Emissions trading in safe hands
Vertis, a MiFID II trading firm, supports companies in navigating through carbon compliance schemes, including different EU Emissions Trading Systems, CBAM and CORSIA, in a cost-effective way
Emissions trading in safe hands
Vertis, a MiFID II trading firm, supports companies in navigating through carbon compliance schemes, including different EU Emissions Trading Systems, CBAM and CORSIA, in a cost-effective way
Traders of Environmental Progress
STX Group is a global environmental commodities trader offering physical and financial solutions across compliance and voluntary systems for energy, fuels, gas and carbon markets.
News
The EU Emissions Trading System (EU ETS) is entering a transitional phase in which traditional pricing drivers, especially from the power sector, are losing dominance.
At a recent conference in Florence, analysts pointed out that the carbon market now sits “in no man’s land,” caught between fading utility-based hedging and emerging industrial demand.
Stefan Feuchtinger, Head of Market Research & Analysis at Vertis, observed that while utilities have historically anchored carbon pricing, their hedging activity is much reduced today. He expects the carbon market to stay influenced by power sector dynamics until approximately 2026–27, at which point industrial forces may begin to assert greater pricing power.
In this article, we’ll unpack these themes, explain how this “in-between” state affects regulated entities, and suggest how companies can position themselves as the carbon market’s balance of power evolves.
