The EU is introducing further reforms this summer
EU ETS prices fall sharply on Ukraine invasion
Combination of factors has led to EU allowances losing a third of their value, but bullish factors remain on the horizon
Carbon prices in the EU’s Emissions Trading System (ETS) have lost a third of their value, falling from more than €98/t in early February to €55/t this week. The scheme sets a cap on the annual emissions that can be produced by the industrial and power sectors covering around 50pc of the region’s emissions. Units in these sectors must then buy or apply for allowances to cover their remaining emissions. Prices in the scheme initially slumped following a fall in demand after the 2008 financial crisis. As a result, the European Commission introduced a Market Stability Reserve (MSR), which absorbed surplus allowances so they could not be traded. €98/t – All-time high for prices in the scheme
Also in this section
27 September 2023
Investment in African offsets and ambitions to create a trading hub demonstrate Mideast Gulf state’s commitment to growing markets
26 September 2023
Newly launched Taiwan Carbon Solution Exchange is expected to enable companies to trade in both domestic and international credits
22 September 2023
A flurry of interest in direct air capture signals a key role for the technology in the push for net zero
21 September 2023
Technology company says its latest technologies can achieve 30–50% cost reductions at the capture stage
