Extreme weather events occur significantly more frequently due to the lower temperature differences between the equator, temperate latitudes on the one hand and the Arctic on the other due to climate change.
One of these extremes is now evident in Canada. In the area around Vancouver, British Columbia, temperatures rose to 49.5°Celsius, which has just cost more than 130 people. Cities on the US west coast, such as Oregon, Seattle and Portland, also recorded the highest temperatures ever recorded since the weather records began there.
After the state of Texas only caused astonishment with icy temperatures and snow in mid-February, the heat wave in the north is another illustration of what will happen to us in the context of climate change in the coming decades.
In the EU, plans to expand EU emissions trading are becoming more concrete in order to reduce the effects of climate change. The future involvement of shipping, road transport and the building sector seems certain. According to media reports, a draft law by the EU Commission indicates that the shipping industry is to be incorporated directly into the existing EU emissions trading system. When integrating maritime transport into the existing ETS, the draft proposes a transition period of three years. A new system of its own is to be set up for the transport and building sector by 2025, which could function similarly to the German national emissions trading system (nEHS). Only later is this to be merged with today’s EU ETS in order to only gradually increase the financial consequences for the economy and citizens. The German nEHS is expected to be seamlessly transferred to this with the start of EU trade.
In contrast to the EU ETS, this new area of emissions trading should no longer contain any free allocation of certificates. The allocation of emission rights will take place via an auction, as in Germany’s nEHS. Here, parts of the auction proceeds are to flow into a fund that mitigates the social consequences and at the same time is to be used to provide financial support to the states in converting their energy generation to renewable energies.
Last week, the prices for EU emission rights returned to the 60-Euro-mark and, at 58.64 euros per ton of CO2e, marked a new all-time high in the December 21 contract, closing with a weekly increase of 4.2%. The new trading week also starts in the green area above the 58-Euro-mark.
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(The average exchange quotes and OTC-prices shows the average between bids and ask of several exchanges and OTC markets for carbon emission rights in the ETS. Bid and ask has usually in Spot Market a visible spread. CERs and VERs are average prices in the voluntary carbon offsetting market (eco securities). Crude Oil and Euro Currency shows day-end-exchange quotes. This market information has just an informational character and are no advice or offer to trade carbon emission rights or their futures and options. If you want to unsubscribe, please reply to this mail.)
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