Climate Changed
Carbon Options Signal 20% Gain as Europe Nears Record Price
- HSBC among latest forecasters to predict further gains
- Calls showing growing appetite for 30-euro carbon next year
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Even after surging more than any other major commodity this year, the runaway rally in European carbon futures won’t halt any time soon, if you believe the options market and a growing chorus of analysts and traders.
The rights to pollute the atmosphere with carbon dioxide raced through 25 euros ($29) per ton and are now trading at their highest level in a decade. Option data shows that traders are making bigger and bigger bets on prices at or above 30 euros in 2019 already. That’s also the level analysts from HSBC Holdings Plc to Carbon Tracker say prices will reach next year.