Despite forecasting near-term declines in carbon prices amid political and macroeconomic uncertainty, market participants are optimistic that reforms will push compliance market prices higher in the coming years and the voluntary carbon market will grow to meet increasing demand, according to a new survey.
European respondents expect EU Allowance (EUA) prices to average €84.40 ($90.12) between 2023 and 2025, compared to a current price of €85.50 – a 1.2% decrease in the predicted price to 2025 from last year’s survey. Similarly, the expectation for California carbon allowance (CCA) prices dropped by 10.3% from last year, while expectations for RGA permits in the north-eastern US RGGI (Regional Greenhouse Gas Initiative) market dropped by 18%, for the UK ETS by 7.5% and for New Zealand’s NZU by 12.5%, the poll from the International Emissions Trading Association (IETA) and PwC shows.
