Energy Post Webinar: EU ETS reform

Energy Post Webinar: EU ETS reform

Energy Post Webinar: EU ETS reform

On March 31, 2022, Energy Post organized a webinar entitled “Options to Reform the EU ETS: Opportunities and Challenges”.

The event was moderated by Matthew James from Energy Post. The meeting was also attended by MEPs – Mr. Jerzy Buzek (PPE, Poland) and Ondřej Knotka (Renew, Czech Republic), as well as: Mr. Robert Jeszke (CAKE/KOBiZE), Mr. Fabien Roques (Compass Lexecon), Ms. Wanda Buk (PGE Polska Grupa Energetyczna), Mr. Andrei Marcu (ERCST – European Roundtable on Climate Change and Sustainable Transition), Mr. Michael Pahle (PIK – Potsdam Institute for Climate Impact Research) and Mrs. Liv Rathe (Norsk Hydro).

The meeting was started by Fabien Roques (Compass Lexecon) with a presentation on the main results of the report entitled “Impact of the financials on the european carobn market price increase and potential mesures to stabilize the prices“.

Later, the webinar was conducted in the form of a discussion panel, during which, among others, functioning of the MSR reserve, the role of financial institutions in the CO2 market, issues of the mechanism under Art. 29a of the EU ETS Directive, mechanisms for financing the energy transformation or the issues of establishing the ETS for buildings and transport.

Robert Jeszke – Head of the Center for Climate and Energy Analysis (CAKE) referred to several of the above issues:

• EUA prices will rise due to the ambitious EU reduction targets. Therefore we need stability and adequate market safeguards in EU ETS. The best option seems to be Art. 29a but requires further improvements.
• CO2 market should be better monitored. We need to know who is the buyer & seller of EUA’s. In this context we should take a closer look to market entities from third countries who represents 33% share of derivatives position according to recently published ESMA report.
• The growing number & cash flows to ETF funds is a fact. We have already 6 such funds in the market. One of them – SparkChange Physical Carbon EUA ETC in Australia can buy physical EUA’s which can be especially dangerous in the context of competition with EU ETS operators.