How Do You Calculate the Carbon Price in Europe?

The carbon price needs to move in a range that solves for the long run marginal cost of abatement, both in the power sector and in the industrial sector. And the range we gave in that piece is between 90 uros a ton and a hundred and 50 uros a tons. The further out down the forward curve for gas, you look, the lower the price. But at 25 uros a megawat hour, as the developer of a new gas fired power plant, i won't make the required rate of investment," he says.