Issue: 14 Thursday, 29 June 2017
Dear ,
We are pleased to share the ICAP newsletter, a quarterly summary of the latest developments in emissions trading around the world and activities here at the International Carbon Action Partnership.
For more information on cap-and-trade programs in force and in the works around the world, please visit the ICAP Interactive ETS Map on the ICAP website. It is updated regularly as new information becomes available.
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On 6 April 2017, California’s Third District Court of Appeals ruled in favor of the Californian Air Resources Board (ARB), upholding its authority to auction emission allowances in its cap-and-trade program.
The lawsuit has created a degree of uncertainty over the program for the last four years. The plaintiffs alleged that the auctioning exceeded the ARB’s authority to design a market-based emissions reduction system and that the auctioning revenue constituted a tax, which would have required a two-thirds legislative majority in line with the Californian Constitution (Art XIII A, s 3).
In a 2-1 decision, the court ruled in favor of ARB, finding that AB32 gave the ARB broad discretion to design a market-based system and that the inclusion of auctioning did not exceed this authority. The court also found that the auctioning system does not constitute a tax.
Following the decision, the plaintiffs formally appealed the ruling, asking the California Supreme Court to reconsider the case. However, the Supreme Court denied the appeal on 28 June.
The ruling may also have a positive effect on ongoing efforts in the Californian legislature to extend the program beyond 2020. Proposals for the extension, currently being drafted by California’s legislators, aim to garner a two-thirds majority, which would protect the program from similar legal challenges in the future.
Read more…
On 5 April 2017, the Ministry for Strategy and Finance announced changes to the banking and borrowing provisions within the Korean Emissions Trading System (KETS). As a background to these policy changes, allowances prices in the KETS earlier this year climbed to among the highest in the world, driven in part by low levels of trading. Previously, banking allowances between phases had been allowed without any restrictions. However, given concerns that entities have been hording their freely allocated allowances, the Ministry for Strategy and Finance announced that allowances would be deducted from an entity’s future free allowance allocation if it was deemed to have ‘excessive carryover’.
The Ministry hopes that the changes will increase entities’ willingness to sell allowances, thereby improving liquidity on the Korean carbon market.
On 16 May 2017, Virginia Governor Terry McAuliffe directed the Department of Environmental Quality to formulate a regulation limiting CO2 emissions from power plants. The proposed regulation would allow for the use of market-based mechanisms and the trading of allowances with other states. The stringency of the regulation should also be comparable to similar regulations in place in other states.
The Department has until 31 December 2017 to propose a regulation to the Virginia Air Pollution Control Board. Any subsequent steps toward implementing the suggested regulations will depend on the results of the state election in November 2017, given that Governor McAuliffe will have served the maximum term limit.
CNY 51.18 (USD 7.53)**CNY 1.50 (USD 0.22)**CNY 14.88 (USD 2.19)**CNY 36.45 (USD 5.36)**CNY 13.99 (USD 2.06)**CNY 34.52 (USD 5.08)**CNY 12.20 (USD 1.79)**CNY 23.13 (USD 3.40)**
27.06.2017
Tanjiaoyi News Service (Chinese)
KRW 21,500 (USD 18.81)**
Carbon News New Zealand
On 28 August-7 September, ICAP will convene a Masterclass on Emissions Trading in Lisbon, Portugal.
Building on ICAP’s regular program of Summer Schools and Training Courses, which offer an introduction to emissions trading, this eight-day advanced course provides a more comprehensive and in-depth look at the key issues pertaining to advanced ETS design. Targeted at participants with significant knowledge and first-hand experience of ETS, it will cover topics related to best practice implementation and new developments in the field. Class structure will rely heavily on discussion and knowledge sharing, to bring in participants’ individual expertise and experience. The advanced course will be structured around intensive group work and discussion as well as parallel breakout sessions, allowing ample time for networking.
Applications have now closed. If you wish to be informed of future ICAP courses, please send an email to info@icapcarbonaction.com.
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