Dear Sir or Madam,
The European Union (EU) has adopted stricter measures for market intervention in the emissions trading scheme for transport and buildings (EU ETS2), which is due to begin in 2028. If the price for emitting one tonne of carbon dioxide rises above 45 euros, 40 million additional allowances are to be released from the market stability reserve in future, doubling the previous total.
This can happen twice a year, meaning the total amount could reach up to 80 million EUA2. Smaller quantities can now already be released if the number of emission allowances in free circulation falls below the 260 million mark. The previously planned rule was for up to 100 million EUA2 if the volume in circulation fell below the 210 million allowance mark.
The Member States and the European Parliament still have to approve this rule; the December 2028 future reacted with a gain of 4.4% or three euros, rising back above the 70-euro mark.
Last Friday, the EU’s economic and finance ministers also reached a common position on the Carbon Border Adjustment Mechanism (CBAM). The mechanism, which has been in force since January and covers in particular raw and basic materials such as aluminium, steel and cement, is now to be extended to machinery consisting predominantly of aluminium or steel. This is intended to protect European industry from the burdens of the EU ETS compared to countries that levy no or significantly lower prices on greenhouse gas emissions. The Council of Europe and the European Parliament are now set to introduce the relevant regulations.
From 1 July 2026, weekly auctions for allowances with the 2026 year code will take place every Wednesday in the German national emissions trading scheme. In order to participate in these auctions, an extension of membership for the regulated market on the EEX is required, in addition to the existing membership. In addition, the technical transition will take place, which is why we will not be able to participate in the fixed-price auctions for 2025 allowances on behalf of our clients on 16 and 23 June 2026. The next auction participation will therefore be on 30 June 2026.
On a weekly closing price basis, EU emission allowances went into the weekend virtually unchanged. Developments in the Iran conflict regarding the Strait of Hormuz are also expected to remain a key price driver this trading week.
In the EU ETS1, a total of 10,595,500 EUAs will be auctioned on the EEX over four trading days this week.
| Instrument | 05/06/26 | 12/06/26 | Change |
| EUA (December-2026-Future) | 76.94 EUR | 77.17 EUR | +0.23 EUR |
| EUA2 (December-2028-Future) | 67.50 EUR | 70.50 EUR | +3.00 EUR |
| nEZ25 (national German Emission Certificates) | 55.00 EUR | 55.00 EUR | +0.00 EUR |
| UKA (December-2026-Future (UK)) | 55.53 GBP | 55.88 GBP | +0.35 GBP |
| UK Natural Gas (December-2026-Future) | 123.45 GBP | 121.21 GBP | -2.24 GBP |
| ICE Brent Crude Oil (December-2026-Future) | 85.63 USD | 82.58 USD | -3.05 USD |
| EURO (Forex) | 1.1523 USD | 1.1568 USD | +0.0045 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