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EU Says Carbon Market Imbalance is Worsening, Quick Fix Needed

The European Union’s carbon market needs a “quick measure” to curtail a growing oversupply of permits which may double by the end of next year, a European Union official said.

The oversupply was around 950 million metric tons at the end of 2011 and is “growing fast,” Jos Delbeke, Director General for Climate at the European Commission, told a Platts conference in Brussels today.

The commission, the EU’s regulatory arm, has a “strong ambition” to see a decision on its proposal to delay some auctions of permits to curb oversupply by the end of this year, he said.

To contact the reporter on this story: Ewa Krukowska in Brussels at ekrukowska@bloomberg.net

To contact the editor responsible for this story: Alessandro Vitelli at avitelli1@bloomberg.net

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