EMISSIONS: Weekly News Highlights MNI Power Service Part 2/2 Week 45

See below the weekly news highlights of the MNI Power Service for the week 4 – 7 November.

• EMISSIONS – The European Council on Wednesday reached an agreement on the EU 2040 climate target, the 2035 NDC and a one-year postponement to 2028 of the EU ETS 2 scheme. The 2040 target agreement includes the use of 5% of international carbon credits starting in 2036, while introducing a pilot phase between 2031–2035. This was up from 3% in the draft document.
• IETA welcomed the EU Council’s agreement on the EU’s 2040 climate target and greater use of international carbon credits, but strongly opposed delays to EU ETS 2, citing risks to market certainty and investment stability.
• T&E warned that the weakened EU 2040 climate target amid reliance on up to 5% international carbon credits, undermine EU climate leadership and investment certainty.
• European People's Party (EEP), the largest party in the EU Parliament, is pushing to further delay the EU ETS until 2030, following the Environmental Council announcing yesterday that the system will be postponed by one year to 2028.
• The EU Commission announced a €2.9bn in funding for 61 net-zero technology projects that set to cut around 221mn tCO2e over the first decade of operation, under the Innovation Fund, financed by revenues from the EU ETS.
• A total of 20.2mn EUAs will be auctioned next week across five auction sessions.
• Investment funds increased net long positions in EU ETS futures on the ICE exchange, while remaining at the highest since early May 2021.
• Investment funds raised their net long positions in UK ETS futures on the ICE exchange as of 31 October to an all-time high.
• EEX reported that EUAs secondary market traded volume in Oct 2025 rose 13% y/y and 2.8% m/m.
• EU GHG emissions fell sharply in 2024, led by the power sector, as record renewable generation and high EU ETS prices accelerated the shift away from coal and other fossil fuels.
• EU ETS has cut emissions from the power, heat, and industrial sectors by 50% since 2005, keeping the bloc on track for its 2030 climate targets of a 55% reduction in greenhouse gas emissions versus 1990 levels.
• UK residence-based greenhouse gas emissions in Q2 2025 were estimated at 108mn tCO2e in 2024, down 6.2% from Q2 2024.
• Renault’s CEO Francois Provost suggested that the European Union should push for smaller cars to become all-electric and allow more options for larger vehicles including plug-in hybrid and range extender drive trains