Carbon Risk

Carbon Risk

The convergence trade

What's behind the collapse in the UKA-EUA carbon market spread?

Peter Sainsbury's avatar
Peter Sainsbury
Nov 29, 2022
∙ Paid

The UKA-EUA carbon market spread has dwindled from €32.80 per tonne (~42%) in early September to less than €2 per tonne by late November.

Two factors have contributed to the narrowing in the spread: …

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