Carbon prices shot up to near record highs above 97 euros per tonne last week - a move some analysts attributed partly to concerns among market participants that the vote would be delayed to April.
That could have pushed back the first auctions to July, and seen only 40 million to 45 million extra CO2 permits made available to the market this year instead of the 65 million expected if auctions launch earlier, analysts at Energy Aspects said.Benchmark EU carbon permits were trading around 92.20 euros per tonne of CO2 on Monday, down 1% from Friday.
The EU carbon market forces power plants and factories to buy CO2 permits when they pollute, and is the bloc's core policy for cutting carbon emissions. The EU also agreed a major carbon market reform last year, which is expected to increase CO2 prices this decade to incentivise faster emissions cuts. EU lawmakers are expected to greenlight those reforms in April.Our Standards: