Energy-intensive industries urge EU to enact “meaningful” free carbon allocation update
A coalition of 16 European industry groups has urged EU policymakers to ensure that this week’s update to benchmarks that determine free carbon permit allocations for the rest of the decade fully reflects industrial concerns with the bloc’s Emissions Trading Scheme (ETS), warning that the outcome will be critical for investment, competitiveness and climate goals.
Read MoreItaly moves to delay coal power phaseout by 13 years
The Italian government has decided to postpone the closure of the country’s remaining coal power plants to 2038, 13 years after their scheduled phaseout, citing the energy crisis caused by the war in the Middle East.Â
Read MoreANALYSIS: Imminent EU ETS proposals expected to have limited market impact
Expected proposals to reform the supply-balancing reserve in the EU’s Emissions Trading System (ETS), and updates to benchmarks determining free permit allocations for industrials, are not likely to have a major impact on carbon market prices in the bloc, analysts have said, as Brussels scrambles to find solutions to ease soaring energy costs and protect European industry.
Read MoreOver a dozen EU countries renew call for CBAM fertiliser suspension
More than a dozen EU countries urged the European Commission to exempt fertilisers from the bloc’s Carbon Border Adjustment Mechanism (CBAM) during Monday’s agriculture ministerial meeting in Brussels.
Read MoreEuro Markets: EUAs steady after strong auction as market eyes midweek stability reserve proposal
European carbon prices advanced on Monday as a second strong auction in a row triggered a brief flurry of buying that drove the market to its highest in two and a half weeks, before levels retreated slightly in the afternoon, as traders anticipated details of changes to the EU ETS supply management mechanism due to be published on Wednesday.
Read MoreUPDATE – EU Commission MSR reform proposal will not touch intake rate, volume thresholds -Bloomberg
The European Commission’s proposal to boost the “firepower” of the Market Stability Reserve (MSR) in the EU ETS will not tweak the supply-control mechanism’s intake rate or volume thresholds, and will instead centre around the cancellation of an invalidation clause for excess allowances, Bloomberg reported Monday.
Read MoreEuro Markets: EUAs post 5.9% weekly drop after market flatlines on Friday, with focus on MSR reform proposal
European carbon allowance prices ended Friday almost unchanged but recorded a 5.9% weekly increase, after briefly regaining levels last seen at the start of March, as traders continued to adopt a watching brief ahead of next week’s European Commission reform proposals that include the Market Stability Reserve, while crude oil rose further amid expectations for an extended conflict in Iran and gas weakened due to forecasts of sufficient supply by the end of the summer.
Read MoreFrance to request EU CBAM fertiliser exemption amid Middle East war
France will ask the EU to temporarily suspend its carbon border tax on fertilisers, citing rising prices linked to the ongoing Middle East conflict, the country’s agriculture minister Annie Genevard said on Friday.
Read MoreDATA DIVE: Asia gas premium over Europe to filter in support for EUAs, say analysts
Increased demand for LNG from Asian buyers should squeeze European natural gas prices, boost coal in the EU power mix, and feed some support for EUAs over the spring and summer, according to analysts, though any fuel switching demand from electricity production would also likely come in the face of a tough conditions for industrials amid high energy costs.
Read MoreBRIEFING: Waste incinerators face potential EU ETS inclusion from 2030 “at the earliest”
The European Commission is weighing three options to tackle CO2 emissions from municipal waste incinerators, with a potential inclusion in the EU’s Emissions Trading System (ETS) not envisaged until 2030 “at the earliest”, a senior EU official has said.
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