Following the 4 July election, the UK carbon market has hit freefall and appears to be headed to pre-election announcement levels.
UKA prices fell steeply from March 2023, reaching a low of GBP 31.48/t in January 2024 and trading in the mid-30s GBP/t until May 2024. Then-PM Rishi Sunak’s announcement that a general election would be held in July sparked a rally for UKAs, climbing on expectations of more stringent climate policy and hopes of EU ETS linking negotiations. Following Labour’s landslide victory, prices have dropped GBP 5.46/t or 12%. The return to bearishness for UKAs is nothing new, as the underlying conditions that tanked UK carbon through mid-2023 are still in place.
Veyt specialises in data, analysis, and insights for all significant low-carbon markets and renewable energy.
