Update on the Latest Developments in the EU Emission Trading Scheme

The Nordic Council of Ministers commissioned an update study on the developments of the European Emissions Trading Scheeme (EUETS). The focus of the study is the interaction between the EUETS and the Nordic electricity market in general and the electricity prices to the industry in particular. The study was presented a seminar organises by the NCM in mid-march to dicuss the developments with industry and market actors. The development in the EUETS since the study was finalised has shown significantly higher prices in the emission allowances. There are two main factors which explain this discrepancy, namely the higher that expected oil price (and hence gas- and coal-prices) and the Italian National Allocation Plans.