The EU ETS Market

EU ETS buyers motivated to buy due to attractive prices

On 1st October 2019 the EUA was testing the very important rising trend line, which will also determine developments in the near future. The low to prices trading around 24,50 eur/t yesterday, 2nd October are also the 38,2% retracement of 2018 low to 7/2019 high. Although conditions call for a lower valuation (€22), as AitherCO2 have been analyzing a lot lately, prices are 22% lower from the high, on significant support and seem attractive. Market operators usually start purchasing allowances in advance when there is a collapse in the prices, as the exchange is very volatile and we could see quotations rising again, depending on Brexit’s outcome and other external factors.

The EU plans EU ETS changes

Further reforms to the EU emissions trading system (ETS) directive are likely during the 2020s, including a reduction in the free allowances given to airlines.

We will provide more about this information next week together with the conclusions of the IETA – EPRI – IEA Annual Workshop on Greenhouse Emissions Gases Trading, which takes place these days, from 3-4 October 2019 in Paris, where our International CO2 Consultant, Casiana Fometescu, has been invited to participate.

Source: AitherCO2, London and IETA, Paris