Finance
Europe Considers Steps to Curb Speculation in Carbon Market
- EU mulls holding limits on permits to cut power of investors
- Carbon prices rose to record on plans to tighten climate rules
Photographer: Bartek Sadowski/Bloomberg
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The European Union is considering curbs on speculation in the world’s biggest carbon market where record prices have lured hedge funds in search of profits.
EU emission permits jumped to an all-time high of 40.12 euros on Thursday, extending their gains to about 70% over the past year. That gain, in part, has been down to large-scale investors speculating in the market. Europe’s cap-and-trade program, started in 2005, is the region’s key policy tool to cut pollution.