And if the market evolves to primarily help countries achieve their climate targets rather than companies – a possibility outlined at COP26 – it will soften this supply shortfall.
Prices rise to a manageable $48/ton in 2030 before shooting up to $217/ton the following year and gradually dropping to $99/ton in 2050. While the price outcome of the hybrid scenario is more ideal for all parties involved, it assumes some major market developments in the coming years and is still an unpalatable jump from today’s prices.