Analysts lowered EU carbon price forecasts due to weak power sector demand

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Analysts have cut price forecasts for European Union carbon permits for 2024 to 2026, predicting that weak demand from power plants and sluggish industrial demand will impact the market.

EU Allowances (EUAs) are forecasted to average at 74.11 euros per metric ton in 2024 and 83.31 euros in 2025, according to a Reuters survey of nine analysts. This marks a decrease of 11.3% and 6.3%, respectively, from forecasts made in October.