EU May Cut Carbon Supply 20% More Than Expected, New Energy Says

The European Commission, regulator of the world’s biggest carbon market by traded volume, may next week propose a temporary cut in supply that’s 20 percent more than expected.

The volume of European Union carbon allowances to be delayed in the phase starting next year proposed by the commission on Nov. 14 may be 900 million metric tons, compared with about 750 million tons expected by traders in a survey last month, Konrad Hanschmidt, an analyst at the London research company, said today in an e-mailed research note.

There is a perception among some traders that “the volume to be announced is more likely to be above the market’s expectations,” Hanschmidt said.

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