EU CO2 Market May Face Shortage Without More Supply
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The European Union’s carbon market will have a shortage of 190 million metric tons of allowances in 2011 after the regulator said it probably won’t auction permits for phase three next year, said an analyst at Bloomberg New Energy Finance.
The market will be 80 million tons short in 2012 even after the sale of 300 million tons from a reserve to spur clean-energy projects, said Konrad Hanschmidt, an analyst at New Energy Finance in London. Total supply in 2011 is expected at 2.14 billion tons and 2.4 billion tons a year later.