UKA Dec-26 fell as much as 2.23% to a session low as the market weighed the risk of a delay to the July 22 UK-EU summit in Brussels.
This result paves the way for the start of free allocation by national ETS authorities from late July.
The draft rules clarify how carbon prices paid in third countries can reduce CBAM obligations, including formulas, default values, and carbon credit limits
The Asia-Pacific (APAC) region is experiencing an acceleration in carbon pricing mechanisms.
This follows a series of escalating interventions across member states.
Traders interpreted the comments as a political risk to the integrity of the EU ETS, triggering a sell-off at the open.
The proposal to amend the Market Stability Reserve (MSR) introduces several targeted adjustments aimed at ensuring a smoother, more predictable start to the market.
A draft document outlining preliminary benchmarks for the EU CBAM was circulated among market participants.
The UK Allowance (UKA) market reacted positively to the news.