6 May 2024
Pricewatch - ETS stable despite growing likelihood of reforms
Publication date: 17 February 2017
Gas Strategies Group
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Proposed reforms to the EU Emissions Trading System (ETS) could finally boost carbon prices and usher in a new heyday for gas-fired power plants across the continent – if the European Council approves measures backed earlier this week by MEPs.
ETS futures have yet to react significantly to the news, but the implications could be big. A bill that would place a gradually falling cap on EU-wide CO2 emissions has progressed beyond its preliminary legislative stages. If the council gives it the green light, ETS prices could finally start to rise toward levels necessary for cleaner gas-fired plants to outcompete dirtier coal-fired power in markets without a carbon price floor.