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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
The EU could miss out on almost €100bn of EU ETS revenues if allowances that are being phased out are recycled back into the market and auctioned for the green technology fund rather than being fully removed from the market according to BNEF.
- Carbon allowances that recycled back into the market are likely to weigh on EU ETS prices in the near term.
- In addition, lower carbon prices would reduce incentives to decarbonize.
- As part of the EU’s CBAM, starting in 2026, some European industrials will gradually loose allowances that they are currently receiving for free.
- The allowances that would have been invalidated due to CBAM could be brought back to the market now and auctioned for the Innovation Fund.
- The EU eyes to sell 530mn allowances with the fund between 2021-2030, revised higher from previous plans to sell 450mn allowances.
- BNEF currently forecasts EU ETS prices at €65/ton CO2e in 2024 and at €146/ton CO2e by 2030.
- If the European union would decide not to auction allowances from CBAM driven free allocation, the average price could rise to €131/ton CO2e between 2024-2030, compared with €104/ton CO2e with selling allowances via the fund.
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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