[ad_1]
The UK’s carbon price reached 50 pounds because the UK’s post-Brexit emissions credit trading program was launched on Wednesday, which indicates that large polluters will face higher costs than EU companies without government intervention.
The long-awaited start of the UK carbon emissions trading, which was designed by the government to calculate the cost per unit of carbon dioxide emissions as a cost, and to replace British companies in the complete EU carbon trading system. The price transaction is as high as £50.23 per ton. Then fell slightly to 50 pounds per ton.
The price is almost 5 pounds higher than the European Union price, which traded at 52.40 euros per ton (45.25 pounds per ton) on Wednesday morning.
It is also well above the £44.74 threshold set by the British government to intervene in price cooling, if its price exceeds that level for more than a few weeks.
Ingvild Sorhus, principal analyst at Refinitiv Carbon Research, said that the early “high prices” showed confidence in the UK carbon allowances as “an attractive asset”, but she warned that because “the supply is scarce,” market participants Will feel “tension”.
She added that even if prices in the UK start to be higher than those in the European Union, “it will not necessarily remain in this state in the future.”
On the platform operated by the London Intercontinental Exchange, the initial number of futures transactions was relatively small, with only 26 contracts changing hands in the first 30 minutes.
The UK will hold its first quota auction later on Wednesday, but market participants have warned that as a smaller market, its volatility may be greater than similar markets in the EU.
As governments have raised their emission reduction targets, carbon prices have soared in recent months. The EU emissions trading plan has risen from 30 euros per ton in December to 55 euros last week.
After leaving the European Union in December, the rapid development of the UK’s own carbon plan complicated the launch of the plan.
Based on the so-called British Emissions Trading System (ETS), it imitates the European Emissions Trading System. Large polluters like power plants and manufacturers are given certain quotas to pay for their carbon dioxide and other greenhouse gas emissions. . If their pollution level exceeds this level, they need to buy more, or if they reduce pollution, they can sell it for profit.
Many companies, such as steel producers in the European Union, have warned that carbon prices have risen too fast in recent months, which puts them at a competitive disadvantage relative to companies outside the plan.
The EU is considering imposing a carbon border tax to ensure that goods imported from countries that do not have an equivalent carbon price will not put its manufacturers at a disadvantage.
In recent years, due to rising prices, the EU carbon trading system has played an important role in pushing coal off the grid because it makes low-carbon fuels and renewable energy more attractive.
[ad_2]
Source link
