· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece on Reuters or enjoy below:
🗞️ Driving the news: The European Union has seen a significant decrease in carbon prices this year, leading to a €4.1 billion shortfall in expected revenues for green technologies
• The drop in carbon prices, which have halved from last year, is partly due to reduced emissions from increased renewable energy use and lower power demand
🔭 The context: The EU's carbon pricing mechanism, designed to fund the transition to low-carbon technologies, is generating less revenue than anticipated
• This reduction jeopardizes funding for projects under the EU Innovation Fund, which is vital for technologies like hydrogen and carbon capture
🌍 Why it matters for the planet: Reduced funding could slow the EU’s green initiatives, affecting the deployment of new technologies essential for achieving climate goals
• This is critical as the EU aims to lead in global efforts to combat climate change
⏭️ What's next: Despite current setbacks, analysts predict that carbon prices will eventually rise due to market adjustments designed to reduce permit availability
• This rebound could restore funding levels necessary for supporting low-carbon projects
💬 One quote: "If there is less money it will affect the number of projects the funds can support," (Yan Qin, a carbon analyst at LSEG)
📈 One stat: The current carbon price is €70 per ton, significantly below last year's high of over €100 per ton
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