The CO2 Market – 23.01.2018

International CO2 market – 2018 estimated achievements

• The final, largely procedural votes on the EU ETS revisions will be taken in the European Parliament and the Council, and we will turn attention to the implementing regulations.
• Analysts polled by Carbon Pulse have raised their near-term forecasts for EU carbon by as much as 10%, with most predicting that front-year EUAs would finish this year near or above €10 but keeping a cautious tone for prices in early 2018.
• Canada will advance its pan-Canadian approach to carbon pricing, after the government released its long-awaited draft federal backstop legislation and its output-based pricing system regulatory framework earlier this month.
• California’s regulators will begin the formal process to amend the state’s post-2020 cap-and-trade regulation and finalize it late this year, while neighbors in Oregon and Washington consider carbon pricing legislation.
• RGGI states (Regional Greenhouse Gas Initiative – Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont) from the U.S. will vote on legislation / regulations to implement reforms agreed last year, and Virginia and New Jersey will decide whether and when to join RGGI.
• China will add more operational details to its ETS, enabling the market to begin to function.
• South Korea will consider strengthening its ETS to better assure results for its NDC.
• ICAO (International Civil Aviation Organization) will adopt final Standards and Recommended Practices (SARPs) that will govern national implementation of CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation).
• The UNFCCC will agree on the Paris Rulebook, including rules for Article 6.

Source: IETA, Geneva and Carbon Pulse, London