Benchmark UK carbon price hits record high of 52 stg a tonne

(Reuters) - The benchmark price in the British carbon market on Tuesday hit its highest level since the market launched in May, a day after the European equivalent it replaced also hit a record high.

The benchmark December 2021 UK Allowance (UKA) contract rose to 52.00 pounds per tonne, up 1.25 pounds.

Britain launched its own emissions trading scheme (ETS) on May 19 to replace the European Union's ETS after it left the bloc.

The ETS is a method of charging power plants and other industrial entities for each tonne of carbon dioxide they emit.

The European ETS benchmark contract hit an all-time high of 61.01 euros per tonne on Monday, buoyed by lower auction volumes this week and rising prices in the gas market.

(Reporting by Nora Buli in Oslo, Editing by Louise Heavens)