Climate Changed
Price of Carbon Set to Rise in EU as Supply of Permits Shrinks
- EU will put 397 million of allowances in reserve from Sept.
- Carbon allowances trade near a decade high on supply fix
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The cost of pollution for businesses in Europe, already near an 11-year high, may rise further as regulators tighten the screws in the world’s biggest carbon market.
The European Union will withdraw almost a quarter of carbon dioxide emission permits in circulation from September through the end of August 2020 as part of reforms to shore up its Emissions Trading System. That means national governments will deduct 397 million of allowances from auctions, the European Commission said on Wednesday.