Northeast Carbon Hits All-Time High On EPA Power Plants Rules

Posted by Joseph R. Fonseca
Monday, June 02, 2014

 

Carbon permits for the Northeast's carbon market traded as high as $5.10 a ton on Monday, an all time high, following the release of federal rules that will allow states to use markets to meet new emissions targets.

The market's benchmark December 2014 contract traded for $5.10 a ton on the IntercontinentalExchange on Monday before retreating to $5 a ton later in the day, brokers said. The market's spot contract for June delivery also traded for $5 a ton.

On Monday, the Obama administration released regulations calling for the power sector to cut carbon emissions 30 percent by 2030 from 2005 levels. Under the rules, states can use cap-and-trade programs such as the nine-state Regional Greenhouse Gas Initiative (RGGI) to achieve the goals.

"The market had a knee-jerk reaction to the rules this morning," one broker said about Monday's trading.

The release of the rules had less of an impact on California's carbon market where the market's benchmark contract traded for $11.90 a metric tonne, a broker said, the same price that it settled at on Friday.

The rules, issued by Environmental Protection Agency, are expected to create an additional incentive for states to join existing cap and trade programs such as RGGI and California markets.

Despite having implemented a variety of carbon cutting measures, California could have trouble complying with the rule since it is based on the "emissions intensity" of the power it produces, not just its overall carbon emissions.

In 2012, California's emissions intensity was 8 percent higher than it was in 2005 due to the shutdown of a large, carbon-free nuclear power plant in Southern California.

The state has had to rely on natural gas-fired plants to fill the gap, which pushed California's emissions intensity up in recent years, counter to the national trend, said Ashley Lawson, a Point Carbon analyst at Thomson Reuters.

Washington state must make the biggest relative reductions to meet the 2030 target, according to the regulations, followed by Arizona, South Carolina and Oregon.

States that rely heavily on coal for electricity, including Montana, West Virginia and North Dakota, actually have some of the least stringent targets because they are deemed to have less of an ability to transition away from coal toward lower emitting natural gas or carbon-free renewables.

The governors of Washington and Oregon earlier this year said they would move toward pricing carbon emissions, possibly by linking to California's carbon market.

On Monday, Mary Nichols, chair of the California Air Resources Board, which oversees the California market, said she believes the state will exceed its federal targets

"We look forward to working with other states, including Oregon and Washington, in a regional approach to take action to cut carbon pollution and promote the cleanest sources of energy," said Nichols.

(Reporting by Rory Carroll; Editing by Steve Orlofsky)

Maritime Reporter June 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Seadrill Bondholders: Majority Accept Conversion Offer

Seadrill Limited says that holders of approximately US$547 million of Seadrill's convertible bonds due 2017 (representing approx. 84.1% of the total outstanding

General Dynamics Reports 2Q 2014 Earnings

General Dynamics today reported 2014 second-quarter earnings from continuing operations of $646 million, or $1.88 per share on a diluted basis, compared to second-quarter

Trading Dutch Well Placed to Pursue Russia Sanctions

The seafaring Netherlands prides itself on being a trading nation, reluctant to let politics get in the way of a good deal. But since the downing, allegedly

Environmental

Ecuador Order Elastec/American Marine Oil Spill Equipment

Elastec/American Marine say that quality and dependability made all the difference when the state oil company of Ecuador decided recently to purchase its oil spill response equipment.

Rosneft to Monitor Marine Fauna in Northern Sea Route

OAO NK Rosneft will conduct marine fauna monitoring in the Northern Sea Route in 2014. The studies will be organized by the Arctic Research Center, a joint venture of Rosneft and ExxonMobil.

AIS Data for Emissions Reduction

With emissions reduction firmly on the industry’s agenda, studies show that carrying out ship emission calculations, based on AIS data, can offer significant benefits.

Energy

Semco and PV Join Forces for Rig Upgrade

Semco Maritime and PetroVietnam Marine Shipyard join forces to establish high class rig upgrade player in South East Asia - Vung Tau Rig Services. The initiative

Statoil Awarded Licence Offshore Colombia

Statoil has been awarded interest in the COL4 licence offshore Colombia in the Caribbean Sea in the 2014 Colombia Licensing Round. Statoil will hold 33,33% in the licence.

Gazprom to Extend Gas Supplies from Kazakhstan

Astana hosted today a working meeting between Alexander Medvedev, Deputy Chairman of the Gazprom Management Committee and Uzakbai Karabalin, Minister of Oil and Gas of the Republic of Kazakhstan.

News

USCG, Agencies Search for Downed Plane Near American Samoa

Coast Guard and local agencies are responding to a plane crash near Pago Pago International Airport after a single-engine plane crashed into the water Tuesday night.

CMA CGM MANET in Sydney with Select Burgundy Wines Cargo

CMA CGM Group is pleased to announce that the CMA CGM MANET will arrive in Sydney International Container Terminals in Australia on July, 22nd. The bottles of

Semco and PV Join Forces for Rig Upgrade

Semco Maritime and PetroVietnam Marine Shipyard join forces to establish high class rig upgrade player in South East Asia - Vung Tau Rig Services. The initiative

 
 
Maritime Contracts Maritime Security Naval Architecture Navigation Pipelines Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1062 sec (9 req/sec)