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).