Price of EU ETS emission allowances rises
Allowances for emitting a tonne of CO2 have tripled in price, reaching nearly 16 euros on the European Energy Exchange on Friday, the Frankfurter Allgemeine Zeitung writes. The rise follows trading being at around 5 euros a year ago. Rolf Schmitz, head of utility RWE, draws the conclusion that higher prices for CO2 allowances would reduce emissions from fossil power plants automatically so that a “symbolic end date” for coal wasn’t going to be necessary, author Andreas Mihm reports. Jörn Higgen, trade expert at energy company Uniper, attributes the increase to recent reforms to the EU ETS, including a forthcoming deletion of excess certificates on the market. “In anticipation of this shortage, market participants have apparently begun to acquire carbon credits,” he said.
For background, read the factsheet Understanding the European Union’s Emissions Trading System.