ACX (AirCarbon Exchange)’s Post

Bloomberg: The cost of emitting CO2 is set to decouple from gas prices in the EU, marking an historic shift in the dynamic between the two markets [...] The development reflects shrinking emissions caps, with industry replacing power producers as the biggest buyers of permits to pollute. Analysts at BloombergNEF forecast EU carbon increasing to nearly €150 by 2030 [...] Carbon allowance prices are currently depressed after the EU brought forward some supply to help generate revenue for member states and move away from Russian energy supplies [...] For many industries, it’s still cheaper to exceed emissions caps than it is to invest in decarbonizing technologies, but with higher prices for carbon allowances, that looks set to change.

Interesting insights on the potential decoupling of gas prices and the EU-ETS carbon price. Will the EU-ETS price double to EUR130 per tonne of carbon by 2028? More details in this interview: https://lnkd.in/eVTBNuJe. #carbonprice #external #regulatory

The cost of emitting carbon dioxide into the atmosphere is set to decouple from EU gas prices, marking an historic shift in the dynamic between the two markets, according to the EMEA head of natural resources research at Goldman Sachs

Europe’s benchmark carbon price looked set to settle above EUR 70/t for the fourth consecutive session on Friday, although it remained to be seen whether the bullish momentum could be sustained in the coming week. #EUA #carbon #prices #bullish

⚡️ Europe's Carbon Market: An Unexpected Twist ⚡️ Europe's carbon market, a cornerstone of the EU's climate policy, has taken an unexpected turn. Despite the bloc's ambitious clean energy goals, the price of carbon has plummeted this year. 🤔 What's Driving the Slump? The rapid expansion of renewable energy, particularly wind and solar, is outpacing the demand for carbon permits. As power generation shifts towards cleaner sources, the need for permits to offset emissions dwindles. 💡 Implications for the Energy Transition This development highlights the challenges and opportunities in decarbonizing our economies. While the shift to renewables is crucial, it also presents market dynamics that policymakers must navigate. As we strive for a sustainable future, it's essential to find innovative ways to balance clean energy growth with the effectiveness of carbon pricing mechanisms. Let's engage in a discussion on how we can adapt and optimize our strategies to accelerate the transition while maintaining market stability. https://lnkd.in/dNxbQKdD #carbonmarkets #cleanenergy #sustainability #energytransition

Europe’s benchmark carbon price was on course to end Friday around 6% lower on the week after hitting a fresh six-month low today, with market participants anticipating range-bound trading next week amid poor fundamentals. #EUA #carbon #price #benchmark

#Carbon pricing can be one of the most powerful tools available to policymakers to incentivize reducing #emissions as part of an integrated policy mix. A decade ago, carbon pricing policies covered only 7% of global emissions. Today, carbon #pricing instruments cover around 24% of global emissions. Carbon taxes and emissions trading systems (ETSs) currently being considered could lift coverage to almost 30%, but this will require strong political commitment. Governments are increasingly exploring carbon pricing in new sectors, but carbon pricing remains most common in the #power and industry sectors. More than half of all ETSs and carbon taxes cover the power sector. More than three quarters of all ETSs and carbon taxes cover industry (including mining). These sectors tend to be covered more by ETSs than taxes because ETSs with point-source regulation offer more intertemporal flexibility for big emitters as the instruments allow #trading and #hedging. To read more on key developments in carbon pricing, check The World Bank's Annual State and Trends report on the first comment. #gas #electricity #renewable #energy #mediterranean ELIAMEP (Hellenic Foundation for European & Foreign Policy)

Illuminating letter from Michael Grubb, for anyone interested in how we can implement smart public policy I'd highly recommend the work of Akshat Rathi and Paula Singliarova.

Carbon prices for the Chinese electricity sector are now over US$12. And they have close to 100% compliance. That compares well with a US Regional Greenhouse Gas Initiative (RGGI) price, also on the electricity sector, of US$13.90 in June 2022. https://lnkd.in/dMe2k6YS

🌍 𝐂𝐚𝐫𝐛𝐨𝐧 𝐌𝐚𝐫𝐤𝐞𝐭𝐬: 𝐓𝐡𝐞 𝐍𝐞𝐰 𝐓𝐫𝐢𝐥𝐥𝐢𝐨𝐧-𝐃𝐨𝐥𝐥𝐚𝐫 𝐎𝐩𝐩𝐨𝐫𝐭𝐮𝐧𝐢𝐭𝐲 🌍 Carbon trading is poised to become a trillion-dollar asset class by the mid-2030s, as nations and businesses increasingly rely on market mechanisms to tackle greenhouse gas emissions. The Middle East, a key global energy player, is embracing this transformation, integrating carbon markets into its economic and sustainability strategies. ACX (AirCarbon Exchange)’s Andrew Cullen shared insights on the region’s progress: “The ongoing pilots and initiatives across the Middle East, especially within the GCC, clearly demonstrate the region’s serious intent to scale carbon markets in the near future. These steps will unlock opportunities in both voluntary and compliance markets.” With carbon pricing mechanisms becoming a critical factor in global trade, the Middle East is positioning itself as a key player in the evolving carbon market landscape. 🔗 Read the full article on: https://lnkd.in/gmqdtfjm #CarbonMarkets #ClimateAction #Sustainability #MiddleEast #Innovation