Today's Pickup: Clean Truck Programs May Take A Hit Amid Cap-And-Trade Decline

Good day,

Clean truck programs funded by California's cap-and-trade program may take a hit as the coronavirus pandemic has limited fossil fuel activity that drives the pollution reduction program. Cap-and-trade, in effect since 2016,  limits the amount of carbon that companies are allowed to emit, and allows businesses to buy and sell pollution credits at an auction on a state-sponsored marketplace. But the latest auction, held in late May, produced only $25 million in revenue, down from the $600 million to $850 million raised at previous auctions over the past three years.

Among the heavy-duty truck projects funded by cap-and-trade revenues are Volvo Lights, an electric truck demonstration project, and a clean truck voucher program introduced this year. How the revenue declines will affect commercial vehicle emissions reduction initiatives will depend on the allocation of the cap-and-trade funds in the state budget, H.D. Palmer, Deputy Director of California's Department of Finance, told FreightWaves. The budget is under deliberation in the Legislature and is expected to be finalized by June 15. 

Did you know?

The Los Angeles Board of Harbor Commissioners has approved a $1.5 billion budget for 2020/21. The budget is based on expectations of slower cargo volumes in the near term and a continued slowdown in the worldwide economy, due to market uncertainties related to the COVID-19 pandemic and the lingering impacts from the 2019 trade war.

Via Port of Los Angeles


"Forced dispatch or not, you can't drive into a riot situation because you are going to lose."

Ronnie Sellers of Knoxville, Tennessee, a former police officer and owner of a small trucking company, on driving trucks during the civil rights protests convulsing the country (Via FreightWaves

In other news

SoftBank creates a $100 million fund to invest in entrepreneurs of color

The initiative comes amid a global pandemic that has disproportionately affected minority-owned businesses and as social unrest over systemic racism grips America. (Forbes)

The Nuclear Innovation Institute and Canadian Nuclear Isotope Council (CNIC) partner on a study to identify challenges and solutions in Canada's medical isotope supply chain

Canada is a leader in the production and global supply of isotopes that play a major role in diagnosing and treating many forms of cancer. (Yahoo)

Elon Musk calls for Amazon breakup 

The tweet from the electric vehicle company CEO came after former New York Times reporter Alex Berenson, a COVID-19 skeptic, claimed the e-giant censored his book. (CNBC)

Study: Autonomous vehicles won't make roads completely safe

Auto safety experts say humans cause about 94% of U.S. crashes, but a new Insurance Institute for Highway Safety study says computer-controlled robocars will only stop about one-third of them. (Fox13)

Final thoughts,

ExFreight, a digital freight forwarding service, has announced the launch of a new Carbon Calculator that tallies the pollution impact of modes of transport and shipment routing. The tool provides estimated carbon emissions for all shipment modes at the time of rating and during actual transit, including first-mile trucking, air/ocean transport, and final delivery worldwide. Data is collected and verified with all respective carriers and provided to the shipper on the company's broader digital platform. Customers are also able to input their own emissions requirements to meet the required internal standards of measurement. 

Hammer down, everyone!

Market News and Data brought to you by Benzinga APIs
Posted In: NewsMarketsGeneralCarbon CreditsFreightFreightwavestrucking
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!