Given the lack of expected upcoming policy decisions at an EU level focused on the ETS, 2018 will be more about watching out for state-level domestic energy and environmental policy developments. One of those to watch is Germany, where political parties are completing negotiations to form a coali..
Trading in EUAs ended 2017 just as we had expected at the start of December. Front-year prices dropped as the Dec-17 contract neared expiry and a predominantly long market closed positions. After that, the lack of liquidity caused by the cessation of primary auctions over the holiday period allow..
In time to come, the carbon market will probably remember 2017 as the year the Phase 4 ETS legislative package was finally agreed. This process stretched across the year, with the European Council’s unusually quick agreement of their position followed by a lengthy trilogue. However, Phase 4 was n..
In the latest EU climate policy development, the European Parliament’s energy and environment committees voted through a proposed Regulation on the Governance of the Energy Union (RGEU) that would set the rules governing EU and national policies on energy and climate change from 2021 onward..
Brexit continued to dominate the ETS last week, with countries in the EU’s Climate Change Committee agreeing on Thursday to the revised registry regulation clause that takes on board a proposal from the UK to move the compliance deadline. The proposed revised regulation still provides rules..
The big event in the EU ETS last week was the vote in the European Council’s Coreper group to approve the ETS Phase 4 legislative package that had been agreed in trilogue. Coreper votes are usually just a rubber-stamping exercise, although there was some concern that the UK might vote again..
November finally saw the conclusion of the long and winding legislative path of EU ETS Phase 4 reform package. Agreed at trilogue at the sixth attempt, the bill retained its bullish components and was made slightly more bullish by a rule that is set up to automatically deepen the ETS caps by canc..
The 2017 UNFCCC COP closed last week in Bonn with little of overt relevance for the traded emissions market. The COP got bogged down in what exactly would qualify as part of the promised climate finance, while the UK and Canada led a coalition of countries pledging to stop using coal as part of t..
EUAs fell to close at 7.40 €/t (-6.1% w/w) on Friday as the market sold off on the ETS reform package finally being agreed at EU trilogue in the early hours of Thursday morning. The market was bid up in the sessions before the trilogue on expectations that a deal would be clinched, but it so..
EUAs posted an 9.9% w/w gain by 3 November despite a relatively quiet week on ETS policy. However, policy will be back front and centre this week. The sixth EU trilogue meeting on ETS reform is on 8 November, and the EU would like to be able to announce a bullish reform package during the UNFCCC&..
With European policy announcements taking a week off, the EUA market had time to settle and prices eased back towards 7 €/t. Market-moving policy news is not expected this week, but later in November we could see news to help support prices. Top of this list is the sixth EU trilogue meeting..
After a strong September in the EUA market has come an even stronger October, with Dec-17 closing prices trading in a 6.9–7.8 €/t range, and at least one intraday session seeing prices pass 8 €/t. Over October the closing price has averaged around 7.30 €/t, up by 7% m/m and 2..
Last week saw some strong EUA prices thanks to policy announcements, despite these containing little in the way of surprises. The proposed bill to exclude international aviation from the ETS—and at the same time ‘Brexit proof’ the ETS—was agreed at an EU trilogue meeting,..
The surprise of last week was the failure of the EU trilogue to reach agreement on the EU ETS Phase 4 legislative package. This was the fifth trilogue meeting on this brief and expectations were raised at the end of the previous meeting that the two sides were close to an agreement. In addition,..
In a week when the daily volatility in the EUA markets calmed compared to September, discussion surfaced on a ‘non-paper’ (a discussion paper) produced by the EC on the “Brexit clause”. As we have discussed before (see Global Carbon Outlook: Out of Order, September 2017), if the Brexit clause is..