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
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
