S&P Global Says EU Carbon Prices Will Continue To Fall In 2024

S&P Global Says EU Carbon Prices Will Continue To Fall In 2024 - Carbon Herald

Based on the S&P Global forecast for 2024, carbon prices in the European Union (EU) are set to continue their downward trend. 

Although 2023 was a very volatile year for EU carbon prices, with extreme highs and equally dramatic, multi-month lows, all in all, the price is ending this year lower than it was this time around last year. 

And now analysts and market specialists appear to be betting on a continuation of this bearish trend into 2024. 

The main reason for this is the expectation for lower emissions from the notoriously carbon-intensive power sector, in addition to an oversupply of gas and gas prices that reflect the same.

Specifically, S&P Global predicts that the EU carbon price will move in the range between €80.80 and €95.50 (~$89.37 and ~$105.63) per metric ton of CO2 equivalent (mtCO2e).

Hence, the average annual price should be approximately €89.60 (~$99.11) per mtCO2e.

“A slowdown in the European economy can lead to reduced industrial activity which has been the case for much of this year,” said Michael Testa, an analyst at S&P Global.

Read more: Germany Votes To Increase Its Carbon Price By 50%

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