Almost exactly one year ago, the European carbon price was at a record high of over 100 euros per ton. By the end of February, it dropped to around 53 euros – almost half as much. In early March, it hovered around 60 euros, which still represents a drop of around 40 percent. The general volatility of the European Emissions Trading System (ETS) and a lack of safeguards against rapidly rising or falling prices are the fundamental causes of the price slump. Moreover, the falling gas price and the resulting cheaper fossil-fuelled electricity generation contribute to the low carbon price.