Europe’s Clean Energy Transition Funds May Suffer From Dip In Carbon Prices
By Shubhendra Anand , 06 May, 2024
Carbon dioxide prices are changing due to fluctuating market conditions in 2024. The trading markets of the European Union experienced a lower carbon emissions rate in 2024. This indicates that the harmful carbon emissions have lowered in the industries. Hence, it is a good sign for the ongoing clean energy transition.
Based on a survey, carbon emissions are decreasing, indicating that industries following the net zero emissions rules emit less carbon dioxide. The survey was conducted at the beginning of 2024. However, the results of less carbon emissions may lead to less funds needed for the green energy transition. At the beginning of 2024, the price per carbon permit on the Emissions Trading Systems (ETS) was at USD 58. It is the lowest carbon price in the past two years from 2024. This lowering of the carbon prices leads to tension for the officials at the ETS as they have to drop the plans for higher emissions prices. To fill the clean energy transition funds, the ETS officials have planned for higher emission prices in 2024.
Experts say that ETS aimed to monitor the emissions rate from the power generating companies they produce during their production mechanism. However, companies are supposed to buy specific carbon permits at market rates. Therefore, companies in the European region are bound to pay according to their emission rates. It started with the idea of collecting funds from the companies according to their carbon emissions to reduce the rate of emissions. This collected fund was expected to be used to set up renewable energy sources. Simultaneously, another idea is that this process could end up with companies being aware of their emissions and higher prices to pay according to their emissions. Officials from ETS expected carbon emissions to go down, and the initial phase of 2024 proved this. The European Union believes there will be up to 90 percent reductions in carbon emissions by the end of 2040.
Carbon Prices Assessment in the European Region
Latest News
Companies are making significant moves towards the clean energy transition in various ways. In order to reduce carbon emissions, certain companies are investing in several rescue methods in 2024. Renewables production is growing over time as the…
Amazon is one of the leading global e-commerce platforms for consumers. The brand boosts its online shopping experience for users in multiple ways. Surveys show that Amazon regulates several business solutions to increase its products and services…
Globally, countries are facing challenges in the transformation of green energy. The economies worldwide target to achieve net zero emissions. Hence, countries are introducing several ways to reduce environmental carbon emissions. Developing…
China is the leading nation in the energy market. Since the clean energy transition focuses on renewables, China surpasses other nations in renewables production. In a mission to strengthen its energy security, China moves forward with oil and gas…
There will be a surge in copper demand in the energy market in 2024. The growing demand for copper contributes to different usages in the energy market. China stands out in the copper exports of 2024. The Chinese economy is booming, with an…
Head Research