EU Parliament Group Urges Delay of Plan to Fix CO2 Market

Nov. 8 (Bloomberg) -- The biggest group in the European Parliament called on the European Union’s regulator today to postpone by five months a proposal to curb oversupply of permits in the bloc’s cap-and-trade carbon market.

The European Commission said it won’t delay the draft measure, which is intended to help carbon prices recover from a record low earlier this year. It will be presented next week as planned, Isaac Valero-Ladron, the climate spokesman for the EU’s regulatory arm, said by phone today.

The European People’s Party urged the commission to delay the presentation of the so-called backloading measure, scheduled for Nov. 14, until the bloc’s assembly reasserts the regulator’s right to fix the market by delaying some auctions of carbon permits in 2013. The parliament is due to vote on a change to the EU emissions law to clarify the commission’s powers in April.

“A balanced and responsible handling of this file is of the utmost importance,” EPP said in a letter sent to EU Climate Commissioner Connie Hedegaard and Commission President Jose Barroso, according to the group’s website.

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