The CO2 Market EU ETS – 21.04.2022

The ICE ECX market in London closed yesterday, April 20, 2022, the EUA futures contract at the price of 87.82 euro / tCO2, increasing by 9.5%, as a result of the approach of the compliance deadline from the end of this month.

Verified emissions under the EU ETS likely rose by a record 8.3% last year, according to a poll of analysts published by Carbon Pulse, with output rebounding from the pandemic-induced drop in 2020 as utilities burned more coal and the European economy recovered. The EUAs surrender deadline for EU ETS installations is 30th of April companies, and the European Commission will soon make available 2021 verified emissions data.

Carbon Border Adjustment Mechanism

The EU’s 27 economy ministers reached an agreement on 15th March to introduce a carbon levy on imports of highly-polluting goods like steel, cement and fertilisers, but kicked the can down the road on controversial aspects like the use of revenues coming from the scheme.

The carbon border adjustment mechanism (CBAM) was proposed by the European Commission last year as a way to protect EU industry from imports of products coming from countries where it is cheaper to pollute.

Making headway on the idea is a priority for France which currently holds the rotating presidency of the EU. The implementation of CBAM is the next step that we shall closely follow.

Source: Carbon Pulse & The European Council