ESMA publishes its first annual report on EU Carbon Markets

Key Findings:

• Prices: EU ETS prices have dropped in 2023 due to lower demand, falling gas prices, and increased supply for the REPowerEU plan.
• Auctions: 10 participants bought 90% of auctioned allowances, showing reliance on financial intermediaries.
• Trading: Most trading in secondary markets is in derivatives, reflecting the annual EU ETS compliance cycle.

The report builds on ESMA’s 2022 analysis and aligns with the EU ETS Directive on greenhouse gas trading.

Find out more here.