U benchmark allowances experienced an increase before national representatives convened to discuss a compromise for the reserve aimed at addressing the surplus of emission permits.
The front-December carbon contract rose by 0.3% to EU7.11/mt on ICE Futures Europe in London at 4:25 pm, reaching its highest level since February 26, after earlier peaking at EU7.25/mt.
Some traders may be purchasing carbon allowances in anticipation of Wednesday’s meeting, driven in part by the stronger euro reducing the cost of burning coal, which is priced in US dollars.
Experts stress the need for an effective solution to fix the EU emissions trading system, such as the market stability reserve, to address the underlying problems and avoid lukewarm compromises that fail to solve the issue.
