Euro Markets: EUAs erase Monday losses amid options hedging volatility, stronger prompt power
European carbon prices erased their losses from Monday, tracking movements in front-month natural gas, a strengthening power market, and fluctuating between two key options strike prices, as the market positioned itself ahead of Wednesday’s options expiry.
Read MoreEuro Markets: EUAs drop by most in six months as options hedging amplifies gas-driven weakness
European carbon prices dropped by their biggest margin in six months as traders positioned themselves ahead of the upcoming expiry of the December options contract, amplifying the effect of weaker gas prices, while UK carbon allowances fell to their lowest in seven months amid low gas-fired generation and continued regulatory uncertainty.
Read MoreEuro Markets: EUAs drift along with TTF gas as traders trim length ahead of weekend
European carbon prices ended slightly lower on Thursday, following the evolution in front-month natural gas as both markets saw length being trimmed amid what has been a weak few days.
Read MoreVoluntary carbon market can grow with clear regulation, firm contracts, and digitalised data, say experts
The voluntary carbon market has done a considerable amount of work to address criticisms over standards and environmental integrity, but now it needs the finance sector to help create the conditions for large-scale demand to trigger the investment required to scale up the market, according to speakers at a conference on Wednesday.
Read MoreVoluntary, Article 6 systems can co-exist without “competition” in bid to boost quality, says ICVCM co-chair
The regulators of the voluntary carbon market and the emerging administration of the UN’s Article 6 mechanisms may be covering the same broad territory in terms of setting standards for carbon credits, but should not be seen as competitors, according to a senior member of the ICVCM.
Read MoreShift in sentiment in Brussels could lead to softening of ETS2, as EUAs set to rise more slowly –analyst
The European Union could make adjustments to, or delay the implementation of, its ETS2 mechanism amid a shift in priorities at the heart of the EU, an analyst said on Tuesday.
Read MoreFragmentation of standards a fact of life in new carbon market landscape, say experts
Fragmentation in international carbon markets is now a “reality”, and it is unlikely that there will be a single global standard for credits as countries continue to take different approaches in terms of project development, according to panelists speaking at a conference on Tuesday.
Read MoreEuro Markets: EUAs give up early rally above key level as gas fluctuates on new supply
EU carbon prices ended Monday modestly higher after an early rally was followed by a long and aggressive sell-off, while natural gas prices also faded but held on to more of their gains amid news that Azerbaijan had started shipments to Slovakia.
Read MoreEuro Markets: EUAs trim weekly loss amid gas surge on reports of new February storage mandate
EU carbon prices posted a weekly loss of 1.3% but rallied strongly in the second half of Friday, as reports that the EU will mandate minimum gas storage levels by February 2025 triggered a strong rally in the TTF market and erased earlier declines.
Read MoreUK consults on including maritime emissions, non-pipeline CCS in ETS
The UK government on Thursday launched a consultation on further changes to the UK ETS, including the expansion of the market to cover maritime shipping emissions, and on proposals for regulations that would allow permanent storage CO2 via non-pipeline methods to be subtracted from reportable emissions.
Read More