Euro Markets: EUAs post modest drop in volatile trading as profit-taking and new shorts compete
European carbon prices swung violently for a second day on Thursday as continued short covering sustained the market after a weak auction, pushing it above key technical resistance levels, before longer term shorts reasserted themselves in the afternoon and unwound the day’s gains.
Read MoreCBAM may lead to higher prices, emissions from UK power exports to EU -report
The EU’s Carbon Border Adjustment Mechanism (CBAM) could push up the cost of the bloc’s electricity imports from the UK, deterring the development of low-carbon projects and leading to higher carbon emissions on both sides, according to analysis released on Thursday.
Read MoreEuro Markets: EUAs swing sharply in sync with natural gas volatility as short-covering continues
European carbon allowances ended Wednesday 2% lower after earlier rising as much as 4%, as the fortnightly gap in the auction schedule, continued short-covering by speculators, and initially firmer energy prices propelled the market to a one-month high, before a sell-off in TTF gas dragged EUAs back down.
Read MoreANALYSIS: UK draft property bill to invite legal clarity for UKA, voluntary credit disputes
Legislation drafted by an independent advisory body at the behest of the British government could lead to revised property rights for holders of UK Allowances and voluntary carbon credits.
Read MoreCORRECTION – Euro Markets: EUAs jump most in 15 months amid short squeeze as prices near key options level
European carbon prices posted their largest daily gain in 15 months on Tuesday as a squeeze triggered by a rally in natural gas extended for a second day, forcing short-positioned traders to buy back in the futures market, while the approaching expiry of the March options contract also encouraged covering.
Read MoreCity of London hosts initiative to help SMEs, individuals buy UKAs rather than voluntary carbon
London’s financial hub hosted the launch of a new service on Monday that enables businesses and people to buy carbon from the regulated UK ETS and cancel them permanently, rather than offset emissions through voluntary markets.
Read MoreEuro Markets: EUAs wipe out steep early losses as gas prices jump on US LNG cutback news
European carbon allowances made an abrupt about-face in sync with natural gas prices on Monday, wiping out early losses of as much as 5.2% after a US LNG exporter said it would cut March production due to low prices, leaving both markets posting gains.
Read MoreEuro Markets: EUAs post first weekly gain of 2024 as prices find support at technical level
European carbon prices bounced off a key support level on Friday, encouraging short-positioned traders to cover ahead of the weekend, as the market posted its first weekly gain of 2024.
Read MoreUK ETS supply adjustment mechanism could be in place from 2026 -official
Britain is considering introducing an allowance supply adjustment mechanism (SAM) to its carbon market from 2026, a senior UK government official told Carbon Pulse.
Read MoreBritish Airways owner IAG inks deal to secure almost 1 bln litres of SAF over 14 years
International Airlines Group (IAG) has agreed to buy almost a billion litres of sustainable aviation fuel from a California-based producer, bringing the British Airways owner a third of the way to reaching its 2030 SAF goal.
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