Our editors and analysts bring you the biggest stories from the industry this week, from renewables to storage to carbon prices.
Carbon allowance prices in the Regional Greenhouse Gas Initiative’s latest Auction 64 rose to $21.03/mt, the highest clearing price in the program’s history by far, according to a June 7 report.
RGGI’s Auction 64 represented a 31% increase in clearing price quarter on quarter, beating Auction 63’s record-high clearing price of $16/mt.
A total of 16.1 million allowances were sold, a 33% decrease quarter on quarter. Additional allowances were not provided in this auction due to the cost containment reserve allowances being fully depleted in the first quarter.
The Auction 63 settlement price of $16/mt cleared the 2024 cost containment reserve trigger price of $15.92/mt, causing the release of all 8.4 million reserve allowances.
The CCR trigger price increases each year. This latest auction’s clearing price of $21.03/mt represents a value “above the expected CCR trigger price for 2028,” S&P Global Commodity Insights analysts said in the North American Emissions Bulletin June 7. “Overall allowance demand for the auction was 43.3 million allowances, down from last quarter’s 47.7 million.”
Editor’s picks
Chinese official urges government bodies to coordinate, safeguard carbon market integrity
Chinese government bodies should improve coordination to address concerns that some renewable projects are eligible for both domestic carbon credits and renewable energy certificates, Zhang Xin, chief economist at the National Center for Climate Change Strategy and International Cooperation, or NCSC, said late June 4.
Neste conducts first 100% SAF in-flight study exhibiting significant emission reductions
The world’s first in-flight study of commercial aircraft using 100% sustainable aviation fuel registered significant non-carbon dioxide emission reductions, leading Finnish renewable fuel supplier Neste said. The green aviation fuel usage in engines of a commercial aircraft showed reduction in soot particles and the formation of contrail ice crystals compared to using conventional Jet A-1 fuel, Neste said. There was estimated reduction of at least 26% of non-carbon dioxide emission compared to jet fuel.
Carbon credits with high-quality tag emerge on VCM in bid to rebuild trust
After a long delay, the first batch of carbon credits with a high-integrity label finally emerged on the voluntary carbon market, with market participants hoping this will bring much-needed credibility and clarity. A total of 27 million carbon credits were tagged with the Core Carbon Principles marker after the approval of seven carbon crediting methodologies, the Integrity Council for the Voluntary Carbon Market said June 6.
Platts Connect
EU, Japan agree to cooperate on hydrogen standards, regulatory requirements
Japan and the EU have agreed to cooperate on standardization and regulatory requirements for the secure and rules-based international trade of renewable and low carbon hydrogen, they said in a joint statement June 3.
Hydrogen and CCUS investment to soar in 2024, risks remain: IEA
Investment in the emergent low-carbon hydrogen and carbon capture and storage sectors is set to soar in 2024, though the outlook for project implementation remains uncertain, the International Energy Agency said. Investment in electrolyzers for green hydrogen production is expected to more than double in 2024 to $5 billion, driven by new capacity deployment but also by rising costs, which have hit the sector hard in recent years.
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Read More: RGGI prices jump 31% in first 2024 auction without cost containment reserves