Loosening of EU carbon market could derail climate goals, generate major surplus, finds analysis
Proposed reforms to the European Union’s carbon market could significantly weaken the bloc’s emission reduction trajectory, flood the market with surplus permits, and undermine the pathway to climate neutrality, according to a new technical assessment by climate policy think tank.
Read MoreUkraine publishes draft ETS law, plans to create decarbonisation fund
Ukraine has published a draft law outlining the framework for its planned domestic emissions trading system (ETS), which would seek to cover power, industrial, aviation, and maritime sectors exceeding specified thresholds.
Read MoreFEATURE: EPP divisions cast shadow over bid to lead EU carbon market reform talks
Veteran EU Parliament lawmaker Peter Liese appears the obvious choice to lead negotiations on the reform of the Emissions Trading System (ETS) later this year, but divisions within his centre-right European People’s Party (EPP) over the future of the EU carbon market could yet block his appointment.
Read MoreLEAK: EU Commission weighs extended free allocation, aviation changes in EU ETS review
The European Commission is weighing an extension of free carbon allowances and a review of aviation rules to ensure “an effective carbon price” on international flights, according to a leaked internal paper seen by Carbon Pulse.
Read MoreEU carbon market volatility spills into emerging European equities during periods of stress, study finds
Volatility shocks from the EU’s carbon market are transmitted far more strongly to emerging European stock markets during periods of heightened market stress than under normal conditions, with Greece, Poland, and Hungary particularly exposed, according to a new study.
Read MoreEuro Markets: Calm energy markets leave EUAs, UKAs drifting
EU carbon allowances fell back towards the €76 mark on Tuesday in a muted session that drew thin trade with the benchmark generally following gas and power movements, as participants pointed towards a broadly neutral configuration across the continent’s energy markets.
Read MoreItalian industry presses Brussels for ETS overhaul, CBAM free allowances, further ETS2 delay
Italian industry is calling for a fundamental overhaul of the EU Emissions Trading System (ETS), along with a softening of the whole carbon market structure, warning that the market risks accelerating deindustrialisation unless major reforms are adopted.
Read MoreEU-commissioned study recommends broader carbon border charges on imported goods’ electricity emissions
The European Commission has published a technical study recommending new approaches to account for electricity-related emissions in imported goods under the bloc’s Carbon Border Adjustment Mechanism (CBAM), potentially paving the way for broader carbon charges on imports from third countries.
Read MoreEuropean Commission preparing proposal to expand EU ETS to international flights -Bloomberg
The European Union is preparing a proposal to expand its carbon pricing system to cover international flights, according to an internal Commission document seen by Bloomberg, a move aimed at strengthening climate action but likely to trigger opposition from international airlines and governments.
Read MorePREVIEW: EU states, Parliament set to clash over ETS2 MSR’s invalidation clause
EU member states are set to resist the European Parliament’s push to start cancelling carbon allowances held in the reserve of the bloc’s new Emissions Trading System for buildings and transport (ETS2) from 2034, as well as the Parliament’s calls for stronger social safeguards.
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