The CO2 Market – 12.05.2021
EUA price has reached a new record this week, exceeding the threshold of 50 €/tCO2. The daily upward trend of about 3-5% is due to a growing demand from investors as a result of positive market signals regarding the approval of European climate law and political statements of European leaders, which encourages the CO2 free market and rising prices. Today, the EUA certificate was traded between € 53.15 and € 54.70 / EUA.
The European Climate Law
The European Parliament approved on Monday, 10.05.2021 the European Climate Law proposed by the European Commission on 20th March 2020. As one of the key elements of the European Green Deal, the European Climate Law enshrines the EU’s commitment to reaching climate neutrality by 2050 and the intermediate target of reducing net greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels. This agreement on the European Climate Law is a key milestone for the European Commission, delivering on one of the commitments announced in the President’s Political Guidelines in July 2019.
In addition to the 2050 climate neutrality target, the agreement strengthens the European framework for climate action by introducing the following elements:
- an ambitious 2030 climate target of at least 55% reduction of net emissions as compared to 1990, with clarity on the contribution of emission reductions and removals;
- recognition of the need to enhance the EU’s carbon sink through a more ambitious LULUCF regulation, for which the Commission will make proposals in June 2021;
- a process for setting a 2040 climate target, taking into account an indicative greenhouse gas budget for 2030-2050 to be published by the Commission;
- a commitment to negative emissions after 2050;
- the establishment of European Scientific Advisory Board on Climate Change, that will provide independent scientific advice;
- stronger provisions on adaptation to climate change;
- strong coherence across Union policies with the climate neutrality objective;
- a commitment to engage with sectors to prepare sector-specific roadmaps charting the path to climate neutrality in different areas of the economy.
Source: The European Commission, Brussels