Cheap gas stalls EU's carbon price revival
A slump in gas prices has contributed to the denting of the previous rally in carbon prices
European carbon allowances rose three-fold in 2018 as traders bought in anticipation of tighter supply due to drastic reforms to the EU's emissions trading system (EU ETS). However, the rally has stalled this year, with the unexpectedly mild winter and Brexit uncertainties depressing demand. European carbon prices endured a seven-year slump after the global economic crisis of 2009 dampened industrial production, which led to a glut of EU ETS allowances. Carbon prices dropped from the high €20s/t in 2008 to a low of €2.75/t in 2013 and were still languishing below €5/t in 2017. But, in 2017, the EU approved reforms to the EU ETS aimed at removing as much as 1.6bn surplus EU carbon allowances
Also in this section
2 January 2025
The hurdles standing in the way of rapid move away from fossil fuels are proving harder to clear than first thought
31 December 2024
Governments, developers, investors and lenders are keen to support and scale up cutting-edge energy transition projects, but funding such projects will require innovative financing and strategic collaboration
30 December 2024
Gas with carbon capture can be the solution to the region’s rapidly rising energy demand in the age of transition
19 December 2024
The utility-scale battery energy storage system market is evolving rapidly, with diverse offtake models emerging to offer bespoke, flexible contracting solutions
