Carbon markets lead at Engelhart CTP. Formerly @McKinsey, @BloombergNEF covering energy transition and carbon markets since 2013. Tweets my own.
May 19, 2022 • 8 tweets • 5 min read
A few thoughts on Commission proposal to auction MSR volumes: 1/ it’s approx. revenue neutral, or even negative 2/ it could therefore be a measure to control prices 2/ however, it’s not a done deal 3/ and, if approved, future discretionary uses should be limited #OCTT#EUETS1/ Would reduce revenues for existing auctions sufficiently to make it revenue neutral. If the true price impact is ~14/t (2x Wednesday’s price move, assuming 50% probability priced in), then at an estimated 1800-2000Mt of auctions over 2023-26 this is worth 25-28 bn EUR. #OCTT
