. Click here to see Daniel Rossetto, Managing Director of Climate Mundial and global carbon markets expert, speaking yesterday in London with Bloomberg’s Guy Johnson on this critical topic.

28 August 2013 – Australian Carbon Market Survey published

Climate Mundial and Baker & McKenzie, working in association, today published the Final Report on the Australian Carbon Market Survey. In the first study of its kind, the Report presents the results of a Survey undertaken with approximately 30% of the market (within a total of just over 300 million tonnes of carbon emissions per year). The Final Report focuses on issues related to linking the Australian Carbon Pricing Mechanism (CPM) to international carbon markets and in particular:

  • possible demand for international emissions units and products ex Australia;
  • how regulations might affect trading behaviour and activity of Australian entities; and
  • what trading operations are being contemplated and infrastructure requirements this gives rise to.

The Final Report is available for limited commercial distribution. For further details, please contact us.

25 July 2013 – Trading Halt Shows UN Carbon System in Jeopardy (Bloomberg)

An unprecedented freeze in United Nations carbon trading is fanning speculation the five-year-old market designed to combat greenhouse-gas emissions in poor countries is in danger of becoming superfluous.

CER demand may recover as countries step up climate-friendly policies, according to Daniel Rossetto, the London-based managing director of Climate Mundial Ltd., an emissions-markets adviser. Prices have already more than doubled since sliding to a record low of 20 cents a ton on April 14. “These offset credits are going to be essential tender for rich nations” as they tighten emission-reduction targets, Rossetto said by e-mail yesterday.

To view the full article, click here.

18 July 2013 – Australian Carbon Market Survey launched

Climate Mundial and Baker & McKenzie today launched the Australian Carbon Market Survey. The aims of the Survey are:

  • To gain a better understanding on the products that would be most helpful to assist Australian companies to maximise benefits under the international linking provisions of the Clean Energy Act 2011 (and amendments) and their potential demand
  • To assist market development by fostering a better understanding of needs, requirements and regulatory constraints that apply to international emission unit trading activities between Europe and Australia

The Survey, which closes on 2 August, is being sent to major carbon market participants in Australia to ensure a good cross section of responses is obtained from across the market, including liable entities, intermediaries, trading platforms and banks.

If you are interested in participating in the Survey, please contact us.

9 July 2013 – Rich-Poor Carbon Offset Price Gap Set to Narrow

Spread between United Nations Certified Emission Reduction credits and Emission Reduction Units will probably narrow as European Union regulators install system to convert offsets into bloc’s carbon permits, according to Climate Mundial managing director Daniel Rossetto in an interview today with Bloomberg news.

For details of the interview, please contact us.

3 July 2013 – Backloading proposal 60% probability to pass EU Parliament (Bloomberg)

The backloading proposal for the EU emissions trading system has a 60% chance of passing today’s plenary vote in the European Parliament, according to Climate Mundial managing director Daniel Rossetto, reported earlier today on Bloomberg News. The measure later in the day secured passage with a 344-311 vote in favour of its adoption.

For details of the full report, please contact us.