EU climate plan sets stage for an explosive rise in carbon prices. The game may not yet be over for fossil fuels in Europe, but their epitaph is already being scratched on the wall. Commodity traders are betting that Europe’s carbon futures will soon catapult higher as Brussels drains the glut of carbon allowances on the market. Prices are likely to smash the all-time record of €30 a tonne within months, profoundly reshaping the EU’s energy architecture. The killer detail in the European Commission’s 140-page climate impact report for 2030 released last week is a “one-off” rebasing of its cap-and-trade Emissions Trading Scheme (ETS) to dry up excess permits, followed by a faster pace of tightening from next year onwards.
Telegraph 20th Sept 2020 read more »