EU carbon prices higher as cold weather boosts demand

• 14 years ago (2010-03-08)
• David Flin

Europe 1061 North America 998

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European carbon emissions futures have risen following the return of very cold weather, boosting demand for electricity generation and thereby carbon permits. As utilities bank EUAs for future use from the third phase of the EU’s Emissions Trading Scheme (2013-2020) when prices are expected to be higher, they are more focused on buying rather than selling.

Jean-Francois Cauvet, from Paris-based COER2 Commodities, said: “The CO2 market could become a cornered market, with no sellers due to the banking strategies from the third phase. Companies who corner the market buy up a large amount of a commodity, potentially selling it for profit later. This situation could push the contract over €18 before the end of 2010.”