The ICE exchange from London trades today, 05.10.2017, CO2 certificates and Brent Crude as follows:
- EUA spot: € 6.91
- EUA Dec ’17 futures: € 6.92
- CER daily futures: € 0.20
- Brent Crude futures Dec’17: $ 56.21
The European CO2 Market EU ETS
The third quarter 2017 European Emission Allowances EUA closed with an increase of more than 40% against the previous quarter. Also from point of view of the first nine months, the pollution rights rose around 8%.
A important reason therefor could be the upcoming negotiations of the European Member states, which will review their position on the EU-ETS reform plans on Friday this week. Than they will discuss the proposal of cancellation of emission rights from the market stability reserve starting in 2023.
The previous proposal did not mention a cancellation, what could lead to the fact, that they could return into the market, if there was a surplus of less than 433 million units. The European Parliament also supports the cancellation of 800 million units after January 1st, 2021.
EU carbon prices are set to more than double to €15-20 by 2019-20 as utilities up their hedging, curbing supply just as the MSR starts sucking up hundreds of millions of allowances, a Barclays analyst said.
Source: Barclays, London