The Carbon Market – 29.03.2017

The ICE exchange from London closed yesterday, 28.03.2017, its CO2 tradings and Brent Crude as follows:

• EUA spot:  € 4.72
• EUA Dec ’17 futures: € 4.73
• CER daily futures: € 0.27
• Brent Crude futures May’17: $ 51.65

The EU ETS Reform

Last month, the European Parliament approved the environment committee’s (ENVI) package with several key modifications:

• The Linear Reduction Factor (LRF), the rate at which the cap shrinks each year, will be increased from the current 1.74% to 2.2% rather than ENVI’s proposed 2.4%;
• The Market Stability Reserve will withdraw 24% of the surplus in the market for the first four years of its operation from 2019, rather than 12%; and
• Airlines will see their free allocations cut by 10% from 2021.

At the same time, the Commission proposed to continue with the current geographic scope of the EU Emissions Trading System for aviation, covering only flights between airports in the European Economic Area (intra-EU flights) – de facto meaning an extension of the ‘stop the clock’ provision.

For English, please press here.

Source: European Commission, Brussels and IETA, Geneva