Climate Politics
EU Carbon Prices Plunge as Merz Signals Openness to Soften Rules
The European Central Bank beyond coal trucks and containers at a freight terminal in Frankfurt.
Photographer: Ben Kilb/BloombergEuropean Union carbon prices slumped the most since 2022 after German Chancellor Friedrich Merz said the bloc should be open to revising or delaying its carbon market.
Benchmark carbon allowances fell as much as 8% — the biggest drop since May 2022 — to €72.18 per ton as of 12:11 a.m. CET on ICE Endex. Merz said on Wednesday the EU carbon market was meant to cut emissions while helping companies transition to clean production.