Aug 29 2022
The drought in Europe has seen the value of hydro Guarantees of Origin edge above those for wind and solar for the first time since Platts started assessing GOs. Norway, Europe's battery when it comes to hydro reserves, is set to clamp down on exports this winter to preserve reservoir levels. The intent has sent a tremor through European power markets, which hit fresh price highs in late August. Meanwhile German utilities are showing resilience in the face of security of supply concerns, forging ahead with renewable energy investments in markets in need of decarbonization. Germany's RWE has just snapped up a 3-GW Polish onshore wind portfolio as the country opens up to development again after a long fallow period.
In Asia, extreme weather conditions remains persistent in some countries with Pakistan recording one of its most severe floods in recent years, which is expected to disrupt its economic growth and energy demand. In China, the worst seems to be over for one of the country's most severe droughts on record, but the long-term implications on the role of hydropower in its long-term decarbonization strategy is being reassessed. Meanwhile, China has called for accelerating the development of a nationwide, standardized emission accounting and verification system, prioritizing the nation's most emission-intensive power and industrial sectors.
The Canadian East Coast is poised to become a major export hub of green hydrogen thanks to its abundant renewable resources. Now, Germany is looking to benefit from the region after signing a historic agreement with the Canadian government to establish an "international trade corridor" through which Canadian hydrogen exports will help satisfy German hydrogen demand. The agreement is expected to spur the number of green hydrogen projects planned for the coast. One day after the signing, for instance, a US company announced plans to develop a green hydrogen production and storage operation capable to producing over 43 million mt/year of green hydrogen, which the developer says is enough to meet 73% of Germany's electricity needs. -- Mriganka Jaipuriyar
EMEA
SPGlobal.com
Suspension of EU carbon market 'not a feasible option'
Energy security meltdown dominates UK leadership contest
ICE to launch UK carbon allowance options contracts
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European hydro certificates trade above renewables as drought hits supply
RWE acquires 3-GW Polish solar PV project pipeline
APAC
SPGlobal.com
ANALYSIS: Sichuan drought jeopardizes hydropower in China's decarbonization roadmap
China calls for nationwide, standardized emission accounting and verification system
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TotalEnergies, INPEX, Woodside to jointly initiate CO2 sequestration project in Australia
Japan, Senegal sign agreement to use carbon credits to offset emissions
Verra signs MOU to support Thailand in local voluntary carbon program
Americas
SPGlobal.com
California board advances state ban on gasoline-fueled car sales after 2035
Germany, Canada establish 'international trade corridor' for clean hydrogen
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Gas-fired generation to save US utilities $300 billion on way to net-zero: study
Green hydrogen plant announced for Nova Scotia; follows Germany-Canada accord
Oxy to start construction on world's largest direct air capture plant in Midland Basin
SPECIAL CONTENT-
Insight Conversation: Dr. Richard Sandor, American Financial Exchange
Global carbon markets are evolving rapidly as more countries recognize the need to put a price on carbon and market intermediaries develop trading infrastructure from auction platforms to financial products. Richard L. Sandor, chairman and CEO of the American Financial Exchange, was one of the earliest proponents of environmental products. He was named by TIME magazine in 2007 as one of its "Heroes of the Environment" for his work as the "Father of Carbon Trading."
Sandor spoke with S&P Global Commodity Insights Energy Transition and Carbon Specialist Ivy Yuwei Yin about the evolution of carbon markets, the role of environmental finance in decarbonization and why capital markets are key to financing the net-zero goals of corporations and countries alike.
Quote of the week
"I think what we will have in the world is a plurilateral [carbon] trading regime, and there will be separate markets with separate standards, much like the cotton market. And they ultimately will be tied together by arbitrage." Dr. Richard Sandor
Price of the week
Eur3.54/MWh
The price of 2022 EuGO certificates for Nordic hydro, up a euro since the start of August on dwindling stocks
Chart of the week
Poor nuclear performance in Europe has boosted coal and gas firing, upping the carbon intensity of generation
