Carbon pricing: the key questions answered
Explainer: The EU Emissions Trading System has priced CO2 emissions from power and industry since 2005.
The EU Emissions Trading System has priced CO2 emissions from power and industry since 2005.
Anyone looking into “Carbon pricing” quickly encounters a wealth of figures and opinions. For a sober assessment it pays to go to primary sources: official statistics, publications from the responsible authorities and companies' own reports.
The key is to separate short-term swings from structural developments. Individual monthly readings can be distorted by one-off effects; trends over several quarters are more telling.
The debate around “Carbon pricing” is not new, but it has grown more urgent since 2022. The energy price shock, the turn in interest rates and geopolitical tensions have called many old certainties into question.
Economists and industry bodies assess the situation in different ways. Most agree, however, that reliable conditions for investment decisions are crucial.