EU Carbon Drops to Two-Week Low as Glut-Fix Shortcut Abandoned
European Union carbon permits closed at their lowest level since Feb. 7 a day after Matthias Groote, chairman of the EU parliament’s environment panel, scrapped fast-track talks on a plan to cut a surplus of allowances.
The December contract fell 5.9 percent to close at 4.30 euros ($5.60) a metric ton on the ICE Futures Europe exchange in London. Certified Emission Reductions for December rose 1 cent to 35 cents a ton.
The EU benchmark declined 17 percent over the past two sessions after Groote decided not to pursue a vote that might have hastened a decision on a 900 million-ton temporary reduction in supply of emissions permits through 2015.
“Without a vote anytime soon in the parliament, the carbon market is going to remain in the doldrums,” Eric Bickel, an analyst at energy management company Schneider Electric SA in Louisville, Kentucky, said today by e-mail. “If this market has to wait four months before finding some semblance of balance, then we’re going to see very little impetus.”
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