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Carbon Traders Brace for U.K.'s Possible Exit From EU Market

  • Price dropped last week after biggest rising streak since 2014
  • Government presented leaving single energy market as option
Updated on

Carbon traders are again preparing for the worst after the U.K. government suggested that it might withdraw from the world’s biggest emissions-trading market when the country leaves the European Union next year.

The British government last week said it wanted to avoid signing up to “wider” environmental and climate change rules as it negotiates a new relationship with the EU. It’s considering options including leaving the single market in energy or staying in, retaining possibility that the U.K. won’t remain part of the carbon market after Brexit.