European Union carbon permits had their biggest two-day run of declines since December after the regulator confirmed it would not hold back supply of allowances until it wins approval from nations for its glut-fix plan.
The bloc will not cut supply temporarily under its so-called backloading proposal until an auctioning regulation is amended by lawmakers, the European Commission said today in a statement on its website.
The December emissions contract dropped 5.8 percent to 7.92 euros ($10.09) a metric ton on the ICE Futures Europe exchange in London, taking the two-day streak to 13 percent, the biggest since Dec. 14.
The EU today included a tighter climate goal and cancellation of carbon permits among six potential options to strengthen the market in the next few years and reduce the glut. Still, the European Commission is limiting its scope too narrowly, the International Emissions Trading Association said today in an e-mailed statement.
“Given the gravity of the issues at stake, IETA expresses concern that the commission appears to be considering only a limited number of options,” the Geneva-based lobby group said today in an e-mailed statement. “At this early stage in the debate, now might not be the best time to rule out particular options.”
Nations should consider rules that would mop up unneeded supply, for instance, Sarah Deblock, the association’s Brussels-based EU policy director, said today by phone.
Certified Emission Reduction credits for December dropped 6.5 percent to close at a record 72 euro cents on ICE.