Carbon market experiences sharp and sudden price fall

Focus week 21: The EU is set to put a large number of additional carbon allowances up for sale to raise money to complete the green transition and remove the reliance on Russian gas. The news led to price falls in the carbon market last week.

Here and now

Following a couple of weeks of price falls, there were significant price climbs in the spot market last week. The delivery prices in the Nordic region generally became slightly higher than the markets had anticipated, due to both the calm, dry weather and the impact of the Russian ban on the export of electricity to Finland. Finland experienced the most expensive week in the spot market all year, while the average Nordic system price for the week was EUR 145.78/MWh. The developments in the forward market were relatively neutral for both quarter and year contracts.

Read Focus here.