PREVIEW: EU states, Parliament set to clash over ETS2 MSR’s invalidation clause
EU member states are set to resist the European Parliament’s push to start cancelling carbon allowances held in the reserve of the bloc’s new Emissions Trading System for buildings and transport (ETS2) from 2034, as well as the Parliament’s calls for stronger social safeguards.
Read MoreStrong ETS “indispensable” for Europe, says banking federation
A strong and predictable EU Emissions Trading System (ETS) is essential to achieve Europe’s climate targets and support investment, the European Banking Federation (EBF) said in a public statement Tuesday.
Read MoreAviation group warns EU against wider ETS scope in 2026 review
A European aviation alliance has warned the European Commission against expanding the EU ETS beyond flights within the European Economic Area (EEA), arguing that such a move could hurt European carriers and airports without delivering clear climate gains.
Read MoreUK will need to subsidise carbon removal prices to bring them down to ETS levels -research
The UK government will need to subsidise a fixed price for carbon removal credits when it integrates them into the country’s Emissions Trading Scheme (ETS), at a cost of around ÂŁ147 million per year, and more in the future, according to new research.
Read MoreKey Parliament lawmaker seeks broad majority behind EU ETS reform
Peter Liese, a senior German lawmaker tipped to lead the forthcoming revision of the EU Emissions Trading System (EU ETS) in the European Parliament, said he aims to forge a broad majority for the next reform of the bloc’s carbon market, ranging from the conservative right to the radical left.
Read MoreEuro Markets: EUAs shrug off early weakness to end day flat, UKAs consolidate
European carbon prices recovered to end the day flat on Monday, after trading started with bearish pressure, following on from last week’s selloff, with some sources noting that EUAs appeared to be drifting back again towards €75, which has acted like a magnet for much of the last two months.
Read MoreUPDATE – Six EU countries oppose plan to extend carbon market to departing flights
Six EU countries have urged Brussels to prioritise strengthening the international aviation sector’s carbon offsetting scheme CORSIA rather than extending the bloc’s carbon market to international flights.
Read MoreEuro Markets: EUAs post 4.6% weekly loss despite Friday consolidation amid macro weakness
EU carbon prices posted their first weekly loss since the start of May, even as the market consolidated on Friday and only posted a modest 0.2% decline amid wider weakness across many asset classes, after early dip-buying had brought prices back from a two-week low.
Read MoreItaly calls for new EU ETS ‘fallback’ benchmarks to apply retroactively
Italy has urged the EU to introduce new, softer sector-specific benchmarks that determine the number of free CO2 permits industries receive from 2027, saying it wants these changes applied retroactively to 2026 as well.Â
Read MoreAxing MSR ‘invalidation clause’ risks new oversupply shock in EU carbon market, watchdog warns
Carbon Market Watch has urged EU lawmakers to reject a European Commission plan to scrap the EU ETS Market Stability Reserve’s invalidation rule, warning it would “neutralise” the reserve’s core function and risk a new period of structural oversupply and depressed carbon prices.
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