Environment

California Carbon Allowance futures fell back into the lower half of the $33 handle after a brief pop higher once the state finalized its revamped Cap-and-Invest ETS rules. The move reflects post-approval positioning in the WCI market, where prices had traded near or above $33 amid ongoing regulatory clarity. This keeps CCAs rangebound near recent levels ahead of potential further linkage developments with Washington. Read →

European carbon prices gave up midweek advances and settled lower Thursday amid falling power and natural gas prices, finding fresh technical support. Traders cited geopolitical factors and positioning ahead of compliance deadlines, including maritime shipping obligations. The benchmark Dec-26 contract remained in the €82-84/t area, reflecting a market balancing near-term energy price weakness against longer-term scarcity signals. Read →

A carbon crediting program launched public consultation Thursday on a major update to its methodology for tidal wetland and seagrass restoration projects. The revision targets improved quantification and verification standards for blue carbon credits in voluntary and compliance markets. Such updates aim to expand credible supply of nature-based removal credits amid growing corporate and policy demand for high-integrity offsets. Read →

Traders and analysts told Carbon Pulse that linkage prospects with the California-Quebec market plus other sales ahead of next year’s compliance deadline will shape Washington’s Q3 carbon auction. They generally expect a result around secondary market prices, though some anticipate a settle several dollars higher or lower. The auction timing and expectations directly influence near-term allowance pricing and trading in the US compliance complex. Read →

California’s Office of Administrative Law approved the state’s update to its Cap-and-Invest regulation on Monday, finalizing a multi-year overhaul of the emissions trading scheme. The approval provides regulatory certainty after months of rulemaking and resubmissions. The changes affect allowance supply, allocation, and market operations going forward in the California-Quebec linked system. Read →

The Dec-26 EUA futures contract rose above €83 Monday to post a marginal gain from Friday’s settlement despite a volatile morning on low volume. Traders await the restart of EU ETS policy reform discussions next month after the July overhaul proposal. The move keeps prices anchored in their recent range near multi-week highs. Read →

California’s Office of Administrative Law approved the state’s updated Cap-and-Invest regulation on Monday, completing a multi-year overhaul of the emissions trading program. The changes align allowance budgets with long-term climate targets and adjust offset treatment. The finalization removes a key regulatory overhang for the California-Quebec market, where CCAs have traded near $33. Read →

Conventional D6 RINs traded at $1.75 each Monday, down 34 cents from Friday and the lowest since mid-April, after the EPA extended the Sept 1 compliance deadline for refiners and said it would decide on 34 pending small-refinery exemption petitions by end-August. Biomass-based diesel 2026 RINs assessed around $1.92, also the weakest since late April. The moves follow record-high 2026-2027 RVOs and add supply uncertainty from potential reallocation of up to 1.8 billion RINs. Read →

European carbon prices rose a net 0.2% for the week, holding in a narrow range amid low volumes, while reports noted potential German coal-plant restarts that could lift winter EUA demand. EU ETS2 futures trading remained virtually frozen over summer with focus shifting to the September auction schedule. The EU Parliament lead negotiator aims to finalize a draft ETS revision position by end-September. Read →

California Carbon Allowance futures stayed around the $33 mark after the Q3 joint auction cleared largely as expected in the mid-$32 range, while Washington Carbon Allowance futures dipped ahead of next week's quarterly sale. The moves follow ARB resubmission of ETS updates and reflect steady compliance demand in the linked Western Climate Initiative market. Read →

Spain’s government approved final free allocation of 38.1 million EU ETS allowances per year on average for 2026-2030 to over 650 industrial installations. The 1.6% cut from 2025 levels raises the free-allocation coverage deficit to 21.3%, consistent with tightening climate goals while protecting competitiveness. Read →

EUAs gave back prior session gains with limited buying interest as traders awaited a clear trend and the start of EU ETS reform negotiations. Energy markets recovered after early losses. The pullback matters for compliance buyers and speculators tracking near-term price direction in Europe’s flagship emissions market. Read →

The Q3 joint California-Quebec carbon auction sold out in the mid-$32 range, slightly below secondary market levels ahead of the sale. Results aligned with participant expectations following the August 19 auction. The clearing price provides a benchmark for Western North American compliance carbon values. Read →

EU Allowances surged to a fresh one-month high before closing with a 0.7% daily gain even as broader energy markets sold off. Traders digested US plans to economically isolate Iran that could heighten geopolitical risks. Persistent bullish positioning supports EUA prices near recent peaks. Read →

Conventional D6 RINs traded at $1.75 each, down 34 cents and at the lowest level since mid-April, after the EPA extended the September 1 compliance deadline and said it would rule on small-refinery exemption petitions by month-end. Biomass-based diesel RINs also hit multi-month lows around $1.92. The moves reflect expectations of relief for refiners via 1.2-1.8 billion freed-up credits. Read →

European carbon allowances rose to their highest level in a month, aligning with stronger energy markets. Front-month natural gas prices settled at their highest in nearly four years. European lawmakers returning to work added to the momentum driving the EUA recovery. Read →

Industry groups flagged that proposed EU rules for compensating consumers under the new ETS2 still risk passing unintended costs directly to households. They urged fixes before the system launches and costs materialize. The warnings target the design of compensation mechanisms in the expanding emissions market. Read →

RGGI Allowance futures climbed above $40 over the past week after Virginia regulators outlined expected CO2 budget paths for 2027-2037. The state's recent return to the program supported the upward move. Tighter future supply expectations lifted regional carbon prices. Read →

Market monitor reports show investors held most of the RGGI surplus allowances at end-Q2 2026, expected to shrink further by compliance deadline, while compliance entities increased holdings after the June auction. This shift signals tightening compliance demand ahead of future periods in the northeastern US power-sector carbon market. Read →

The EPA announced it will extend the September 1 deadline for refiners to demonstrate 2025 biofuel blending compliance under the Renewable Fuel Standard, citing the need for stability amid record RIN prices. The agency also plans to decide all pending small-refiner waiver requests by end-August, potentially freeing 1.2-1.8 billion RINs and easing multibillion-dollar compliance pressures. Read →

European carbon allowances rose sharply mid-session to a two-week high on aggressive buying before pulling back as reports emerged of EU member states distributing 2026 free allowances. The Dec-2026 contract posted a net 1% weekly gain near 82 EUR/t levels. Read →

EU carbon allowances broke out of a narrow range Thursday to recover Wednesday's losses with modest trading volumes typical of the summer lull. The modest uptick reflects limited activity rather than strong fundamental drivers in the EU ETS. This keeps near-term prices supported but contained around recent levels near €82/t. Read →

An analyst said Europe's benchmark carbon price is set to rise 20% above €100/t next year on fundamentals, but uncertainty over the EU reform proposal is suppressing gains. The July Commission overhaul proposal introduced political risk that tempers bullish positioning. This dynamic weighs on longer-term EUA price expectations despite supportive supply tightness. Read →

California Carbon Allowance futures moved higher Thursday on limited activity following the Q3 auction. The market awaits results and an Office of Administrative Law decision on planned ETS updates. The mild gains occur as participants monitor regulatory developments in the linked California-Quebec market. Read →

EU carbon allowances rose early Wednesday on a bullish Commitment of Traders report before giving up gains and settling back in their regular narrow range. Trading stayed quiet with August options expiring and participants awaiting post-holiday resumption. The market remains range-bound near recent levels around €81-82 per tonne. Read →

Analysts project average carbon allowance prices of $34 per tonne in the linked California-Quebec-Washington market for 2027, climbing to $57 by 2035 under the expanded program. The linkage, advancing toward 2027 operations, creates the world's largest sub-national compliance market. Prices are expected to rise over time with tightening caps and growing demand. Read →

Canada's biggest oil producers target a final investment decision by late 2027 on the 6 Mt Pathways CO2 pipeline and storage hub. Fiscal agreements with Alberta and federal governments are expected by mid-November. The project aims to cut oil sands emissions while supporting production growth. Read →

EU carbon permits fell to 81.58 EUR on August 17, 2026, down 0.26% from the previous day. The move follows the European Commission's July reform proposal to slow the post-2030 cap reduction rate and extend free allowances for decarbonizing firms. Lower prices ease compliance costs for covered power and industrial emitters while signaling potential supply relief in the ETS. Read →

The European Commission proposed changes to the EU ETS allowing industries to emit CO2 longer and directing more revenue to clean tech investments in Europe. Reforms slow the annual cap decline to 3.7% in 2031-2035 and 1.7% thereafter while limiting international credits. The shift responds to competitiveness concerns from member states and could reduce near-term allowance scarcity. Read →

California and Quebec will conduct Joint Auction #48 on August 19, 2026. The sale covers current and future vintage allowances under the linked cap-and-invest program. Results will set the latest compliance price benchmark for covered entities in the state's emissions market. Read →

EU allowance prices ended the week 1.8% lower amid low liquidity and higher natural gas prices. Traders await clearer signals in September as the market digests the July reform proposals that extend free allowances. Read →

California cap-and-trade data released Friday showed outstanding emissions from imported electricity reached an all-time high in 2025. Allowances will be retired under the Quebec-linked program to cover the shortfall, tightening supply in the state market. Read →

The Climate Action Reserve published criteria Friday for insuring voluntary carbon credits used under the UN CORSIA aviation scheme. The move advances the framework for high-integrity offsets in international aviation compliance. Read →

Germany’s federal cabinet approved reforms keeping the national carbon price in the €55-65 per tonne range through 2027. The move follows the EU’s one-year delay of ETS2 to 2028 and extends the existing fixed-price corridor. It caps costs for transport and heating fuels while reducing near-term auction revenue for climate programs. Read →

Fifteen California Assembly Democrats wrote to Speaker Robert Rivas asking the chamber to curtail the Manufacturing Decarbonization Incentive approved by CARB. The MDI would issue 118 million additional allowances to qualifying manufacturers through 2030. Lawmakers argue it diverts auction revenue from Tier 3 climate programs under SB 840. Read →

Assemblymember Damon Connolly led 15 Democrats in a letter to Speaker Rivas seeking action to shield billions in cap-and-invest auction proceeds. They target the MDI for redirecting allowances to industrial emitters instead of climate projects. The push comes ahead of the planned September 1 implementation of CARB’s reforms. Read →

European Union Allowances ended Tuesday only modestly higher after briefly testing recent highs following a strong auction. Traders question whether low conviction or the summer holiday lull is capping upside momentum in the benchmark contract. Read →

Germany's federal cabinet approved revisions to the national Fuel Emissions Trading Act (BEHG) to keep the carbon price stable through 2027. The move addresses the one-year delay of EU ETS 2 for buildings and transport until 2028, maintaining the existing price corridor. Read →

The US ambassador to the EU published an opinion piece in the Financial Times criticizing the Carbon Border Adjustment Mechanism as a tariff. The critique highlights perceived double standards in EU climate trade policy amid ongoing CBAM implementation. Read →

A think tank analysis finds the European Commission's July 2026 ETS reform proposal could inject over 1.9 billion extra allowances into the market by 2040 if emissions track the bloc's 2040 target. The changes slow the linear reduction factor and adjust free allocation and the Market Stability Reserve. This potential surplus expansion could ease upward pressure on EUA prices in the longer term. Read →

European carbon allowances ended Tuesday modestly higher after testing recent highs but surrendered gains as market participation stayed light during the summer holiday period. An auction provided brief support but conviction remained low. The session highlights subdued near-term trading volumes in the EU ETS despite the broader price uptrend. Read →

EU carbon allowances gave up Friday's gains to settle lower Monday after hitting a nine-day high last week. Prices tracked higher energy markets amid a new European heatwave and ongoing uncertainty over LNG flows through the Strait of Hormuz. The moves reflect tight linkage between EUA prices and power-sector demand drivers. Read →

Nine analysts surveyed by Reuters lowered average EUA price forecasts to €79.97/t for 2026 and €89.13/t for 2027 after the European Commission's July overhaul proposals. The changes ease the emissions cap decline rate and extend free allowances to support industrial competitiveness. Lower forecasts reflect expectations of reduced scarcity in the compliance market. Read →

Proposed EU ETS reforms would slow allowance withdrawals from the market and keep free allocations longer, easing CBAM certificate costs for Turkish steel exporters. Allowances trade near €82/t while the official CBAM price sits at €75.28/t. Slower tightening reduces near-term cost pressure on non-EU suppliers subject to the border mechanism. Read →

EU carbon allowance prices rose to a nine-day high, breaking above their recent rangebound channel as bullish sentiment continued to slowly grow, while energy markets firmed amid concerns that an Iran-Oman agreement over navigation in the Strait of Hormuz may not attract universal support. The move lifts EUA prices toward recent highs near €83/t. Higher prices tighten compliance costs for covered EU emitters and support broader carbon market sentiment. Read →

Producers entered a net short position in overall California Carbon Allowance holdings primarily through cuts in V26 exposure, while speculators picked up long Auction Clearing Price positions, the latest US Commodity Futures Trading Commission data showed. The shift signals changing positioning ahead of auctions and compliance deadlines. It can influence secondary market liquidity and price discovery in the California cap-and-invest program. Read →

New Jersey announced an upcoming hearing to address ratepayer relief and advance alignment with RGGI's Third Program Review. The move ties RGGI proceeds more explicitly to consumer costs while reinforcing the state's participation in the regional carbon market. It affects allowance demand and investment signals for power-sector emitters across RGGI states. Read →