CO emission allowance prices2 surpassed a record level, according to Business Insider. This will result in rising prices for energy resources and industrial products.
According to Business Insider, the prices of CO2 allowances in contracts for December exceeded 100 euros per tonne. At auctions, they also approach this level. Energy companies producing energy from coal must buy coal in order to be able to produce electricity. According to experts, such high prices will hit the wallets of the Poles hard.
EU does not welcome coal
“This is the result of the fact that the EU’s policy of using incentives to reduce emissions is effective. Personally, prices above 100 euros per ton scare me,” says Henrik Kalisz, President of the Chamber of Industrial Energy and Energy Consumers, in an interview with Business Insider.
Such a policy of discouraging the use of coal, in addition to a positive impact on the climate, can also have negative consequences for the economy, since after the Russian attack on Ukraine, we are seeing a return to coal energy and a growing demand for CO2 emission quotas. .
Energy prices will rise
“If we look at the climate policy of the EU, we see that the EU has been doing everything for many years to promote energy sources with low and zero emissions as much as possible. Therefore, it is not surprising that CO2 allowances are currently relatively expensive and are likely to continue to rise over the years. This is a natural consequence of EU policy. A year ago, we could say that this would lead to higher energy prices on the Polish market. Today, in my opinion, the free energy market in Poland has been canceled by a government decree that implies that the price of CO2 permits will not be translated into the price of electricity in the short term, Paweł Puchalski, analyst at Santander BM. , — told Business Insider.
However, this does not mean that the high cost of emission allowances will not hit the wallets of the Poles at all. An increase in electricity prices, according to analysts, will eventually be observed anyway. Industrial goods such as steel and cement will also be more expensive because their producers also have to buy CO2 credits.
Source: Wprost
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