ProductBE
EUA
EU Emission Trading System allowance giving the right to emit one tonne of CO2; at EUR 75/t it adds approximately EUR 39/MWh to CCGT marginal cost.
Last refreshed: 22 May 2026 · Appears in 1 active topic
Key Question
How much does the EU carbon price add to German industrial electricity costs right now?
Timeline for EUA
#1122 May
Priced at EUR 75/t, adding EUR 39/MWh to CCGT marginal cost and pushing German gas plants off-merit
European Energy Markets: Germany cannot inject at this price#1121 May
Set at EUR 75/t, acting as the structural driver of the Germany-France price gap
European Energy Markets: FR-DE day-ahead spread doubles to EUR 46.58Common Questions
- How much does the EU carbon price add to electricity bills for factories?
- At EUR 65-75/t, an EUA adds approximately EUR 34-39/MWh to the cost of gas-fired electricity generation, which accounts for a large share of the EUR 62-68/MWh running-floor German industrial users are reporting.Source: european-energy-markets briefing
- What is an EU Allowance (EUA) and how does it work?
- An EUA is a tradeable permit under the EU Emissions Trading System permitting one tonne of CO2; emitters must surrender one EUA per tonne or pay a EUR 100/t penalty. EUAs are traded on ICE Endex and EEX.Source: European Commission EU ETS
- Why are EU carbon allowance prices rising in 2026?
- Phase 4 of the EU ETS tightens the cap by 2.2% per year rising to 4.3% after 2026, structurally reducing supply. Tighter caps combined with sustained demand from the gas-heavy power mix have kept EUAs elevated.Source: European Commission EU ETS Phase 4
- What is the EU ETS carbon price today?
- EUAs have been trading in the EUR 65-75/t range through 2026, with the December front-year future on ICE Endex as the benchmark contract.Source: ICE Endex / EEX
Background
EUAs are a key component of the EUR 62-68/MWh power cost floor that German chemical and industrial users are reporting as the threshold above which continuous-process production economics break. With EUAs contributing ~EUR 39/MWh at current prices to gas-set generation cost, the carbon stack is central to the industrial energy burden debate.
How the World Sees Them
EU climate policymakers
The ETS is the EU's primary decarbonisation instrument; rising EUA prices signal the system working as intended, accelerating the shift away from gas-fired generation.
German chemicals sector
EUAs at EUR 65-75/t push CCGT marginal costs above EUR 39/MWh, a significant share of the EUR 62-68/MWh floor cited by chemical producers as the threshold for curtailment decisions.
Energy-intensive industry (pan-EU)
EUA cost pass-through into power prices is the industrial competitiveness question of 2026; producers facing Asian competitors not subject to carbon pricing are lobbying for Carbon Border Adjustment support.