The price of EU carbon credits soared to its highest level in 14 years on Monday, gaining as much as 5 per cent as traders bet that politicians’ promises of a “green recovery” would increase demand for the instruments.

The credits — regulatory allowances for carbon emissions that can be bought and sold by companies — surged above €30 a tonne for the first time since 2006. In afternoon trading, they came within 20 cents of the all-time high of €31 set in April of that year, according to Eikon figures.

The performance caps a sustained recovery over several months during which the credits have outperformed most other commodity markets since the Covid-19 crisis took hold. Carbon credits were caught up in the March sell-off, as lockdowns around the world reduced energy demand, but they have more than doubled in price since then.