Nora Buli, Kate Abnett, and Susanna Twidale, Reuters
Jun 1, 2021
Carbon prices in the European Union hit an all-time high of more than 50 euros per tonne on 4 May 2021.
Carbon prices in the European Union hit an all-time high of more than 50 euros per tonne on 4 May 2021. The European Union's carbon market is a major policy to curb greenhouse gas emissions to prevent climate change, and it forces power plants, industry and airlines in Europe to purchase permits to release carbon.
The benchmark EU Allowance (EUA) price on May 4th was at €50.05/tonne, the highest price since the carbon market began in 2005. Fossil fuel based technologies are still much cheaper than low-carbon alternatives, so low-carbon alternatives cannot win the cost race. Therefore, experts say the EU carbon price should be raised enough to trigger a carbon cut in the industry.
Due to this, the time has come when industries and companies that use a lot of electricity and fossil fuels must do their best to reduce carbon emissions. 50.05 euros per tonne of carbon emissions is equivalent to about $61 in US dollars. This means that the power generation, energy industry, steel industry and petrochemical industry have to pay much money to buy carbon emission permits.
Therefore, we, Enposs, recommend reducing carbon emissions through energy efficiency. The best way to reduce carbon emissions without reducing the size of the business is to reduce greenhouse gas emissions by increasing energy efficiency and reducing electricity consumption.
In fact, some companies even sell carbon credits in this way. As the price of carbon credits continues to rise, companies need to think about how to deal with it.