Political statements cause swings in EU carbon prices

Most politicians and policymakers know their public statements can have an influence on the price of markets.

European Central Bank (ECB) president Mario Draghi knew it when he said in July 2012 the ECB would do “whatever it takes” to save the euro, effectively giving traders the reassurance they needed so that the eurozone crisis was tamed.

The influence of political acts or statements is just as easy to see when it comes to the EU's carbon market.

When assessing whether t...