Benchmark EU carbon price hits record high 37.56 euros/tonne
- The EU emissions trading system (ETS) is part of the 27-country bloc's efforts to reduce the greenhouse gas emissions that cause climate change.
- Prices have been rising since the EU agreed last year to toughen its climate targets, a move which will increase demand for permits.
LONDON: Benchmark prices of European carbon permits hit a record high of 37.56 euros a tonne on Wednesday, as speculative buying and a strong auction result buoyed the market.
The EU emissions trading system (ETS) is part of the 27-country bloc's efforts to reduce the greenhouse gas emissions that cause climate change.
Prices have been rising since the EU agreed last year to toughen its climate targets, a move which will increase demand for permits.
Traders said Wednesday's gains came as speculative buying interest and a record high carbon auction price pushed the contract through key technical milestones, triggering further buying.
"The auction was very aggressive and pushed up the wider market," a carbon trader said.
A Polish auction of EU carbon permits cleared at a record 38.00 euros a tonne on Wednesday morning.
The auction commanded a premium of around 1.40 euros compared with the exchange traded price at the time it cleared, which traders said was a bullish sign of strong demand.
Comments
Comments are closed for this article.