ESMA: EU Carbon Markets Largely Even Last Year
In Short
- ESMA’s 2025 Carbon Markets Report says the EU carbon markets operated smoothly in 2024.
- Emission allowance auctions and secondary trading continue to function in an organised and transparent manner.
- Non-financial firms follow diverse acquisition strategies based on their needs within the EU Emissions Trading System.
The European Securities and Markets Authority (ESMA) has published its annual report for the EU carbon markets.
According to ESMA, the EU financial market regulator, the EU carbon markets stay balanced in 2024.
As the supervisor of the European Union, ESMA monitors the EU Emissions Trading System (ETS). This ensures more transparency and reliability of market operations.
Read More: What ESMA’s Final ESG Ratings RTS Means for Financial Institutions
The latest report and its findings are based on a combination of regulatory and commercial data from 2024.
The EU carbon markets, said ESMA, are functioning smoothly, and there were no major issues in terms of market integrity or transparency.
When it comes to the auction system for emission allowances and the secondary market for trading, they continue to operate as before and maintain a well-organised structure to transfer emission allowances from financial intermediaries to non-financial firms obligated to meet compliance requirements.
Also, the market structure accommodates a variety of acquisition strategies, as an analysis of trading and derivatives positions in the non-financial sector shows. This ups flexibility, thereby helping different types of companies engaged in emissions trading.
Also Read: New EU Rules Scale Back Sustainability Reporting for Some Firms
The Carbon Markets Report is published every year by ESMA under the EU Emissions Trading System Directive. The 2025 edition is an in-depth analysis of developments in 2024 in primary and secondary markets.
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