After years of cheap carbon allowances, price has doubled from…

after-years-of-cheap-carbon-allowances,-price-has-doubled-from…

After years of cheap carbon allowances, price has doubled from…

After years of cheap carbon allowances, price has doubled from around €25 to around €50 in the past 6 months
2021-05-31 09:36:00
Airlines flying within Europe have to pay for their carbon emissions, through the Emissions Trading System (ETS). They have to buy carbon allowances, for the carbon emitted. Until 2020, the price of those allowances did not rise beyond about €25. Before that, till around 2018 it was more like €8 per tonne. But there has been a sharp rise in the price in the past 6 months or so, reaching €56 recently and now being around €49.  This is not what airlines like, as for other carbon intensive sectors in Europe, they must buy the tradable credits to cover the amount they pollute under parallel emissions systems in both the UK and the EU. The nascent UK carbon trading system, which launched this month, started trading at higher prices, of above £50 a tonne.  The higher prices hit the dirt-cheap airlines hardest, with their low ticket prices – Ryanair, easyJet and Wizz Air have been hit particularly hard as almost all their flights are in Europe or the UK, requiring carbon allowance payments.  Traders and market participants expect the price of carbon to keep rising as net zero pledges of governments and corporates become more ambitious.  .Tweet   The price of carbon Daily EU ETS carbon market price (Euros)  https://ember-climate.org/data/carbon-price-viewer/  Data from an article in the Conversation  ETS carbon price https://theconversation.com/new-eu-carbon-tax-wrong-rate-could-wreck-net-zero-goals-but-right-rate-can-help-worlds-poor-161463 European airlines face big hit as cost of polluting soars Carbon allowance prices have been on record breaking rally Carbon schemes have hit Ryanair, easyJet and Wizz Air hard as they only cover emissions on European f

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