Resources
| article | synopsis | |
|---|---|---|
Ecosys Capital Advisors Execute First Carbon Allowance Compliance Trade in U.S. 14 February, 2008 Ecosys Capital Advisors | ECOSYS Capital Advisors, LLC (ECA), a Connecticut-based carbon emissions trading firm, executed the first carbon allowance compliance trade in the United States last week. The trade was completed under the Regional Greenhouse Gas Initiative (RGGI), a carbon cap-and-trade market comprised of ten Northeast and Mid-Atlantic States. RGGI's caps on utility carbon emissions go into effect 01jan09. | |
Renewables Redux 23 January, 2008 UtilliPoint Issue Alert | The U.S. renewable industries have been predicated on subsidies. It seems now is the time to turn the renewable market loose from its dependence on subsidies and make the sector financially competitive. What I mean by that is that higher energy prices provide the price floor for the deployment of renewable technology, and the icing on the cake will be the generation of both renewable energy credits and carbon credits for renewable energy production. | |
Looking Ahead: Strategic Moves on Greenhouse Gases for 2008 10 December, 2007 UtilliPoint Issue Alert | The United Nation's IPCC released its report on climate change recently. The report more strongly asserts that man-made sources of GHG are increasing in the atmosphere. The bottom line is that man-made emissions may be changing the climate faster than many scientists had estimated. So, what can we do about it going forward for 2008 and beyond? There are both individual choices that consumers can make and there are corporate decisions that companies can make. U.S. emissions are now over seven billion metric tonnes of CO2e, and while down slightly for 2006, are still a large part of the world's carbon footprint. | |
Legislative Paralysis & Lack of Vision Hampers U.S. Energy Effort 30 November, 2007 UtilliPoint Issue Alert | You would think with all the media attention, investor interest and voter concerns about U.S. energy policy as oil nears $100 per barrel that Congress would act. Unfortunately, these legislators are having difficulties articulating a coherent national energy policy. The fig leaf of corn-based ethanol becoming the panacea for energy and environmental security has had a hard time taking off. Food prices have soared and consumers are getting socked at both the gas pump and grocery store. What will it take for Congress to act coherently and over the long-term? | |
The New Game of Energy Trading 9 November, 2007 UtilliPoint Issue Alert | Energy trading and risk management is just not the same anymore. Oil markets this fall detached themselves from the fundamentals. The reason is that the new wall of money trading global energy markets is much bigger and deeper than anyone knows, and move markets to extreme prices which are detached from basic market fundamentals of supply and demand. The market is now signaling a shortage and there isn't one. The investment in the global energy sector has attracted more diversification of investment (read global wealth) into the energy sector and exacerbated price movements. Our noble energy economists will examine this phenomenon in future years but the fact is that energy markets are changing once again and expect more price volatility to come. After all, it's volatility as well as prices that trader's trade. | |
Getting the Rules Right: Carbon Market Design 22 October, 2007 UtilliPoint Issue Alert | The debate on climate change at the U.S. federal level is on, but the real action is now at the state level regarding greenhouse gas market design. This is not such a bad deal, as the same thing happened in SO2 (acid rain) and NOX (ozone) trading markets. The states began the process and because of all the confusion, these markets were federalized. But I think this time the states may build a better mouse trap that the federal government can emulate. With talk of up to 50 climate bills in Congress and a straw man recently raised on carbon taxes, the federal efforts are dogged by politics and special interests. To reach consensus seems many years off, despite talk of President Bush doing a “Nixon goes to China†on climate change. The real action is now at the state level for carbon market trading and finance. | |
California Carbon Markets 19 September, 2007 UtilliPoint Issue Alert | California is about to embark on the creation of the world's most aggressive greenhouse gas market in the most energy efficient state in the United States. Already the state has enacted the most progressive renewable energy and demand response initiatives in the country with a Renewable Portfolio Standard of 20 percent by 2010 (which will most likely rise to 33.3 percent by 2020), a $2.9 billion solar initiative, and an accelerating demand response regime. California has also recognized that to get significant greenhouse gas reductions you must burden share among all sectors for those reductions not just electric utilities like the Regional Greenhouse Gas Initiative in the Northeast does. | |
The New Way to Attack the Carbon Problem: Rising Liability Issues 10 September, 2007 UtilliPoint Issue Alert | It's kind of interesting that everyone is focused on cap and trade legislation and market design issues. There is another “dog in this fight.†Carbon is rising as a liability issue. While I have argued that carbon risk management is a fiduciary responsibility for both energy and agricultural companies, I think what has been missed is that there are externalities to burning coal as well as other fossil fuels. Externalities equate to rising health care liabilities, sludge and mercury liabilities, and carbon dioxide liabilities. I fully expect to see a website shortly with some trial lawyer already poking around this fertile ground for a class action suit. It's not that farfetched as we saw a California trial lawyer have a very scary website on LNG safety and siting, and we have the historical precedent of tobacco case law. |