Climate Changed

Europe's $38 Billion Carbon Market Is Finally Doing Its Job

  • From automakers to utilities, companies are cutting emissions
  • Investors piling into carbon allowances at a six-year high

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Europe’s $38 billion a year carbon market is finally starting to work the way it was intended, reining in pollution with a minimum of squealing from industry.

Thirteen years after it was created to limit carbon-dioxide emissions, prices for the allowances are rising. European Union policymakers have enacted measuresBloomberg Terminal expected to keep the cost of pollution on an upward trajectory through 2030, prompting hedge funds that abandoned the market to pile back in.