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EUA prices seen on the up in IETA’s annual market sentiment survey

26 May 2015 12:00 AM | Stephanie Olegario (Administrator)

FOR IMMEDIATE RELEASE
Contact: Katie Kouchakji, kouchakji@ieta.org

EUA prices seen on the up in IETA’s annual market sentiment survey

BARCELONA, 26 May – Respondents to IETA’s annual market sentiment survey expect European carbon prices to rise for the first time in four years. 
 
This years surveyconducted again by PwC, found that respondents expect the average Phase III EUA price to be €10.79 – up from €8 last year, and the first rise since 2011. Prices between 2020 and 2030 are expected to average €18.40, according to the survey of IETA’s members.
 
This 10th edition of IETA’s annual market sentiment survey found that respondents see a lower carbon price needed to drive low-carbon investment than five years ago, averaging €29.60 now compared with two-thirds saying a price of €40 or more is needed in 2010. 
 
However, unsurprisingly, an overwhelming number of respondents (88%) see carbon markets as an effective policy instrument – with 58% saying markets are the most effective driver of low-carbon investment, up from 36% in 2010. 
 
The Paris climate talks will lead to an expansion of global carbon markets, according to 58% of respondents – with strong growth seen in Asia and North America in particular. Notably, all respondents expect China to have a national ETS, with 64% expecting the market to be implemented by 2020.

“This year’s survey is a sign that, after a few years of crisis and reform, market participants see a stronger EU ETS in the future, and that sentiment is increasingly positive around the world,” says Dirk Forrister, CEO and President of IETA. 

“Recent years have seen a burst of activity in new market development, which is reflected in the survey. The message for Paris is that markets matter – and the challenge for policymakers is to bring together all these bottom-up efforts and find a way to make the links between domestic actions and international contributions.”

“Carbon market sentiment is on the rise for the first time in years,” says Jonathan Grant, director of PwC’s climate and sustainability practice. “It may seem obvious that IETA members would give this endorsement, but after years of low prices and policy turmoil in carbon markets around the world, business is still saying that market-based approaches are the most effective.”

He adds: “On Paris, there’s a big gap between the members’ ideal outcome and their actual expectations – few expect legally binding targets.  The IETA survey sends a clear signal to governments that the Paris agreement should accelerate the use of markets nationally and internationally.”

The survey report will be released at a press conference at Carbon Expo in Barcelona on 26 May at 9am CET. Hard copies will be available at the press conference and it can also be downloaded from the IETA website. 


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