The price of emission allowances on record reached more than 70 euros per tonne

The price climbed to 70.43 euros per tonne on Monday morning, later fell slightly and around noon was close to 69.90 euros per tonne. Over the last year, the price has risen by about 60 percent, exceeding 60 euros per tonne for the first time at the end of August.

The cold weather and also the lower output of the wind farms have now been reflected in the prices. As a result, fossil fuel energy production has risen and demand for allowances has risen, Refinitiv analyst Ingvild Sorhus told Reuters.

The European Emissions Trading Scheme (ETS) is the main tool for reducing greenhouse gas emissions. It sets limits on the total amount of greenhouse gases that can be emitted by sectors within its scope, while allowing companies to obtain or purchase emission allowances that can be traded as needed. As the price of allowances increases, so does the motivation of companies to try to reduce emissions.

The emission permit has just reached the level of 70 euros. It won’t take long, and we’ll soon find out again that the market is responsible for

Sev.en Energy Twitter account

The European Commission (EC) said in May that the number of allowances in circulation had increased last year as the covid-19 pandemic led to lower emissions. At the end of last year, according to the commission, about 1.579 billion allowances were in circulation, 14 percent more than a year ago. The Commission has therefore decided to withdraw 378.9 million allowances from future auctions and place them in the market stabilization reserve.

Reactions on twitter are also appearing at the record price of emission allowances. “The emission permit has just reached the level of 70 euros. It won’t take long and we will soon find out again that the market is to blame for the price of electricity, “said Sev.en Energy on its twitter account. Economist Michal Šnobr, who belongs to CEZ’s minority shareholders and who is an advisor to the J&T investment group, described crossing the 70 euro mark as a “little flight”.

“At this speed, leaving the coal at some point may spiral out of control,” Šnobr wrote on Twitter.

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