Prices in the World’s Biggest Carbon Market are Soaring
Carbon prices are soaring in Europe, home to the world’s largest emissions-trading system-
Prices have surged by 60% since November; on February 12th they hit a record high of nearly €40 ($49) per tonne of carbon-dioxide equivalent.
Last year the value of global carbon markets hit a record €229bn, a five-fold increase from 2017. The EU’s emissions-trading system (ETS) accounts for nearly nine-tenths of both that value and that growth. In 2020 around €1bn-worth of emissions allowances changed hands a day, as well as lots of options and futures contracts. There are now clear signs that the market is joining the financial mainstream, with hundreds of investment firms trading in it.