Newsletter Carbon Markets 25/09/24

The price of the European carbon allowance (EUA) on the ICE market rose on Tuesday to €64.21, once again taking cues from the stronger TTF gas market. However, analysts continued to point to technical indicators that could suggest a potential price drop and highlighted possible volatility ahead of Wednesday’s options expiry. The price of the UK carbon allowance (UKA) fell to £38.53 on the ICE market.

EU Carbon Market Slashes Emissions by 47% Over 15 Years

The data reported by EU member states regarding verified emissions in 2023 under the EU ETS show a 15.5% reduction in emissions in 2023 compared to 2022 levels. Given this trend, ETS emissions from key sectors, including energy and heavy industry, are now approximately 47% below 2005 levels and are on track to meet the -62% target by 2030.

The most significant driver of the record decrease in EU ETS emissions was the energy sector, with emissions from electricity generation dropping by a significant 24% compared to 2022. This reduction is due to a substantial increase in electricity production from renewable sources (primarily wind and solar), at the expense of coal and gas.

For the full report, click here.

 BRICS Countries to Partner on Carbon Market Development

In a significant step toward international climate cooperation, BRICS countries (Brazil, Russia, India, China, and South Africa) have agreed to partner on developing carbon markets. This collaboration aims to create integrated markets that can reduce carbon emissions across some of the world’s largest emerging economies. With varying stages of development in each nation, the partnership will focus on sharing best practices, creating harmonized frameworks, and boosting investment in sustainable technologies.

This initiative is crucial for global efforts to meet climate targets, as these countries are major contributors to global emissions. By coordinating on carbon pricing and trading mechanisms, BRICS nations aim to take proactive steps towards reducing their environmental impact while fostering economic growth.

Explore more about this partnership here.

Nature Restoration Law Takes Effect

The European Union’s Nature Restoration Law has officially come into force. Aimed at reversing decades of ecosystem degradation, the law mandates the restoration of 20% of the EU’s degraded ecosystems by 2030, setting the stage for an expansive rejuvenation of natural habitats. This legislation emphasizes the restoration of wetlands, forests, grasslands, and urban ecosystems, addressing biodiversity loss and tackling climate change head-on.

The law represents a commitment to rebuilding resilience in the face of increasing environmental pressures, with a long-term vision for healthier ecosystems by 2050. Restoration projects will now be scaled up across member states, and funding mechanisms have been put in place to support large-scale initiatives. In addition to benefiting biodiversity, the restoration efforts are expected to enhance carbon sequestration, bolster clean water sources, and reduce natural disaster risks such as floods and droughts.

Read more about the law here

Carbon Expert is a consultant in the carbon market, helping you reduce emissions and capitalize on allocation trading opportunities.

With customized solutions, we support you in complying with current regulations and efficiently achieving your sustainability goals.

Source : European Comission, European Parlament, Carbon Pulse, Green Earth

Newsletter: A Boost for the Green Economy in Romania 11/09/2024

European carbon allowance (EUA) prices fluctuated in line with natural gas prices on Monday, ending the session almost unchanged at €65.27, as afternoon selling interest capped earlier gains. UK carbon allowance (UKA) prices ended at £42.44 on the ICE market.

Romania is set to benefit from a substantial €31.5 billion allocation under the EU Cohesion Policy for 2021-2027. Of this total, €13.5 billion is dedicated to the “A Boost for the Green Economy” fund. More information about this directive can be found here :

https://ec.europa.eu/commission/presscorner/detail/ro/ip_22_4662

The “A Boost for the Green Economy” fund is specifically designated to advance Romania’s green transition. This fund is aimed at fostering sustainable development through investments in green energy, carbon emission reductions, environmental infrastructure, and biodiversity conservation.

Among the €13.5 billion allocated funds, €6.75 billion is dedicated specifically to advancing the green transition. This investment focuses on enhancing green energy, reducing carbon emissions, and improving environmental infrastructure. Key areas of funding include :

• green energy initiatives
• carbon reduction projects
• biodiversity conservation
•  green spaces
•  risk management
• sustainable urban mobility

Strategic Investments for Romania’s Green Future

€2.3 billion will be used to upgrade the energy performance of residential and public buildings, and to invest in renewable energy sources and smart energy systems. This will significantly reduce energy consumption and carbon emissions, supporting the decarbonization of Romania’s energy sector.

Additionally, €2.34 billion will be directed towards the water and wastewater sector, enhancing the circular economy with a focus on waste management, re-use, and recycling.

Furthermore, €2.14 billion from the Just Transition Fund (JTF). This fund will target regions in Romania most affected by the phase-out of coal and lignite, concentrating on transforming energy-intensive industries and ensuring a fair transition for the affected communities.

This substantial funding represents a transformative opportunity for Romania, enabling significant strides towards a more sustainable and resilient economy. The investments will not only advance green energy and environmental projects but also ensure a balanced transition for communities affected by the shift away from traditional energy sources.

Carbon Expert is here to assist private businesses in navigating and accessing these vital funds. Our expertise in carbon trading and green consultancy can help you identify and secure the necessary financial resources for your green projects, ensuring you capitalize on the opportunities provided by this substantial investment.

Sources : European Comission, Carbon Credits