European Union carbon permits declined to a three-day low before a meeting of government officials was due to discuss a stopgap measure to cut oversupply of allowances and the bloc’s emissions registry rules.
Permits for this month lost 3.1 percent to 6.54 euros ($8.55) a metric ton on the ICE Futures Europe exchange as of 7:53 a.m. in London. The contract extended its loss to 74 percent since the start of the current five-year trading period in 2008 as an excess of allowances swelled amid an economic crisis.
Representatives of EU governments in the Climate Change Committee are meeting today in Brussels to present their nations’ positions on a draft measure to delay sales of 900 million allowances to curb the glut of permits and help prices rebound. They are not scheduled to hold a formal vote on the proposal by the European Commission at the gathering.
The meeting will be “very important,” Germany’s Environment Minister Peter Altmaier said on his Twitter Inc. account late yesterday. When a formal vote is held next year the measure will need 255 out of 345 votes to pass in a ballot system that favors larger countries.
EU nations will also discuss “main features” of a revision to the bloc’s carbon registry regulation. The commission, the EU’s regulatory arm, has been seeking to limit use of some United Nations credits, known as Emission Reduction Units, in a draft amendment to the regulation.
While the commission won’t table any formal ban at the gathering, it will provide today an update summarizing the debate and next steps, according to a statement published on the EU website yesterday.
UN Certified Emission Reduction credits, which are generated under a different program than ERUs, fell to a record yesterday, with the December contract closing 6.5 percent down at 43 euro cents.