Carbon Market Volatility to Jump on EU Overhaul Talks
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The calmest period in more than three years for the world’s biggest carbon market is set to end.
Citigroup Inc., Societe Generale SA and Commerzbank AG say prices will start swinging again after European lawmakers resumed talks this week on setting up a reserve to reduce a permit glut that drove the market to a record low. Sixty-day volatility for carbon futures surged by a quarter in April 2013 after politicians threatened to block a rescue plan designed to support prices.