EMEA > ANALYSIS: Low EUA price will do little to boost utility hedging amid crushing drop in power demand

ANALYSIS: Low EUA price will do little to boost utility hedging amid crushing drop in power demand

Published 16:50 on April 2, 2024  /  Last updated at 16:50 on April 2, 2024  / /  EMEA, EU ETS

With EUA prices trading below €60 per tonne and benchmark European gas futures down by double-digits in the year to date, current market dynamics should incentivise some utility forward hedging, analysts have said, but any added compliance demand for carbon permits will be limited by the overall bearish fundamentals, widespread power sector decarbonisation, and the tough macroeconomic environment.
With EUA prices trading below €60 per tonne and benchmark European gas futures down by double-digits in the year to date, current market dynamics should incentivise some utility forward hedging, analysts have said, but any added compliance demand for carbon permits will be limited by the overall bearish fundamentals, widespread power sector decarbonisation, and the tough macroeconomic environment.


A Carbon Pulse subscription is required to read this content. Subscribe today to access our unrivalled news and intelligence, as well as our premium content including all job listings. Click here for details.

We offer a FREE TRIAL of our subscription service and it only takes a minute to register. If you already have a Carbon Pulse account, log in here.