The CO2 Market 03.02.2021

The EU ETS Price

The price of the EUA certificate on the ICE ECX London opened this morning (03.02.2021) the EUA trade sessions at 34,97 €/tCO2 and has jumped to 37.11€/tCO2 at 14.00h with 6.12% increase.

EUAs leap 6.5% to eye record as fund fever triggers technical breach and EUAs jumped more than 2€ to near-record levels above 35€ on Tuesday, 02.02.2021, as reports of bullish fund managers and a strong auction pushed carbon to a technical breakout.

Investments in Decarbonization Increased in 2020

The world committed a record $501.3 bln to decarbonisation in 2020, beating the previous year by 9% despite the economic disruption caused by the pandemic, according to BloombergNEF’s newly published Energy Transition Investment Trends report in January.

Global investment in renewable energy capacity moved up 2% to $303.5 bln in 2020. This was the second-highest annual figure ever – after 2017’s $313.3 bln – and the seventh consecutive total of more than $250 bln.

France Exists from Coal in 2024

In the pursuit of decarbonization, the French central bank said on Monday, 18th January, that it would exit from coal and limit exposure to gas and oil in its investment portfolio by 2024, as part of a shift towards more environmentally friendly assets. It said in a statement that by the end of this year it will no longer invest in companies that generate more than 2% of their revenues from coal, and reduce the threshold – currently standing at 10% – to zero by the end of 2024. It added it would also exclude by 2024 companies with more than 10% of revenue coming from oil or 50% from gas, which could potentially mean the central bank would have to shun firms like French energy major Total.

Source: ICE ECX, Carbon Pulse & Bloomberg, London