EU ETS Carbon Price plunges

From an all-time high of 98 Euros in August, the price of EU ETS certificates dropped to 72 Euros (September 13th), thereby roughly losing 27% of its worth. In anticipation of high ETS prices this winter, companies first stocked up certificates, thereby driving up the price. As companies now cut their production (or worse, stop it completely) due to high energy prices, they sell the certificates that have been earmarked for this purpose. This also increases the urgently needed liquidity of companies. It is disputed how much of the recent price swings are due to speculation. One thing is clear: the strong ups and downs make planning for the industry even more difficult. It is therefore crucial to accelerate the deployment of renewable energy in order to become independent from fossil-driven high energy prices. Also, measures should be put in place to limit speculation, ensure a predictable price corridor, and thereby protect industries.