EU Energy Policy

Brexit casts shadow over ETS carbon price surge

EU carbon prices have moved up sharply in recent months, but uncertainties linked to the UK’s future participation in the ETS are looming EU carbon prices have moved up sharply in recent months, but uncertainties linked to the UK’s future participation in the ETS are looming.
By Andreas Walstad 15 March 2018 0 30008
The Brigg gas-fired power station A gas-fired power station in the UK. (Centrica)

Prices for allowances under the EU Emissions Trading System (ETS) have doubled since last June following key market reforms agreed by the EU institutions, helping to restore much-needed trust in the carbon market. 

However, there is a risk that a hard Brexit without a transitional agreement between the UK and the EU could reverse the progress.

Lawrence Slade, chief executive of trade association Energy UK, told a hearing in the House of Lords in London on Wednesday that “the urgency is just increasing notch-by-notch”...