CO2 shrugs off the Covid-19 slump
Future policy assumptions support the EU ETS after initial hit
European energy markets have been thrown into turmoil by the coronavirus pandemic, with prices for some commodities falling by more than 50pc as demand has plummeted during the enforced lockdown. A combination of housebound workers and a slowdown in commercial and industrial activity has also tipped countries into recession, blighting the economic outlook for the coming months and even years. But European carbon allowance markets are remaining robust, reflecting growing confidence that a long-term economic recovery will focus on low-carbon and sustainable policies. The sudden and sharp decline in economic activity since March did, admittedly, feed through to Europe’s emissions trading system
Also in this section
12 December 2025
The federal government is working with Alberta to improve the country’s access to Asian markets and reduce dependence on the US, but there are challenges to their plans
12 December 2025
The latest edition of our annual Outlook publication, titled 'The shape of energy to come: Creating unique pathways and managing shifting alliances', is available now
11 December 2025
The removal of the ban on oil and gas exploration and an overhaul of the system sends all the right messages for energy security, affordability and sustainability
10 December 2025
The economic and environmental cost of the seven-year exploration ban will be felt long after its removal
