Prices of CO2 emission allowances
In 2015, the upward trend initiated in 2014 for CO2 emission allowances continued. Factors contributing to rising EUA prices included political events and the European Commission’s legislative work to reform the European Union Emission Trading System (EU ETS).
In 2015, the EUA spot market price spurted up by approximately 30% from EUR 6.60/MgCO2 at the beginning of January to EUR 8.66/MgCO2 at the end of November. The declining steam coal price with delivery in ARA ports has also contributed to higher prices for allowances. The low commodity price fostered contracting of electricity generated in conventional sources, thereby triggering higher demand for allowances and sparked price growth.
At the end of 2015, the climate summit was held in Paris. Its findings resulted in a price rebound for CO2 emission allowances to EUR 8/MgCO2. During the climate summit, an agreement was adopted, mainly to contain the growth of global average temperatures at a level markedly below 2 degrees Celsius above the pre-industrial level and continue efforts to reducing temperature growth to 1.5 degrees.