EEX emissions trading volume rise in 2017

The volume of EU emissions allowances (EUA) and EU aviation emissions allowances (EUAA) traded on the European Energy Exchange (EEX) increased by 45pc last year.

Allowances with a total volume of 1.381bn t/CO2 equivalent (CO2e) were traded on EEX, up from about 950mn t/CO2e in 2016, EEX said.

Volumes traded on the secondary market for allowances increased by 71pc to 531mn t/CO2e, up from 310mn t/CO2e in 2016.

But primary market auctions accounted for most of the traded volumes. Auctions made up about 61pc of allowance trading volumes on EEX last year. Some 849.2mn t/CO2e of EUAs and EUAAs was traded in 206 primary market auctions on the exchange in 2017.

EEX has taken steps to improve emissions market liquidity in recent years, lowering its trading fees and rolling out products such as month and quarter maturities on emissions futures.

The exchange has added at least five emissions spot trading participants since mid-2016, bringing the total number to 111. It also entered a deal with exchange traded product developer Incubex in August last year, seeking to further boost the number of emissions trading participants and contracts.

Kate Abnett