Climate Adaptation
Carbon Bets Shift to 2021 With This Year Unsettling Traders
- Pollution allowances in EU held up better than gas and power
- Demand may drop off for carbon in the next few months
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This year has become so filled with uncertainty for the energy market that traders focusing on emission allowances have shifted their eyes toward what will happen in 2021 when prices are expected to be higher.
Open interest in the European Union’s 2021 benchmark carbon contract, a measure of trading positions that haven’t been closed, has surged the past two months. Bets for this year’s December future are stagnant.