Dear Sirs and Madams,
The EU’s CO₂ emissions trading scheme could in future also include the removal of CO₂ from the atmosphere. A study by the renowned Potsdam Institute for Climate Impact Research (PIK) proposes a phased integration to avoid perverse incentives and provide planning certainty for industry. The findings are being incorporated into current regulatory debates in Brussels.
The existing EU emissions trading scheme could create incentives to remove between 68 and 86 million tonnes of CO₂ annually by 2050, depending on the costs. The PIK team used the LIMES-EU model to analyse investment decisions in the EU, the UK and Norway. Two innovative methods were examined: air filtration systems (Direct Air Capture) and biomass combustion with CO₂ capture (Bioenergy with Carbon Capture).
Whether the EU will follow the PIK’s proposal remains to be seen in the coming years. However, financing CO2 removal through emission allowances could lead to significant progress in achieving greenhouse gas reduction targets.
The Carbon Border Adjustment Mechanism (CBAM) has now received its first reference price of 75.36 euros per tonne. The price range of EUAs in the first quarter of 2026 served as the basis for this calculation. From 2027, the price will be determined on a weekly basis. The management and purchasing strategy for CBAM allowances will then become commercially relevant, as importers will be able to control their costs in this way. The possibility of hedging already exists today, for example through the purchase of EUAs.
The CBAM is the EU’s carbon border adjustment mechanism, which makes climate-damaging imports more expensive. It is intended to prevent so-called ‘carbon leakage’ – the relocation of production to countries with no or significantly lower carbon pricing. From 2026, importers will have to purchase allowances for emissions in products such as steel, cement and fertiliser. The purchase of allowances for emissions from 2026 is expected to be possible from 1 February 2027.
EUA prices fluctuated within a range of 71.21 to 73.97 euros in the benchmark contract during the past shortened trading week. On a closing price basis, they rose by 1.6%.
This week, a total of 10,755,000 EUAs will be auctioned on the Leipzig Energy Exchange (EEX) across all five trading days, representing a 65% increase compared to the previous week.
Following the failure of negotiations in Pakistan to end the war in the Middle East, prices in the energy sector – and thus also for emission allowances – will be largely determined by further developments in the coming days.
| Instrument | 02/04/26 | 10/04/26 | Change |
| EUA (December-26-Future) | 71.69 EUR | 72.84 EUR | +1.15 EUR |
| EUA2 (December-28-Future) | 66.84 EUR | 67.00 EUR | +0.16 EUR |
| nEZ25 (national Emission Allowances (D)) | 55.00 EUR | 55.00 EUR | +0.00 EUR |
| UKA (December-26-Future (UK)) | 41.50 GBP | 43.39 GBP | +1.89 GBP |
| UK Natural Gas (December-26-Future) | 129.71 GBP | 112.84 GBP | -16.87 GBP |
| ICE Brent Crude Oil (December-26-Future) | 79.02 USD | 81.00 USD | +1.98 USD |
| EURO (Forex) | 1.1519 USD | 1.1725 USD | +0.0206 USD |
(EUA, EUA2, UKA, Natural Gas, Crude Oil and Euro Currency shows day-end-exchange quotes of the benchmark contract. This market information has just an informational character and are no advice or offer to trade emission allowances or their futures and options. If you want to unsubscribe, please reply to this mail.)
Please call our international carbon desk if any further questions exist: +49.2831.1348220 or book here a call with one of our specialists.
With kind regards,
Your Advantag – Team