Euro Markets: EUAs erase Friday’s 6.6% loss after lawmakers reach deal on REPowerEU funding
EUA prices recovered from a sharply lower open on Monday before shooting higher and clawing back all Friday’s 6.6% loss after European Parliament representatives stuck a compromise on how they want allowances to be sold to fund the bloc’s REPowerEU recovery plan.
Read MoreUK airline EasyJet to halt VER purchases in new net zero plan
Low-cost air carrier EasyJet on Monday announced it will soon stop automatically purchasing carbon credits to offset flight emissions as part of its net zero roadmap, and instead focus on a suite of other GHG mitigation strategies in its SBTi-aligned plan.
Read MoreUK government eyes rapid review of net zero strategy as opposition targets green growth
The newly-appointed UK government aims complete its ‘pro-business’ net zero review by the end of the year, it said at the launch of the initiative on Monday as the main opposition party laid out a competing vision.
Read MoreEuro Market: EUAs tumble to six-month low as traders boost short positions amid more MSR talks
EUAs tumbled as much as 7.2% to a six-month low on Friday as traders reacted to news that Germany is mulling an idea for a larger revenue target for allowances sales under the RePowerEU plan, while energy markets were marginally weaker as forecasts showed windy conditions and temperatures above seasonal norms.
Read MoreUK sends mixed messages on emissions reductions as it updates NDC
The newly-installed UK government made a major energy security push on Friday, announcing plans to fast-track both low-carbon and fossil fuel projects even as it submitted a revised climate pledge to the UN detailing a pathway towards its binding 2050 net zero emissions target.
Read MoreUKAs to maintain premium to EUA prices despite waning hedging demand -analyst
UK allowances will maintain their premium to EUAs in the coming years as the British market remains structurally tighter than its European counterpart, even as forward hedging demand for UKAs declines over the rest of the decade, according to an analyst.
Read MoreEuro Markets: EUAs tread water at support level as traders dig for news while energy markets ease
EUA prices held station around a key technical support level in thin trade on Thursday as traders described a market lacking direction, while energy markets were also quiet amid anticipation of a Brussels plan to cap energy costs that may include rules governing speculation in natural gas markets.
Read MoreEuro Markets: EUAs drop below technical level after options expiry as focus shifts to MSR sales
EUA prices fell below a key technical support on Wednesday after the September options contract expired and the market’s focus shifted to the debate over sales of EUAs from the market stability reserve, while energy prices also jumped as the crisis showed no signs of ending.
Read MoreUK moves to cap wholesale energy costs for industry at “less than half” market price
The UK government announced a support package for businesses and ETS-covered industrials on Wednesday in which wholesale energy prices will be capped at “less than half” of expected winter levels in a bid to avoid mass demand shutdowns and economic disruption.
Read MoreEU coal imports to reach around 100 mln tonnes in 2022 amid scramble for energy –analyst
European demand for seaborne coal is predicted to increase by 14% in 2022 as the bloc struggles to address the energy crisis, but the rise will not trigger any significant investment and global demand is expected to continue to trend downwards, analysts said on Tuesday.
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