According to a recent paper by Carbon Market Watch and WWF, in 2023 alone, heavy industry received free allowances worth around €40 billion. Furthermore, sectors such as cement, steel and chemicals were over-subsidised, being rewarded with more pollution permits than their actual emissions.
According to a leaked legislative proposal seen by the media, the European Commission plans to simplify and strengthen the carbon border adjustment mechanism (CBAM). Under current legislation, CBAM will be phased in from 2024 and 2034 while gradually replacing free allocation under the EU ETS.
The European carbon market fell along with gas yesterday, maintaining a downtrend that started on Tuesday. EUAs closed at €78.05, marking a 2.79% daily loss, the same decline as in the previous session. This brings prices back to levels last seen a month ago.
The European carbon market dropped below €79 for the first time in almost a month on Tuesday morning, tracking massive declines in gas prices. The TTF front month was trading around 6% lower amid a combination of peace talks, warmer weather and rumours about a possible price cap.
According to ABN AMRO, the third-largest bank in the Netherlands, the bullish sentiment that is currently dominating the carbon market is “mainly driven by the rising uncertainty in the European gas market along with the geopolitical ambiguity surrounding US trade policies.”
The European carbon market reversed early losses to rise modestly on Wednesday, following a similar move in equities and “helped by an afternoon rally in gas” as stated by Carbon Pulse. The EUAs reached an intra-day high of €82,66 before closing at €81,12 and posting a modest daily gain of 0,3%.
Speculators increased their net long positions in EUAs yet again, according to the latest Commitment of Traders (COT) data released on Wednesday morning by ICE. The future contracts traded by investment funds totalled a net position of 55,5 million allowances as of 31 January, gaining 2,5 million allowances from the previous week. This is the […]
In early trading on Monday morning, the European carbon market was trading significantly lower, tracking massive losses on the international stock markets, following Trump’s commercial war. Meanwhile, the EUAs are moving away from its traditional link to the gas market.
The European carbon market rallied on Thursday morning reaching briefly €84,50, a level last seen in October 2023. However, the EUAs failed to hold on the gains ending the session at €82,66 almost €2 below the intra-day high.
The price of carbon in the UK ETS has surged an impressive 13% in early trading on Tuesday following an article in the Financial Times. As a result, UKAs closed the day at £40,02, a level last seen in November 2024.