EUROPEAN carbon futures rose above 80 (RM382.80) a tonne yesterday for the first time, testing the resolve of politicians who are promising to act aggressively on climate change while grappling with inflation that’s tearing into economies across the globe.
The cost of polluting has increased more than 140% this year after a stricter environmental agenda in Europe was laid out and a sweeping rally in natural gas prices made dirtier coal more economic to use for power generation. The futures price rose as much as 0.7% to 80.42 (RM384.80) a tonne on ICE Endex in Amsterdam, before turning negative. The fast-paced increase in carbon prices has taken policy makers by surprise.
