ON POINT ANALYSIS – KEY IMPACTS
- The European ENVI Committee has voted in favour of a watered down ‘backloading’ proposal
- Backloading no longer packs the punch required to have a significant impact on the European carbon price, with EUA prices likely trade around €6 (A$8.57) through to 2020.
- Domestically we continue to believe that the Australian carbon price will trade at a discount to EUA prices as local fundamentals shape the market.
BACKLOADING PASSES THE FIRST HURDLE
The European Parliament took its first step towards repairing its Emissions Trading Scheme (EU ETS) overnight, voting in favour of a watered down proposal to ‘backload’ carbon allowances from the oversupplied EU ETS.