The EU is introducing further reforms this summer
EU ETS prices fall sharply on Ukraine invasion
Combination of factors has led to EU allowances losing a third of their value, but bullish factors remain on the horizon
Carbon prices in the EU’s Emissions Trading System (ETS) have lost a third of their value, falling from more than €98/t in early February to €55/t this week. The scheme sets a cap on the annual emissions that can be produced by the industrial and power sectors covering around 50pc of the region’s emissions. Units in these sectors must then buy or apply for allowances to cover their remaining emissions. Prices in the scheme initially slumped following a fall in demand after the 2008 financial crisis. As a result, the European Commission introduced a Market Stability Reserve (MSR), which absorbed surplus allowances so they could not be traded. €98/t – All-time high for prices in the scheme
Also in this section
24 April 2025
Liverpool Bay project on track for 2028 startup as Italian energy company reaches financial close with government for CO₂ transport and storage network
21 April 2025
Agreement on a two-tier emissions trading scheme does not go far enough to meet IMO GHG reduction targets, say observers
11 April 2025
As the global economy grows, demand for materials is expected to increase. The way materials are made could incorporate new technologies in the future to ensure economic growth is more sustainable
9 April 2025
AI is powering the Middle East & North Africa’s digital transformation, but can the region meet soaring energy demand sustainably? Small modular reactors may hold the key
