Strong rebound in the price of CO2 emission rights

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The decrease in energy demand does not translate directly into lower prices of CO2 emission allowances.

In March this year, the lowest quotation of CO2 emission allowances (contracts with the December date – CKZ20.F) was approx. € 15.3 per tonne. Since then, it has gradually started to rise and already at the end of June it broke the 25 € mark, to approach 30 € / tonne in July.

According to experts of the Center for Climate and Energy Analysis, adopting a higher CO2 reduction target will result in a significant increase in the prices of emission allowances. In their March report, they say that adopting a 50% reduction target will increase the price of allowances to € 34 / tonne in 2025 and € 52 / tonne in 2030. However, if the reduction target was tightened to 55%, the corresponding forecasted allowance rates would be will increase to € 41 / tonne in 2025 and € 76 / tonne in 2030. These forecasts clearly support the growing popularity of renewable energy sources and confirm that there is no economic turning back due to green energy.

Source: PMR Market Experts