Benchmark UK carbon allowances hit record high of 77.20 pounds/tonne

Benchmark UK carbon allowances hit record high of 77.20 pounds/tonne
Benchmark UK carbon allowances hit record high of 77.20 pounds/tonne   -   Copyright  Thomson Reuters 2021   -  
By Reuters

<div> <p><span class="caps">LONDON</span> -The benchmark price in the British carbon market on Thursday hit its highest level since the market launched in May.</p> <p>The benchmark December 2021 UK Allowance (<span class="caps">UKA</span>) contract was up by 2.97 pounds to 77.20 pounds per tonne by 1345 <span class="caps">GMT</span>.</p> <p>Britain launched its own emissions trading scheme (<span class="caps">ETS</span>) on May 19 to replace the European Union’s <span class="caps">ETS</span> after it left the bloc.</p> <p>The <span class="caps">ETS</span> is a method of charging power plants and other industrial entities for each tonne of carbon dioxide they emit.</p> <p>Britain’s Emissions Trading System (<span class="caps">ETS</span>) Authority had decided not to intervene in the country’s carbon market on Tuesday, even though prices were high enough to trigger a so-called cost containment mechanism in December.</p> <p>“The increase in <span class="caps">UKA</span> price can be explained by fundamental reasons. We could see the decision to not intervene in the market being supportive to the <span class="caps">UKA</span> price,” Refinitiv analysts said.</p> </div>