Rebounding after sliding to a three-month low in late February, CO2 emission right price levels have risen sharply to remind they are a key tool for the EU’s climate change policies and a problem for the main power utility PPC’s bailout-required sale of lignite units, relaunched last week after an initial effort failed to excite investors.
CO2 emission right price levels rose sharply by more than 23 percent over a two-week period between February 21 and March 4, from 18.71 euros to more than 23 euros per ton, and have since stabilized at levels between 22 and 23 euros per ton. CO2 emission rights ended trading yesterday at 22.17 euros per ton.
Price levels had exceeded the 25-euro mark in January before dropping later next month and rebounding over recent weeks.
The EU has confirmed its free CO2 emission right handouts for energy-intensive industry will not be increased following 2020, but, instead, will remain unchanged until 2030.
Quite clearly, elevated CO2 emission right price levels are not a temporary phenomenon but highlight the unfavorable conditions amid which PPC’s sale of lignite units is taking place.