After the volatility of the last few weeks, the EUA market consolidated in a very tight range between 5.11 €/t and 5.20 €/t last week, closing slightly lower at 5.14 €/t. The biggest news last week was fundamentally bearish, with the EEX announcing that it has reached an agreement with Poland to..
After the big increase in EUA prices to 5.91 €/t following the Council’s surprisingly fast agreement of its ETS Phase 4 negotiating position, itself unexpectedly bullish, the contract has consistently retreated. By Friday’s close it was down by 7.7% w/w to 5.17 €/t—right in the middle of the rang..
Last week, the EU carbon market saw high volatility, with prices rising strongly on the surprise European Council agreement of its negotiating position for the EU ETS Phase 4 legislative package, before dropping back due to still-weak 2017 fundamentals. The Council’s agreement was a surprise both..
Over February, EUA prices traded in an increasingly tight range between 4.90 €/t and 5.41 €/t and averaged 5.14 €/t, which was lower than seen in either December 2016 or January. The month still had some supportive features for prices, but these were less pronounced than in January. The very..
The European carbon market was decidedly bullish last week, with EUA front-year prices up by 8.2%, climbing back up to 5.39 €/t. The bullish moves had some modest fundamental support from France, where nuclear outages have moved back up to over 10 GW again. While stimulating some spot buying, som..
Last week, the European Parliament passed a proposed legislative package for Phase 4 of the EU ETS, with very few changes made to the bill proposed by the environment committee (ENVI). Given how bullish those proposals were, we expected them to be somewhat softened in plenary, and the Parliament..
The EU ETS remained in the 5–5.5 €/t range last week as market balance persisted, reflecting the key factors apparent through the last six weeks. Auction volumes remain an omnipresent feature, but the bearishness of those sales is being largely offset by the prolonged period of cold weather and F..
The European Commission (EC) was busy last week, publishing two documents that concerned the EU ETS. The first was the proposed regulation for the ongoing inclusion of aviation installations in the ETS following the October 2016 ICAO resolution, which saw parties agree a global, market-based mech..
In January, EUA prices softened from those seen in the second half of December. In what was effectively a bit of a hang-over from that liquidity constrained month, the first trading day of January saw the highest price and was the only day when the market closed above 6 €/t. Afterwards, prices t..
The biggest news last week affecting the ETS was the 24 January UK Supreme Court judgement specifying that the UK Parliament must approve the decision to invoke Article 50—the trigger for two years of negotiations for the UK to leave the EU. After the ruling, the UK government said that it expect..
Though last week had a soft start, with prices closing below 5 $/t, a strong end to the week saw prices close on Friday at 5.43 €/t (up by 7.5% w/w). An extended cold snap continues to hang over much of Europe, keeping the pressure on energy demand across the regions. European power markets..
After some large price moves in previous weeks, the market traded in a tighter range last week and closed at 5.05 €/t, as it did the week prior. The in-range trading was symptomatic of a balance between bullish and bearish drivers. On the bullish side, the period of extended cold seen across..
The last few weeks encapsulated the price formation dynamics seen throughout 2016. EUA auctions stopped for the holiday period, and in the absence of that supply side liquidity, EUA prices were pushed up from just under 5 €/t to close at a high of 6.57 €/t on 29 December. The return to..
This will be the last edition of Carbon weekly this year. Publications will resume on 9 January, 2017. Last week, the European Parliament’s environment committee (ENVI) finally voted on its amendments to the Phase 4 legislative package for the EU ETS. The resulting compromise text is r..
Some good news to end a fairly tumultuous year came from a Bloomberg report that indicated the UK would prefer to have its installations remain in the ETS after it withdraws from the EU. From an economic standpoint, this should be the default position as the ETS allows the UK to meet its carbon r..