(BloombergNEF) -- Investment funds are piling into the European carbon market for the year-end squeeze. This has contributed to European emissions allowances (EUAs) breaking the psychological price threshold of 70 euros per metric ton ($79/ton) and reaching 75 euros/ton on Nov. 25, 2021.
Speculators can increase volatility and create price spikes if they trade opportunistically. They can also bring stability if they have a longer investment horizon (beyond one year) and invest from a fundamentals perspective.
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