ENVIRONMENTAL MARKETS

Carbon Prices in RGGI Auction Slump to Lowest in Over Four Years, Reflecting Need for Reform

Clearing prices in the June 2017 RGGI auction dropped to their lowest level in over four years, marking a sharp turn from the December 2015 auction which had reached a record high. The decline in prices can be attributed to uncertainty about the RGGI program after 2020 with regard to the future value of emissions allowances, as well as uncertainty over the future of the Environmental Protection Agency's Clean Power Plan. RGGI’s emission cap must extend at least until 2030 to provide certainty for market participants who are bracing for the end of the program currently slated for the end of 2020.

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Carbon Prices in RGGI Auction Slump to Lowest in Over Four Years, Reflecting Need for Reform

EnerKnol’s Visual Primer – Carbon Prices in RGGI Auction Slump to Lowest in Over Four Years, Reflecting Need for Reform

Clearing prices in the June 2017 RGGI auction dropped to their lowest level in over four years, marking a sharp turn from the December 2015 auction which had reached a record high. The decline in prices can be attributed to uncertainty about the RGGI program after 2020 with regard to the future value of emissions allowances, as well as uncertainty over the future of the Environmental Protection Agency's Clean Power Plan. RGGI’s emission cap must extend at least until 2030 to provide certainty for market participants who are bracing for the end of the program currently slated for the end of 2020.

2017 State Legislative Action Calls for Greater Energy Diversity

Legislation enacted across states in 2017 calls for greater diversity in power sources—from expanding renewables to supporting nuclear and natural gas infrastructure. However, there is a clear trend showing the intent to prioritize clean energy and climate policy. States in the forefront of grid modernization plans continue to support renewable development while others are following their models as a way to emulate effective policies.

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State Legislation Update: 6/2017

EnerKnol’s Visual Primer – State Legislation Update: 6/2017

Legislation enacted across states in 2017 calls for greater diversity in power sources—from expanding renewables to supporting nuclear and natural gas infrastructure. However, there is a clear trend showing the intent to prioritize clean energy and climate policy. States in the forefront of grid modernization plans continue to support renewable development while others are following their models as a way to emulate effective policies.

U.S. States, Cities Commit to Paris Climate Accord After Trump Pullout

A coalition of 13 states joined by more than 200 mayors have expressed their commitment to uphold the 2015 Paris Climate Agreement after President Trump’s decision to withdraw from the accord. Climate efforts continues to shift to regional and state levels as demonstrated by the quick response from states and cities nationwide.

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California Carbon Auction Results Reflect Lingering Market Volatility

Results of California’s February 2017 quarterly carbon auction continue to reflect overall market volatility over the past year, due to the ambiguity over the post-2020 cap-and-trade program and pending litigation over the program’s legality. A resolution of legal uncertainties and clarity over the future direction of the cap-and-trade program will increase market activity as participants perceive greater certainty.

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California Carbon Auction Results Reflect Lingering Market Volatility

EnerKnol’s Visual Primer – California Carbon Auction Results Reflect Lingering Market Volatility

Results of California’s February 2017 quarterly carbon auction continue to reflect overall market volatility over the past year, due to the ambiguity over the post-2020 cap-and-trade program and pending litigation over the program’s legality. A resolution of legal uncertainties and clarity over the future direction of the cap-and-trade program will increase market activity as participants perceive greater certainty.

EPA Updates Cross State Air Pollution Rule to Comply with Stricter 2008 Ozone Standard

The Environmental Protection Agency (EPA) has issued the Cross-State Air Pollution Rule Update establishing new ozone season NOX emission budgets for electric generating units in 22 eastern states that impair downwind states’ ability to meet the 2008 ozone standard. The rule will be implemented through the existing ozone season NOX trading program starting from the 2017 ozone season (May through September).

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Enerknol’s Visual Primer – EPA Updates Cross State Air Pollution Rule to Comply with Stricter 2008 Ozone Standard

The Environmental Protection Agency (EPA) has issued the Cross-State Air Pollution Rule Update establishing new ozone season NOX emission budgets for electric generating units in 22 eastern states that impair downwind states’ ability to meet the 2008 ozone standard. The rule will be implemented through the existing ozone season NOX trading program starting from the 2017 ozone season (May through September).

California Passes Legislation to Extend Climate Policy Beyond 2020

The California Legislature has passed SB 32, which extends the state’s climate policies through 2030, and its companion bill AB 197, which increases legislative oversight of the California Air Resources Board (CARB). The passed measures set the stage for additional requirements to reshape the mix of market and regulatory mechanisms to further renewable energy, building energy efficiency, and vehicle electrification.

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California Proposes CPP Compliance Based on Existing Cap-and-Trade Scheme

The California Air Resources Board (CARB) has issued a proposal to comply with the Clean Power Plan (CPP) based on California’s existing cap-and-trade program, together with complementary state policies, such as renewable fuel standards and energy efficiency requirements. The action makes California the first state to forge ahead with CPP implementation efforts despite pending judicial review and adds momentum to integrating existing market-based emissions programs as an efficient way to comply with the CPP.

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