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Opinion
David Fickling

The Market Is Finally Putting a Realistic Price on Carbon

This surge should be seen as a success. Politicians need to resist the populist impulse to intervene and drag down prices. 

In practice, we’ve yet to see the transformation the world needs.

In practice, we’ve yet to see the transformation the world needs.

Photographer: Chris Ratcliffe/Bloomberg

What’s clean, invisible, and has notched up a better investment performance than Bitcoin and (briefly) GameStop Corp. stock over the past 12 months?

European carbon credits. The instruments are auctioned to major polluters in the European Union and exchanged in the bloc’s Emissions Trading System, or ETS, to encourage them to price and reduce their emissions. They’ve risen about 131% in a year, hitting an intraday record of 98.49 euros ($112) a metric ton Tuesday.