Pollution Costs to Rise as EU Governments Back Market Fix
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Carbon prices are poised to rebound from a three-year slump as European Union member states backed a stopgap plan to reduce a record glut of pollution permits.
The cost of emitting carbon dioxide will jump to 7.75 euros ($10.54) a metric ton by the end of the year, from today’s close of 4.65 euros, according to the median of nine analyst and trader estimates compiled by Bloomberg News. Representatives of the EU’s 28 governments cast their final vote today in favor of the plan known as backloading that would temporarily cut the number of permits by half of the annual supply for the 12,000 power plants and factories in the trading system.