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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
EMISSIONS
BNEF expects the TNAC to sit at 1,080 million allowances, which would see 260 million allowances removed by the Market Stability Reserve, a report showed.
- This is equal to a TNAC reduction of around 60 million allowances in 2023, from 1,135 million confirmed the year before.
- BNEF also forecasts a declining trend to continue in the future, but the MSR will remain in effect until at least the end of Phase 4 in 2030 due to oversupply.
- The EC will review the MSR settings in 2026 to determine the thresholds and injection/ejection volume from the TNAC.
- The EC will make an announcement on 1 June detailing the number of allowances in circulation last year. Confirmation of this figure allows for the final auction numbers for 2024 to be revealed, as the TNAC impacts how many allowances will be removed from the market by the Market Stability Reserve.
- BNEF also expects EUA prices to rise in June compared to May amid expectations of a small uptick in power sector emissions due to lower wind output, and potential recovery in European industrial output with increasing confidence and the anticipated rate cut from the ECB next month. Markets and economists are expecting a 25bps rate cut by the ECB in June.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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