The EU ETS market

Here are the most relevant news items in the carbon world to help you make informed decisions as you build your emissions allowances strategy.

EUAs cuts around 37% in the final four months of 2019

EU allowance auction volumes will be cut around 37% in the final for months of this year, sales host announced on 11th July, as the MSR removes a further 117,6 million EUAs from the market this year. This is  the main fundamental for continuing the increase trend of the EUA price. For the first time in 11 years, the price was more than 28 Eur, ending at 28,47 Eur/EUA on 16.07.2019, determined especially by the German government announcement that it would be willing to cancel free permits as part of its plans to phase out coal-fired power plants. Support levels can be seen at 28-28.50 Eur/ton.

EU ETS emissions fell 3.9% in 2018

The EU Commission data shows that EU ETS emissions fell by 3.9% in 2018. Industrial installations and aircrafts emitted a total of 1.75 billion tonnes of CO2. This is a positive sign considering that emissions in 2017 were on the rise. The aviation sector’s output on the other hand is still escalating as ETS emissions rose by 3.9% for a fifth consecutive year. Industrial installations however registered positive gains as emissions fell by 4.1%.

WOW Air fined €30 Million for EU ETS non compliance

Iceland’s environmental protection agency has imposed a fine of €30 million on the bankrupt airline, Wow Air. This comes after the airline operator failed to pay for last year’s emission allowances upon the April 30 deadline. Wow Air is expected to pay €100 for each tonne of emissions in accordance with the statutory directives. This is the second time this year that huge penalties have been imposed as British Steel faced the same fate in May, paying out a record £120 million for non compliance.

Source: EC Commission, Brussels, ICE ECX & AitherCO2, London