EU to propose more dynamic ETS supply controls, slower emissions cap decline -reports
The European Commission is preparing a broad overhaul of the EU ETS that would introduce more dynamic controls over allowance supply, recalibrate the market’s emissions trajectory, and extend support for industrial decarbonisation, according to a media report citing people familiar with the plans.
Read MorePoland calls for further ETS2 delay, builds 12-country alliance on EU carbon market reform
A group of 12 EU climate ministers met separately on Thursday to discuss a joint stance on reforming the bloc’s Emissions Trading System (EU ETS) and on whether to again delay the EU’s second carbon market for heating and transport (ETS2).
Read MoreEuro Markets: Afternoon sell-off wipes out early gains as EU reportedly mulls MSR softening
Carbon looked to be heading higher on Thursday, posting a healthy early increase even as energy markets extended their week of declines amid a gradual lessening of supply worries around the Strait of Hormuz, before a steep sell-off wiped out the day’s gains and left carbon with a 0.3% daily loss, while the European Commission was reported to be mulling a softening of the market stability reserve’s parameters.
Read MoreEU ministers split over weakening CO2 car rules amid boom in EV sales
The EU’s 27 environment ministers remained divided over plans to relax car CO2 rules on Thursday, while Wopke Hoekstra, the EU’s climate chief, said the recent boom in electric car sales is a sign that weakening the cars CO2 target may not have been necessary after all.
Read MoreEU to issue detailed CBAM guidance soon as it works with India on MRV alignment
The European Commission will soon publish detailed guidance on certain requirements under its Carbon Border Adjustment Mechanism (CBAM), while working with India to narrow differences between the border levy and the country’s upcoming emissions trading, officials said on Thursday.
Read MoreEuro Markets: EUAs rise 1.5% amid options expiry positioning before easing to post marginal advance
EUAs rose as much as 1.5% before falling back towards the week’s lows on Wednesday as traders positioned themselves for the expiry of June options in the early afternoon and after weekly Commitment of Traders data showed speculative traders had increased their bullish bets last week by the most in nine months and ahead of the afternoon expiry of June options contracts.
Read MorePREVIEW: France warns against diluting EU ETS, CO2 emission standards for cars
Paris has warned the European Union against watering down its climate policy framework ahead of a ministerial meeting on Thursday, stressing that EU laws must remain consistent with the bloc’s 2040 climate objectives agreed earlier this year.
Read MoreFEATURE: Price or volume? EU weighs options for future ETS Market Stability Reserve
Policymakers broadly agree that a more responsive Market Stability Reserve (MSR) is needed to make the EU carbon market react faster to price spikes, but they remain split over whether this can be achieved using existing volume-based indicators or whether new price-based triggers are required – a step advocates say could pave the way for a “soft price corridor”.
Read More12 EU countries call for expansion of ETS-financed Modernisation Fund
Twelve EU member states have urged the European Commission to allocate more money from the EU ETS-financed Modernisation Fund, in a letter to EU climate chief Wopke Hoekstra.
Read MoreTurkish ETS to be finalised imminently, kicking off pilot phase this year -official
Turkiye’s final Emissions Trading System (ETS) policy is expected to be signed off imminently, clearing the way for the start of a two-year “rehearsal” period before the first stage of implementation in 2028, an official has said.
Read More