Deutsche Bank Says C02 Set-Aside Won’t Spur Clean Investment
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A temporary removal of allowances from the European Union’s emissions trading system may not be enough to spur investments to cut carbon dioxide and instead structural changes are needed, according to Deutsche Bank AG.
EU allowances may more than double to as much as 20 euros ($26) a metric ton by 2020 compared with contracts for this year, should either 1.2 billion permits be removed from the market from 2013 to 2020 or 600 million from 2013 to 2016, Mark Lewis and Isabelle Curien, analysts at the bank in Paris, said today in an e-mailed report. It’s the first time the bank forecast the price impact of a potential set-aside.