Carbon Prices Jump Despite Record Drop in Emissions
European Union’s decision to curb greenhouse gases is driving the latest rally, putting carbon credits on par with gold
The European Union has decided to cut greenhouse-gas emissions by at least 55% of 1990 levels by 2030.
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Updated Dec. 24, 2020 12:35 pm ET
Credits tied to carbon emissions are having a banner year despite a record drop in output from the power plants and steel mills that need them to operate.
The price of carbon credits, used by governments in Europe to curb greenhouse gases and traded by hedge funds and other investors, has risen 31% this year, putting it ahead of gold as one of the best performing commodity-linked assets. Intercontinental Exchange carbon futures traded Thursday for €32.08 a ton, equivalent to $39.08, just below their record highs hit earlier this month.