The outlook for the UK ETS this week is neutral to bearish on wider market risk. We saw UKAs follow the EU ETS higher last week but potential for recession and industrial shutdowns remains, while covid fears for Asia seem to be increasing, exacerbating an already precarious looking situation for European economies. There is no UKA auction this week and fossil fuels dominate power generation as of Monday, so compliance buying could limit losses in the short term.

UK ETS Outlook: neutral to bearish

Indicative UKA price: £81.30

YTD average UKA price: £78.46

MTD average UKA price: £76.87


1. UKA Dec22 Price Chart 2. Snapshot of UK energy generation 25/4


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