As discussions about the convergence of the UK and EU Emissions Trading Systems (ETS) gain momentum, General Index (GX) is now publishing front-month and December contract prices for both markets in one place. This initiative provides businesses with a consolidated view of carbon pricing developments, ensuring they stay ahead in an evolving regulatory landscape.
Why carbon pricing matters
The EU ETS is the world’s largest carbon market, covering approximately 40% of the European Union’s greenhouse gas emissions. Introduced in 2005, it operates on a cap-and-trade principle, setting a limit on emissions while allowing companies to buy and sell allowances. The UK ETS, established after Brexit, follows a similar model tailored to the UK economy.
With tightening regulations and rising carbon prices, companies operating within these frameworks need accurate, up-to-date pricing to manage costs and optimize their decarbonization strategies. GX’s new pricing initiative helps businesses stay ahead of market trends and price volatility, reducing uncertainty within an ever changing market.
With the European Carbon Border Adjustment Mechanism (CBAM) becoming fully implemented in 2026, UK emitters and renewable energy developers are likely to be significantly affected by future price shifts, making access to real-time pricing data more critical than ever.
The shipping industry will also be closely monitoring these developments, as potential expansions in ETS schemes could broaden the scope of maritime sector inclusion. With the EU having already taken steps to integrate shipping emissions, and the UK looking to follow suit, being able to access pricing data for both markets in one place will aid the maritime sector in monitoring and managing it’s compliance obligations and cost structures.
Airlines operating in the EU also have reporting obligations under the ETS since 2012. Free allowances are being phased out and replaced with allocations linked to their SAF usage on intra-EU flights. GX offers airlines full visibility across pricing exposure for the EU ETS and CORSIA, as well as physical aviation fuel (SAF and CAF) price benchmarks.
What are the benefits?
For organizations with compliance obligations under the EU or UK ETS, real-time pricing is critical for financial planning and emissions reduction strategies. Here’s how GX’s pricing data benefits potential clients:
- Cost management & budgeting: Businesses can anticipate and incorporate carbon costs into their financial planning more effectively.
- Strategic carbon trading: Reliable price signals enable better decision-making on when to buy or sell allowances, optimising compliance strategies.
- Investment & decarbonisation planning: Understanding carbon price trends supports long-term investments in clean technologies and sustainability initiatives.
- Risk mitigation: With carbon prices expected to fluctuate due to policy changes and market dynamics, access to transparent data helps companies mitigate financial and regulatory risks.
Looking ahead
As carbon pricing mechanisms become more integral to corporate sustainability and compliance strategies, companies need robust, data-driven solutions. GX’s expansion into EU and UK ETS pricing marks a significant step toward making carbon markets more accessible and actionable for businesses worldwide - adding to our existing voluntary carbon offering.
GX will shortly be expanding into a wide selection of global compliance markets, further improving transparency and providing businesses with even greater access to critical pricing data. This commitment to growth ensures that companies operating across multiple jurisdictions have the insights they need to navigate evolving regulatory landscapes.
With GX’s pricing solutions, companies can approach carbon markets with greater confidence, ensuring compliance while positioning themselves for long-term success in the low-carbon economy.
The initial launch set of compliance carbon price coverage includes:
- EU ETS x 2
- UK ETS x 2
- German ETS (nEHS) x 1
- Swiss ETS (CHU) x 1
- Swiss aviation ETS (CHUA) x 1
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