After the substantial dip of 58 cents in front prices on Monday, the secondary market Front V20 Mar20 experienced another major dip of 68 cents at the InterContinental Exchange (ICE) on Wednesday. At the end of trade on Wednesday, the Front V20 Mar20 closed at USD 15.93 per metric ton CO2e, placing it 75 cents below the price floor of USD 16.68. A similar step down in prices was observed across all futures instruments. The Benchmark delivery V20 Dec20 and the V21 Dec21 closed at USD 16.36 (0.63) and USD 17.12 (0.59) per metric ton CO2e respectively. A total of 18.8 million tons were traded at the ICE exchange with the Front attracting around 62% of total volume. California Carbon Allowance (CCA) prices have been on a downward slope since March 4th, 2020, when the impact of the Coronavirus first affected market sentiments.
CCA prices at the Nodal Exchange witnessed a shock of similar magnitude on Wednesday. The Front V20 Mar20 closed at USD 15.94 (0.67) while the Benchmark V20 Dec20 closed at USD 16.30 (0.70) per metric ton CO2e.
LCFS credit pricing at the InterContinental Exchange also suffered a major dip on Wednesday. The LCFS Front dropped by USD 20.50, closing at USD 178 while the Dec20 delivery closed at USD 169.90 (22.60).
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California’s strict air pollution laws are good for farmers (Futurity)Farmers in California’s Central Valley have seen a boost in the productivity of their high-value crops—and greater earnings—as a result of the Golden State’s strict air pollution regulations, researchers report.
Governor Newsom Issues Executive Order Easing Restrictions on Commercial Drivers During COVID-19 Outbreak (The National Law Review) On March 17, 2020, California Governor Gavin Newsom signed Executive Order N-31-20 to ease restrictions on commercial drivers engaged in support of emergency relief efforts. This new order was issued in conjunction with the Federal Motor Carrier Safety Administration’s (“FMCSA”) Emergency Declaration 2020-02 announced last week to ensure the free flow of critical supplies and equipment in interstate commerce.
ANALYSIS - Hybrid power plants are growing rapidly: are they a good idea? (Renewables Now) As battery prices continue to fall and the penetration of variable wind and solar generation rises, power plant developers are increasingly combining wind and solar projects with on-site batteries, creating “hybrid” power plants. New research from Lawrence Berkeley National Laboratory and the Electric Power Research Institute in the US shows that interest in hybrid plants is high, and that hybridisation can offer benefits relative to stand-alone plants.
Coronavirus pushes EU carbon permits to lowest since summer 2018 (Reuters) The benchmark European Union carbon permit price touched its lowest since summer 2018 on Wednesday as the spreading coronavirus was expected to shrink emissions from industry and aviation.
