PRESS ROOM
Carbon prices lifted further by Hurricane Ida
Friday 10th September '21
Carbon (European Union Carbon Emissions Allowances) have staged a strong rally recently benefitting from the price rally in the European gas market. The extensive damage caused by Hurricane Ida in the US is raising concerns on reduced supply of liquefied natural gas (LNG) to Europe. The supply situation on the gas market is already tight and could tighten further owing to the damage caused by Hurricane Ida. Higher gas prices raise the need to switch to produce coal-fired (emission intensive) electricity, which should subsequently push demand for allowances higher. In addition, the auction supply which tends to be low at this time of the year is also lending a tailwind to carbon prices.