EU ETS review delayed by two days

Spanish Market: Emissions
01/07/26

The EU emissions trading system (ETS) review, which had originally been scheduled for 15 July, has been delayed by two days to 17 July, a spokesperson from the European Commission told Argus.

The commission's reform proposal includes a slower reduction in the system's supply cap, an extension of free allocations for industry, changes to the functioning of the market stability reserve, expansion of the system's scope to cover the waste sector and extra-European flights, and measures to improve transparency on ETS revenue spending to support industrial decarbonisation, among other measures.

Trading activity in the market has subdued in recent months, with participants hesitant to settle while they wait for the review outcome.

After 17 July, the proposal will require negotiation by the European Parliament and EU member states, which aim to reach an agreement in the first quarter of 2027, with implementation expected in 2028.

By Kiara Campagne Nieva

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

30/06/26

World Bank to drop climate finance targets

Edinburgh, 30 June (Argus) — The World Bank said on 29 June that it will drop its commitment to allocate 45pc of its annual lending to projects with climate co-benefits. US treasury secretary Scott Bessent said in April that the World Bank's 45pc target needed "jettisoning", arguing that it "breeds inefficiency, distorts economic decision making, and moves the bank away from its core mission". Bessent said the organisation must do more to "advance developing country access to abundant, affordable, and reliable energy to support economic growth and poverty reduction", including fossil fuels such as gas, oil and coal, "rather than restrict borrower choice". He also called on the bank to increase the number of gas projects. The World Bank committed to stop financing upstream oil and gas projects from 2019, although it can consider natural gas investments in countries with urgent energy needs and no short-term renewable alternatives, provided they do not lead to long-term carbon lock-in. The 45pc target was set in 2023 during the administration of then US president Joe Biden. Current US president Donald Trump has opposed climate action domestically and internationally, and withdrew the US from the Paris cimate agreement after returning to office in 2025. The US wields the largest influence in World Bank decisions and holds around 16pc of the voting power in its lending arm, the International Bank for Reconstruction and Development. The World Bank said it will continue to support clients in delivering ambitions set out in their national climate plans, known as Nationally Determined Contributions (NDCs). The World Bank also said it has extended its 2021-25 Climate Change Action Plan (CCAP) but has dropped the plan's target of allocating 35pc of finance to climate-related projects. "We will continue to track and report on our two scorecard indicators on net greenhouse gas (GHG) emissions and beneficiaries with enhanced resilience to climate risks," the bank said. By Caroline Varin Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Rhode Island governor rejects building GHG bill

26/06/26

Rhode Island governor rejects building GHG bill

Houston, 26 June (Argus) — Rhode Island governor Dan McKee (D) vetoed a pair of bills that would have required owners of large buildings to report on their annual energy use. McKee on 24 June vetoed the bills, H7183 and S2260, saying they conflict with a separate provision in the state's budget for the 2027 fiscal year that sets greenhouse gas (GHG) emissions benchmarking and performance standards for state-owned and occupied buildings. The bills would have created uncertainty over how the reporting program would be administered and would have taken resources away from the benchmarking provision outlined in the state budget, according to McKee In addition, the bills pose "a significant unfunded mandate" for Rhode Island's Office of Energy Resources (OER) as it does not allocate funding for the agency to implement the reporting requirements outlined in the legislation, the governor said. "The framework enacted through the [fiscal year] 2027 budget represents a more practical and sustainable path forward and does not place any burden on residential and commercial properties," McKee said. The sponsors of the bills, senator Meghan Kallman (D) and representative Rebecca Kislak (D), said they were disappointed by McKee's veto. "It is irresponsible to veto this legislation, which is the first step to getting information about building energy use so we can ensure a healthy and affordable energy future for everyone," Kislak said. "I think it represents a lack of understanding of where we are at this moment. To veto an energy efficiency program at a time when Rhode Islanders are facing astronomical energy prices, I think, is careless and irresponsible," said Kallman, who pointed towards a similar program that is being enacted in the state's capital, Providence, which covers 40pc of the state's large buildings. The General Assembly, which holds comfortable Democratic majorities, passed both bills earlier this month . The legislation would have required residential and non-residential buildings at least 25,000 ft2 to report their annual energy consumption. OER would have been charged with implementing the program, identifying and notifying covered properties of their reporting requirements and submitting reports to the General Assembly detailing the energy use and emissions data received. The legislation was seen as the first step in eventually implementing GHG performance standards for large buildings and help the state reach its climate goals. H7183 was accompanied by a second bill, H7184, that would have required the establishment of performance standards. But that bill died in committee, and critics warned that implementing such standards would prohibitively increase costs. State lawmakers could attempt to override McKee's veto of the bills, but to do so would require at least 60pc of lawmakers in both chambers of the General Assembly to support such a measure. In addition, the General Assembly completed the legislative session for this year. In some special cases, the governor can call a special session of the legislature. "It is possible, and it is my hope that we will" override the veto of the bills, Kallman said. Rhode Island must lower its GHG emissions by 45pc from 1990 levels by 2030, 80pc by 2040 and achieve net zero emissions by mid-century. By Ida Balakrishna Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Chile-Switzerland Article 6.2 carbon project authorised

26/06/26

Chile-Switzerland Article 6.2 carbon project authorised

Berlin, 26 June (Argus) — Switzerland and Chile have authorised a second battery energy storage system (Bess) project under Article 6.2 of the Paris Agreement in the South American country, which will enable the reduction of around 1.4mn t of CO2 equivalent (CO2e) until 2030, the countries said this week. The project consists of the 220MW Arena Bess and 300MW Patache Bess standalone grid-connected units installed in the north of the country, both developed by Danish fund manager Copenhagen Infrastructure Partners. Construction of Arena Bess is nearing completion and Patache Bess is at a "late development stage", according to Swiss government-mandated carbon project developer the Klik Foundation. The Bess sites will help integrate more photovoltaic power to the grid, storing it during daytime and discharging it at night, thereby displacing fossil fuel-fired generation and reducing greenhouse gas (GHG) emissions. Over 70pc of Chile's power generation comes from renewables and the country aims to increase the share beyond 90pc by 2030, with the phasing out of coal-fired power generation a central part of its nationally determined contribution (NDC) climate plan under the Paris agreement. Chile has in recent years seen a strong rise in photovoltaic power curtailment, according to the project documentation, and the country included Bess in its list of prioritised activities under Article 6, expecting the GHG emissions mitigation potential of Bess to go beyond its NDC. Switzerland is also financing an earlier 228MW Bess project in Chile connected to a photovoltaic plant under Article 6.2. Bess technology still faces implementation barriers such as high capital expenditure and technological risks, despite the large fall in costs for lithium-ion Bess in recent years, Klik said. Article 6.2 allows countries to generate and trade internationally transferred mitigation outcomes (Itmos), in the case of this latest project enabling GHG savings in Chile to count towards Switzerland's NDC — approximately 1.4mn Itmos. These projects are viewed as additional — economically unviable without the Itmos — and the emissions reductions sold towards the buyer countries' NDCs would be reflected in Chile's GHG accounting — key features of Article 6 carbon markets. Both sites come with grid-forming components. Under Chile's rules for carbon market finance, a grid-forming Bess is entitled to 100pc finance through Itmos, regardless of its storage capacity. A total of 66,000 Itmos are listed in Switzerland's registry so far, most of which have come from an electric bus programme in Bangkok, Thailand. Klik early this week underlined the need for a 1bn Swiss franc ($1.2bn) " risk buffer " to hedge against potential delivery failures from its international carbon offsetting activities. Switzerland's government has said that for the period after 2030, it will consider buying offsetting credits generated under the more formalised Paris Agreement crediting mechanism (Pacm) under Article 6.4 of the Paris deal, once the system is operational and provided Switzerland's CO2 law has been amended to provide the legal basis. A draft law is expected to be put to consultation this autumn, the ministry said this week. The ministry stressed that Switzerland will not buy Pacm credits that have transitioned from the market's predecessor, the clean development mechanism. And there will be no "automatism" in recognising Pacm credits, the ministry said, although the government does not plan to "subject every application to the same time-consuming verification process as that applied to projects under [Article 6.2]". By Chloe Jardine Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

UK to set in law GHG cuts of 87pc over 1990-2042

25/06/26

UK to set in law GHG cuts of 87pc over 1990-2042

London, 25 June (Argus) — UK parliament has agreed on the country's seventh carbon budget, and will set into law greenhouse gas (GHG) emissions reductions of 87pc by 2042, from a 1990 baseline. The vote, which took place in the evening of 24 June, passed with 332 votes for and 94 against. The UK's Labour government has pursued ambitious decarbonisation policies since it won a landslide victory in July 2024. The government earlier this month set out its proposal for the emissions cuts, in line with recommendations from the parliamentary advisory Climate Change Committee (CCC). Carbon budgets, which are legally-binding in the UK, cap the total GHG emissions that the UK can emit over five-year periods. The seventh carbon budget, which covers 2038-42, will have a limit of 535mn t/CO2 equivalent (CO2e), including the UK's share of international aviation and shipping emissions. This is "consistent with the Paris Agreement" and its most ambitious target to curb the global rise in temperature to 1.5°C above pre-industrial levels, the government said. The CCC welcomed the results of yesterday's vote. It "provides the long-term certainty that businesses, investors, and communities need to accelerate the transition away from fossil fuels… this legislation will help unlock innovation, drive clean investment, and strengthen the UK's competitiveness in a low-carbon world", CCC chair Nigel Topping said. The UK is on track to meet its fourth and fifth carbon budgets, which cover 2023-27 and 2028-32, respectively, the CCC said this week in its annual assessment of government progress on climate targets . But the government must accelerate electrification to hit climate goals beyond that, the committee added. The UK met its first three carbon budgets, which covered 2008-2022 collectively, largely through power sector decarbonisation, including shutting coal-fired power generation. The country has a legally-binding target to reach net zero GHG emissions by 2050. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

UK must speed electrification to hit climate goals: CCC

24/06/26

UK must speed electrification to hit climate goals: CCC

London, 24 June (Argus) — The "slow pace of electrification is putting the UK's climate targets at risk", the UK parliamentary advisory Climate Change Committee (CCC) said today, in its annual progress report, which assesses government progress in reducing emissions. The CCC noted "good progress in a range of areas", including contracting a record amount of new renewable energy in the latest auction, and on electric vehicles (EVs). Nearly one in four new car sales is now electric, the CCC said. Moving faster to electrify the UK could be "an opportunity to enhance UK energy security in the face of rising threats", as well as hitting climate goals, the committee said. Reliance on fossil fuels for transport and gas boilers for domestic heating leaves the UK "exposed to geopolitical shocks", it added. Of the UK's emissions, 93pc are now outside the electricity supply sector, the report noted. Surface transport is the highest-emitting sector. The government should prioritise a "more rapid transition to EVs" and speed up heat pump installations, the CCC said. A "typical UK household will see lower and less volatile bills" by switching to an EV and heat pump from fossil-fuelled alternatives, it said. The net cost for the UK to reach net zero greenhouse gas (GHG) emissions by 2050 is lower than "a single fossil fuel price shock", the committee found in March. The government should take "further action to reduce the cost of electricity", and ensure faster industrial electrification, including by speeding grid connections, the report found. The committee found that progress in the agriculture, land use and aviation sectors "has also been too slow". UK GHG emissions were 407mn t/CO2 equivalent (t/CO2e) in 2025, down by 1.8pc or 7.3mn t/CO2e, compared with 2024, provisional estimates show. The UK is on track to meet its fourth and fifth carbon budgets — which cover 2023-27 and 2028-32, respectively — the CCC said. Carbon budgets, which are legally binding in the UK, cap the total GHG emissions that the UK can emit over five-year periods. The UK met its first three carbon budgets, largely through decarbonising the power sector and shutting down coal-fired power generation. The country has a legally-binding target to reach net zero GHG emissions by 2050. But the UK is not on track to achieve its national climate plan — known as a nationally determined contribution (NDC) under the UN climate process — for 2030, the CCC found. It flagged "a significant gap" between government plans and the UK's 2030 NDC commitment to reduce GHG emissions by at least 68pc compared with 1990 levels. "Credible plans" and plans with "some risks attached" exist for 44pc and 15pc, respectively, of the required GHG reductions to reach the NDC target, the CCC said. For the rest, "significant risks" are attached for 19pc of required cuts, and 4pc have "insufficient plans" in place. The remaining 17pc of emissions reductions required are not covered, the committee said. The UK must reduce its GHG emissions to 291mn t/CO2e by 2030 to meet its NDC. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Argus Hydrogen Analytics

A quarterly analytics service delivering global clean hydrogen demand, supply and production cost forecasts to 2040, covering sectors and regions worldwide.

Argus Renewable Gas and Power

Electricity and gas energy attribute certificate prices, news, analysis and market data, bringing transparency to voluntary and compliance energy transition markets globally.

Argus North American Long-Term Electricity Forward Curves

Independent market valuation tool to support investment and trading decisions on North American Electricity markets

Argus Carbon

Benchmarks de precios del carbono, noticias sobre políticas y proyectos, y análisis exhaustivos, a diario.

Argus North American Long-Term Natural Gas Forward Curves

Independent market valuation tool to support investment and trading decisions on North America Electricity markets

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more