US Policy undermines international treaties on climate change
The United States government began yesterday, 4th November 2019, its formal withdrawal from the Paris Agreement.
The US government announced that it had notified the UN of its intent to withdraw from the Paris Agreement. Under the terms of Article 28 of the agreement, yesterday was the earliest that such a notification could be issued and will take effect in one year. This follows US President Donald Trump’s statement in June 2017 that the country would withdraw from the deal as soon as practically possible.
Moreover, the US has major concerns about the EU’s and China’s approaches to the international aviation agreement on CO2, CORSIA, and we could have ahead a crunch deadline of this agreement too.
Last month, the Trump administration sued California state to shut down California’s emissions-trading market designed to limit air pollution, claiming it is unconstitutional because it is run in cooperation with the Canadian province of Quebec. The lawsuit contends that international pacts such as California’s cap-and-trade program can be agreed to only by the federal government, or with its blessing.
Source: IETA & Carbon Pulse
The EU ETS Market
The market has now been trading around the €25 area for the 3 past weeks and appears to be directionless. For this reason, we will stay neutral as we wait to see what the next price movement could be. The important resistance and support levels to watch are €24.30 and €26.30 as a break of one of those levels could see the volatility increase.