Investing in Emission Allowances can involve risks, including political, economic, or technological risks.
Politically, there may be changes in regulations. Some of these changes may be temporary or improve the system's functioning. Others may result from a major shift in the climate ambition of the emitting jurisdiction. In either direction, this can impact the price of allowances, somewhat like a central bank's decisions influence the value of a currency.
Technologically, advancements in renewable energies and emission reduction technologies can decrease the demand for emission allowances. Indeed, the faster decarbonization accelerates, the lower the demand becomes. However, the more difficult the residual emissions are to decarbonize, the higher the prices rise.
Economically, the price of allowances is volatile. It fluctuates based on several factors: industrial production, prices of energy raw materials, energy mix, geopolitical situations, weather...
The price of emission allowances has high short-term volatility, and the factors influencing the price are numerous.
Our website, as well as the summary information documents for our products, provide comprehensive information and resources to help you make informed decisions.