EU Energy Policy

EU ETS reform keep carbon prices high

With EU carbon allowances above €20/t, many countries around the world will be watching whether this prompts a switch away from coal in the power mix. The stakes are high With EU carbon allowances above €20/t, many countries around the world will be watching whether this prompts a switch away from coal in the power mix. The stakes are high.
By Peter Stewart 3 October 2018 0 32760
Almost 90 countries plan to use carbon pricing to meet their Paris agreement commitments. (pixabay.com)

The prices for EU carbon allowance (EUAs) have levelled out at above €20 per ton ($23.2/t) after a bull run of more than a year led by EU efforts to remove surplus allowances from the market. 

After a recent bout of extreme volatility – which saw the price of EUAs swing from highs above €25/t to lows around €20/t within just a few days – the benchmark December 2018 contract settled at €21.2/t on the ICE exchange at the end of trading on 28 September. But...