Industry Today

CDM clients should anticipate increased media attention later this week with the release of a new climate change report from the United Nations. Also, recent developments in California will affect electricity costs for CDM clients both within and outside the state.  Other states are expected to follow California’s lead.

• UN to Release Updated Climate Change Report on Friday February 2nd:  The United Nations Intergovernmental Panel on Climate Change will release the first part of an updated scientific assessment of anticipated environmental impacts from global warming.  According to CNN, “this segment was written by more than 600 scientists and reviewed by another 600 experts and edited by bureaucrats from 154 countries, includes ‘a significantly expanded discussion of observation on the climate.’”  In the past, the report has generated intense media attention and focus on industrial emissions of greenhouse gases.
• New Greenhouse Gas Standards for Electricity Sales Expected to Impact Prices:  On Thursday January 26, the California Public Utilities Commission voted unanimously to limit sales of electricity from power generators inside and outside of the state that emit more greenhouse gases than a modern natural gas plant. The "greenhouse gas emissions performance standard" takes effect Feb. 1, with a similar rule expected for municipal utilities in July. The new rules are expected to affect energy markets across the West since 20% of the state’s power comes from coal plants in the Western US.  Northeastern states are also expected to pass similar rules in the near future since they’ve had long-established “generation performance standards” for criteria air pollutants since the late 1990s.  Industry analysts expect electricity prices to climb in those states that establish “greenhouse gas performance standards” since over half of the United States’ energy supply comes from coal.
• California Negotiates with the European Union to Join 27-nation Greenhouse Gas Trading Scheme:   On Friday January 26, the EU’s environment commissioner confirmed that the EU and the State of California are in talks to have California’s planned greenhouse gas cap and trade program integrate into the EU’s two year-old program.  Other US states that are establishing greenhouse gas programs are expected to follow California’s efforts.