Emissions

  • European carbon

    European carbon cover image Published 25 Jun 2018 by
    As we expected, the EUA market fell back on the 20 June expiry of ICE Jun-18 EUA options before bouncing back. At the options market’s most recent peak, on 7 June, around 21 Mt of calls were in the money, already largely hedged on the buy side, and were expected to result in hefty selling o..

    Read more

  • European carbon

    European carbon cover image Published 18 Jun 2018 by
    Benchmark EUA prices dropped by 8% w/w to close Friday at 14.53 €/t as the bull run that dates back to July 2017 stuttered significantly. We think the drops were largely about the expiry of the Jun-18 options on ICE, which will happen on Wednesday (20 June). At the end of last week, open int..

    Read more

  • European carbon

    European carbon cover image Published 11 Jun 2018 by
    European financial markets, including EUAs, were characterised by risk-off events at the end of May, but EUA prices clawed back almost all their value over 4-8 June, albeit in a choppy trading week. The market hit a seven-year high of 16.7 €/t in within-day trading mid-week but closed Friday..

    Read more

  • European carbon

    European carbon cover image Published 4 Jun 2018 by
    EUA prices slipped back last week amid some significant risk-off events for European financial markets. The first factor to curtail risk-taking was a burgeoning Italian political crisis, although this was averted on 1 June as a new government was sworn in after a breakthrough in coalition talks...

    Read more

  • European carbon

    European carbon cover image Published 29 May 2018 by
    This week, EU trilogue sessions will aim to finalise both the Energy Efficiency Directive (EED) and the Renewable Energy Directive (RED), although negotiating sticking points remain on each directive over the level of ambition out to 2030. For EED, the initial European Commission (EC) proposal wa..

    Read more

  • Calling December early

    Calling December early cover image Published 23 May 2018 by
    Another month, another acceleration in the EUA bull run. While April was actually a fairly modest month for EUA price gains, with the Dec-18 contract only adding 2% over the month, May has been racing upwards, passing 14 €/t at close on 9 May and 15 €/t on 16 May. The renewed upswing co..

    Read more

  • European carbon

    European carbon cover image Published 21 May 2018 by
    Next week's edition of Carbon weekly will be published on Tuesday 29 May, owing to the UK bank holiday. After hanging out over April and the first week of May in the 13-14 €/t range, the last two weeks put the EUA market back on its upward trajectory. The market closed at 15.25 €/t on F..

    Read more

  • European Commission places EUA market surplus at 1.65 Gt; auctions in 2019 to fall by around 400 Mt

    Published 15 May 2018 by
  • European carbon

    European carbon cover image Published 14 May 2018 by
    On Tuesday, the European Commission will announce how many surplus EUAs are in circulation. The total number of allowances in circulation (TNAC) is the basis on which the injection percentage for the market stability reserve (MSR) is multiplied to determine the volume of EUAs that will be taken o..

    Read more

  • European carbon

    European carbon cover image Published 8 May 2018 by
    In the aftermath of the 2017 compliance date of 1 May the market moved modestly down, threatening to push below 13 €/t. However, this week has started stronger with Monday closing up 5% d/d. The European Commission (EC) released data last week showing that 265 installations were not fully co..

    Read more

  • European carbon

    European carbon cover image Published 30 Apr 2018 by
    Tomorrow, 1 May, is the deadline for installations to submit EUAs to cover their 2017 verified emissions. While notionally important, the market as a rule rarely sees an uptick in buying (or selling) in the period immediately before the event as most installations will have sorted out annual comp..

    Read more

  • European carbon

    European carbon cover image Published 23 Apr 2018 by
    Last week finally saw something of a downward price move after three straight weeks of w/w gains. The market closed at 14 €/t last Monday (16 April) but softened to 13.05 €/t by Friday’s close, posting a 6.4% loss on the Dec-18 contract. Last week the market displayed, as it often..

    Read more

  • Double Dutch

    Double Dutch cover image Published 19 Apr 2018 by
    Another month into 2018 and the bull run that EUAs have been on appears as rampant as ever, with another 2.8 €/t or so added to the EUA price since mid-March and the Dec-18 contract flirting with 14 €/t by mid-April. We are not calling an end to the upward price movements, but a potenti..

    Read more

  • European carbon

    European carbon cover image Published 16 Apr 2018 by
    Last week saw the International Maritime Organization (IMO) announce an agreement to cut the global shipping sector's overall CO2 emissions by 50% on 2008 levels by 2050―below the 70% reduction sought by some members, including the EU. The main implication for the ETS is whether EU policymakers f..

    Read more

  • European carbon

    European carbon cover image Published 9 Apr 2018 by
    Carbon prices took a break from their long bull run last week, but recent price rises have been drastic enough for us to consider the ETS Directive’s never-used Article 29 ‘safety valve’. The Article requires the European Commission (EC) to hold a committee meeting if —ove..

    Read more