Oct. 30 (Bloomberg) -- Companies in the European Union’s emissions market lowered their expectations for carbon prices “drastically,” according to a survey by Germany’s KfW Bankengruppe and ZEW Center for European Economic Research.
The companies surveyed expect an average EU permit price in December 2013 of about 14 euros ($18.16) a metric ton, or 36 percent lower than they expected last year, ZEW and KfW said in their annual CO2 Barometer publication e-mailed today.
“As recently as last year companies had expected an average price of about 22 euros for one ton of carbon dioxide by the end of 2013,” the report said.
Two key factors that drive European Union carbon prices are outlook for economic performance and policy regulation, considered as important by respectively 85 percent and 75 percent of companies and carbon experts in the survey.
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