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Europe’s Carbon Prices Surge to Fresh Records on Tight Supply

  • Carbon buoyed as higher gas price boosts attraction of coal
  • Key chart level breached as carbon surges 170% in a year
Updated on

U.K. and European Union carbon permit futures rose to a fresh record-high Wednesday as surging natural gas prices increased the appeal of burning dirtier coal for power generation.

EU carbon futures gained past the key 90 euros ($102) a ton marker, as higher gas prices drove power generators to switch toward more carbon-intensive fuel. Even with rising pollution-permit costs, it’s still more profitable to burn coal for power than gas.