Somewhat overshadowed by recent extreme gas & power market volatility, European carbon prices are being driven higher by an accelerating policy momentum behind decarbonisation. While UK carbon prices breached 70 EUR/t back in September, EU carbon prices (EUA ETS) followed this week (capping an impressive 28% rise from the start of the month) as a result of the policy tone set by the incoming German government. This includes a proposed 60 EUR/t floor on ETS prices, accelerating the coal exit to 2030 & gas exit by 2045 and a significant increase in forecast power demand requirements. While a nearer term coal exit may ... (full story)