SparkChange : “It was always a matter of when, rather than if, but today the front-December contract for EU Carbon Allowances (EUAs) broke through EUR 100 for the first time.
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Billal Ismail, Head of Sales at SparkChange, managers of the SparkChange Physical Carbon EUA ETC (CO2)
“This is great to see, as a consistently high carbon price is precisely what’s required to incentivise heavy industry to invest in the decarbonisation technology required to deliver a cleaner, greener future.
“But don’t be fooled … Whilst today marks an all-time-high, this is just the beginning. Despite a land war in Europe, unprecedented energy and cost-of-living crises, the EU in December agreed a wide-ranging set of reforms to the EU Emissions Trading System that didn’t just maintain their commitment to addressing climate change, but even strengthened their ambitions.
“This underpins the mid- to long-term price outlook for EUAs, which means two things:
1 – Carbon as an asset class should be in every investor’s mind
2 – Carbon pricing will increasingly impact single company share prices, and the risks and opportunities associated with this fact are broadly misunderstood.”
Source: ETFWorld.co.uk
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