Around 4.1 bln euros in potential EU carbon revenues lost
Green startups worry price dip slims financing chances
Carbon prices forecast to remain relatively low in 2024

FLORENCEBERLIN, April 18 Reuters A drop in the European Union39;s carbon price this year could mean that a fund intended to be among the world39;s biggest schemes for new green technologies will be smaller than budgeted for and potentially jeopardise some lowcarbon projects in the EU.

After soaring above 100 euros per ton of CO2 last year, the cost of EU carbon permits had nearly halved by February, as emissions covered by the market plunged as a result of lower power demand and higher renewable power generation.

The fall has wiped out 4.1 billion euros 4.36 billion in potential revenues for Europe39;s budget for lowcarbon investments so far this year, analysis of market data shared with Reuters by consultancy Veyt showed.

While the dip in emissions shows the carbon market is helping the bloc meet its climate goals, it also means the scheme is raising less than expected for EU green transition funds and to pay for the climate efforts of member states.

The EU Innovation Fund is the bloc39;s main fund for nascent technologies like hydrogen and carbon capture, which the 27nation bloc is banking on to meet climate change goals.

By the EU39;s own estimates, the fund should raise 40 billion euros this decade, if CO2 prices averaged 75eurt in that period. The benchmark EU carbon price has remained below…