Last week saw yet more volatility in the European carbon market, with softness at the start and end of the week and price increases mid-week—EUAs hit an intra-day high of 7.72 €/t on Thursday. The market was reacting to MEPs voting to void any EUAs issued or sold, from 2018, by a gover..
Last week was a crazy one for the European carbon market, with most participants thoroughly bemused by it all. Prices jumped upwards over two sequential days (Tuesday and Wednesday), adding 13% and closing at 6.7 €/t on Wednesday, despite there being little fundamental news to support such a..
The EUA market remains relatively quiet outside of price development, with the August bull run largely coming to an end last week, with the Dec-17 contract posting a 4.8% w/w loss to close at 5.83 €/t on Friday. The big change was the market seeing some profit-taking in advance this week of..
In August, the EUA market was very well supported, with Dec-17 prices pushing up to the 6 €/t level and surpassing it by the end of the month. Prices generally trended upwards through the month, averaging 5.6 €/t, which was around 0.3 €/t higher than the July average. As we said last month, we..
Another week and the EUA bull run continues, with the Dec-17 contract posting another 4.6% w/w gain to close at 6.09 €/t on Friday, and remained at that level in early Monday trading. Little really changed last week, with the gains in related markets continuing to slow. As we pointed out last wee..
Next week's edition of Carbon weekly will be published on Tuesday 29th August, owing to the UK bank holiday. EUAs have tracked the bullish behaviour in the related gas and coal markets over August so far, closing Friday at 5.82 €/t, an 8% w/w gain. An easy explanation would be to highlight the l..
In July, the drop in EUA prices to 4.5 €/t that we had expected simply did not occur. EUA prices consistently traded in a reasonably tight range between 5 €/t and 5.5 €/t, with a monthly average of 5.27 €/t. We had expected July and August to be a real test of the emissions market given the y/..
Please note that due to the summer break the next edition of Carbon weekly will be published on 21 August. While a 6% w/w loss two weeks ago seemed to herald the end of the unexpected July price rally, EUA price action last week suggested otherwise, up by 9 cents (1.8%) to hit 5.18 €/t at Friday..
As July comes to a close, the unexpected price rally appears to have come to an end. Prices fell by 21 cents (6%) last week, finally living up to our weekly refrain that they would revert to the 5 €/t level, closing at 5.09 €/t by Friday’s close. However, this does not disguise the fact that EUA..
EUA prices remained sticky above the levels we expected. While little of fundamental note occurred, Brexit issues, always a good source of hyperbole, reared their head. The media has started to recognise that Brexit is likely to be problematic for EUA trade if there is no early notice of what mig..
Last week’s G20 meeting in Hamburg was most notable for the divergence on climate policy between the US and the rest of the group. Extraordinarily, the summit-ending communique noted the US withdrawal from the Paris Agreement (PA), but saw the remaining 19 nations reaffirm that an ‘irreversible’..
Last week saw little progress on finalising the post-2020 ETS legislation, with the European Council and the European Parliament remaining divided on a number of points. Interestingly, the two sides reportedly agree on those points that are more bullish for prices, meaning that raising the MSR in..
Prices were less volatile in June than they had been in May, with EUA prices trading in a tight range around 5 €/t, though this was a month of two halves in terms of primary supply. The first half, when auction volumes averaged a fairly low 15 Mt per week, and the second half, with weekly volume..
This week starts with Monday’s important vote in the European Council on the post-2020 revisions to the Energy Efficiency Directive (EED). The initial EC proposals included a 24% saving by 2030 on ‘business-as-usual’ (BAU) emissions—a target that even at the time looked very weak as the 2020 targ..
The publication of the BP statistical review of world energy always presents a good opportunity to measure how decarbonisation is progressing. The answer is that the world is doing better, but there is still a way to go before fossil fuel demand peaks. The data for 2016 show that primary energy c..