The EU is introducing further reforms this summer
EU ETS prices fall sharply on Ukraine invasion
Combination of factors has led to EU allowances losing a third of their value, but bullish factors remain on the horizon
Carbon prices in the EU’s Emissions Trading System (ETS) have lost a third of their value, falling from more than €98/t in early February to €55/t this week. The scheme sets a cap on the annual emissions that can be produced by the industrial and power sectors covering around 50pc of the region’s emissions. Units in these sectors must then buy or apply for allowances to cover their remaining emissions. Prices in the scheme initially slumped following a fall in demand after the 2008 financial crisis. As a result, the European Commission introduced a Market Stability Reserve (MSR), which absorbed surplus allowances so they could not be traded. €98/t – All-time high for prices in the scheme
Also in this section
28 March 2025
The massive expansion of the Northern Lights project in Norway is the clearest sign yet that the European oil and gas companies mean business when it comes to CCS
27 March 2025
Awards celebrate global innovation, leadership and achievement across the energy sector’s people, projects, technologies and companies.
20 March 2025
While advanced economies debate peak fossil fuel demand, billions of people still lack access to reliable and affordable energy, especially in the Global South
14 March 2025
Ignoring questions of sustainability will not make the problems they focus on go away
