EU carbon prices seen hitting €82 by mid-2026 amid mounting bullish sentiment, looming supply crunch
European carbon prices are expected to remain around current levels over the coming weeks before rising to average €82 in Q2 next year as looming supply constraints fuel bullish sentiment, according to a European investment bank.
Read MoreFEATURE: EU importers nervous over lack of key CBAM implementation details
EU importers are getting anxious about missing critical data points related to the bloc’s Carbon Border Adjustment Mechanism (CBAM), which fully comes into force in 2026, with some going as far as to prepare for a delay to the next stage of the carbon leakage policy.
Read MoreANALYSIS: Indian ETS gears up, but faces structural tests ahead
India’s national compliance carbon market under the Carbon Credit Trading Scheme (CCTS) is estimated to become the third largest in the world after China and the EU, but complexity in design, lack of regulatory clarity, and a dearth of accredited verifiers may hamper early implementation and undermine price discovery, according to experts.
Read MoreFEATURE: Industries unimpressed by Brussels’ idea of using CBAM revenues to support EU exports
The EU’s proposal to use revenues from its border carbon fee to support exports from domestic industries will cause uproar among trading partners and is unlikely to be enough to make exports competitive, according to industry representatives and experts.
Read MoreUK flags emissions increase, carbon leakage risks in India trade pact
The recently signed free trade agreement between the UK and India will spur a rise in emissions, according to the UK government, which also warned of carbon leakage and lack of coherence with Britain’s climate goals.
Read MoreCoal dependence risks India’s trade competitiveness, report says
India risks losing billions of dollars in trade revenue and millions of jobs to lower-carbon competitors unless it accelerates the transition to clean energy as global climate policies tighten, according to a report released Thursday.
Read MoreIndian industry faces data crisis, hefty penalties as EU carbon border price looms
Indian manufacturers are already struggling with data integrity and inadequate verification as they prepare for the European Union’s Carbon Border Adjustment Mechanism (CBAM) starting next year, threatening billions of dollars in exports and exposing the country’s industrial sector to high penalties and reputational damage, a webinar heard Wednesday.
Read MoreTaiwan to clarify carbon leakage criteria under domestic emissions levy scheme
The Taiwanese government will disclose more details about the criteria for carbon leakage-exposed sectors around August, a move that will affect how much emitters will have to pay under the island’s carbon fee scheme, local media reported.
Read MoreBrussels proposes setting aside 30% of ETS revenue for EU’s own budget
The European Commission’s new budget proposal for 2028-35, unveiled on Thursday, suggests reserving 30% of auctioning revenues from the EU’s Emissions Trading Scheme (ETS) for the EU budget, setting the stage for difficult talks with member states, which currently receive the bulk of auctioning revenues.
Read MoreEU’s proposed budget earmarks 35% to climate, endangers LIFE programme
The EU’s new draft long-term budget includes a dedicated 35% climate target, around €700 billion out of a nearly €2 trillion blueprint for seven years, while suggesting to merge the environment-devoted LIFE programme with other funding streams.
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