The carbon market will be bigger than the crude oil market

According to Bloomberg News on June 16, as countries around the world have taken stronger actions to limit climate change, commodity traders are seeing more and more opportunities in the carbon emission trading market
.

Hannah Hauman, head of global carbon trading at Trafigura Group, said at the FT Commodities Global Summit in the Financial Times on Wednesday that the scale of the carbon market may be the global crude oil market.
10 times
.

Commodity traders and hedge funds are increasingly establishing trading platforms to profit from this growing industry
.
The EU carbon market is the world's largest carbon market.

Ulf Ek, the founder and chief investment officer of the commodity hedge fund Northlander Commodity Advisors LLP, said that a few years ago, this level would have been considered very high, but as the EU stepped up its response The ambition of climate change, people's perceptions have changed
.
Traders do not expect EU regulators to intervene

Eck said: "50 euros is enough for now, and EU regulators are sending a signal to the market that prices are still too low.
This is a big change
.
"

Before the last reform of the EU carbon market in 2017, due to oversupply, the price had been trading at 5 euros/metric ton for several years
.
The political will to support the market and the European Union’s determination to step up efforts to tackle climate change have driven up the cost of emissions

However, unlike regulators in other markets, the EU does not have any tools to intervene quickly to limit carbon price fluctuations
.
Existing legislation provides an option for policymakers to increase the supply of permits if the benefits are deemed too rapid, but this approach is bureaucratic and has no substantive effect

At the beginning of this year, Frans Timmermans, the head of EU climate affairs, said that to achieve the goal of achieving net zero emissions by the middle of this century, carbon prices must be much higher