EU carbon price nears €40 as speculators move in
The surge in trading cannot be explained by fundamental demand from utilities
European carbon prices have rocketed to new highs in early February, extending a rally that has seen prices add more than 70pc since the start of November last year. A surge in buying from speculative investors is seen as the main catalyst, as high fuel prices have capped profits for power generation and damped demand from utilities. EU emissions allowances (EUAs) have now exceeded even the most optimistic price forecasts for 2021, as the number of investment funds and other financial entities with long positions has risen to its highest ever. More than 375 separate financial entities are identified as holding positions in EUAs on ICE Futures, the leading carbon derivatives exchange. At leas
Also in this section
13 December 2024
Prices in world’s largest compliance market have risen this year but remain below those seen in the EU
11 December 2024
Policymakers need to step up with a long-term, global strategy if the energy transition is ever to be a success
11 December 2024
CCUS and other carbon management technologies are gaining traction around the world, but heightened policy risk and other pressures will make 2025 a challenging year in some regions
10 December 2024
Tightened standards have helped improve the outlook for the voluntary carbon market, which is set for a record year and poised for long-term growth
