Published: Tuesday, May 11, 2021
Wind and coal plant. Photo credit: imageBROKER/Jan Tepass/Newscom
A wind turbine and a coal-fired power plant are pictured in Germany. European carbon prices have stabilized at record high levels. imageBroker/Jan Tepass/Newscom
European carbon prices languished in the single digits for years. But no longer.
The price for carbon allowances on the European Union s Emissions Trading System (ETS) has surged 60% this year, recently crossing the €50-per-ton threshold for the first time. The rally marks a dramatic reversal from just a couple of years ago. ETS allowances sold for less than €10 a ton as recently 2018.
The price of EU carbon has reached 50 euros per tonne
EU carbon prices have broken the record for the first time by jumping more than € 50 a tonne, increasing the cost of pollution in the bloc more than double the pre-pandemic level.
The European Union’s Emissions Trading System (ETS), which is designed to reduce the cost of CO2 for some energy-polluting industries, has grown by more than 50 percent since the start of the year.
As in December last year, the price of carbon never traded above 30 tonnes, but as markets bet on markets, the availability of carbon allowances will have to be tightened in the coming years if the EU is to meet aggressive climate targets, among other things. a 55 percent reduction in emissions by 2030.
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