Carbon market surges to $851b
PHOTO: REUTERS
The value of traded global markets for carbon dioxide (CO2) permits grew by 164% to a record €760 billion ($851 billion) last year, analysts at Refinitiv said on Monday.
Most of the increase came from the European Union’s Emissions Trading System (EU ETS), which was launched in 2005 and is the world’s most established carbon market.
It accounted for 90% of the global value at €683 billion, the annual Refinitiv Carbon Market Year in Review showed.
Prices in the EU ETS ended 2021 at more than €80 a tonne, more than double the price at the end of 2020, on expectations that a more ambitious EU climate target of reducing emissions by 55% by 2030 would lead to a tighter market.
Added to that, soaring natural gas prices from the fourth quarter led to more coal power generation, spurring demand for permits and making them more expensive.
The analysts expect gas prices to continue to impact EU carbon permit prices this year.
Published in The Express Tribune, February 1st, 2022.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.