| From sternopportunity.com: European Union Allowances (EUAs) are today the best gauge of carbon prices. With futures contracts openly traded in several exchanges, and with liquidity at levels that provide ample trading activity, EUAs are a clear indication of the cost of emitting carbon into the atmosphere.
The increase in liquidity has allowed for the identification of price drivers that provide interesting analytical possibilities. In fact, as carbon trading activity in Europe - and elsewhere in the near future - increases, EUA future contract prices will find a higher correlation with other commodity contract prices that highly influence the possibility of more or less emissions..... Full Article: Source
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