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Policy & Regulation

EU carbon prices see sell-off on economic woes

EU carbon allowances have traded lower recently, with fears over a global recession and a hard Brexit weighing on prices EU carbon allowances have traded lower recently, with fears over a global recession and a hard Brexit weighing on prices.
By Andreas Walstad 7 October 2019 Europe & Russia / Policy & Regulation 0 34652
A cooling tower at the EDF power station in West Burton in the UK. (EDF)

The benchmark December 2019 contract for EU carbon allowances was trading below €23 per ton ($25.3/t) on Monday morning as disappointing macroeconomic data from Germany, coupled with fears over the US-China trade spat and a hard Brexit, exacerbated concerns about a decline in demand. The contract closed above €27/t as recently as 17 September and was trading around €30/t in late July and early August, ICE data shows.

A bull run on carbon prices that started in Q4 2017 has helped