Ann: Appendix 4C - quarterly, page-15

Carbon EU ETS is almost at Euro 50 / ton

https://www.ft.com/content/17e157b2-21ea-4e22-9278-35f157046e85

decisions will be made, CCS is not a proven process and not 100% efficient, pyrolysis is the only sure way. Currently 98% of H2 is stinking black hydrogen that will need to go blue or turquoise!!!!

European industrial groups have stepped up calls for the EU to hasten the introduction of a carbon border tax as record prices for carbon dioxide allowances raise the cost of polluting in the bloc far above any other region.Carbon prices in the EU’s flagship Emissions Trading System, a cornerstone of the bloc’s ambitious new target to slash emissions 55 per cent by 2030, are within touching distance of €50 a tonne — more than double their pre-pandemic level.While the rally has been welcomed by environmental groups and some companies as a potential boost for the clean-up of European power and manufacturing, it has left some industries wincing.Tata Steel has already placed a €12-a-tonne carbon surcharge on metal produced in Europe, including the UK. While it says this is necessary to cover its costs, the move risks disadvantaging the region’s production and exports.Other industries, from cement to petrochemicals, have argued that the rally could starve them of funds to invest in decarbonisation.RecommendedRachman Review podcast23 min listenCould this year mark a turning point for climate?“In the past, we did not have a significant problem with the carbon price because it was so low,” said Axel Eggert, director-general of the European Steel Association.“Now, with the increasing price, we get into a real problem. One is our global competitors do not have those carbon constraints . . . the second point is it makes it much more difficult to invest in new technologies.”One factor behind the EU’s carbon price rally is anticipation among traders and commercial buyers that supplies will tighten.Under the ETS, power companies and manufacturers that exceed their carbon allowances must pay for more, while those left with surplus allowances can sell them for profit.But the EU ultimately controls supply, and the number of allowances available will shrink over time. Some traders are predicting that prices will have to rise further to make alternative energy sources such as hydrogen competitive, but that risks piling huge short-term pressure on carbon-intensive industries. The UK’s post-Brexit version of the EU ETS is due for launch next month.