The current price of European emission allowances – EUAs – reflects demand destruction and increased auction volumes in 2024 and 2025. They probably do not factor in sufficiently the soon-to-come sharp tightening of supply. For the years 2027-2030, Veyt forecasts annual shortages in the order of 100 to 190 Mt worth of EUAs. We predict prices to average EUR 67/t in 2024, jump sharply in 2026, then peak at €162/t in 2027, before stabilizing around EUR 150 in 2030.
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