×
×
Policy & Regulation

EU carbon prices fall as Brexit looms

Prices for EU carbon allowances have traded lower recently, denting hopes that prices will rise to fuel-switching levels across Europe in the first half of the year Prices for EU carbon allowances have traded lower recently, denting hopes that prices will rise to fuel-switching levels across Europe in the first half of the year.
By Andreas Walstad 15 February 2019 Europe & Russia / Policy & Regulation 0 33943
EU and UK flags outside the Houses of Parliament in London. (PA)

The European gas industry is holding its breath as prices for EU carbon allowances fall ahead of the UK’s planned departure from the EU. Lower carbon prices will mean less of an incentive for power generators to switch from burning coal to gas.

The benchmark December 2019 contract for EU allowances was trading below €20 per ton ($22.6/t) on Friday morning after climbing to above €25/t in previous weeks, according to ICE data. Prices recouped some of the losses later in the...