Carbon prices decline despite energy costs increasing owing to war on Ukraine – Fitch Solutions

Carbon prices have tumbled in the wake of Russia’s invasion of Ukraine, decoupling from the broader energy complex, despite the steep rise in gas prices, which should have incentivised gas-to-coal switching, raising emissions and so driving up the demand for European emissions allowances (EUAs), says research organisation Fitch Solutions. From a peak of €96/t carbon dioxide-equivalent (CO2e) on February 8, to their trough at €58/t CO2e on March 7, EUAs lost about 40% of their value, the agency states.