Policy & Regulation

EUA prices slide as Brexit talks falter

Concerns that the UK’s exit from the EU could leave a surplus of unallocated carbon allowances have seen EUA prices drop Concerns that the UK’s exit from the EU could leave a surplus of unallocated carbon allowances have seen EUA prices drop.
By Peter Stewart 17 October 2018 0 32933
UK and European flags in front of the European Commission. (EC)

The price of EU carbon allowances (EUAs) has plunged by more than 10% in the past week as the risk of a ‘no-deal’ Brexit appears to have increased.

The UK government this week clarified that, under a no-deal Brexit, the country will be excluded from the EU Emissions Trading System (ETS) – a market-based cap-and-trade system covering 11,000 installations operated by EU power and energy-intensive industries. 

Meanwhile, the UK Department of Business, Energy and Industrial Strategy (BEIS) issued two technical notes on 12 October explaining the implications...