Transform Decarbonization into a Financial Lever

As carbon prices fluctuate and regulatory measures tighten, companies across Europe are being pushed to treat emissions management not only as a compliance issue, but also as an element of long-term financial planning.

Since the introduction of the EU ETS in 2005, the system has grown to cover more than 12,000 installations across sectors such as energy, refining, steel, cement, and transport. By 2024, over 2.5 billion tonnes of CO₂ allowances were traded annually, reflecting both the scale of industrial participation and the financial significance of the market.

Average carbon allowance prices have ranged between €83 and €86 so far in 2024, following a decline of around 15 % compared with last year. This drop has been linked to lower industrial output and the accumulation of surplus allowances. At the same time, speculative activity and policy adjustments,  including reforms to the Market Stability Reserve, continue to influence market liquidity and price stability.

Looking ahead, the EU ETS will remain central to Europe’s decarbonisation pathway. Stricter targets, reduced free allocations, and the gradual integration of new sectors are expected to sustain demand for allowances and reinforce the link between carbon pricing and investment decisions.

These developments underline a clear trend: carbon markets are no longer peripheral to industrial strategy, they are becoming a core driver of competitiveness and financial resilience in the energy transition.

Full article (in French): “Transformez la décarbonation en levier financier,” Informations Entreprise, Issue 191/pages 156 – 157

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