'Stricter targets could lift EUAs to EUR 40

EUA prices could hit EUR 40/t over the next 2-3 years if proposals to increase emissions reduction targets to 30% by 2020 materialise, a senior Deutsche Bank analyst told Montel on Wednesday.
Prices for EUAs were expected to reach EUR 18-20/t by the end of the year due to utilities hedging forward power contracts, however the picture further out would be much more bullish if the EU introduced stricter emission reduction targets, said Michael Lewis, managing director of commodities research at Deutsche Bank, at the sidelines of a McCloskey conference in Nice.