The EU emissions trading system (ETS) is the main tool of the bloc to fight climate change. In the scheme carbon credits are traded and polluters must purchase such credits for their emissions.
The price of carbon credits hit €34.25 per tonne of CO2 on Monday (4 January), the highest since the market launched in 2005. Prices decreased slightly on Tuesday, but remain around €33 per tonne.
The price of EU carbon permits has jumped by around 12% since December 2020 when EU leaders agreed on a more ambitious target on cutting emissions this decade. The EU plans to decrease CO2 emissions by 55% until 2030.