Smoke rises next to a road near the UN Climate Change Conference (COP26) venue, in Glasgow, Scotland, Britain, November 5, 2021. REUTERS/Yves Herman J

Britain again refrains from carbon market intervention to curb high prices

submited by
Style Pass
2022-01-20 18:30:09

Smoke rises next to a road near the UN Climate Change Conference (COP26) venue, in Glasgow, Scotland, Britain, November 5, 2021. REUTERS/Yves Herman

Jan 19 (Reuters) - Britain's Emissions Trading System (ETS) Authority has again decided it will not intervene in the country's carbon market, even though prices were high enough to trigger a so-called cost containment mechanism (CCM) in January, it said late on Tuesday.

Under Britain's ETS the authority can intervene in the market if average prices remain above a certain level for three consecutive months.

Monthly average UK ETS carbon prices  in October, November and December were all above the January trigger price of 56.58 pounds ($76.96) per tonne.

"While UK ETS prices have remained elevated and triggered the CCM again, after careful consideration, the Authority judged that, on balance, prices were responding to fundamental market drivers and therefore concluded that intervention was not warranted on this occasion," the government said in a statement.

"This decision, like that in December, is aimed at upholding the objectives of the UK ETS as a market-based approach to reducing emissions and incentivising participants to find the most cost-effective solutions to decarbonise," the government added.

Leave a Comment