PAL Carbon places a dollar price on the damages attributable to climate change per tonne of CO2 emitted. Selected fuel and energy types have prices weighted by their CO2 impact and usage. Prices are updated intraday in conjunction with availability of latest global temperature anomaly data.
Trends in the carbon prices of different fuel and/or energy types are modulated by variations in the PAL carbon price derived from PAL Gamma and PAL’s NOAA-based real time temperature anomaly.
For the energy-only trends, the prices are further influenced by ever-changing mixture of power sources (gas, nuclear, wind etc.) feeding the grid. The intra-day movement is driven by the weighted average ‘carbon intensity’ of the grid, typically 450 grams CO2/kWh (refer to carbon intensity weightings for further details).
At night, when nuclear power makes meets a greater proportion of the load, the carbon intensity falls and the carbon prices go up proportionately. This ensures that the (hypothetical) revenue needed to pay for CO2-induced loss and damage is still forthcoming. Compare the charts of the UK (a carbon intense grid) with France (a low carbon grid) and EC (Entente Cordiale), a composite of France and the UK.