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Repost: New Zealand's carbon market
The carbon trade you've probably never heard of
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Recoupling?
The thaw in the often frosty relationship between the UK and European Union appears to also extend to their respective carbon markets. Both emission trading schemes now appear to have set course in the same direction, shifting towards a gradual alignment, and even opening up the potential for a future
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Europe's bridge to 'green' steel
European steel has a relatively low emissions intensity, but it has been under pressure from cheaper imported steel. Unfortunately, many of those imports have been sourced from countries with a significantly higher emissions footprint. According to the race to replace domestically produced steel is increasingly being won by the dirtiest
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A margin of safety
"The purpose of the margin of safety is to render the forecast unnecessary." - Ben Graham Arguably one of the most important pieces of climate legislation over the past twelve months is the Inflation Reduction Act (IRA). Signed into law in mid-August 2022, the IRA includes almost $370
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Everything you need to know about Low Carbon Fuel Standards (LCFS)
California consistently ranks among the worst states in America for air pollution. The topography of the state means that air pollution becomes trapped, often resulting in a thick smog enveloping the cities below. The Golden State is the most populous state in the US, with the fifth largest economy in
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Squaring up
Market turmoil in European energy markets last year continues to have an impact on the hedging activities of many of the continents utilities, with some putting their hedging activities on ice as market liquidity evaporated and margin calls soared. The question now is whether or not utilities are done and
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Repost: Putting a price on H₂O
Carbon markets are just the start of a revolution putting a price on natural capital
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Crash course
The collapse of three mid-tier American banks in quick succession, followed by a hastily arranged weekend rescue deal of one of Switzerland’s “systemically important banks” may have some carbon market investors nervously suffering from déjà vu given the obvious parallels with events 15 years earlier. March 2008: Bear Stearns
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The only number that matters
A market based approach to pricing carbon is founded on the most basic of economics problems – scarcity. The science of climate change makes the case that there is a limit to how much additional carbon dioxide can be pumped into the atmosphere before we hit certain thresholds associated with global
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The 'sailing ship' effect and the energy transition
The ‘sailing ship’ effect – also known as the ‘last gasp effect of obsolescent technologies’ - occurs where competition from new technologies stimulates improvements in incumbent technologies and the firms that produce them. For example, the advent of steam power inspired the makers of sailing ships to innovate, transforming the structure
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'Carbon neutral' LNG 2.0
A recent shipment of ‘carbon neutral’ LNG between Australia and Taiwan is the first of its kind to be delivered under a new framework supposed to give greater clarity over its origin. The stakes could not be higher. The continued growth in LNG over the next couple of decades hinges
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Washington State's inaugural carbon auction clears near $50
High premium to other North American carbon markets will increase calls to link up with California