In the News: European Carbon Markets: Insights from a Year of Change

The European carbon market has always been a barometer for global climate ambition, reflecting the interplay of policy, energy dynamics, and market fundamentals. In 2024, this vital market experienced notable volatility, influenced by factors ranging from European gas price fluctuations to the evolving regulatory landscape.

ClearBlue's Principal Analyst, Yan Qin, delved deeper into these trends in a recent article for the Italian publication RiEnergia.

• Read the article in Italian:  ETS: come si è mosso il carbon price nel 2024?
• Read the English translation: ETS: what is the price trend in 2024?

Highlights

Yan, a recognized expert in carbon markets, explores the forces behind the benchmark EUA contract’s performance and provides an insightful outlook for 2025. The piece sheds light on:

• 2024 Market Dynamics: How lower gas prices, increased auction supply, and growing renewables shaped the carbon market.
• Evolving Regulations: The impacts of the EU Fit for 55 package, the extension of compliance deadlines, and the maritime sector’s integration into the EU ETS.
• 2025 Projections: A balanced perspective on potential price rebounds driven by tighter market balances and rising demand from expanded sectoral coverage.

Why It Matters

As the European Union continues to lead global efforts in emissions trading, understanding the market’s trajectory is crucial for stakeholders across industries. We invite you to read the full article for a recap of the past year and hints for what lies ahead in this vital market.

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