Emissions certificates for households reached a new record high on the London Stock Exchange

This is an average price that also includes some other quota markets besides the EU market, where quotas are by far the most expensive worldwide. According to Azlen, investments in quotas will yield investors 13 percent per year until 2030. And that is simply by buying and holding the corresponding futures contracts now.

The price of quotas must remain high and continue to rise after that. The reason for this is that individual countries have no other choice if they want to meet their commitments under the 2015 Paris Climate Agreement through quotas.

They have committed themselves to decarbonization, and if they want to comply with its parameters, they will have to make fossil fuels so expensive that it really “hurts” people and they have to invest in emission-free or low-emission energy sources [e.g., emission-free pumps or electric cars, editor's note].

This is exactly what large carbon speculators such as Azlen are banking on, finding themselves at one end of the money flow. At the other end is, for example, a single pensioner living in a house in the countryside, whose expenses for heating his home or fuel for his car will increase by hundreds of euros per year due to emission certificates.

The text was originally published on the website lukaskovanda.cz.