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
8 March 2025
Honouring the trailblazing women shaping the future of hydrogen
4 March 2025
Rising power demand has boosted the prospects for CCS as some more established transition technologies come under pressure
27 February 2025
Governments working at pace to create compliance and voluntary markets and carbon tax regimes, with Indonesia, Malaysia, Singapore among the frontrunners
18 February 2025
Demand for CCS to abate new gas-fired plants is rising as datacentres seek low-carbon power, Frederik Majkut, SVP of industrial decarbonisation, tells Carbon Economist
