OTC Global Holdings’ Post

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As we approach the third quarter of 2024, the European carbon markets show bearish signs, primarily due to strong renewables performance and weaker power demand. Interestingly, the spread between EUAs and UKAs has narrowed, with EUAs trading at a premium of around Eur10/mt over UKAs in late-June. As we move further into Q3, it will be crucial to monitor these dynamics and their impact on the carbon markets. #CarbonMarkets #EUETS #UKETS #EnergyTransition #Renewables #EconomicOutlook #CommodityTrading 

  • In the UK, UKAs have retreated after a pre-election rally. Analysts at Carlton Carbon caution against assuming a new Labour government would immediately link the UK’s compliance market with the EU ETS, citing potential policy gaps. They forecast an oversupply of UKAs until at least 2026.

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