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CO2 price forecast

The past year has brought plenty of changes in the energy regulatory landscape, particularly in relation to climate change and carbon dioxide (CO2) emissions. Accounting for the resulting costs of these and other policies by incorporating a CO2 price is now firmly in the realm of best practice for utilities and system operators engaged in long-term energy planning. To assist with such planning and to provide a resource for other stakeholders, Synapse’s CO2 price forecasts simplify the complex process of determining effective CO2 prices by combining our own modeling results with comprehensive analysis of other CO2 prices in use throughout the electricity sector.

Planning for the future price of emitting one ton of carbon dioxide can seem like a game of chance, in which electric utilities and other stakeholders are forced to bet on uncertainties. However, considering state and regional policies that are already in play—as well as proposed federal legislation aimed at reducing emissions—it would be a bigger gamble for utilities to assume that there will be a CO2 price of zero in the long run.