Euro Markets: EU carbon makes late surge in thin liquidity as expected 1.5% emissions drop in 2025 seen as no surprise
European carbon prices rose steadily on Thursday in a thinly-traded market, even as the carbon market showed little reaction to initial reports that emissions covered by the EU ETS had fallen by around 1.5% in 2025, while energy markets rose amid signs that the Strait of Hormuz remained largely closed to traffic, before plunging late in the session as Israel said it would open talks with Lebanon.
Read MoreThink tank suggests lower, country-level default values to ease EU CBAM burden
The European Union should give countries that export goods covered by its Carbon Border Adjustment Mechanism (CBAM) the option to use lower, opt-in, country-level emissions values, as this could cut administrative costs and reduce carbon leakage, a Brussels-based think tank said this week.
Read MoreUK seeks more feedback on CBAM legislation
The UK has put its Carbon Border Adjustment Mechanism (CBAM) legislation up for a second consultation, setting out its proposed requirements for administering the new CO2 tax on imports.
Read MoreEU adopts rules on ETS2 early auctions
EU rules enabling the earlier auctioning of carbon allowances under the bloc’s incoming Emissions Trading System for buildings and road transport (ETS2) were adopted by the European Commission on Wednesday.
Read MoreEEX Q1 carbon futures volumes triple year-on-year
The volume of European carbon market futures traded on the EEX exchange has more than tripled year-on-year in the first quarter of this year, according to data published Wednesday.
Read MoreEuro Markets: Lacklustre EUAs give up early jump on Iran ceasefire while energy drops
European carbon prices gave up an early 3.4% gain on Wednesday, while energy prices fell sharply after the US and Iran agreed a two-week ceasefire, and weekly positioning data showed investment funds cautiously adding to their net length after a 10-week run of reductions.
Read MoreGreens call to suspend talks on EU carbon market reserve
The Greens in the European Parliament have called for talks on reforming the EU’s Market Stability Reserve (MSR) to be suspended, saying the file must be linked to the broader reform of the EU Emissions Trading System (ETS) due in July.
Read MoreUK climate advisors urge govt to include CO2 road, rail transport in ETS, keep cap unchanged
The UK’s climate advisers have urged the government to expand emissions coverage under the UK ETS to include CO2 transported by road, rail, and smaller ships, arguing the move would support the rollout of CCS without loosening the scheme’s cap.
Read MoreEuro Markets: EUAs, UKAs drift marginally as market awaits developments in Iran
Trade in European carbon allowances resumed quietly after the Easter break, with prices ending the day marginally lower as the market preferred to await the expiry of the latest US deadline for Iran to agree to reopen the Strait of Hormuz, while traders also waited for news on verified emissions from 2025 and on benchmarks for free allocation.
Read MoreFEATURE: South African carbon tax seen as safe despite energy crisis pressure
South Africa’s levy on CO2 emissions is not considered to be under imminent threat, according to experts based in the country, despite an escalating energy crisis and recent attempts to pause the policy from within the national government.
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