HomeCarbon CreditsCould EU Carbon Hit €100 Before 2022?

Could EU Carbon Hit €100 Before 2022?

EU Carbon prices have been soaring since the COP26 conference. Earlier this week we saw the price go just over €90.

Energy Aspects analyst Trevor Sikorski thinks “its possible prices could head to €100 per ton to get all of the open interest on call options on that strike into the money.”

Lawson Steel, a Berenberg Analyst, expects the carbon contract to reach €110 euros per ton before 2022.

In a daily report, Barbara Lambrecht said, “The escalating situation on the European gas market is additionally driving [carbon] prices up now.”

Other factors could be the expiration of options and tension between Russia and the US.

The European Union’s emissions trading system (ETS) requires airlines, manufacturers, and power companies to pay for each ton of carbon emitted. The EU’s goal is to cut emissions by 55% from 1990 levels by 2030.

The carbon credit industry is booming. Verifications are becoming more accurate, and world leaders have agreed to implement a global standard.

Carbon credits are essentially used by companies to offset their emissions. For every carbon credit purchased, a single metric ton of carbon is offset through an environmental project – such as reforestation.

Experts say the global carbon market could reach $100 billion by 2030 (up from just $300 million in 2018). With the figures for EU carbon up 50% since November alone, expansion is possible.

In conjunction with new technology and increased regulation, carbon offsets have an essential role to play in the fight against climate change.

As these factors work together towards a net-zero future, economies can grow, and the atmosphere can improve – a global win.

Most Popular
LATEST CARBON NEWS

Brazil’s Bill Will Allow Loggers to Earn $24M from Carbon Credits

Brazil’s Congress passed a bill that will make carbon credits available to private companies with forest concessions, serving a first step in regulating the...

Global Renewable Energy to Break Records in 2023, IEA Says

Global additions of renewable power capacity will increase by a third this year, says the International Energy Agency (IEA). In the IEA's 2023 Renewable Energy...

Equatic Reveals First-of-a-Kind Ocean CO2 Removal Tech, Inks Deal with Boeing

Ocean carbon removal startup Equatic launches breakthrough low-cost, gigaton-scale climate technology and signs a pre-purchase deal with Boeing. L.A.-based Equatic is an UCLA Samueli School...

Lithium-Ion Wars: US Battery Imports Soar by 66%, Setting New Record as Domestic Production Ramps Up

According to S&P Global, in the first quarter of 2023, US imports of lithium-ion batteries surged by nearly 66% from the previous year, reaching...
CARBON INVESTOR EDUCATION

What are the Effects of Methane Emissions and Why Should We Care?

What are the effects of methane emissions? That’s the multi-million dollar question in the world’s battle over global warming as methane was often overlooked...

Carbon Credits and the Future of Sustainable Business: Exploring Best Practices

The trading of carbon credits can help entities and the world meet their climate goals by cutting carbon emissions and practicing sustainable business. While...

Revolutionizing Textile Recycling with HTC

A Virginia-based startup, Circ, has developed a unique hydrothermal processing technology for recycling blended textiles, like polyester-cotton blends. With fast fashion's emissions and environmental...

Carbon Credits and the Sustainable Development Goals: Aligning Climate Action with Global Priorities

Carbon credits from climate actions represent a crucial part of a strategy to mitigate climate change while supporting the global priorities on advancing sustainable...