Platts launches emission assessments for EU and UK ETS, adjusts calculations

S&P Global Platts has launched assessments for emission allowances under both the EU Emission Trading System and the UK Emission Trading Scheme, commonly referred to as EUAs and UKAs, respectively, effective June 18.

The newly launched assessments feed into a number of European and UK power calculations, namely clean spark and dark spreads, coal switching price and baseload comparison calculations. Previously, these calculations factored in prices of European Emissions Allowances, based on the data from the European Energy Exchange (EEX).

Platts clean spark and dark spread calculations measure the profitability of power plants in the UK running on gas and coal. The coal switching prices measure the theoretical threshold at which gas is more competitive than coal in power generation. The baseload comparison calculations allow for comparison of the cost of providing baseload power through coal, gas or fuel oil fired power.

The UK formally left the EU Emissions Trading System on Jan. 1, 2021, as part of the country's withdrawal from the EU, and setup its own domestic UK ETS Allowance (UKA) market. The relevant futures contract began trading on the Intercontinental Exchange and OTC from May 19.

The new emission allowance assessments will be databased under the following codes:

(Eur/mt)

EU Emission Allowance Nearest-December EADLP00

EU Emission Allowance Nearest-December +1 EADLP11

EU Emission Allowance Nearest-December +2 EADLP22

UK Emission Allowance Nearest-December AIDUK00

UK Emission Allowances Nearest-December +1 AIDUK11

UK Emission Allowances Nearest-December +2 AIDUK22

(GBP/mt)

UK Emission Allowance Nearest-December AIEUK00

UK Emission Allowances Nearest-December +1 AIEUK11

UK Emission Allowances Nearest-December +2 AIEUK22

The new prices and affected calculations are published in European Power Daily, European Gas Daily, PEP0827, PEP0668, PEP0233, PEP0222, PEP0953, PEP0502, PEP0503, PEP0951, PEP0660, PEP0645 and PEP0226 on a daily basis.

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