EMISSIONS: UKA Prices to Rise in Next Months on Climate Policy: Andurand

UK carbon prices are likely to rise in the coming months, supported by the government’s climate policies, according to Andurand, cited by Bloomberg. 

• UKA prices are expected to increase to £60/ton CO2e, up from £42/ton CO2e, Mark Lewis, head of research and portfolio manager at Andurand said.
• The UK Labour government looking to fill a £22 billion hole in the country’s finances and speed up decarbonization, which could be helped by higher carbon prices.
• “This is a significant-policy driven catalyst. Those catalysts don’t exist in other markets,” Lewis added.
• “UK allowances are seen as one of the most interesting markets in the compliance carbon world at the moment,” Serafino Capoferri, carbon researcher at Macquarie Bank, said.