The European Carbon Market: The Impact of Higher Carbon Prices on Utilities and Industries

As the EU ETS experienced prices above € 20/tCO2e for the first time since 2011, this Market Insight explores whether the increasing carbon prices have been high enough to reduce emissions in 2018.

ICIS outlines the likely developments of carbon prices in the next five years trying to answer to two fundamental questions: will the new reforms create scarcity and lift carbon prices even more? And in case of higher carbon prices, how industries and utilities will be impacted?

This Market Insight by Philipp Ruf and Matteo Mazzoni explores the effect on the 6 biggest power markets – Germany, France, UK, Italy, Spain and Poland.

Download your copy of the German, French, English, Italian, Spanish and Polish versions of the insight now, by completing the form below:

Government Agency / MinistryIndustry AssociationRegulatorStatutory BoardOther
AcidsAlcoholsAromaticsBase Oil / Lubes / Motor OilButadiene / C4 / ElastomersFertilizers / Agri ProductsFibre ChainIntermediatesOlefinsOleochemicalsPhenolics, Chlor-alkaliPolymers / Polyolefins / ThermoplasticsSolventsSurfactantsNaphthaPolyurethane chainSpecialty ChemicalsOther
Carbon EmmissionsCrude OilLNG / Natural GasRefinery By-Products / Petroleum / LPGNaphthaCoal / HydrocarbonGasoline / Jet Kerosene / Fuel OilsPower or ElectricityAcidsAlcoholsAromaticsBase Oil / Lubes / Motor OilButadiene / C4 / ElastomersFertilizers / Agri ProductsFibre ChainIntermediatesOlefinsOleochemicalsPhenolics, Chlor-alkaliPolymers / Polyolefins / ThermoplasticsSolventsSurfactantsPolyurethane chainSpecialty Chemicals
Carbon EmmissionsCrude OilLNG / Natural GasRefinery By-Products / Petroleum / LPGNaphthaCoal / HydrocarbonGasoline / Jet Kerosene / Fuel OilsPower or ElectricityOther
Asset ManagementBrokerageCommodity TradingExchange / Trading PlatformFinancing / LoansInvestments / AcquisitionsInsuranceOther
ChemicalsFertilizers / Agri ProductsCrude OilRefinery By-Products / Petroleum / LPGCoal / HydrocarbonLNG / Natural GasGasoline / Jet Kerosene / Fuel OilsNaphthaGeneral Shipping / Ship BrokingOther Consumer Products and ServicesOther Industrial or B2B Services
Polymer compounders / MasterbatchesAuto Parts / Automobile / TransportFoams / Insulation MaterialsElectronicsFood and BeverageFurniture / Appliances / Home FinishingsMedical / PharmaceuticalPaints / Adhesives / Dyes / Pigments / Epoxy ResinPersonal Care / Soap / Cleaning ProductsPackaging Materials / Plastics OEMPipes / Tubes / Gaskets / Sealants / CablesPulp / PaperRubber Products / TyresTextiles / Yarns / Garments / FabricsOther Consumer Products and ServicesOther Industrial or B2B Services
Crude OilLNG / Natural GasOil Refinery / Refinery Gases / PetroleumNaphthaCoal / HydrocarbonGasoline / Jet Kerosene / Fuel OilsPower or Electricity ProviderMining / Metals / MineralsRenewable Energy / BiofuelsOther
AcidsAlcoholsAromaticsBase Oil / Lubes / Motor OilButadiene / C4 / ElastomersFertilizers / Agri ProductsFibre ChainIntermediatesOlefinsOleochemicalsPhenolics, Chlor-alkaliPolymers / Polyolefins / ThermoplasticsSolventsSurfactantsUpstream FeedstockPolyurethane chainSpecialty ChemicalsOther
Crude OilLNG / Natural GasOil Refinery / Refinery Gases / PetroleumNaphthaCoal / HydrocarbonGasoline / Jet Kerosene / Fuel OilsMining / Metals / MineralsAcidsAlcoholsAromaticsBase Oil / Lubes / Motor OilButadiene / C4 / ElastomersFertilizers / Agri ProductsFibre Chain IntermediatesOlefinsOleochemicalsPhenolics, Chlor-alkaliPolymers / Polyolefins / ThermoplasticsSurfactantsSolventsOther
Oil Refinery / Refinery Gases / PetroleumNaphthaAcidsAlcoholsAromaticsBase Oil / Lubes / Motor OilButadiene / C4 / ElastomersFertilizers / Agri ProductsFibre ChainIntermediatesOlefinsOleochemicalsPhenolics, Chlor-alkaliPolymers / Polyolefins / ThermoplasticsSurfactantsSolventsOther
Business SchoolUniversityOther
ConsultingEngineering / ContractorResearch / Information ServiceLaboratory / R&D FacilitySoftware / Technology ServiceOther Consumer Products and ServicesOther Industrial or B2B Services

Within which regions does your company operate? (required)

Africa Asia Central America Eastern Europe European Union Middle East North Amercia Oceania South America The Caribbean

Would you like to receive regular updates about these commodity markets? (mandatory)

NoneChemicalsEnergyFertilizers

What are your primary information needs? (required)

To make more informed buying and selling decisions
To settle contract prices and confidence
To understand price drivers and fluctuations
To develop internal price formulas
To understand where the market is heading over the next 12 months
To plan production and commercial strategies
To gain clarity on the impact of volatile feedstocks
To review short- and mid-term cost and margin trends
To obtain simple and prompt signals on the direction of producer cash margins
To negotiate with suppliers
Other

Are you interested in hearing about specialist training courses, provided by ICIS? (required)

YesNo

Would you like to talk to our training support team?

YesNo

Are you interested in hearing about upcoming conferences, managed by ICIS? (required)

YesNo

We want to keep you up-to-date with what’s happening at ICIS* and tell you about our latest products and other services. We may email you about information we think you’ll be interested in, including selected articles and reminders about forthcoming events. If you do not wish to receive such information please tick the box to opt out of these emails

*ICIS is a tradename of Reed Business Information Limited. By registering your details, you understand that your personal data will be handled according to our Privacy Policy

With two major reforms being passed by European legislators in 2015 (Market Stability Reserve) and 2018 (Post-2020 Reform), carbon prices experienced significant increases since mid-2017. Market participants anticipated the forthcoming scarcity in the EU ETS lifting the price of EUAs from € 7/tCO2e to a 11-year high of € 26.2/tCO2e at the beginning of April.

ICIS outlines the likely developments of carbon prices in the next five years trying to answer to two fundamental questions: will the new reforms create scarcity and lift carbon prices even more? And in case of higher carbon prices, how industries and utilities will be impacted?

This market insight by Philipp Ruf and Matteo Mazzoni explores the effect on the 6 biggest power markets – Germany, France, UK, Italy, Spain and Poland.

Thank you!

Please see your content below:

Download document here

RELATED DOWNLOADABLE CONTENT