The value of spot EU allowances on the Emissions Trading System reached €8.26/mt of carbon emitted, its highest level since early 2012 and almost 14 per cent higher than the year-to-date average, the price reporting agency said.
Analysts at RBC capital said on Tuesday morning that the upward trajectory of carbon will prove “generally positive” for low carbon investors as it will help to support stronger European power price signals.
“Carbon prices have been boosted by a range of sources this year: agreement to introduce the Market Stability Reserve to hold surplus allowances in 2019 and the European Commission’s publication of draft reform proposals in July that aim to tighten the market after 2020,” the analysts added.