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.
- 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.
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