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The key drivers of carbon prices

In response to rising global temperatures, the EU Emissions Trading Scheme is seen as the flagship policy to drive European decarbonisation at least cost. 

As a result, carbon prices are now a critical driver of wholesale electricity prices – a trend that is only set to increase over the coming years.

In a webinar on 25 June 2020, Dr Bradley Steel and Dr Mostyn Brown explored where future carbon prices may be heading by discussing the key drivers impacting prices under the EU ETS, including:

  • the impact of COVID-19 and the role of the Market Stability Reserve;
  • the sensitivity to decarbonisation target levels; and
  • the contribution of other factors ranging from coal phase-out to the European Green Deal.

The slide pack and recording are available in our Insights External link. - exclusive to AIM report clients.

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