Europe's carbon price is up 140% this year. How could this possibly have taken policymakers by surprise? This is exactly what they want to happen. Or did they honestly think none of this was going to be painful?
Bloomberg (12/3/21) reports: "European carbon futures rose above 80 euros ($90.272) a ton on Friday for the first time, testing the resolve of politicians who are promising to act aggressively on climate change while grappling with inflation that’s tearing into economies across the globe. The cost of polluting has increased more than 140% this year after a stricter environmental agenda in Europe was laid out and a sweeping rally in natural gas prices made dirtier coal more economic to use for power generation.,.The fast-paced increase in carbon prices has taken policy makers by surprise. Making it expensive to pollute is meant to push dirty fuels out of the power generation and industrial processes. Right now, that’s not really happening. Soaring natural gas prices mean Europe will likely see emissions increase this year as coal plants burn profitably through the winter. That’s uncomfortable for many leaders that made loud pledges at the climate talks in Glasgow last month...EU leaders are likely to discuss the carbon price during their talks on rising energy costs at a summit later this month."
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