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EU carbon hits fresh 10-year high on stronger energy, EU climate target talk

[LONDON] The benchmark European carbon price rose almost 5 per cent on Tuesday afternoon, hitting a fresh ten-year high of 19.41 euros/tonne.

Traders said stronger prices across the energy complex were bullish for carbon, while comments made by the European Commission hinting at a stronger climate target also buoyed the market.

 "Most energy contracts are up, and the Commission has talked of increasing its climate target and auction volumes are low," a carbon trader said.

 A European Commission spokeswoman said analysis carried out by the EU executive suggests the bloc could increase it's overall climate goal to a 45 per cent reduction on 1990 levels by 2030, up from the current goal of at least 40 per cent.

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 "This is now something that we are looking into," she told journalists at the Commission's daily midday briefing, adding that EU Climate and Energy Commissioner, Arias Canete, might be in touch with member states to discuss it

 The Commission has said before that it might consider a more ambitious 2030 target

 Oil rose to its highest in a week on Tuesday, buoyed by the prospect of price support from US sanctions on Iran .

 Auctions of EU carbon permits by member states are half their usual volume for the month of August as there is usually lower demand over the summer.

REUTERS