EU options market betting EU carbon prices will double by the end of the year

Posted: 11 May 2021

EU carbon permits broke through a fresh record as the options market shows more traders willing to bet on carbon prices almost doubling by the end of the year.  

European Union pollution rights have climbed about 60% this year, putting them among the best-performing commodity futures markets. Even after such hefty gains, some of the biggest options positions are for bets that carbon permits will pass 60 euros ($73), or about 15% above current rates, and 100 euros by the end of the year.  The market action is a sign that the carbon price is being driven by financial players, rather than the companies required to hold the permits under the EU’s Emissions Trading System rules.  Read more here.