ANALYSIS: EU-UK linking announcement “positive” but leaves market with more questions than answers
News this week that the EU and UK had struck an initial agreement to link their emissions trading systems (ETSs) with exemptions from upcoming carbon border fees sparked a flurry of British market activity, pushing benchmark prices above £55 for the first time since 2023, but traders and analysts alike questioned the scale of the gains given officials are yet to provide a timeline or any firm details on implementation of a link-up.
Read MoreEU aluminium industry warns of CBAM loopholes, ahead of vote on simplification
The design of the EU’s Carbon Border Adjustment Mechanism (CBAM) could accelerate an exodus of operations – known as carbon leakage – in the aluminium sector, a new study warned, on the eve of a key European Parliament vote on proposals to simplify the scheme.
Read MoreEU ETS has delivered but faces uncertainty amid post-2030 climate target delay -report
The EU’s Emissions Trading System (ETS) is facing a period of uncertainty, as pressure mounts ahead of a revision next year to align with the bloc’s upcoming 2040 climate goal, and calls grow lounder for integrating international credits into the scheme, according to a report published Wednesday.
Read MoreEuro Markets: EUAs ease lower as gas correlation returns, funds raise net long position
European carbon allowance prices struggled for direction on Wednesday as traders noted a gradual return to gas market correlation, with the TTF market climbing higher over the morning then easing back across the afternoon, a move mirrored by EUAs, while investment funds increased their collective net long position for a third consecutive week, driven by a sharp cut in total shorts.
Read MoreFEATURE: In tight race with Turkiye, Australia and the Pacific look likely to win COP31
The Australia-Pacific bid to host COP31 next year is looking more and more likely to win out over rival Turkiye, according to observers, thanks to a stronger reputational standing and the chance to shift the annual UN summit out of the Northern Hemisphere for the first time in a decade, but Turkiye is not ceding ground just yet.
Read MoreEuro Markets: EUAs unwind week’s losses as gas sparks near 4% rally, while UKAs set new high
European carbon prices unwound most of their losses from the previous two sessions, catching an updraft from strongly firmer natural gas after US President Donald Trump appeared to step back from efforts to bring the conflict in Ukraine to an end, while UK Allowance prices advanced to yet more multi-year highs as traders digested Monday’s EU-UK linking agreement.
Read MoreAirline boss calls for EU ETS costs to align with CORSIA
A European airline has described the ‘two tier’ carbon scheme created by the EU Emission Trading Systems (ETS) and the UN’s CORSIA international aviation offsetting scheme as “manifestly unfair” and “scandalous”.
Read MoreEU ETS-funded hydrogen projects awarded nearly €1 bln
The European Commission has selected 15 renewable, or “green”, hydrogen production projects for a total of €992 million in public subsidies from the EU ETS-fed Innovation Fund.
Read MoreEU ETS starting to drive business case for green hydrogen in ammonia sector, says H2 producer
Ammonia producers in the EU are starting to purchase green hydrogen to decarbonise their operations, faced with the approaching phaseout of free allowances on the EU’s Emissions Trading System, according to a green hydrogen developer.
Read MoreRussia files WTO complaint labelling EU’s CBAM, ETS as discriminatory and protectionist
Russia has launched a formal complaint at the World Trade Organization (WTO) over the EU’s Carbon Border Adjustment Mechanism (CBAM) and Emissions Trading System (ETS), arguing the schemes amount to a protectionist and discriminatory trade barrier masquerading as climate policy.
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