Euro Markets: EUAs jump to 7-week high as market sees no immediate negative impact from MSR reforms
European carbon market prices jumped to a seven-week high on Wednesday as traders reacted to the European Commission’s confirmation that it would propose only minimal amendments to the market’s supply management tool that the market felt would not have a short-term price impact, while energy markets weakened after the US president said the war in Iran may be over in as little as two weeks.
Read MoreNorthern Ireland flagged as a potential EU CBAM loophole
Northern Ireland could serve as a loophole for companies seeking to avoid paying the EU’s Carbon Border Adjustment Mechanism (CBAM) fees, due to the absence of controls on goods crossing from there into the bloc via Ireland, experts have warned.
Read MoreANALYSIS: EU carbon strengthens as minimalist MSR revision proposal offers “no nasty surprises”
Benchmark EU carbon prices gained nearly €2 in the space of a few minutes on Wednesday morning, immediately after the European Commission confirmed that its proposal to reform the Market Stability Reserve would only scrap a clause that invalidates excess permits in the supply-balancing mechanism.
Read MoreDelays mean EU ETS free allocation benchmarks now to be published “shortly after Easter”
The European Commission will now publish long-awaited benchmarks that determine how many free permit allocations industries receive under the bloc’s Emissions Trading System (ETS) shortly after Easter, a senior EU official said, after a delay to their release, which had been expected on Wednesday.
Read MoreEU Commission unveils limited reform proposal of ETS Market Stability Reserve
The European Commission put forward a proposal on Wednesday to revise the Market Stability Reserve (MSR), a key instrument guiding the supply of permits in the bloc’s flagship Emissions Trading System (ETS), opting only to scrap an invalidation clause that permanently removes excess allowances from the market’s buffer pool.
Read MorePOLL: EU ETS emissions seen modestly lower in 2025 as weather, weak industry offset transport gains
Analysts expect verified emissions covered under the EU ETS were slightly lower in 2025, as subdued industrial activity and continued coal-to-gas switching were counterbalanced by weak renewables output and rising transport demand.
Read MoreEU Parliament’s environment committee proposes extending ETS2 MSR to 2035
Lawmakers in the European Parliament environment committee want allowances in the Emissions Trading System for heating and transport (ETS2)’s Market Stability Reserve (MSR) to remain fully valid until 2033, and partially valid until 2035, as part of a draft agreement on amending the supply-controlling mechanism.
Read MoreEuro Markets: EUAs shrug off volatility to post 3.2% monthly gain ahead of EU reform proposals
European carbon prices recorded a 3.2% monthly gain in March, but were still 17% down for the year to date, with prices ending Tuesday marginally higher as traders continued to await the European Commission’s publication of proposed reforms to the market’s supply adjustment mechanism.
Read MoreEU carbon market could drive 60-126 Mt of removals annually by 2050 -report
Integrating carbon removal (CDR) into the EU’s Emissions Trading System (ETS) could incentivise tens of millions of tonnes of CO2 removals annually by mid-century, according to a new study released on Tuesday.
Read MoreEU urged to crack down on ‘opaque’ national ETS revenue spending
The chair of the European Parliament’s environment committee has called for greater transparency on how revenues from the EU’s Emissions Trading System (ETS) are spent at national level, warning that half of the bloc’s countries currently channel the money directly to their general budget, making traceability impossible.
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