Analysts cast doubt on likelihood of rapid progress in potential UK-EU market linking talks
Political announcements on the possibility of negotiations between the UK and Europe over linking their carbon markets have triggered significant price volatility in UKAs in the last two weeks, but analysts have cast doubt over the likelihood of meaningful talks leading to an agreement in the near term.
Read MoreEuro Markets: EUAs slide as early boost gives way to profit-taking, while UKAs briefly hit nine-month high
European carbon prices ended Friday with a 0.5% weekly gain, after having opened sharply higher as energy prices also jumped on reports of an attack on infrastructure at the Sudzha gas transmission facility in western Russia, before falling back amid steady selling for much of the day, while UKAs briefly touched a nine-month high after yet another update that the UK government was considering linking to the EU ETS.
Read MoreUK govt confirms “actively considering” ETS link with EU in formal response to speculation
The UK government formally confirmed it is considering the case for linking the country’s carbon market to the EU ETS in an update published late on Thursday, but cautioned that this does not anticipate any outcome of key talks in May with the bloc.
Read MoreEuro Markets: EUAs ease lower amid profit-taking and consolidation, with selling interest seen rising
European carbon prices handed back some of Wednesday’s 3% gain on Thursday amid what some sources said was profit taking, magnified by the weakest auction of the year to date, while energy markets also drifted on further reports that Germany and France are seeking to relax gas storage mandates from 2026.
Read MoreUKA futures prices to end 2024 up 23% year-on-year, ahead of anticipated shortfall -analysts
UK carbon prices are likely to end the year around 23% higher when the current front-December contract expires on Dec. 15, but are expected to advance more strongly in 2026 as the market surplus turns in to a shortfall, analysts told a webinar on Wednesday.
Read MoreEuro Markets: Geopolitics drives gains across energy, EUAs get further push from options hedging
European carbon prices surged to their highest in nearly three weeks on Wednesday as markets reacted to Russia’s refusal to agree an unconditional ceasefire in Ukraine, and energy prices posted sharp gains as traders priced in a lower probability of pipeline gas supplies resuming in the near term, with EUAs getting additional support from options hedging.
Read MoreUK presents ideas for revamping Grangemouth refinery into a clean industrial hub
The UK government is looking at credible long-term options for injecting new, low-carbon life into the country’s oldest oil refinery, as part of a wider push to spur clean and renewable infrastructure development.
Read MoreEuro Markets: EUAs post late rally amid another headline surge in UKAs, as markets await news on Ukraine ceasefire
European carbon prices moved in a comparatively narrow range for much of Tuesday, before rising steeply in the wake of another UKA rally fuelled by headlines and as the effect of March options open interest continued to grow, while energy markets waited for the outcome of talks between the US and Russian leaders over a potential ceasefire agreement in Ukraine.
Read MoreFunding barriers slow UK building sector decarbonisation efforts -report
Efforts to cut emissions from the UK’s building sector are being hampered by persistent funding gaps and fragmented policy, according to a new report.
Read MoreFull UK-EU ETS link-up may not be realistic, UK lawmaker concedes
A full link-up of the UK and EU emissions trading systems (ETSs) is not “realistic”, but the two sides should try and get as close as possible, a UK lawmaker conceded following a two-day meeting between British and EU parliamentarians.
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