EMEA > ANALYSIS: EU carbon price rally needs to extend, accelerate significantly for ’emergency handbrake’ intervention to even be considered

ANALYSIS: EU carbon price rally needs to extend, accelerate significantly for ’emergency handbrake’ intervention to even be considered

Published 12:42 on May 17, 2021  /  Last updated at 16:24 on May 18, 2021  /  EMEA, EU ETS, UK ETS

(Subscribers only) - Germany last week took the side of non-interventionists in response to the sharp rise in EU carbon allowances, putting its faith in an existing protection against market spikes written into the emissions trading system’s rules. But a Carbon Pulse analysis shows that for this ‘emergency handbrake’ clause to be triggered, the rally in EUAs would need to both accelerate and extend significantly - by greater degrees than is being mooted by experts - before prompting lawmakers to even consider stepping in.
(Subscribers only) - Germany last week took the side of non-interventionists in response to the sharp rise in EU carbon allowances, putting its faith in an existing protection against market spikes written into the emissions trading system’s rules. But a Carbon Pulse analysis shows that for this ‘emergency handbrake’ clause to be triggered, the rally in EUAs would need to both accelerate and extend significantly - by greater degrees than is being mooted by experts - before prompting lawmakers to even consider stepping in.


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