Tag Archives: carbon-markets
UN Takes Steps To Boost Demand For Carbon Market Credits
Grenada office will help Carribbean countries identify projects for the Clean Development Mechanism Grenada in the Caribbean is the setting for the UN’s third collaboration centre. (Source: rappensuncle) The UN has taken steps to accelerate the development of carbon markets in the Caribbean with the opening of a regional collaboration centre in Grenada. The office will help local governments, NGOs and businesses interested in accessing the Clean Development Mechanism (CDM) identify projects and opportunities. The CDM is the only truly global carbon market, and is designed to develop low carbon projects in the developing world with financing from richer nations. “The regional collaboration centres aim to increase participation in the CDM, but their work differs substantially from region to region and from project to project,” said the chair of the CDM executive board, Peer Stiansen. “The centre in Grenada will focus on the needs of the Caribbean Region in an effort to make it an increasingly attractive destination for CDM projects.” This is the third regional collaboration centre established by the UNFCCC, with the first in Lomé, Togo and the second in Kampala, Uganda. Analysts say it urgently needs to boost interest in its carbon trading system in order that it remains relevant. Yesterday Bloomberg reported an “unprecedented freeze” in UN carbon trading. According to data from ICE Futures Europe, no UN Certified Emission Reduction, or CER, changed hands on July 22 and July 23. Supply of CERs currently outstrips demand, and prices have dropped by 80% since the start of the year, raising concerns that the mechanism is losing its ability to operate. Earlier this month, the CDM passed the 7000 project mark with 1,000 new projects having been accepted since February. – See more at: http://www.rtcc.org/…h.7Wd5sEGG.dpuf Continue reading
Australia Plans To Scrap Carbon Tax Early
23 July 2013 Ned Stafford A$6 per tonne. Connie Hedegaard , European commissioner for Climate Action, welcomed Rudd’s announcement, tweeting that she now would like to accelerate the linkage of Australia’s emissions trading scheme with the EU’s ETS. The EU and Australia agreed last year to take the first step toward a full link in 2015, when Australian business will be able to use EU carbon permits. A full linkage, allowing EU businesses to use Australian permits, would be established no later than 1 July 2018. The emissions trading system and carbon tax has had a long and difficult political history in Australia, meaning Rudd’s plan is not a done deal, especially with national elections due between late August and November. In 2010, the Greens demanded enactment of the carbon tax from now ousted prime minister Julia Gillard in return for their support in forming a coalition government. The principal opposition leader, Tony Abbott, has vowed to abolish any form of carbon pricing if he is elected. Several environmental organisations have voiced support for Rudd’s plan to establish an emissions trading system after scrapping the carbon tax. ‘We are glad the government is giving businesses certainty that an emissions trading scheme is here to stay, allowing them to factor a long-term carbon price into their investment decisions,’ said Kellie Caught , WWF Australia spokesperson. But Greg Evans , chief economist at the Australian Chamber of Commerce and Industry, described Rudd’s plan to kill the carbon tax in 2014 and replace it with carbon trading as a ‘short term fix’. He wants any sort of carbon pricing to ‘be eliminated in full’, adding: ‘An ETS will still be a multi-billion dollar unilateral cost most of our competitors don’t have to pay and this will be negative for the economy and jobs.’ Continue reading
Carbon Tax Dumped: How Do We Get To 100% Renewable Energy?
22 July 2013, 5.24am BST Carbon tax dumped: how do we get to 100% renewable energy? AUTHOR Jenny Riesz Research Associate – Centre for Energy and Environmental Markets at University of New South Wales DISCLOSURE STATEMENT Jenny Riesz receives funding from the CSIRO and the Australian Renewable Energy Agency (ARENA) It’s hard to imagine a future without fossil fuel, but sound modelling can help. Dave Clarke The Federal Government has sparked significant debate with the confirmation it intends to move from a fixed carbon price to an emissions trading scheme next year. But where is the description of the long term, low carbon future for Australia? Aside from the 90% renewable energy target proposed by the Greens, the major parties are slim on long-term vision. International experience suggests that when we start talking about long term futures, it can dramatically shift debate towards a long term vision. It’s particularly important to outline those futures that are most different from the present, so that they can be clearly understood. The Australian Energy Market Operator (AEMO) recently released a landmark report showing that shifting to 100% renewable electricity is a feasible and affordable option for the Australian National Electricity Market. Coming from the highly conservative body responsible for “keeping the lights on”, this carries a hefty credibility. The operator’s modelling shows that a 100% renewable power system could be installed for around a 20‑30% increase from present retail electricity prices. In the context of rising fuel prices and mounting pressure to reduce greenhouse emissions, the cost of a 100% renewable power system could be similar to what we would be paying for electricity anyway by around the year 2030 . But a 100% renewable system is very different from the one we currently operate. We currently source only around 10% of Australia’s electricity from renewables. The energy market operator’s modelling of a 100% renewable future has already significantly shifted the debate within industry. Seen as “crazy talk” only a few years ago, 100% renewable scenarios are now being discussed as genuine and valid options by an increasing number of industry organisations. opment of renewable energy technologies means results from this modelling will date rapidly. For the 100% renewables option to stay on the table we need to update the modelling regularly. This makes sure our leaders are well informed of all the options, and the market understands all possible futures in which they might be operating. Familiarity bias and institutional barriers often make it hard to consider alternatives based upon radical changes in technology, and this is particularly prevalent in the electricity industry. Often, the very methods we use limit possible outcomes, potentially ruling out entire technology classes. This certainly applies in the recent modelling conducted by the electricity operator. The existing models for routine long term planning could not deal with large quantities of wind and photovoltaics. The operator had to develop a whole new model. When the electricity market operator is making long term projections it has to look beyond the three year political cycle and be guided by hard science. It should consider a range of scenarios in line with Australia’s international commitments to do our “fair share” of limiting global warming to 2°C. We have to consider and plan for rapid trajectories for emissions reduction as one of a range of futures that may eventuate. This informs our leaders and helps market participants make effective decisions about large investments. The energy market operator has invested substantial time and effort in developing the modelling tools and methodologies to make this study possible. We should keep using them: the ongoing expense is likely to be very modest in the context of the investment we need to address all the challenges the electricity industry faces. The modelling is vital to properly understanding the limitations, costs, risks and opportunities of the full range of options on the table. We are, after all, talking about Australia’s energy future. Decisions made now will affect our nation for generations to come. Beyond modelling, how would we get to this 100% renewable future in reality? Many policy mechanisms are available – we could expand and extend the Renewable Energy Target as suggested by the Greens , or we could ensure stable carbon prices at a sufficiently high level. Other nations have also applied utility scale feed-in tariffs to great effect, similar to that now being put in place to drive solar development in the ACT . In the short term debate on the carbon price, let’s not forget about the long term vision. Policy makers have a great opportunity to inexpensively shift debate by asking the electricity market operator to continue modelling 100% renewables scenarios in the years to come. This is an essential first step to get us there. Continue reading
