The carbon markets are seeing record volatility and swings, up and down, over the past week. The Nature-Based Carbon Price NGEO dropped over 16% to $9.68 – which is lower than it was ahead of the COP26 conference back in November 2021.
That’s is a record decline for the NGEO in its relatively short history.
The CBL Nature-Based Carbon Price had a record drop Tuesday, triggered by the threat of a western economic recession stemming from the Russian invasion and sanctions.
Going the other way, another record was set when the European Carbon price had its largest 1-day price gain in history.
The price spiked up over 17% on Tuesday, this follows a massive 30% decline that started with the Russian invasion of Ukraine.
The modern carbon market is still in its infancy as transactions and volumes continue to break year over year records.
Contributing to the volatility are higher energy costs could lead to less travel, both for work and pleasure. Even some airlines have begun to cancel flights due to fuel cost concerns.
It could be a real bumpy ride for a bit as the global economy has never really had to include carbon into the equation until now.
