New carbon tax in place in Germany

Focus week 22: Germany has introduced a new carbon tax, which will take effect at the start of 2021. Germany is now following in the footsteps of other European countries with similar schemes in place.

Here and now

The more or less sideways trend in the short-term contracts in the Nordic energy market continued last week. The Q3-20 contract fell by EUR 0.66/MWh to EUR 9.35/MWh as a result of slightly wetter weather forecasts, and it has now been a couple of months since we saw any significant fluctuations in this contract. The long-term contracts in the market have increased, predominantly as a result of the carbon emissions allowance market climbing for the majority of the week. The YR-21 contract now costs EUR 23.07/MWh, EUR 1.17/MWh more than on Monday last week.

Read Focus here.