EU carbon prices fell to more than two year lows

Mondo Finance Updated on 2024-02-20

On Monday, Europe's carbon** continued to slide, falling to October 2021 levels, as renewables surged, while natural gas*** industrial activity slowed amid a weakening economy.

The EU has a carbon permit market, where industry, power companies and airlines pay carbon** for their emissions, as the EU seeks to lower its carbon footprint and achieve carbon neutrality by 2050.

Data compiled by Bloomberg shows that on Monday morning, the European ICE Endex exchange December EU carbon ***53% to 58 per tonne$39 (54.)17 euros). This is the lowest carbon allowance since October 2021**. Pollution per tonne** fell to 59 per tonne for the first time in 28 monthsUnder $29 (€55). By comparison, this time last year, CO2** in the EU emissions market hit a record of 98 per tonne€30 ($104) is an all-time high as Europe prepares for a period of cold and low wind production**.

Many of Brussels' energy transition proponents want to see such a soon**, as higher emissions costs are seen as key to incentivizing more decarbonisation efforts and investments. However, last year **began** due to sluggish demand and weak industrial activity, while renewable energy generation continues to surge. So far this year, the EU has already made 30% of its carbon, while the UK's carbon permit has grown by 23%, according to CarbonCredits.

Per Lekander, CEO of London-based hedge Clean Energy Transition, told Bloomberg last week that there is room for further carbon in Europe. According to the investor, this is due to the increase in renewable energy generation, the recovery of natural gas, and nuclear and hydropower. (Compiled by Xiao Chen).

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