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  / Roy Manuell /  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.


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