Rising Carbon Prices May Be Passed to Consumer

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Feb. 13 (Bloomberg) -- Bloomberg’s Itamar Orlandi reports on carbon markets and why carbon prices may jump by the end of the year. He speaks on Bloomberg Television’s “The Pulse.” (Source: Bloomberg)

Accelerate the process and raise carbon prices.

What has been decided or why prices have risen since january is the so-called process that will withhold supply allowances sold by governments into this market has been put in place.

In about one month's time, the supply in the market will dramatically fall.

That will change the dynamics across these markets.

It has been the first step of various measures at the european commission to reform this market.

Effectively, it hasn't worked very effectively.

There has been an oversupply, and economic recession.

They're manipulating the market to get it to work better.

It is an intervention.

When the system was launched in 2008, prices were expected to trade at about 30 euros.

Now we are trading at about 6.5 euros.

Far away from the prices that were initially envisioned.

That would also be required to drive investment into low carbon technologies.

That has been identified by the european commission has a problem.

They have now introduced to this plan and it has met much more resistance than initially thought.

That is why it took much longer for this intervention.

We are seeing the market react to this plan to some extent already.

What does this mean for energy prices?

From a utility's point of view, carbon is another fuel.

Rising carbon prices which some people expect on the back of this measure are likely to be passed through to consumers.

Which of course can raise the question, what will be the political support in the future?

We will watch that as it emerges.

Thank you very much indeed.

Francine, back to you.

Thank you so much.

For those listening on bloomberg radio, bloomberg a first word is up next.

For our bureaus, a second hour of "the pulse" is coming up.

Here is what we will be talking about.

Nestle's sales growth slowed.

We will be talking to the ceo.

Apple uncovers labor violations.

We talked to michael for sick -- michael fertik of

This text has been automatically generated. It may not be 100% accurate.

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