EU Carbon Price Surpasses EUR 50 per Ton

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On Tuesday, the benchmark EU Allowance (EUA) price for carbon hit EUR 50.05 /ton for the first time since it was introduced back in 2005. Analysts argue this is a sign that carbon prices will be at the price levels needed to trigger investments in innovative clean technologies. The European Union has set up its Emission Trading Scheme (ETS) as a key tool for curbing greenhouse gas emissions responsible for climate change through pushing industrial emitters, the power sector, and airlines operating inside the EU to buy emission credits.

One of the key catalysts for the latest increase in the price of carbon price is being driven by an agreement within the EU member states to curb their emissions by 55% by 2030 under the European Climate Law. It will serve as a legally binding basis for a package of regulations aiming to drastically decrease emissions across all sectors to meet the 55% target.

For years the EU has been suffering from low carbon credit prices and has had to reshuffle the rules that allowed too many free or cheap credits into the system, thus halting the benefits of a functioning carbon market.

Source: Euractiv

 

CET Editor

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