Dear Sir or Madam,
Shortly before the announcement of the reform plans for the EU Emissions Trading System (EU ETS1), around 40 industrial groups called on the European Union to take action and demanded that EU Council President António Costa and EU Commission President Ursula von der Leyen take “decisive action to halt the escalation of costs within the emissions trading system”.
The signatories to the letter included steel groups such as Thyssenkrupp and ArcelorMittal, and chemical companies such as BASF and Evonik. They warn that rising costs within the EU ETS1 could lead to so-called ‘carbon leakage’ – that is, the migration of industry to countries with lower or no pricing of greenhouse gas emissions – at a time when the European economy is already weakened.
Other companies, such as Saarstahl, which have already invested heavily in decarbonisation, warn against weakening the EU Emissions Trading Scheme, as do the German IG Metall trade union and the energy sector. The BDEW (Federal Association of the Energy and Water Industries), which represents around 2,000 companies, is calling for the EU ETS1 to be further developed and for its climate protection impact to be safeguarded. The EU ETS1 must not be weakened in the course of the upcoming reform. An excessive reduction in the existing linear reduction factor jeopardises planning certainty, investment incentives and the environmental integrity of the system.
Furthermore, the BDEW’s position is that the Carbon border adjustment mechanism (CBAM), free allowances and electricity price compensation must all be further developed in such a way as to prevent carbon leakage, enable industrial electrification and, at the same time, maintain the CO₂ price signal.
The European Commission therefore faces the difficult task, by mid-July, of translating this complex situation – with its differing perspectives – into a reform proposal that continues to promote climate protection through decarbonisation whilst not unnecessarily jeopardising the competitiveness of European industry.
On Saturday, Iran made a surprise announcement that the Strait of Hormuz had been closed again. In response, US President Donald Trump threatened to impose a toll should there be no final agreement, in order to be compensated for the US’s role as the region’s ‘guardian angel’.
Consequently, the situation in the Middle East will remain the most significant price driver in the energy sector this week, although EUAs are also keeping a close eye on 15 July, when the reform proposals for the EU ETS¹ are due to be announced.
Following Donald Trump’s unexpected signing of the agreement between Iran and the US at the Palace of Versailles, prices for fossil fuels fell significantly last week, whilst EUAs rose by 4.4 per cent on a closing price basis, ending the week above the 80-euro mark.
This week, a total of 11,975,500 EUAs will be auctioned on all five trading days at the Leipzig Energy Exchange (EEX).
| Instrument | 12/06/26 | 19/06/26 | Change |
| EUA (December-2026-Future) | 77.17 EUR | 80.58 EUR | +3.41 EUR |
| EUA2 (December-2028-Future) | 70.50 EUR | 71.00 EUR | +0.50 EUR |
| nEZ25 (national German Emission Certificates) | 55.00 EUR | 55.00 EUR | +0.00 EUR |
| UKA (December-2026-Future (UK)) | 55.88 GBP | 60.46 GBP | +4.58 GBP |
| UK Natural Gas (December-2026-Future) | 121.21 GBP | 110.32 GBP | -10.89 GBP |
| ICE Brent Crude Oil (December-2026-Future) | 82.58 USD | 77.89 USD | -4.69 USD |
| EURO (Forex) | 1.1568 USD | 1.1470 USD | -0.0098 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