Big Carbon Price Increase on the Horizon

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Europe’s carbon price is set for a dramatic rise, according to a European Commission draft, while fuel prices for households and industry could also increase. As part of the EU’s European Green Deal, which pushes for cleaner energy and alignment with 2030 climate targets, the price of CO2 could reach as high a price as EUR 85/metric ton, according to the Commission’s analysis.

The price of carbon has been on the rise in the last two years, reaching EUR 55/metric ton, due to a forthcoming reduction of emissions permits in line with a reform of the Emissions Trading System (ETS). That’s coming soon, on 14 July, and some of the revenues from a reformed ETS could be used to compensate those hit hard by adopting green energy.

Some hedge funds, meanwhile, believe Europe’s CO2 price could go as high as EUR 100/metric ton before the end of this year.

Source: EnergyVoice

CET Editor

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