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
12 November 2024
Standards have been agreed for a mechanism under Article 6.4 of the Paris Agreement to trade carbon credits internationally
8 November 2024
The energy sector will need all viable technologies to meet surging demand as AI and datacentres drain power grids
31 October 2024
Russia still aspires to become a major supplier of hydrogen, CO₂ storage capacity and carbon credits, despite financial constraints and the loss of Western technology and expertise
30 October 2024
Occidental subsidiary signs agreement with Enterprise Products Partners for pipelines and transport services for Bluebonnet hub
