Analysts have reduced the price forecasts for European Union carbon permits for 2024 to 2026 due to record low emissions last year. The average forecast for EU Allowances (EUAs) is at 63.96 euros per metric ton this year and 74.00 euros in 2025. This is a decrease of 13.7% and 11.2% respectively from January’s forecasts. The EU’s Emissions Trading System (ETS) saw a record 15.5% drop in 2023 emissions as renewable power output increased. Despite the bearish outlook for the remainder of the year, signs of improved industrial activity and demand for permits from the shipping sector could help lift prices by the end of the year and into 2025.

Source: Reuters