LONDON, July 21 (Reuters) - European carbon permit prices fell to near 14 euros on low liquidity at the start of trade on Wednesday, but managed to recover losses within the first hour.
EU Allowance futures for December delivery <CFI2Zc1> opened at 14.15 euros a tonne and quickly fell to 14 euros before climbing back. The benchmark contracts were up 4 cents or 0.3 percent at 14.27 euros a tonne by 0705 GMT, though volumes were light at 447 lots traded.
"One guy really turned on the pressure at the open, but support was found around 14 euros," said an emissions broker.
** Senator Reid seeking consensus on
"We're really not at the point where I can determine what is best for the caucus," Reid told reporters when asked whether he would have a bill ready next week for the full Senate to debate.
Reid is trying to produce a bill from pieces of other legislation that could include reforming offshore drilling, boosting alternative energy, and perhaps a scaled-back cap on emissions blamed for global warming. [ID:nN19197263]
He said Senate Democrats will hold a caucus meeting on Thursday to discuss energy legislation. Many had expected Reid to introduce a bill on Tuesday.
** SCENARIOS - Climate and energy bill optins in the
WASHINGTON, July 20 (Reuters) - U.S. Senate Majority Leader Harry Reid is trying to forge energy legislation that may affect everything from offshore drilling to renewable energy, but it is uncertain whether it will be completed by year's end as President Barack Obama wants.
Unless Reid can muster more support, including from fellow Democrats, the measure will not include even a scaled-back cap on emissions blamed for global warming.
Once Reid decides on legislation for the full Senate to debate, Obama may push lawmakers more aggressively. But time is running short for debate with less than three weeks remaining before the Senate is slated to go on summer break. Elections loom in November, in which Democrats may likely lose seats. The House (of Representatives) has already passed a quite ambitious bill and the two would have to be reconciled before being presented to Obama.
Here are the directions the climate and energy bill could take in the Senate:
TOUGH TO DO: BILL WITH ANY EMISSIONS CAP
Senator John Kerry, a Democrat, is fighting to include an emissions cap for utilities in the bill, which is a big step back from the House bill passed with an economy-wide cap-and-trade scheme.
Backers of the idea face an uphill battle getting the votes as Democrats in states that are heavily dependent on oil and coal oppose it. Some Republicans, including Lamar Alexander and Lisa Murkowski, label a climate measure an "energy tax."
Climate bill supporters would also likely have to dig deeper to find more Republican votes to reach the required 60,
as a Democratic vote may have been lost. Senator Carte Goodwin, who will be sworn in on Tuesday to temporarily fill the seat vacated by the late Robert Byrd of
OFFSHORE REFORM, RENEWABLE INCENTIVES LIKELY
It is more likely that the Senate will see a bill without emissions caps but containing language to tighten regulations for offshore drilling after the BP oil spill. Incentives to spur renewable energy could be added to it.
Measures that would both toughen drilling rules for the offshore industry while allowing oil companies to get their rigs going would likely draw bipartisan support.
"You could get a quite number of Republicans on board if (Democrats) are disciplined enough not to overshoot" with too many add-ons to the legislation, said Whitney Stanco of Concept Capital, a firm that tracks
Measures could include a higher cap on liability for oil spills, up from the current $75 million. Raising taxes on the industry could also be a feature of this option.
Senators may vote for tougher restrictions on oil drilling in this election year to show they are working to prevent another
A battle is also forming over whether to include a measure seeking to reduce greenhouse gas emissions from fuels. That could take pressure off auto companies to make more efficient engines, but oil companies would oppose it.
SENATE COULD PASS ENERGY-ONLY BILL
There would be no carbon caps in this option, but it would likely cut emissions by boosting power output from energy sources like wind, solar or even nuclear.
The Senate Energy Committee has already passed legislation that would boost incentives and mandates for nuclear energy and renewable power. It contains a so-called renewable energy standard, which would require utilities to generate a minimum of 15 percent of their power from alternative energy.
But senators from other states with solar- and wind-power potential may push to raise the mandate to 20 percent or more.
However, many lawmakers from states in the South and Midwest, some of which have access to large supplies of cheap coal, say they do not have capacity to produce enough renewable fuel to meet mandates. Senators from those states may fight to get "clean" coal and nuclear into the mandates, which could lead to prolonged debate on what should be in the energy-only bill.
** Businesses support tougher emissions targets by EU -FT
In a letter to the Financial Times, chairmen and chief executives from 27 companies wrote in support of British Energy Minister Chris Huhne's efforts to persuade the EU to cut greenhouse gas emissions by 30 percent by 2020. The companies include Vodafone <VOD.L>, Asda [ASDAP.UL] and Lloyds Banking Group <LLOY.L>.
** Countries pledge global support for clean energy
WASHINGTON, July 20 (Reuters) - The United States and dozens of other countries have pledged hundreds of millions of dollars toward clean energy initiatives to help battle climate change, U.S. Energy Secretary Stephen Chu said on Tuesday.
Meeting in
"We know the clean energy challenge won't wait, and we won't wait either,"
** French bank wins £2.2 million
LONDON, July 20 (Reuters) - England and Wales' Environment Agency has awarded a 2.2 million pound ($3.36 million) contract to monitor and report greenhouse gas emissions to a French state-owned bank and English IT consultancy, the firms said on Tuesday.
CDC Climat, a subsidiary of French-owned Caisse des Depots, along with Surrey-based SFW Ltd., said they won the tender to deliver a unified system for monitoring, permitting, reporting and benchmarking carbon emissions from sectors covered under the European Union's Emissions Trading Scheme.
** Green groups blame Russian drought on global warming
MOSCOW, July 20 (Reuters) - Environmental groups said on Monday global warming was to blame for Russia's worst drought in decades and expressed hope this would persuade Russia to cut its carbon emissions, among the world's highest.
Since late June, central parts of European Russia have suffered scorching heat, with temperatures reaching 40 Celsius (104 Fahrenheit) in the shade. A farmers' group said the heat had destroyed crops in an area the size of
The drought and heatwave have dominated state-run media for weeks but many Russians remain sceptical about climate change. Green groups say the apathy has allowed the government to avoid tough measures to cut carbon emissions.
Reuters news and information reaches one billion people every day. Get the latest news at Reuters.com
This email was sent to you by Thomson Reuters, the global news and information company.
Any views expressed in this message are those of the individual sender, except where the sender specifically states them to be the views of Thomson Reuters.
