vlautier.eth

@TristanLeCorre Scandale 🤯

@RobertHoglund @GillesDufrasne @CarbonMrktWatch When looking at number of credits issued, average price, and total traded volume, you get the impression that total volume = market size, which makes it seem like credits don't change hands all that much. Wdyt? (data from ecosystem marketplace)

Turns out we have no idea how much of money spent on carbon credits actually reached projects. Great research by @GillesDufrasne at @CarbonMrktWatch

I've compiled a list of carbon-based financial instruments, mostly exchange-traded products. Anyone I miss ? docs.google.com/spreadsheets/d… @DomenNahtigal @PeterSainsbury7

@DomenNahtigal I'll be sure to let you know if I see something then!

@vplautier Haven't come across such an analysis for KEUA, but I agree with you, it would be an interesting read

1/ At the end of 2022, let's check how well the $KEUA has been following the price movements of #EUA Futures since the beginning of the year. #EUETS $KEUA = - 2.84% $EUA Dec 23 = +1.8% Reason for the difference = #EURUSD exchange rate

@DomenNahtigal Do you know if anyone that has tried to size that impact on performance for this specific market?

@vplautier Yes, roll yield and transactional costs of rollover will affect the performance of the ETF.

@DomenNahtigal Priceless, thank you. I was literally just reading Commission Decision (EU) 2020/2166 of 17 December 2020 on the determination of the Member States’ auction shares to figure it out, but your response is much more helpful !

@vplautier The allocation share among MS is mostly based on the share of EU ETS verified emissions that MS had for 2005 or between 2005 and 2007.

1/ If you ask me, we already have the money for #RePowerEU purposes. Innovation Fund (IF) and Modernisation Fund (MF) are both pursuing very similar goals as #REPowerEU and are therefore ideal candidates for #REPowerEU funding. #EUETS #OCTT

@DomenNahtigal Wow, always so quick and useful and precise! The split between countries is based on share of previous year emissions? Or something else!

@vplautier Yes, most of auction revenues goes directly to MS, however part of allowances in certain auctions are auctioned for Innovation and Modernisation Fund, which are operated by EU and not MS. Below you can see how quantities were divided between MS and Funds in the last 2 auctions.

@DomenNahtigal I thought proceeds from EUA auction sales went to member states, not to the EC. How are the proceeds distributed?

4/ If we transfer 50% of expected IF and MF funds to #REPowerEU, we gather the needed 20 billion. That way we don't have to mess with the "auction pot" belonging to MS and free allocation quotas dedicated to protect EU heavy industry.