Respect for your privacy is our priority

The cookie is a small information file stored in your browser each time you visit our web page.

Cookies are useful because they record the history of your activity on our web page. Thus, when you return to the page, it identifies you and configures its content based on your browsing habits, your identity and your preferences.

You may accept cookies or refuse, block or delete cookies, at your convenience. To do this, you can choose from one of the options available on this window or even and if necessary, by configuring your browser.

If you refuse cookies, we can not guarantee the proper functioning of the various features of our web page.

For more information, please read the COOKIES INFORMATION section on our web page.


News

EU carbon price tops Euro 100 a tonne for first time

22/02/2023 - François-Xavier Branthôme
EU ETS drove a 4% reduction in European emissions between 2008 and 2016

The price of permits on the European Union's carbon market hit 100 euros (USD 106.57) per tonne for the first time on February 17, 2023, a milestone that reflects the increased costs that factories and power plants must pay when they pollute.

EUAs are the main currency in the European Union's Emissions Trading System (ETS) that forces manufacturers, power companies and airlines to pay for each tonne of carbon dioxide they emit as part of the bloc's efforts to meet its climate targets.

The price of carbon credits in the system — a core part of the bloc’s net zero strategy, which aims to put a price on pollution — has risen fivefold in the past three years, and gains have accelerated in recent weeks as the EU has tightened rules to make the system more onerous for polluters.
The fundamental point about this market is the EU has cleared the way for higher prices as that is what is ultimately needed to meet their aims of cutting emissions,” said Mark Lewis, head of climate research at hedge fund Andurand Capital Management. New rules agreed in December and in the process of being ratified, which will effectively see emissions allowed under the scheme falling to zero by 2039, are the “long-term structural bullish driver of this market”, added Lewis.

EU lawmakers gave initial approval this year to rules that would make the system tougher. The total number of allowances in the system will fall over time, and the number given out to polluters for free will also fall.

Some analysts said the €100 threshold would incentivize investments in emerging clean technologies such as carbon capture and hydrogen, but major polluters warned of the impact that higher carbon prices might have on their businesses and on their ability to make investments.

Jori Ringman, director-general of the Confederation of European Paper Industries, said the price jump “will affect the competitiveness of the EU’s manufacturing sector”, while the European Steel Association said high prices were “worrying in the current EU context of economic uncertainty and fragility”.

Peter Liese, the European parliament’s lead negotiator on the EU ETS, said in February that it was a “very important point” to “keep industry inside Europe and to help them decarbonize”. However, if companies did not decarbonize over the coming years, “there will be scarcity of allowances and that will increase the price”.

An academic study published in the journal Proceedings of the National Academy of Sciences in 2020 found that the EU ETS drove a 4% reduction in European emissions between 2008 and 2016. But progress has mainly been made in the power sector, as generators have switched from fossil fuels to renewables. Solutions for “hard to abate” sectors, such as cement and steel, are typically more expensive and remain in their infancy.

The world’s top climate scientists said last year in a sweeping UN report that climate mitigation solutions costing USD 100 per tonne of carbon or less “could reduce global greenhouse gas emissions by at least half the 2019 level by 2030”.

Sources: Reuters, Financial Time, carboncredits
Related articles

EC carbon credit certification: a new business model for farmers

23/12/2022 See details

EU wants to reliably certify high-quality carbon removals

19/12/2022 See details

EU carbon price hits record

21/08/2022 See details

EU ETS: Carbon price is rising again

20/05/2022 See details

EU carbon permit prices crash after Russian invasion of Ukraine

03/03/2022 See details

Europe\'s carbon price nears the 100 euro milestone

07/02/2022 See details

Benchmark EU carbon price hits record high above 80 euros/tonne

06/12/2021 See details

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

25/11/2021 See details

Carbon price rises above Euro 60 to set new record

10/09/2021 See details

Carbon soars past EUR 58/t to fresh record high

02/07/2021 See details
Back

________________________________________

Editor : TOMATO NEWS SAS -  MAISON DE L'AGRICULTURE - TSA 48449 - 84912 AVIGNON Cedex 9 - FRANCE
contact@tomatonews.com
www.tomatonews.com

 

 

Supporting partners
Featured company
AMITOM
Most popular news
Featured event
15th World Processing Tomato Congress and 17th ISHS Symposium on Processing Tomato
Our supporting partners
Library Z-Library