COMMENT: The EU’s MSR sale proposal – “Ooooh! Look at that cookie jar!”
The European Commission’s plan to bring roughly 200-250 million EUAs out of the Market Stability Reserve (MSR) and auction them to raise €20 billion to fund the bloc’s shift away from Russian energy has jolted the EU ETS, igniting “trust” concerns by market participants who liken the move to Brussels raising the EU’s climate cookie jar.
Read MoreUK govt issues £27 mln in EU ETS non-compliance fines
The UK government has levied more than £27 million in new environmental fines, with the bulk related to compliance breaches under the EU ETS.
Read MoreEuro Markets: EUAs little changed in thin trade as scarce buyers fail to retake technical level
EUA prices consolidated their gains from Tuesday after early strength, but failed to re-take a key technical level amid thin trading as participants eyed public holidays across much of Europe in the coming few days.
Read MoreProgressive MEPs fear REPowerEU will scupper chances of higher ETS ambition
A European Parliament compromise on the EU ETS reform might lose relevance in the run-up to a vote by the full assembly next month in the wake of proposed changes to the supply-managing MSR via the REPowerEU strategy.
Read MoreGreen groups push tropical forest VER buyers towards jurisdictional, reduction-based credits
A coalition of eight environmental and Indigenous NGOs on Tuesday released a new set of guidelines for purchasing tropical forest voluntary emissions reductions (VERs), arguing companies should favour initiatives that span entire jurisdictions and prioritise emissions reductions over removals.
Read MoreEEX Group to feature vintage-specific nature-based offsets, removals among voluntary product suite
Germany’s European Energy Exchange (EEX) Group on Tuesday announced the launch schedule of a voluntary carbon market (VCM) product suite, with vintage-differentiated nature-based units and removals-focused credits among the four standardised contracts offered across multiple time zones.
Read MoreINTERVIEW: Speculator curbs a far greater risk to EU carbon market than MSR sale plan, warns ETS architect
The EU carbon market is overreacting to a proposal to sell up to €20 billion in allowances over four years to fund the bloc’s move away from Russian energy, one of the fathers of the ETS told Carbon Pulse Tuesday, adding that he’s far more worried about efforts to limit speculators.
Read MoreLess than 4% of global GHGs covered by a sufficient carbon price to meet 2030 goals
Despite direct carbon price instruments covering almost one quarter of global greenhouse gas (GHG) emissions bringing in $84 billion in 2021, less than 4% are within a system with a sufficient price to meet Paris Agreement-aligned 2030 climate goals, a report from the World Bank said Tuesday.
Read MoreEuro Markets: Carbon wipes out Monday losses amid short covering and options pull
European carbon held on to early gains on Tuesday to wipe out Monday’s losses as options hedging and short covering in a thinly traded market drove prices back above €80, while an EU official said that proposed sales of EUAs from the market stability reserve would be evenly spread over four years.
Read MoreUPDATE – Market needs reassurance that “taboo” EU carbon MSR sale is a one-off
The European carbon market requires assurances that the proposed sale of EUAs from the Market Stability Reserve (MSR) is an exceptional circumstance and will not be repeated, in order to avoid undermining the functioning of the EU ETS, stakeholders told a conference Tuesday.
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