Euro Markets: EUAs slump back as market awaits key investor, TNAC data
Benchmark European carbon prices fell on Tuesday, moving as much as 3% lower in a late sell-off, as sources noted a likely correction lower following Monday gains linked to a delay of US tariffs on the EU, with participants also hesitant to take on too much risk ahead of Wednesday’s publication of funds’ positioning data and the European Commission’s release of the 2024 Total Number of Allowances in Circulation (TNAC).
Read MoreEuro Markets: EUAs rebound for 2% gain as US tariff headlines continue to dictate market
European carbon prices on Monday reclaimed all their losses from the end of last week after the US announced over the weekend it would postpone proposed tariffs on the EU for another month, while energy markets, as well as a tight auction schedule, also fed in support with analysts generally expecting a bullish week.
Read MoreEuro Markets: EUAs recover to weekly gain despite looming US tariff threat, UKAs lock in 7% increase
European carbon prices slipped lower on Friday but found resilience above €70 despite US President Donald Trump threatening hefty tariffs on the EU, which sparked a short-lived afternoon sell-off on EUAs, while UKAs secured a 7% weekly gain.
Read MoreANALYSIS: UK emissions cap to feature in ETS linking talks with EU, as Brexit politics looms over progress
An initial agreement struck on Monday to link the EU and UK emissions trading schemes (ETS) includes a key commitment from Britain to ensure “dynamic alignment” with the bloc’s carbon market legislation – a move that puts Britain’s emissions cap on the negotiating table, sources told Carbon Pulse.
Read MoreUK court upholds government approval for Teesside gas power plant with CCS
The UK Court of Appeal on Thursday dismissed a legal challenge brought by an environmental campaigner against the British government’s decision to approve a major gas-fired power station with carbon capture and storage (CCS) in Teesside, ruling that ministers had acted lawfully in balancing the project’s emissions with national climate goals.
Read MoreEuro Markets: EUAs ease further on technical selling, gas, as UKAs fall back over 3%
European carbon allowance prices eased for a second successive session on Thursday, tracking gas lower as sources again highlighted a returning correlation to the TTF as well as a relatively calm market in the wake of several bumpy months, while UKAs slipped 3%, shedding some of the gains made since a UK-EU ETS linking announcement on Monday.
Read MoreINTERVIEW: UK to propose a carbon regulator to standardise growing, disparate emissions counting practices
The more companies worldwide track and report their emissions, the more disparate the information and methodologies are becoming — fuelling the need for a UK carbon regulator to set professional standards and ensure the data is consistent and coherent, according to an influential research body.
Read MoreANALYSIS: 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 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.
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