Joe Wallace, Wall Street Journal, has a nice piece on the EU’s emissions market, here…
“Prices for European Union carbon credits jumped 66% from their low in mid-March to €25.36 ($29.74) a metric ton on Tuesday. They neared a record high earlier this month, surpassing €30 for the first time since at least 2008, according to FactSet.”
“The speed of the recovery has surprised carbon traders, since it took place when emissions were falling due to a historic downturn in Europe’s economy. Higher permit prices are making it more expensive for coal-fired power plants to operate, encouraging utilities to switch to natural gas or renewables.
“The carbon market is working: it’s doing its job,” said Lueder Schumacher, head of European utilities at French bank Société Générale. “Many coal plants are no longer profitable at these kinds of levels.””