Emissions prices are under pressure
EU ETS prices fall sharply
Allowance prices in EU’s emissions cap-and-trade scheme drop by a third as lower power prices hit demand
Prices in the EU emissions trading scheme (ETS) have fallen by almost a third since the start of the year, as low power prices discourage utilities from forward hedging and supply of allowances is boosted by the impact of the REPowerEU frontloading scheme. Prices opened the year at more than €80/t of CO₂e ($86.5/t) and hit a low of €51.10/t of CO₂e in late February, before recovering to trade at €55–56/t of CO₂e. Utilities are the main buyers of allowances in the EU ETS and their behaviour therefore has a strong impact on prices. Typically, utilities buy power, allowances and gas or coal at the same time on forward curves, locking in margins. But such behaviour has been limited in recent mon
Also in this section
18 February 2025
Demand for CCS to abate new gas-fired plants is rising as datacentres seek low-carbon power, Frederik Majkut, SVP of industrial decarbonisation, tells Carbon Economist
11 February 2025
Rising prices have added to concerns over CBAM impact on the competitiveness of EU manufacturing
7 February 2025
Norwegian energy company slashes spending on low-carbon sectors as transition decelerates
30 January 2025
The UAE’s oil and gas company puts its faith in technologies including CCS and AI to deliver its emission-reduction goals
