This episode introduces the fundamental principles behind the EU ETS, such as volumes and pricing decisions, the Linear Reduction Factor (LRF) of the EU ETS cap, allowance allocations and auctions, and price formation. It also touches on the interplay between EU ETS and other regulatory changes, such as the REPower EU package. Cut through the complexity with policy highlights from Senior Policy Advisor at EEX, Ellen De Vocht, and market analysis from Markus Ferdinand, Chief Analytics Officer at Veyt.

00:00 Welcome
01:38 Policy principles overview
04:21 Analysis of the cap changes
11:11 Volumes and pricing decisions
14:31 Price formation in the EU ETS
19:11 Reduction of allowances until 2030
21:23 Beyond 2030
23:51 Closing remarks

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