CO2 prices attacked by virus

The year 2020 is dominated by the COVID-19 pandemic. The virus also attacked CO2 prices in the EU ETS. Until march 2020 the prices maintained a steady 23-25 EUR / tCO2 range. On the 12th a collapse happened – in just a few days, the prices went down to 15 EUR / tCO2 by 36%. This was very benficial for coal energy producers, who suddenly achieved a massive OPEX reduction. After a series of fluctuations, the prices exceeded the pre-COVID average, reaching a record high 29.6 EUR / tCO2. August brought some stability on the market with prices averaging 26-27 EUR / tCO2. We can expect that the high volatility period is coming to an end and that the yearly average for 2020 will be in line with pre-COVID forecasts (27.5 EUR / tCO2).