Issue: 29 Friday, 12 March 2021
Dear ,
The first quarter of 2021 has come and gone in a flash. Around the world, countries are beginning to chart their way out of the global COVID-19 pandemic, which has impacted not only our public health and economies, but also the way we live. We are currently witnessing the various roads to more immediate economic and societal recovery unfold. But our gaze is also drawn to the future and how we can ensure these recoveries remain in line with the longer-term, ambitious climate targets that are necessary for a safe and sustainable future for all. With countries around the world increasingly announcing carbon neutrality targets and setting in motion or improving existing policy packages—many of which include carbon pricing as a key pillar—it is clear that despite the challenges the pandemic continues to pose, we are not losing sight of the path to net zero. Our ongoing virtual collaborations remain as strong as ever, keeping us connected across borders as we work towards ever more ambitious and resilient climate policies.
As always, we are pleased to share the ICAP newsletter with you, a quarterly summary of the latest developments in emissions trading around the world and an update on ICAP activities.All the best,The ICAP Secretariat
China has launched its national ETS for the power sector starting 2021, bringing the world’s largest carbon market online after years of preparation. Key policy documents were published on 5 January 2021 providing the legal basis for the ETS, the final allocation plan, and the list of covered entities. The first compliance cycle of the national ETS will run from 1 January to 31 December 2021 and will regulate 2019 and 2020 emissions of around 2,200 entities in the power sector. Experts estimate that the system covers over four billion MtCO2, accounting for around 40% of national carbon emissions. The ETS is expected to be one of the key policy instruments to realize China’s recently announced mitigation targets: peaking carbon emissions before 2030 and achieving carbon neutrality by 2060. Read more here…
On 1 March 2021, the four signatory jurisdictions of the Transportation and Climate Initiative Program (TCI-P) – Connecticut, the District of Columbia, Massachusetts, and Rhode Island – released a draft Model Rule with program details and a schedule for implementation for the envisaged transport sector ETS in the Northeastern United States. The Model Rule is based on the Memorandum of Understanding (MoU) released late last year. Its provisions are similar to the program features of the Regional Greenhouse Gas Initiative (RGGI) covering the electricity sector in 11 states.Read more here…
In a statement made on 19 January 2021, Ukrainian Minister of Environmental Protection and Natural Resources Roman Abramovsky said that Ukraine plans to introduce an ETS in 2025, putting a concrete date on the system’s potential launch for the first time. The Ukraine-EU Association Agreement mandates Ukraine to work towards an ETS. The country has already established an MRV system for emissions from electricity generation and some industry sectors, which requires major emitters to report their emissions since the start of 2021. It now plans to develop separate ETS legislation based on at least three years of MRV.Read more here...
The Russian Ministry of Economic Development, alongside the Sakhalin government, has approved a roadmap for establishing a pilot carbon trading system for the region as early as 2022. Although they still require formal legal approval, other measures in the roadmap include the adoption of a Climate Strategy and Action Plan for Sakhalin until 2035; the implementation of mitigation projects including in forestry and potential participation in international voluntary carbon markets; and the creation of a regional inventory of GHG emissions and potential removals. Sakhalin is regarded as a testing ground for identifying GHG regulation measures that can be extended to other Russian regions.Read more here...
On 15 December 2020, as part of the new two-year budget proposal, Governor Jay Inslee of Washington State proposed a comprehensive climate policy package that also includes an ETS. The Climate Commitment Act is designed to help meet statewide GHG targets (45% by 2030, 70% by 2040, and 95% by 2050, below 1990 levels), and would authorize the administration of a cap-and-trade program covering the industry sector. Auction revenues would be directed to further climate action. An environmental justice and equity panel would advise on funding decisions.Read more here...
On 26 February 2021, Intercontinental Exchange (ICE) announced the calendar for allowance auctions under the UK ETS, which launched in January 2021 following Brexit. The bi-weekly auctions for UK Allowances (UKAs) will start on 19 May 2021. ICE, who will host the auctions, will also launch UKA futures contracts on the same day. The British government plans to sell a total of 83 million UKAs during 2021. The announcement also features details on an auction reserve price and what happens to unsold allowances.Read more here...
Chinese ETS Pilots:- Beijing- Chongqing- Guangdong- Shanghai- Hubei- Shenzhen- Tianjin- Fujian
CNY 30.00 (USD 4.61)**CNY 22.00 (USD 3.38)**CNY 31.99 (USD 4.91)**CNY 41.35 (USD 6.35)**CNY 27.93 (USD 4.29)**CNY 6.76 (USD 1.04)**CNY 22.00 (USD 3.38)**CNY 8.19 (USD 1.26)**
26.02.202126.02.202126.02.202126.02.202101.03.202108.03.202126.02.202109.03.2021
Tanjiaoyi News Service (Chinese)
KRW 18,900 (USD 16.57)**
CommTradeNew Zealand
1 Reported in short tons; one short ton = 0.91 metric tonWhere available, prices reported are the clearing price at the latest auction (denoted with *).Where no auction prices are available, secondary market prices are reported (denoted as **).For conversion into USD, the exchange rate of 10.03.2021 was used. For more information on allowance prices of emissions trading systems around the world, please visit the ICAP Allowance Price Explorer (APE).
ICAP is holding two webinars to celebrate the launch of the Emissions Trading Worldwide Status Report 2021, on 24 and 31 March. Representatives of ETS jurisdictions around the world will share the latest developments and future prospects from their systems, and each webinar will feature a closer look at the key takeaways of the 2021 Status Report from the ICAP Secretariat, as well as a Q&A session. Register here for the Americas and Europe launch webinar (24 March // 16:00-17:30pm CET).Register here for the Europe and Asia launch webinar (31 March // 11:00-12:30 CET).
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