The benchmark European carbon price plummeted 16.25% on Tuesday, closing at 68.85 euros. The price is now down more than 28% since Russia's invasion of Ukraine, with the price decoupling from the energy markets it normally monitors due to profit-taking and supply concerns.
In most cases, high gas prices often lead to higher carbon costs as power facilities switch to coal, which generates twice as much carbon dioxide as gas plants and hence boosts demand for carbon permits.
