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EU Carbon Permits ‘Worthless’ Without Change of Rules, UBS Says

Carbon-dioxide permits in the European Union emissions trading system, the world’s largest, are “worthless” without a change in the rules to tighten supply and curb a record glut, according to UBS AG.

EU allowances for delivery in December sank to a record 4.79 euros ($6.37) a metric ton on the ICE Futures Europe exchange today. The contract was at 4.86 euros as of 9:51 a.m. in London, extending its losses to 27 percent this year after low bids from utilities, factories and banks forced Germany on Jan. 18 to cancel a sale of permits for the first time.