Finance

Betting on Pollution Proving to Be One of 2021’s Smartest Plays

  • Carbon benchmark futures climb above 40 euros for first time
  • Hedge funds are betting emissions costs will keep rising
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Carbon emission futures cleared yet another milestone in Europe, climbing above 40 euros ($49) a metric ton for the first time and making it one of the year’s best performing commodities.

The gain of more than 20% this year took some by surprise and seems to be bolstered by financial speculators betting on increased demand for the pollution rights as the European Union tightens its climate goals.