CO2 Emissions fell in the EU ETS by 8,7% in 2019
Greenhouse gas emissions regulated under Europe’s carbon market fell by 8.7% last year, preliminary like-for-like European Commission data examined by carbon analysts at Refinitiv showed.
Around 45% of the European Union’s output of greenhouse gases is regulated by the Emissions Trading System (ETS), the bloc’s flagship policy to tackle global warming by charging for the right to emit carbon dioxide (CO2).
The Refinitiv carbon analysts’ interpretation of the data found stationary emissions covered by the scheme such as power plants and factories, totalled 1.536 billion tonnes of CO2 equivalent (CO2e), down 8.7% on the previous year.
The fall was largely due to a drop in emissions from power generation as coal-fired output was replaced by gas-fired generation and renewable power such as wind and solar.
An UN study published on November 2019 showed that if the global CO2 pollution fell with 7,6% year by year, the Paris agreement goals could be achieved. Yet, the estimations of the international CO2 emissions reductions caused by Corona crisis are only of 5% compared to 1.5% after 2009 crisis.
CO2 Price increase in Europe
EUAs raced up by over €2.50 to top €20 on Monday, 06.04, as shorts scrambled to cover positions and as wider European markets rallied on signs of a slowdown in coronavirus cases, even as oil prices declined.
EUA Dec-20 increased by €1.57 last week and closed at €17.96 (+9.58%). Traded volumes decreased compared to the previous week with 115.5Mt versus 167.6Mt exchanging hands on ICE across contracts. The total Open Interest decreased by 106.2Mt for a total of 783.6Mt due to the expiry of the March contract.
Source: Reuters Point Carbon and ClearBlueMarkets, London