European Union Carbon Permits Drop as Natural Gas DeclinesEwa Krukowska
European Union carbon allowances fell as U.K. natural gas prices dropped, curbing demand for pollution rights in the world’s biggest cap-and-trade system.
EU permits for delivery in December declined as much as 1.5 percent to 6.56 euros ($8.61) a metric ton on London’s ICE Futures Europe exchange. The contract traded at 6.60 euros as of 8:35 a.m. in London.
U.K. natural gas for next month dropped 1 percent to 67.85 pence a therm. Carbon permits sometimes track gas because power utilities burning the fuel need half the permits compared with when they use more-polluting coal.