European carbon could reach €100 per metric ton this winter
Carbon prices in Europe might jump to €100 per metric ton this winter, mainly because gas is getting pricier due to the Iran conflict.
With gas so expensive, coal is now the cheaper choice for power plants, even though it pollutes more.
This energy crunch has sent both gas and oil prices soaring.
BofA expects carbon below €80 H2-2027
Coal may be winning on cost, but there's only so much coal capacity left, and new EU rules are making emissions even pricier for companies.
BofA thinks these high carbon prices won't last forever. They expect things to cool down below €80 per metric ton in the second half of 2027 as more LNG projects launch and global energy supplies settle.
Meanwhile, rising fuel costs are nudging more people toward electric vehicles, speeding up Europe's push for greener transport.