.jpg)
1 hour ago
2
Article content
(Bloomberg) — European carbon prices extended a week-long gain, with surging natural gas costs, weaker nuclear power supply and forecasts for colder weather expected to drive demand for emissions permits.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
Benchmark carbon allowances rose as much as 2.2% on ICE Endex on Thursday, reaching the highest since mid-2023. Prices have climbed in all but one session this month, and are up more than 6% since the start of the year, topping €90 a ton.
Article content
Article content
“Carbon prices are on a runaway train,” said Rabobank energy strategist Florence Schmit. “If the current weather conditions persist, prices could soon approach €100 per ton before the market eventually corrects.”
Article content
Article content
Power output from reactors in France, which has by far the highest nuclear capacity in Europe, has declined after a 4-gigawatt plant was taken offline due to damage from Storm Goretti. Another unplanned outage at a smaller unit has exacerbated the shortfall.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
The squeeze on generation may lead to higher production from plants burning fossil fuels. It also comes as Europe braces for a cold snap, with icy Siberian air expected to sweep the continent later this month, lifting heating demand. That’s pushed up natural gas prices to the highest since early October.
Article content
When gas gets more expensive, power plants that run on the fuel become less competitive, prompting utilities to burn dirtier coal instead — a shift that increases demand for emissions permits. At the same time, forecasts indicate a stretch of still weather across northwest Europe, meaning wind energy will drop.
Article content
Carbon prices have trended upward for months amid a tightening of permits that resulted in increased net-long positions, ICE data show. The number of market participants is rising, indicating that the buildup in net longs is being driven in part by new entrants, Engie SA said in an EnergyScan report.
Article content
Carbon permits traded up 1.3% at €93.05 a ton as of 12:37 p.m. in London.
Article content
—With assistance from Lars Paulsson.
Article content
English (US)