CORRECTED-UPDATE 2-EU carbon price hits over 10-year high on Brexit extension hopes

(Corrects company name to Berenberg in penultimate par) By Nina Chestney LONDON, April 10 (Reuters) – The benchmark European Union carbon price hit a more than 10-year high on Wednesday, on expectations Britain will get a delayed exit from the EU which will mean it stays in the bloc’s emissions trading system for longer. The price had risen to an intraday peak of 26.89 euros ($30.22) a tonne as of 1349 GMT, its highest since July 2008. Traders said the move was mostly due to expectations the EU will give Britain an extension to when it will leave the 28-nation bloc, which would avoid a flood of permits hitting the Emissions Trading System (ETS) from the second-largest emitter of greenhouse gases in Europe. “Speculators are buying; (the chance of) a Brexit extension has definitely increased that. Coal has also fallen,” a carbon trader said, referring to the relatively low price of coal compared to gas which has made coal-fired generation more competitive. The carbon price rise also pushed up British gas prices and European power prices. Britain’s utilities and industry are among the largest buyers of permits in the ETS, which is a scheme to cut carbon emissions and charges… continue reading

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