Retail

Benchmark EU carbon price breaches 70 EUR/tonne for first time



© Reuters. FILE PHOTO: Steam rises from the cooling towers of the coal power plant of RWE, one of Europe’s biggest electricity and gas companies in Niederaussem, Germany, March 3, 2016. REUTERS/Wolfgang Rattay/File Photo

(Reuters) – The European benchmark price for carbon allowances on Monday climbed above 70 euros ($78.88) per tonne for the first time since the European Union’s carbon market launched in 2005.

The December 21 EUA contract touched a high of 70.43 euros per tonne. It traded at 69.77 euros per tonne by 1016 GMT.

Colder weather and less wind power output this week left more room for fossil fuel generation, which could translate into higher demand for EUAs, Refinitiv analyst Ingvild Sorhus said in a morning comment.

“That said, with Europe being the epicentre of the COVID-19 pandemic, worries over more lockdown measures and lower activity could weigh on markets and also carbon,” she said, adding that the overall outlook remained bullish.

Monday marked the sixth consecutive day of European carbon allowances setting an all-time high.

The carbon market has been boosted by agreement on global carbon trading at the U.N. Climate Summit and surging gas prices, that lifted it above key technical resistance levels, according to analysts.

High gas prices make it more economical for power companies to burn coal, which emits twice the amount of carbon dioxide as gas power plants, requiring more carbon permits.

($1 = 0.8875 euros)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



READ SOURCE

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.