Environment

EU countries and Parliament agreed to release 40 million permits from the Market Stability Reserve if ETS2 prices exceed €45 per tonne of CO2, doubling the prior trigger amount. The deal addresses concerns over fuel bill impacts from the new system covering buildings, transport and small industry ahead of its 2028 launch. It provides an early safeguard mechanism for price volatility. Read →

An internal European Commission document reveals the July 15 ETS revision proposal will extend free CO2 permits to heavy industry in return for local investments. Governments must also spend more ETS revenues on decarbonizing covered sectors. The changes aim to support competitiveness while maintaining the system's role in cutting emissions. Read →

Biomass-based diesel D4 RINs traded at $2.41 and ethanol D6 RINs at $2.37 as of June 4, near 2021 records. Stronger EPA blending targets for 2026 fuel the surge. High RIN values plus elevated gasoline and diesel prices boost biofuel production economics. Read →

The EU will propose extending carbon charges to flights departing the bloc as part of an Emissions Trading System reform to be unveiled next month. Revenue will fund clean energy transition. The move targets non-EEA carriers currently exempt and could increase allowance demand from aviation. Read →

Aalborg Portland, Denmark's top CO2 emitter, signed a contract for 16.5 billion Danish crowns in CCS subsidies starting 2030. The project targets up to 1.25 million tons of annual capture from cement production. It supports Denmark's 70% emissions cut goal and hard-to-abate sector decarbonization. Read →

Confindustria presented 10 proposals to the EU ahead of Wednesday ETS revision talks to reduce carbon costs and protect competitiveness. The Italian group seeks reforms addressing industrial impacts. This comes as the Commission prepares its broader ETS review expected around July. Read →

Europe's largest airlines including Air France-KLM, IAG, Lufthansa and Ryanair wrote to Commission President von der Leyen opposing extension of the EU ETS to extra-EEA flights. They argue it would increase airfares and cargo costs while weakening the UN CORSIA offset scheme. The Commission plans to decide next month as part of an ETS review; it views CORSIA as insufficient for absolute emission cuts. Read →

The 72nd RGGI auction on June 3 sold all 18.35 million allowances at a clearing price of $35.00 per short ton, up sharply from $24.99 in March, generating $642 million. The price reflects strong demand amid Virginia's planned rejoining and market monitoring by states; proceeds fund clean energy and efficiency programs across participating states. Read →

Carbon Market Watch urged EU lawmakers to reject a European Commission plan to scrap the EU ETS Market Stability Reserve’s invalidation rule, warning it would neutralise the reserve’s core function and risk structural oversupply plus depressed carbon prices. The proposal forms part of ongoing MSR and broader ETS reform discussions ahead of summer legislative steps. Any dilution would directly pressure EUA scarcity signals and long-term price support. Read →

The Q2 RGGI auction cleared at a record $35 per allowance, nearly $9 below pre-auction secondary market levels and up sharply from $24.99 in March. Futures prices on ICE fell immediately after the sale. Participating states announced they will start a process to consider targeted measures addressing energy affordability and reliability impacts from the higher prices. Read →

EU carbon prices posted their first weekly loss since early May, falling about 4.6% overall despite a modest 0.2% Friday consolidation. The dip occurred amid broader asset-class weakness after prices had recovered from a recent two-week low. Market participants noted ongoing macro pressures influencing the complex. Read →

A centrist alliance in the European Parliament is pushing to adopt its position on revising the EU ETS Market Stability Reserve (MSR) in September. This timeline would enable a final agreement with EU member states that same month. The review addresses the reserve’s role in managing allowance supply and market stability. Read →