News

This week in ASEAN, the Philippines unveiled a USD 1 billion incentive programme to accelerate domestic EV manufacturing, while the EU’s proposed expansion of its ETS signaled rising carbon compliance costs for Asian airlines and exporters. 

EU ETS covers the same Bangkok–Paris flight at EUR 14,789 vs EUR 2,152 under CORSIA—a 6.9x gap. STARLUX is delaying credit purchases until 2031, but concentrated 2027 demand could push prices higher.

To ease concerns over potential price surges and volatility in the carbon market, the European Commission has pledged to design additional safeguards for the upcoming Emissions Trading System 2 (ETS 2).

The EU ETS “urgently needs to be adjusted” to prevent industry in the union from falling behind global competitors as the momentum of the green transition has slowed, said German steelmaker Thyssenkrupp.

More than a dozen EU member states, including Germany, have called on the European Commission to change its plans for the introduction of a carbon price on transport and heating fuels from 2027 to prevent price spikes.

European governments will auction 244 million EU carbon permits from January to August next year under the bloc's ETS, the European Commission announced on November 16.

In 2022, the carbon credit trading platform market was worth around USD 103 million, and it is projected to advance at a 21.20% CAGR from 2022 to 2030, hitting USD 479 million by 2030, according to P&S Intelligence.

The European Parliament approved on April 18 as many as three pieces of legislation from its landmark Fit for 55 package, which aims to reduce greenhouse gas emissions by 55% by 2030.

Analysts have revised up their average price forecasts for EU carbon permits for the next three years in anticipation of improving economies in Europe as energy prices fall from record highs.

The European Parliament’s environment committee may vote on key reforms of the EU ETS in February, with a parliamentary vote due in March, MEP Pieter Liese said on Thursday.