EU Energy Policy

EU carbon prices slide further on Brexit fears

Prices for carbon allowances have tumbled further as a result of Brexit risks and weak economic data from the eurozone Prices for carbon allowances have tumbled further as a result of Brexit risks and weak economic data from the eurozone.
By Andreas Walstad 1 November 2018 0 33133
The EU’s chief Brexit negotiator, Michel Barnier, in Brussels last week. (PA)

EU carbon allowances (EUAs) were trading below €16 per ton ($18.1/t) on Wednesday, roughly €10/t lower than the highs seen in September and a long way from the level needed to incentivise fuel switching from coal to gas in power generation on a large scale. 

The benchmark December 2018 contract was trading at around €15.6/t on the ICE exchange at the time of writing on Thursday – more than €3/t lower than last Thursday’s close. The contract closed above €25/t...