The EU is forging ahead on climate change, pledging to reduce greenhouse gas emissions by 40 per cent in 2030, and the EU Emissions Trading Scheme (ETS) is its flagship policy. The price at which EU ETS allowances trade hands, commonly referred to as the carbon price, has more than tripled to about €25 per tonne of CO2 since 2018, and is likely to head even higher in the coming years. This has big ramifications for energy intensive sectors including steel, aluminium and fertiliser producers: in May, ArcelorMittal, cited high carbon prices in its announcement to close 3m tonnes of steel production. But the higher carbon price should still be welcomed as it will ultimately reduce pollution from the EU, and allow the region to position itself as a leader in the green economy.
FT 4th July 2019 read more »