The price to emit 1 ton of carbon dioxide in Europe, under the European Union’s cap-and-trade market, has hit an 11-year high. After sagging for years at the equivalent of less than $10, the price per allowance has steadily risen in the last two years to nearly $30.
The higher price will act as more of a deterrent to European companies and organizations emitting large amounts of CO2, economists and environmental analysts said. And, should the price stay at this level or go up, it could provide long-term incentives to low-carbon innovations, including pure electric vehicles and power plants that install technology to capture and store carbon emissions.
At least two factors drove the rise in Europe’s emissions market price, analysts said: a decision by regulators to withdraw allowances from circulation and anticipated policies by EU member countries to restrict further climate emissions.
Click the audio player above to hear the full story.
If you’re a member of your local public radio station, we thank you — because your support helps those stations keep programs like Marketplace on the air. But for Marketplace to continue to grow, we need additional investment from those who care most about what we do: superfans like you.
Your donation — as little as $5 — helps us create more content that matters to you and your community, and to reach more people where they are – whether that’s radio, podcasts or online.
When you contribute directly to Marketplace, you become a partner in that mission: someone who understands that when we all get smarter, everybody wins.