CDR MONTHLY: Market consolidates after SBTi update provides long-term boost
June saw the durable CDR market consolidate as developers digested an announcement from the Science Based Targets initiative’s (SBTi) that will see a demand boost in the long term, as monthly contracted tonnes fell to around 350,000 tonnes in deals.
Read MoreDATA DIVE: Overall SBTi demand may top 1 bln in 2035, but questions remain over near term CDR prospects
Demand for both removals and reduction credits from companies taking part in a corporate target setting scheme could top 1 billion in 2035, according to forecasts based on a recent update to the programme’s rules.
Read MoreVCM REPORT: CORSIA futures fall to fresh 2-year lows, wider credit demand shows strong signs amid focus on quality
CORSIA futures sank to fresh two-year lows last week, with benchmark contracts slipping further below $10/tonne as uncertain sentiment over demand continued, while there were some positive signals in terms of retirements in the wider voluntary carbon market (VCM) amid an ongoing refocusing on quality.
Read MoreEuro Markets: EUAs, UKAs consolidate gains to end week above key levels
EUAs and UKAs both consolidated gains on Friday accrued earlier in the week to end the session above €80 and £60 respectively, with energy prices also charting solid gains as a heatwave across Western Europe loomed into view as analysts anticipated a significant ramping up of cooling demand, coupled with lower nuclear output in France.
Read MoreEuro Markets: EU, UK carbon lock in position above €80, as market awaits reform clarity, Hormuz reopening
A late burst of selling pushed EUAs back to the €80 mark, leaving the benchmark contract only marginally higher for the day, as European equities fell late, while traders anticipated that exports would soon start to ramp up from Middle Eastern energy hubs.
Read MoreFEATURE: Carbon buyers are eyeing new superpollutant credits for a quicker fix
As promises to tackle emissions in the short term butt heads with the realities of rising energy demand and pricey, early-stage carbon removal technologies, companies are increasingly looking for faster, easier wins – and driving a new market for superpollutant credits.
Read MoreVoluntary carbon credit retirements holding up, removals market showing signs of strain -report
Retirements across the voluntary carbon market (VCM) were strong across the first five months of 2026Â with volumes no longer concentrated at lower price points, according to new analysis, but removals purchases were down by 50% over the same period with questions over whether recent demand boosts will be enough to keep developers heads above water.
Read MoreINTERVIEW: Chemicals, construction the biggest winners from EU ETS free allocation benchmarks decision
Chemicals and construction companies are the biggest winners from the latest changes to benchmarks used to determine the number of free EU Emissions Trading System (ETS) allowances handed to industries, according to an analyst from a carbon investment consultancy.
Read MoreVCM REPORT: CORSIA benchmark future settle below $10, SBTi recognises voluntary carbon credit use in new corporate standard
CORSIA futures were little changed last week, with benchmark contracts on ICE slipping below $10/tonne mark after stabilising in recent weeks following a prolonged decline.
Read MoreEuro Markets: EUAs give up early gains to end the week flat, as gas slumps 6% on Friday
European carbon prices gave up early momentum on Friday, generated by an overnight US government statement that an agreement had nearly been reached with Iran to open the Strait of Hormuz, which pressured gas prices around 6% lower, though the supportive sentiment faded as the session went on for EUAs which ended the week flat, with several market players doubtful that the deal would be signed in the next few days.
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