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EU Carbon Surges on Parliament Support for Permit Set-Aside

European Union carbon prices jumped after the EU Parliament environment committee backed a draft rule requiring the bloc’s executive to propose a temporary cut in permit supply in the next phase of its carbon market.

Carbon allowances rose as much as 32 percent on speculation that an amendment to an energy efficiency law voted today raised the likelihood of the EU curbing oversupply and supporting prices in its emissions trading system. Concern that the new energy-savings regulations will further cut demand for pollution rights at a time of economic slowdown helped knock carbon prices to a four-year low last week.