UK carbon market debuts with prices above EU ETS

London (Quantum Commodity Intelligence) - UK carbon prices hit a high of £50.23 (€58.03/mt) in early trade Wednesday on the market's inaugural day of trading, higher than European equivalent prices in the EU emissions trading system (ETS), and also above the threshold price for UK carbon prices that can initiate intervention measures to cool prices.

The first trades were $5.63 euros higher than where December 2021 EU Allowances were trading in the EU ETS.

Prices in the UK cap-and-trade market were also higher than the £44.74 that the UK government had set for intervention to cool prices should it trade above that level for three months in a row.

The first auction of UK carbon allowances will be held later Wednesday.