In the EU, the price of CO2 emission allowances was € 86.6 per tonne: the reasons given

In the EU, the price of CO2 emission allowances was € 86.6 per tonne: the reasons given shutterstock
Katerina Belousova

Some energy companies have unloaded a lot of their loans to get liquidity, which will affect the price of allowances

The price of carbon credits in the European Emissions Trading System (ETS) at the end of last week was €88.68 per ton, which has increased by 50% over the past 6 weeks.

This is due to low supply and the approaching deadline for companies that need to turn in permits for accounting for emissions, reports Gerard Reed on LinkedIn.

He also noted that some energy companies have unloaded many of their loans to get liquidity, which will affect the price of allowances this week.

“This is going to be an incredibly interesting year for carbon as we see an overview of how carbon emissions are allocated (a market stability mechanism) and discussions around a tax on imported carbon (a carbon cap adjustment mechanism),” it said.

Recall that in February 2022, the price of carbon dioxide emissions allowances in the European Emissions Trading System reached a record high for its entire existence in the course of day trading - € 97.49/ton.

As EcoPolitica reported earlier, a PricewaterhouseCoopers survey showed that less than half of companies in the EU are ready for Green Deal challenges.

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