EMISSIONS: Climate Think Tank Warns EU ETS 2 Weakening Can Threatens EU ETS 1

Bernd Weber, CEO of Climate Think Tank EPICO, warned that cancelling or postponing ETS 2 due to political pressure can undermine EU ETS 1 and investor confidence, according to Euractiv.  

• He stated that the cancelation, delay or relaxing of EU ETS 2 can open a precedent to weakening ETS due to political consideration, thus, potentially undermines EU ETS 1.
• He reinstated the measures to facilitate a softer adoption, including frontloading €50bn in future auction proceeds from 2033 to 2035 to member states to fund clean mobility and energy-efficient buildings.
• 12 member states have called for EU ETS 2 adjustments, including capping allowances prices, early auctions and stronger price control, according to a draft document published in late June.
• ICE and EEX launched EU ETS 2 futures contract in May and July respectively, with demand in both exchanges remained muted as the open interest currently stood at 15 and 1 contracts.
• ICE EU ETS 2 Dec28 was priced at €87.27/t on 12 Aug
• EEX EU ETS 2 Dec28 was priced at €81.52/t on 12 Aug