EU carbon permits top €100/mt [Gas in Transition]
EU carbon permits top €100/mt [Gas in Transition]
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Natural Gas News
EU carbon permits top €100/mt [Gas in Transition]
Summary
The general trend is upwards, with EUA futures prices trending towards €100/t metric ton of CO2, for gas deliveries by the end of the year, and higher in future. [Gas in Transition, Volume 3, Issue 3] by: NGW
The price of EU carbon permits (EUA) exceeded €100 per metric ton (mt) of CO2 for the first time on February 21 (see figure 1). It has since come down to €87/mt of CO2 as a result of the turmoil in financial markets caused by concerns over bank failures. However, this drop is likely to prove temporary. The general trend is upwards, with EUA futures prices trending towards €100/mt of CO2, for gas deliveries by the end of the year, and higher in future. EU Allowance (EUA) is a financial instrument that allows the emission of one metric ton of CO2 for participants under the EU Emission Trading System (ETS). Participants in the scheme are obliged to buy carbon credits - with each one allowing the emission of 1 metric ton of CO2. At the end of each compliance cycle, all EU-ETS participants must surrender enough EUAs to cover all their emissions of that cycle. It is the cost that polluters in the EU, such as power plants, factories and aviation, must p...
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Natural Gas & LNG News, Europe, Insights, Premium, Gas In Transition Articles, Vol 3, Issue 3, Carbon, EU