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.
- Domestically we continue to believe that the Australian carbon price will trade at a material discount to EUA prices as local fundamentals shape the market.
- ACU price expectations are likely to stay at single digits for the foreseeable future.
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.
