Prices for EU carbon allowances (EUAs) under the Emissions Trading System (ETS) are hovering around €20 per ton ($22.7/t) despite concerns linked to the UK’s future participation in the scheme.
The prospect of a no-deal Brexit – which would see the UK leaving the ETS on 29 March next year – has prompted fears that UK polluters will boost the number of EUAs in circulation by selling unwanted allowances back to the market.
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