Gradual ‘exchange rate’ could smooth path to ETS1 and ETS2 linkage, study says
The European Union could link its two emissions trading systems over time by introducing an explicit “exchange rate” for allowances, helping to avoid sudden price shocks, according to a new academic study on gradual market integration.
Read MoreEuro Markets: EUAs set new 15-week high before afternoon rapid reversal leaves 0.9% gain
European carbon made an early run at the €80 mark on Wednesday as the surge in buying activity extended into a second day, before profit-taking in the afternoon took the shine off the day, while UKA prices also posted a daily gain despite post-midday weakness as both markets continued to reflected greater optimism around regulatory and political changes to come.
Read MoreBASF plans €12 bln share buybacks despite EU carbon cost complaints
German chemicals giant BASF plans to buy back €12 billion of its own shares between 2025 and 2028, even as it complains about EU carbon compliance costs, according to a new paper warning against significantly weakening the EU’s Emissions Trading System (ETS).
Read MoreMarket barriers may weaken EU ETS price signal, study finds
Short planning horizons among EU ETS participants and industrial investors, alongside limits on allowance banking and policy risk, could weaken carbon price signals, delay low-carbon investment, and push steelmakers towards less efficient transition technologies, a recent study has found.
Read MoreEuro Markets: EUAs set 15-week high on UKA rally, as bullish EU ETS reform sentiment appears to grow
European carbon prices broke above the upper end of an emerging pennant formation and set a 15-week high on Tuesday as the market shrugged off bearish news headlines from the Middle East and took heart from a strong rally in UKAs, as optimism flowered anew that the EU and UK may reach a deal on market linking at their next summit meeting in the summer, while also taking a more bullish view of EU ETS reform.
Read MoreLawmakers disagree on extra climate requirements for access to EU carbon leakage fund
Lawmakers in the European Parliament are poised to clash on whether to introduce additional climate conditions for European companies to access support from the Temporary Decarbonisation Fund (TDF).
Read MoreEU faces short-term job losses from higher carbon prices, ECB paper finds
The EU’s flagship Emissions Trading System (ETS) puts a short-term drag on jobs when allowance prices rise unexpectedly, with workers in carbon-intensive roles hit hardest and green job gains failing to fully offset the losses, according to new research by the European Central Bank.
Read MoreEurope faces high bill if EU ETS price becomes too cheap, says European utility
Europe risks paying a far higher price in the long run if the cost of carbon emission allowances falls amid an imminent review of the EU Emissions Trading System (ETS), according to a European power company, which argues that weakening climate incentives could undermine both economic stability and energy security across the continent.
Read MoreEuro Markets: EUAs ease as gas falls 7% in anticipation of US-Iran deal
European carbon prices slipped lower on Monday morning after Friday’s gains as oil prices fell below $100 per barrel and benchmark European gas futures dropped 7% on renewed expectations of an agreement between the US and Iran to reopen the Strait of Hormuz.
Read MoreEU ETS reserve price could curb coal use during gas price shocks, study says
A rule-based emergency reserve price in the EU ETS could reduce coal use during natural gas price shocks while raising revenue that could be used to compensate households for higher power prices, a study published Monday has found.
Read More