How will the CBAM affect companies before 2026 and beyond?

The EU's Carbon Border Adjustment Mechanism (CBAM) introduces carbon costs for importers of certain goods like cement, iron, and aluminum, requiring companies to account for the carbon intensity of their products and potentially purchase carbon allowances. Companies should prepare by gathering emissions data, assessing financial implications, and registering with regulatory bodies before full implementation in 2026, while anticipating rising EUA prices. This impacts investing in responsible and sustainable businesses.

Are EU carbon market allowances a volatile investment?

This article discusses volatility in investing, particularly in carbon markets (EUAs). EUAs have a clear long-term price direction (upward) due to policy driving carbon pricing, making them potentially suitable for long-term investors despite short-term volatility, with 2024 presenting a good entry point.

How to design an Investment portfolio: enhancing your strategy with diversification through EUAs

Diversification is crucial for investing in the stock market to mitigate risk and enhance portfolio stability, including considering assets like EUAs (European Union Allowances). EUAs offer investment diversification with proven positive environmental impact, making them suitable for socially responsible investing and ethical investments. Climate finance experts recommend allocating a portion of your investment portfolio to diversification assets like EUAs, contributing to both financial resilience and climate action.

What is the EU ETS phase 2 ?

The EU ETS 2 will introduce carbon pricing for the building and road transport sectors in 2027/28 to meet climate targets, potentially increasing costs for consumers. A Social Climate Fund will redistribute revenue to mitigate socio-economic impacts, supporting vulnerable households and promoting responsible investing in sustainable development and green finance. The EU ETS 2 aims to reduce emissions, promoting carbon neutrality and offering opportunities for impact investment, with proceeds used for social and ecological investments.

Chronicles from the EU ETS battlefield:  How does carbon pricing accelerate decarbonization in the cement industry?

This article discusses how the EU ETS and Carbon Border Adjustment Mechanism (CBAM) incentivize the cement industry, including companies like Cem' In' Eu', to adopt sustainable practices and invest in green investment and green finance due to increasing carbon costs and regulations. Cem' In' Eu' anticipates rising EUA prices and incorporates carbon costs into financial planning, viewing CBAM as beneficial for creating a level playing field that promotes responsible investing and ecological investment.

Looking beyond the short-term turbulence: The promising long-term horizon of the EU ETS and carbon pricing

Despite recent declines due to short-term factors like reduced industrial activity and gas prices, EU carbon allowance (EUA) prices are expected to rise significantly, driven by long-term EU ETS reforms (Fit for 55 package) that reduce supply and increase demand, making EUAs an attractive green investment for 2024 and beyond, as the market's myopic focus obscures strong future fundamentals for responsible investing. The current market surplus will be erased by the Market Stability Reserve (MSR) in the next 2-3 years to come -the demand-and-supply dynamics will be back to normal by 2026 - 2027.

A guide to EU ETS assets: Exploring the Difference Between EUA Futures and EUA Spot

This article explains the difference between EUA futures and spot contracts within the EU ETS, arguing that participating in the EUA spot market by buying carbon allowances has a better environmental impact because it reduces the number of allowances available to polluters, unlike futures which are mainly used for speculation. Investing in the EUA spot market is a form of responsible investment.

What is the current EU ETS carbon price? The EUA live price, explained

Understanding the live market price of European Carbon Allowances (EUAs) involves navigating primary and secondary markets, various exchanges like ICE and EEX, and spot versus futures contracts. Homaio tracks the EUA spot price, reflecting the current CO2 price for immediate purchase, while futures contracts trade at different prices, often in contango, impacting performance. Investing in carbon allowances involves understanding how to invest your money in green finance and the European carbon market.

The EU 2040 Climate Ambitions: A Critical Recap

The EU announced its 2040 climate targets, aiming for a 90% net reduction in greenhouse gas emissions, sparking debate about ambition levels and the role of carbon management strategies. Critics worry the targets are too easily achievable and politically cautious, potentially impacting responsible investment and sustainable development. Achieving these targets requires significant green finance and investments in renewable energy and impact companies.