The Carbon Market 23.01.2017

Dear Partners,

May you have a new year 2017 full of hopes, peace, and accomplishments at all levels, personally and professionally!

The ICE exchange from London currently trades its CO2 operations and Brent Crude as follows:

  • EUA spot:  € 5.42
  • EUA Dec ’17 futures: € 5.43
  • CER daily futures: € 0.28
  • Brent Crude futures Apr’17: $ 55.44


The European Parliament’s ENVI Committee, the Committee responsible for Environment, Public Health and Food Safety, adopted on Thursday, 15 December, its opinion on the revision of the EU ETS for Phase 4.

The key outcomes of the ENVI opinion on the revision of the EU ETS Phase 4 are:

  • Linear Reduction Factor: The Linear Reduction Factor should be increased to 2.4% in Phase 4
  • Stronger MSR: A proposal to double the MSR intake rate for the first 4 years is part of the Compromise Amendments
  • Allowances Cancellation: A proposal to cancel 800 million allowances from the MSR in 2012 was adopted
  • Auctioning share: The auctioning share can be reduced by up to 5% in order to avoid the application of the Cross Sectoral Correction Factor.
  • Carbon Leakage Provisions: The Commission’s binary system is maintained. ENVI’s opinion also include a provision for the establishment of a border carbon adjustment measure for importers of certain goods.

What’s next?

The ENVI Opinion will be tabled for a vote in Plenary, so that Parliament can adopt its position before starting trilogue negotiations (between the Commission, the Parliament and the Council). ENVI President La Via did not provide an indication on when the Plenary vote will take place. Nevertheless, it is expected to take place in January or February 2017. If the process is not delayed, Trilogues will start in the first half of 2017 and are likely continue into the second half of 2017, depending on when trilogue negotiations actually start and on how divergent the three positions are.

Source: ENVI Committee, The European Parliament

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