5th November 2025
- Carbon demand increasing as winter approaches
- Making Great Britain a clean superpower
- UK refineries demand CBAM protection
- A planet on the brink
Carbon demand increasing as winter approaches
UK carbon closed October at £56.27, a 2% weekly rise and a gain of over 4% for the month its fourth consecutive monthly increase. UK carbon continues to follow EU carbon prices which surged on Monday pushing UKAs to a two year high over £58 before settling on the day at £57.98. This price increase could be put down to colder weather forecasts and reduced wind output, together with reports from Germany that wholesale electricity prices for industry will be subsidised from next year for three years, increasing fossil fuel demand.
Making Great Britain a clean energy superpower
On the 29th October the UK government set out an update to the Carbon Budget and Growth Delivery Plan. Carbon budgets are five-year caps on emissions levels set under the Climate Change Act 2008. Each budget is set 12 years in advance, with the UK currently in the fourth carbon budget running from 2023 to 2027. In 2019 the government committed the UK to reach net zero emissions by 2050, and to keep on track to achieving this target the government is required to establish legally binding five-year caps on emissions. The UK has already met and exceeded its first three budgets and is on track to meet the fourth by 2027. The UK is the first major economy to halve its emissions whilst growing its economy by 80%.
UK refineries demand CBAM protection
The Fuels Industry UK have issued a warning to the government that the UK refining sector is beyond a tipping point unless immediate carbon leakage policy changes are made. Since the beginning of the year the UK has lost one third of its refining capacity down to just four sites. Domestic refiners are subject to high carbon costs while imported fuels have lower or no carbon pricing. For example, ExxonMobil’s Fawley refinery will pay between £70 & £80m in UK carbon this year with importers paying nothing. There is an urgent need to include petroleum products within the scope of the UK’s CBAM commencing in 2027. The EU CBAM commencing in January 26 could potentially push cheaper product to the UK. An interim scheme is required if CBAM is delayed.
A planet on the brink
As senior executives head to Brazil for COP 30 beginning later this month, a report released on the 29th of October by BioScience an Oxford Academic platform, suggests the planet is heading towards climate chaos, with the window to prevent the worst outcome rapidly closing. Continued rising levels of greenhouse gases remain the driving force with 2024 being the hottest year on record driven by record high fossil fuel energy consumption from coal, oil and gas all of which remain at peak levels. Solar and wind also set new records but significantly lower than fossil fuel. Climate mitigation strategies are available and urgently needed but bold and decisive action is required.
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