Environment

EU carbon allowance prices rose modestly Thursday after an early rally and post-auction buying snapped a four-day decline in thin markets. The move reflects limited supply pressure and opportunistic purchasing rather than broad sentiment shifts. It matters for the EUA complex as it signals short-term support near current levels ahead of compliance deadlines. Read →

California Carbon Allowance futures recovered above the $32 mark as Q3 closed, while Washington Carbon Allowances fell below $39 to two-year lows. The divergence highlights differing supply-demand dynamics in the linked Western Climate Initiative markets. It matters for North American compliance carbon as CCA strength signals tightening ahead of linkage expansions. Read →

A group of European Parliament industry and energy committee lawmakers proposed a €40 EUA price trigger for releasing allowances plus a substantially slower ETS cap decline over the next decade. The amendments aim to balance industrial competitiveness with climate goals amid reform debates. It matters for the EUA market as it could alter long-term supply dynamics and price expectations if adopted. Read →

EU ambassadors agreed to retain excess CO2 permits in the Market Stability Reserve instead of cancelling them until 2030, raising the cancellation threshold from 2031. The changes respond to energy-price pressure from the Iran conflict and requests from Poland and Italy. The reform keeps a buffer that can release permits if EUA prices more than double, supporting price stability in Europe's main emissions market. Read →

A BCG survey of 300 buyers shows target voluntary carbon credit portfolio prices have roughly tripled since 2022, with one in four now aiming for $51-100/t and some above $100/t. Unmet quality demand could add nearly $1.5 billion in annual market value at current retirement volumes. Average target sits at $58/t, only modestly above current spend, highlighting both willingness to pay premiums and supply constraints for higher-integrity credits. Read →

EUAs fell early Tuesday near key support before rebounding on afternoon buying, with some traders attributing the surge to US demand. UKAs rose on UK political news. The move comes as the Sep 30 annual surrender deadline for 2025 emissions looms and free allocations reach 77% completion. Read →

Verra’s VM0049 CCS methodology and modules for DAC, transport, storage, and BECCS received ICVCM Core Carbon Principles approval. The framework sets strict rules on renewable power sourcing for capture. The move adds a high-integrity technology-based credit type to the voluntary market. Read →

RGGI Allowances (RGAs) traded back above the $38 mark in secondary markets after briefly dipping near the Q3 auction clearing price of $37.65. Trading volumes roughly doubled in the latest period. The rebound follows Virginia’s return to the program and sustained buying interest amid tighter long-term caps starting in 2027. Read →

Virginia resumed RGGI participation on July 1, 2026; the first post-return auction on Sept. 9 cleared at $37.65 per allowance, up sharply from prior levels. Dominion Energy filed to recover costs via a proposed $10, 13 monthly customer charge, projecting $1.18 billion in RGGI-related revenue needs through 2028. The September auction generated over $1.07 billion across the 11-state market. Read →

The European Commission reported that EU member states have distributed 77% of the expected 2026 free EUA allocation to industrial operators. The update arrives as companies finalize surrenders of allowances covering 2025 emissions by the Sept. 30 deadline. The data highlights ongoing compliance activity in the EU ETS ahead of potential policy adjustments to the Market Stability Reserve. Read →

Washington, California and Québec released a draft agreement outlining integration of Washington into the California-Québec cap-and-invest market. The unified system would feature joint allowance auctions, reciprocal acceptance of allowances and a common carbon price to increase liquidity and reduce volatility. Linkage is targeted for 2027 following final regulatory steps in each jurisdiction. Read →

Washington Gov. Bob Ferguson announced agreement on regulatory changes to link its carbon market with California and Quebec during Climate Alliance meetings in New York. California Gov. Gavin Newsom authorized the state to proceed with linkage, expected to complete next year and enable joint auctions with shared allowance prices. The move creates a larger market for trading credits across the three jurisdictions, with recent Washington auction prices at $32 per ton versus $32.48 in California-Quebec. Read →

D6 RIN prices fell to $1.75 per unit, their lowest in over four months, after the EPA extended the September 1 compliance reporting deadline to October 1 for the 2025 RFS year. The extension follows decisions on small refinery exemptions and provides refiners more time amid high compliance costs from elevated 2026 mandates. Biomass-based diesel RINs also eased to around $1.92. Read →

EU ambassadors agreed Wednesday to stop cancelling excess CO2 permits above 400 million in the Market Stability Reserve until 2030, keeping them as a buffer instead. The change responds to requests from Poland and Italy to limit ETS contributions to electricity costs amid fuel-price surges from the Iran conflict. The MSR will still release permits if prices more than double; final rules now go to Parliament negotiations. Read →

California Governor Gavin Newsom authorized the formal findings required to advance linkage of the state’s Cap-and-Invest program with Washington’s carbon market during Climate Week NYC. The move builds on the June linkage agreement with Québec and Washington; CARB will now begin the public regulatory process ahead of joint operations targeted for 2027. The expanded tri-jurisdictional market aims to deliver more stable prices, deeper emissions cuts, and billions in climate investments. Read →

European carbon allowances traded in narrow ranges Wednesday ahead of and after September options expiry, finishing modestly lower in a very tight post-expiry range. Prices had moved in two distinct bands during the session amid light positioning. No major fundamental driver emerged beyond routine expiry mechanics and energy-market moves. Read →

EU carbon allowances moved in a €2 range around Monday's settlement on Tuesday, ending marginally higher. Traders focused on Wednesday's September options expiry while energy markets swung on US-Iran diplomatic news. Prices remain supported near recent highs with compliance demand in focus. Read →

ADM announced plans to sell engineered carbon removal credits from its Columbus, Nebraska corn complex with over 800,000 tons annual capacity. Credits undergo Puro.earth certification under Geologically Stored Carbon methodology, with first issuance expected by year-end and a 15-year crediting period. The move links agricultural processing to growing CDR demand in the voluntary market. Read →

The latest RGGI auction cleared at $37.65 per allowance, 153% above the $14.88 price when Virginia last participated in late 2023. Virginia's return added supply but prices reflect tighter caps and demand growth; the Sept. 9 auction raised over $1 billion total across states. Utilities face higher costs that can pass to customers. Read →

Ireland, holding the EU rotating presidency, circulated a new compromise text on revising the Market Stability Reserve (MSR) rules to halt automatic invalidation of surplus allowances. The proposal adds assurances for gradual tightening of the surplus limit in broader ETS reform, aiming for ambassador agreement on Wednesday. This directly affects EUA supply dynamics and price signals in the compliance market. Read →

European carbon allowance prices tested resistance above a key level Monday morning but closed modestly lower after an expected afternoon bounce failed amid declining energy markets, milder weather, and Middle East diplomacy. Traders noted rangebound conditions likely to persist through autumn amid ongoing ETS reform talks. The move keeps EUAs near recent highs around €86. Read →

Brazilian carbon removal startup Mombak announced the first close of its Amazon Reforestation Fund II targeting $150 million, plus a multiyear carbon removal offtake with Salesforce adding to buyers like Google and Microsoft. The deal follows Mombak’s first reforestation credit issuance and supports scaling of nature-based removals in the voluntary market. BNDES Climate Fund financing of R$200 million backs the expansion. Read →

The 73rd RGGI auction sold 28.5 million CO2 allowances at a clearing price of $37.65, a new all-time high and above the prior auction's $35.00. Virginia's resumed participation added supply while the sale generated over $1.07 billion for state reinvestment in energy efficiency and clean energy. Secondary market prices traded above the auction clearing level. Read →

California Carbon Allowance futures dropped to around $32, their lowest in three months, amid September option expiry, an industry conference and ongoing linkage talks with Washington. The decline reflects subdued trading and market positioning ahead of further regulatory developments in the Western Climate Initiative. Prices remain sensitive to supply dynamics and cross-border harmonization efforts. Read →

EU member states endorsed a plan granting heavy industry an additional 121 million free CO2 allowances for 2026-2030 under the ETS, exceeding the European Commission's July proposal. The move targets chemical, metals, ceramics and glass producers and could save firms €8.25 billion in compliance costs. Negotiations with Parliament are fast-tracked for a 2026 deal amid broader ETS reform talks due in 2027. Read →

Germany proposed amendments to the EU Market Stability Reserve (MSR) that would strengthen withdrawal parameters, lower the surplus trigger threshold to 650 million allowances, and maintain the 24% intake rate. The moves aim to reduce the risk of excess permits flooding the market and pressuring EUA prices lower during the ongoing ETS overhaul negotiations. The changes counter earlier Commission concessions designed to ease industry concerns over price volatility. Read →

The European Parliament voted 367-240 to keep the MSR invalidation mechanism for ETS1 but raise the threshold from 400 million to 650 million allowances starting February 2027. Lawmakers also approved changes to the ETS2 MSR to cushion consumers from price swings in buildings and transport sectors. The positions set the stage for negotiations with the Council on the broader EU ETS revision. Read →

The US Commodity Futures Trading Commission is conducting a broad investigation into the voluntary carbon credit market, sending voluntary document requests on potentially problematic projects. The probe comes as the market has contracted amid quality concerns and reduced corporate climate commitments. It targets issues in a sector once projected to reach $1 trillion. Read →

EU member states will seek agreement this week to revise carbon efficiency benchmarks determining free allowance allocations through 2030 in the EU ETS. The move aims to shield energy-intensive industries from high global competition and rising energy costs. Changes would increase free permits available to covered facilities. Read →

RGGI Allowance futures declined after the Q3 auction cleared at a record $37.65 per short ton, above the prior $35 level but below prevailing secondary market prices. The sale included Virginia allowances following its July re-entry and released cost containment reserve units. Futures reacted to the all-time high primary market outcome. Read →

The Regional Greenhouse Gas Initiative's 73rd quarterly auction on September 9 cleared 28.5 million allowances at a record $37.65 per ton, exceeding the prior $35.00 level and generating over $1.07 billion. The result came in about 4% below secondary market prices but set a new high amid Virginia's rejoining and tighter supply dynamics. This strengthens the compliance carbon price signal for power-sector emitters in the Northeast. Read →

European Parliament ETS rapporteur Peter Liese proposed requiring member states to direct 75% of ETS auction revenues to decarbonizing covered industries, up from the Commission's 50% target. The draft also slows the linear reduction factor to 3.4% annually from 2031-2035 before accelerating to 2.3% later, aiming to give industry breathing room while preserving long-term climate goals. Negotiations between Parliament and member states are expected in coming months. Read →

The CFTC issued finalized guidance for designated contract markets listing voluntary carbon credit futures, emphasizing Core Carbon Principles including additionality, permanence, robust quantification, and independent verification. The rules aim to boost transparency, reduce manipulation risks, and build buyer confidence in the VCM amid growing corporate demand. EDF called it a key step for scaling high-integrity credits in compliance and voluntary markets. Read →

The European Parliament’s environment committee voted to amend the Commission’s MSR proposal, keeping the invalidation mechanism but raising its threshold to 650 million allowances from March 2027 instead of scrapping it outright. This maintains a larger buffer of surplus EUAs in the reserve rather than permanently removing them. The change signals a more cautious approach to tightening supply ahead of broader ETS reforms, supporting modest upward pressure on EUA prices amid political negotiations. Read →

California Carbon Allowance futures fell below the $33 mark while Washington Carbon Allowances plunged to mid-$40s lows after weaker-than-expected Q3 auction results. The WCAs cleared under $40 in the auction, triggering a nearly 20% drop in futures from prior secondary market levels. The results highlight softening demand signals in the linked WCI markets ahead of potential further linkage developments. Read →

Washington Carbon Allowance futures fell more than $8 or nearly 20% on Wednesday after the state's Q3 auction cleared at a two-year low under $40 per allowance, well below pre-sale secondary market levels. The weak clearing price signals softer near-term demand or positioning ahead of linkage with California-Quebec and the 2027 compliance deadline. Lower WCA prices may pressure linked or related environmental commodity valuations. Read →

European Union Allowance prices rose strongly in the morning to set another seven-week high before paring gains, driven by surging natural gas and power prices that boosted hedging demand even as industrial output data weakened and free allowance supply grew. Traders noted the market's resilience despite bearish fundamentals. The move lifts the EUA complex and supports related emissions trading sentiment. Read →

A Nordic bank analysis projects EU carbon prices could reach €180-270 per tonne by 2040 under the European Commission's proposed overhaul of the EU Emissions Trading System. The reform includes a slower linear reduction factor, extended free allocations tied to decarbonisation investments, and other adjustments to balance ambition with competitiveness. Longer-term bullish price signals reinforce the structural upward trajectory for EUAs amid ongoing policy evolution. Read →

EU carbon prices jumped to their highest level in nearly seven weeks amid a broad rise in energy markets. Bullish sources cited rising utility hedging driven by higher coal margins as the key driver, with modest volumes reflecting limited speculative interest. The move tightens near-term supply expectations in the EU ETS. Read →

Traders and analysts expect Wednesday’s Q3 RGGI auction, the first since Virginia rejoined, to clear at a discount to current secondary market prices. Virginia’s return adds supply and compliance demand in the final 2026 auctions. The outcome will set the tone for RGGI allowance balances heading into winter. Read →

A leaked document shows France and Germany calling for more free EU ETS allowances for industries this decade than the European Commission proposed. The push comes amid ongoing ETS reform talks and could ease compliance costs for trade-exposed sectors. It signals continued political pressure to soften industrial exposure in the carbon market. Read →

EU carbon allowances (EUAs) broke higher mid-session to reach another six-week high as buyers appeared in size to overcome steady earlier selling. Power and gas prices rose amid US and Iranian forces carrying out attacks on shipping in the Strait of Hormuz. The Dec-26 contract gained ground on the day, extending the recent upward trend supported by energy-market dynamics. Read →

Conventional ethanol D6 RINs traded at $1.75, down 34 cents in one session to the lowest since mid-April, after the EPA extended the Sept. 1 compliance deadline and signaled decisions on small-refinery exemptions. Biomass-based diesel D4 RINs for 2026 also weakened to around $1.92. The move eases immediate pressure on refiners facing record-high renewable volume obligations for 2026-27. Read →

CORSIA futures ticked higher last week amid analysis highlighting a looming aviation-market supply crunch, with new deals underscoring limited eligible units. ICVCM approval for Verra’s updated crediting standard added support. Retirements across the broader voluntary carbon market stayed on track for a strong year despite a monthly dip to 8 million credits. Read →

EU Allowances traded around €82.56/tCO2e on Aug 28, down slightly week-over-week as summer liquidity stayed low and funds trimmed net longs by nearly 6%. Free allocations for 2026 are due next month, with analysts eyeing €80-86/t range into year-end. The moves matter as they signal positioning ahead of policy clarity on the ETS overhaul that could alter supply and free-permit rules. Read →

Germany wants a tougher MSR and only temporary suspension of the invalidation mechanism until 2030, per a leaked document, pushing back against the Commission’s plan to halve the removal rate. EUAs posted a 1.8% weekly gain on short-covering and bids at €82-83. The stance matters because a weaker MSR would increase allowance supply and cap upside in EUA prices. Read →

D6 RINs dropped 34 cents to $1.75/unit, the lowest since mid-April, after EPA extended the Sept 1 compliance deadline and delayed small-refinery exemption decisions. Biomass-based diesel RINs also eased. The pullback follows record-high mandates for 2026-27 and reflects speculation on relief volumes around 1.8 billion RINs, directly lowering compliance costs for refiners. Read →