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Prices in Europe’s carbon market, the world’s biggest, are soaring


It is a sign that investors are paying attention. Many think it is a one-way bet

AS FINANCIAL MARKETS become cheerier about the pace of vaccinations and the chances of a speedy economic recovery, the prices of stocks, commodities and all manner of assets are rising. So too are carbon prices in Europe, home to the world’s largest emissions-trading system. Prices have surged by 60% since November; on February 12th they hit a record high of nearly €40 per tonne of carbon-dioxide equivalent (see chart).

source economist