Where next for carbon prices? AFRY’s 2023 Q3 EU ETS carbon price outlook
Carbon prices are a critical driver of European wholesale electricity prices and are rightly gaining more attention than ever before. 2023 has brought change to the EU ETS, with prices exceeding €100/tCO2 for the first time and long-awaited legislative proposals finally being enshrined into law.
In addition to the underlying policy, EU ETS prices will be determined by the marginal cost of abatement. As the power sector proceeds to rapidly decarbonise, understanding the dynamics of other sectors such as industry, constituting ~35% of the total emissions under the EU ETS, becomes increasingly important.
In this webinar covering our 2023 Q3 carbon price projections, we take stock of the current policy developments and examine the changes in industrial abatement options across our scenarios.