The regulator reported that it didn\u2019t uncover \u201cany significant issue in the integrity or transparency\u201d of the markets \u2014 and its analysis of trading and derivatives positions found that \u201cthe market accommodates different acquisition strategies, reflecting the different needs and capabilities of participants.\u201d<\/p>\n
As for the market metrics, the report noted that the annual average price of emission allowances declined by 22% in 2024, \u201cdriven by weak demand from continued power sector decarbonization and higher auction volumes.\u201d<\/p>\n
During the year, the volume of allowances auctioned on the market was up 15%, the report said, and all of the auctions were oversubscribed, although the ratio fell from over 200% to 172%.<\/p>\n
Trading activity increased by 35% in 2024, the report said, with 13.7 billion tonnes of CO2-equivalent emissions (tCO2) traded in 4.7 million transactions.<\/p>\n
\u201cMarket growth was primarily driven by [exchange] trading, while [over-the-counter (OTC)] trading activity remained stable,\u201d it noted. Investment firms and credit institutions dominated both exchange and OTC markets, as they accounted for 63% of total trading volumes, up from 56% in 2023, ESMA further noted.<\/p>\n
Derivatives were also a key part of the market, the report said, by enabling polluters with net long positions to acquire allowances from financial intermediaries that had net short positions.<\/p>\n
\u201cCentral to this are futures contracts, which accounted for three-quarters of volumes traded in 2024,\u201d it said.<\/p>\n
Investment firms and credit institutions accounted for 51% of derivative positions, while investment funds had another 6%, ESMA noted.<\/p>\n","protected":false},"excerpt":{"rendered":"The regulator reported that it didn\u2019t uncover \u201cany significant issue in the integrity or transparency\u201d of the markets…\n","protected":false},"author":2,"featured_media":91455,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[114,4587,49710,1477,37523,85,61760,61762,46,190,61761,5264,3594,61763],"class_list":["post-91454","post","type-post","status-publish","format-standard","has-post-thumbnail","category-markets","tag-business","tag-carbon-market","tag-carbon-offset","tag-climate-change","tag-esg","tag-il","tag-investment-dealers","tag-investment-funds","tag-israel","tag-markets","tag-over-the-counter-securities-and-derivatives","tag-stock-exchanges","tag-sustainability","tag-sustainable-finance"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/91454","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=91454"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/91454\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/91455"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=91454"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=91454"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=91454"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}