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Carbon Price May Nearly Double, Says Northlander After Hedge Fund's 148% Gain

  • Europe’s carbon price will only keep rising, Northlander says
  • EU carbon gained 147% in 2021 on climate goals and coal power
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Photographer: Sarah Pabst/Bloomberg

Northlander Commodity Advisors LLP’s main hedge fund gained a record 148% last year, driven by a call that the European Union’s carbon price would surge. 

The bet paid off handsomely for the fund, which gained 14.5% in December, according to a letter to investors seen by Bloomberg. EU carbon last month rose to an all-time high above 90 euros ($102) per metric ton and finished the year up 147%, due to increased climate ambitions in Brussels and a gas crunch that’s made it more profitable to burn polluting coal.