After experiencing robust growth over the last four years, 2023 marks a pivotal moment as European carbon prices exhibit a notable change. In February, prices surged past €100/t, only to recalibrate to €65 – a figure reminiscent of early 2022. The fluctuation is largely attributed to a dim economic forecast and a decrease in demand for EUAs from industry and utilities.
As we navigate these shifting dynamics, it’s important to consider the impact of upcoming regulatory changes. Starting 1st January 2024, the supply-tightening measures from recent Fit-for-55 reform will come into effect.
