CRU: The Only Way is Up for Carbon Prices

By CRU Economist Frank Eich and CRU Research Analyst Clifton Hoong

As addressing climate change has become an increasingly urgent political priority, policy makers have been keen to develop the available tool kit to address this challenge. Within that tool kit, carbon pricing plays an important role as it has been identified as one of the most effective ways of reducing greenhouse gas emission levels on the domestic and international level. In some markets, carbon prices have been rising rapidly over the recent past and are forecast to do so for years to come. The commodities markets across the value chain will need to prepare for and adapt to these new prices.