Carbon prices, especially the EU Emission Trading System (ETS), have experienced considerable volatility over the last year, influenced first by COVID-19, which saw prices crash, and more recently by expectations of increased EU climate ambitions, driving prices to record highs. In this Chart of the Week, we consider the potential scenarios for UK carbon prices as we transition to the new UK ETS, noting the role of market tools, policy, and recent pricing trends in determining these costs.
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Related thinking
Regulation and policy
“Behind-the-Connection-Point” A match made in heaven?
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Commercial and market outlook
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Low carbon generation
Growing pains – (nearly) six months of the UK ETS
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Commercial and market outlook
I’m pickin’ up good vibrations
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Home supply and services
Domestic switching falls as the savings gap is squeezed
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Low carbon generation
A podium finish: ROC banking in CP19
The Renewables Obligation (RO) Compliance Period (CP) 19 (2020-21) has been unusual in the scheme’s history in light of the impact of the COVID-19 pandemic. As we are in the so-called “compliance season” for CP19, we reflect on the last year and the importance that Renewable Obligation Certificates (ROC) “banking”...
Low carbon generation
Australian Chart of the week | Up and down: price volatility in Queensland
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Low carbon generation
The outlook for private wire business models
Interest in private wire arrangements has grown in recent years, with the benefits of network and policy cost avoidance becoming a key incentive for generators to look at this development approach. In this Chart of the Week, we look at the expected evolution of cost avoidance over the next five...
