Analysts have cut their average price forecasts for EU carbon permits for the next two years in the sign that weak economies will hit Europe and lead to lower industrial output, while the European Commission readies an increase in permit supply.
According to Reuter’s survey of seven analysts, EU Allowances (EUAs) are expected to average 78.70 euros ($76.70) a tonne in 2023 and 92.43 euros in 2024. That is down 19.4% and 9.3% respectively from forecasts made in July.