EMISSIONS: Buyers For CBAM Products Can Reduce Exposure With Finished Goods
Mar-14 11:42
A BCG report on CBAM suggested that EU buyers for CBAM-covered products can reduce short-term CBAM exposure by shifting to finished goods, it said.
- EU importers are required to declare the emissions embedded in their imports and surrender the corresponding number of certificates each year.
- CBAM does not cover all finished goods and applications. This allows carbon-intensive imports to reduce certificate exposure by entering the EU as finished products, such as car components or white goods.
- However, buyers must weigh these temporary advantages against long-term compliance risks.
- CBAM will apply to imports of cement, iron and steel, aluminium, fertilisers, electricity and hydrogen from 2026. CBAM will eventually include more than 50% of the emissions in ETS covered sectors, including other energy-intensive industry sectors such as oil refineries, metals and more.
- CBAM certificates price will be based on the weekly average auction price of EU ETS allowances.
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OUTLOOK: Price Signal Summary - WTI Bounce Highlights A Potential Reversal
Feb-12 11:40
- On the commodity front, a bull cycle in Gold remains in play and the yellow metal is trading closer to its recent highs. The continued appreciation once again confirms a resumption of the uptrend and maintains the bullish price sequence of higher highs and higher lows. Moving average studies are in a bull mode position too, highlighting a dominant uptrend. Sights are on the $2962.2, a 2.00 projection of the Nov 14 - Dec 12 - 19 price swing. The first key support to watch is $2779.3, the 20-day EMA.
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- US Data/Speaker Calendar (prior, estimate)
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- 12-Feb 1000 Fed Chair Powell House Financial Services testimony
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- 12-Feb 1200 Atlanta Fed Bostic economic outlook (no text, Q&A)
- 12-Feb 1300 US Tsy $42B 10Y Note auction (91282CMM0)
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