CO2 Exchanges Ready Contracts as EU Weighs Offset Ban
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The European Union proposed a ban from the start of 2013 on tradable credits linked to certain industrial gases, prompting exchanges to begin creating new futures contracts to reflect a change in emissions regulation.
The regulatory arm of the 27-nation EU is taking aim against projects that may create “excessive” profits for investors and undermine the market’s integrity. The EU said yesterday it wants to prohibit United Nations credits related to hydrofluorocarbon-23 and some nitrous oxide credits. The news widened the price gap between UN Certified Emission Reductions and EU allowances for 2012 to the most since May 20, 2009.