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Cost of Polluting Climbs to Record in Europe With Gas Squeeze

  • EU carbon futures fast approaching the 100-euro a ton mark
  • Natural gas is rising as supplies from Russia remain limited
Updated on

A supply squeeze driving natural gas prices higher has sent the cost of buying pollution permits in Europe to a fresh record.

Carbon futures exceeded 97 euros ($111) a ton and are fast approaching the 100-euro mark that many hedge funds and analysts had forecast last year. Higher gas prices are forcing European utilities to burn more dirty coal to keep the lights on this winter, increasing demand for pollution permits.