Investors price carbon attention, not carbon itself, crypto study observes
Investors react sharply when an asset’s carbon footprint becomes a prominent public issue, but do not systematically price changes in underlying emissions, according to new research using cryptocurrency markets as a natural experiment.
Read MoreEU ETS could need carbon removals “safety valve” to avoid price surge if CCS, hydrogen rollout falters -report
The EU may need to integrate CO2 removals into its emissions trading system as a “safety valve” to prevent allowance prices from spiralling if deployment of carbon capture and storage (CCS) and green hydrogen infrastructure continues to lag expectations, according to a new report.
Read MoreEUAs set to end year around current level as questions remain over fragile bullish bias, says analyst
EU carbon prices are on course to end year around their current price level, with speculators maintaining a bullish view of where the market is trending despite “unprecedented” policy risk from the upcoming ETS review, an analyst at an energy consultancy said on Thursday.
Read MoreEuro Markets: EUAs ease back amid geopolitical uncertainty as market sees little near-term upside
European carbon lost ground on Thursday, reversing Wednesday’s tentative rebound, as participants noted little upside with the Strait of Hormuz closure continuing to weigh on economic fundamentals, even as energy markets ticked downwards.
Read MoreIndustry, governments renew push to freeze EU ETS benchmarks as NGOs demand transparency
Energy-intensive industries and several European governments are still urging the EU to suspend a planned tightening of benchmarks that determine how many free allowances installations receive under the EU Emissions Trading System (EU ETS), including steep cuts to key “fallback” values, while NGOs and think tanks push for more transparency in how the new rules are set.
Read MorePoland presses EU to ease carbon market pressure on cement CCS plans
The Polish government is urging the EU to dial back a planned tightening of its carbon market after 2030, warning that an “artificial scarcity” of allowances could undermine investments in carbon capture and storage (CCS) technology needed to decarbonise the country’s cement industry.
Read MoreEU strikes overnight deal to reinforce ETS2 price-stability mechanism
The European Union’s legislators reached a provisional agreement early Thursday morning to strengthen the Market Stability Reserve (MSR) of the bloc’s new carbon market for buildings and road transport, in a move aimed at reducing the risk of price shocks ahead of the system’s launch.
Read MorePoor communication on CCS is becoming a “political problem”, Danish MEP warns
Carbon capture and storage risks turning into a political liability in Europe because most people – including many politicians – have never seen it in action, Danish lawmaker Niels Flemming Hansen has warned, urging reforms to the EU carbon market to better support industrial decarbonisation and carbon dioxide removals (CDR).
Read More€13-trillion investor group urges EU leaders to shield ETS from pressure to weaken price
Institutional investors managing more than €13 trillion in assets have urged EU leaders to resist pressure to dilute the bloc’s carbon market as governments prepare a politically sensitive review of the EU Emissions Trading System (ETS) next month.
Read MoreEuro Markets: EUAs rebound as energy ticks up following US strikes on Iran
European carbon prices posted modest daily gains as they tentatively rebounded in the wake of recent losses, while energy markets rose following reports of retaliatory US strikes on Iran.
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