UPDATE – EU to propose revision of ETS Market Stability Reserve “before Easter”, retain volume-focused triggers, officials say
A planned revision of the EU ETS Market Stability Reserve (MSR) will be presented “before Easter”, officials in Brussels said on Monday, also confirming that the European Commission was not planning to put forward a shift from volume- to price-linked triggers as part of the plans.
Read MoreUK refineries warn of further closures after govt rejects CBAM inclusion
The UK government’s decision not to extend its planned carbon border adjustment mechanism (CBAM) to cover refined oil products has triggered warnings from industry that the country’s remaining refineries face an increased risk of closure, potentially accelerating reliance on imported fuels.
Read MoreEuro Markets: EUAs jump most in nearly two years as ETS reform talks avoid worst-case scenario
European carbon prices jumped by 6.3% on Friday, the biggest one-day rise since May 2024 and wiping out much of the week’s losses after prices set an 11-month low on Thursday, as traders reacted with relief to the outcome of the EU summit, at which leaders called on the European Commission to hasten proposals for reform of the carbon market and in particular the Market Stability Reserve, and brushed aside calls to suspend the market.
Read MoreMajor EU lignite producer reports 16% drop in ETS-covered output in 2025
A large lignite-fired power producer has reported a heavy fall year-on-year in its power generation covered by the fuel under the EU ETS in 2025.
Read MoreEU’s new ETS-backed ‘investment booster’ to focus on lower-income countries, draw from “existing reserves”
European Commission President Ursula von der Leyen announced the forthcoming launch of a €30 billion industry decarbonisation “investment booster” at an EU summit in the early hours of Friday morning, which will draw on 400 million allowances from “existing reserves” in the bloc’s Emissions Trading System (ETS).
Read MoreEU carbon prices could fall 13% by 2027 under MSR intake tweak, find analysts
A 12% EU ETS Market Stability Reserve (MSR) intake rate could add nearly 100 million EUAs to the market by 2027 and lower carbon prices by around 13% over the period, according to analysis published this week.
Read MoreANALYSIS: EU carbon prices surge as Brussels swerves “worst case” scenarios for ETS reform, but market in the dark on details
Benchmark EU carbon futures jumped nearly 10% on Friday morning after the European Commission confirmed it would imminently propose tweaks to the market to help ease prices in the near term, as well as planned medium-term reform measures including a €30 billion ‘investment booster’ for decarbonisation, as participants said they now consider fundamental changes to the Emissions Trading System, or a possible suspension of the scheme, to be off the table.
Read MoreEU leaders urge swift conclusion of ETS reform by end-2027
EU heads of state and government have urged the European Commission to present a review of the Emissions Trading System (ETS) “by July 2026 at the latest” and to finalise the legislative process by the end of 2027 – a year marked by the high-stakes French presidential election.
Read MoreFEATURE: Italy’s attack on carbon costs undermines cleaner, cheaper energy options
Italy’s push to suspend EU carbon costs may sound like a quick fix for spiking power prices – but it will come at the expense of low-carbon technologies that bring greater energy independence, and help industries cut emissions, experts warned.Â
Read MoreEuropean Commission moves to “modernise” EU ETS with MSR upgrade, €30 bln investment push
The European Commission will propose reforms to the EU carbon market, including tweaks to the Market Stability Reserve, a €30 billion industrial decarbonisation fund, and plans to extend free allocations from 2035, as the bloc weighs short-term interventions to cushion the impact of surging energy prices triggered by disruption in global oil and gas markets linked to the US-Israel war against Iran.
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