Carbon prices in the EU have reached the highest in a year, trading at above €6, according to npower’s Daily Market Report.
Tom Matthews, Client Portfolio Manager said that with the main opposition party in the EU Parliament saying they will no longer stand in the way of the backloading proposals, it has given support to the market as confidence is building the plans will take effect.
That is in contrast to “sharp losses” seen last week for carbon prices following the announcement the backloading plan will not be implemented until the second quarter of this year.
Backloading is expected to help prices rebound from levels that are believed to be too low to encourage utilities to shift from coal to less-polluting natural gas and to boost investment in renewable energy.
Mr Matthews said gas flows “is lower than expected” today.
He added: “BBL flows didn’t ramp up as expected and that has sent the gas system short which has really shocked the market and we’re seeing quite large gains.”