EU Energy Policy

Rollercoaster week rattles EU carbon market

Big swings in EU carbon allowance prices have raised speculation that the market’s year-long bull run will start to slow, which would be bad news for the gas-to-power sector Big swings in EU carbon allowance prices have raised speculation that the market’s year-long bull run will start to slow, which would be bad news for the gas-to-power sector.
By Andreas Walstad 17 September 2018 0 32562
A Hungarian gas-fired power plant A gas-fired power plant in Hungary. (E.On)

EU carbon allowance prices were extremely volatile last week, prompting fears that their 13-month bull run may start to slow, at least for the time being.

This would be a setback for the European gas industry, which is hoping that carbon prices will continue to rise and make gas competitive against coal in power generation. 

Prices for allowances under the Emissions Trading System (ETS) shot to almost €26 per ton ($30.30/t) last Monday – up by more than €2 from the preceding Friday’s close – before a...