EU Carbon Pares Weekly Gain as Demand Slumps at German Auction

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EU carbon prices dropped as demand fell in an auction of new allowances, paring a weekly gain spurred by speculation that European Union governments are nearing agreement on a proposal to boost prices.

December futures advanced 9.8 percent this week to close at 4.15 euros a ton on London’s ICE Futures Europe exchange. The gained as much as 15 percent yesterday after an EU presidency official said there’s growing support among member states for a plan that would enable delaying auctions of some carbon permits.