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Funds That Helped Drive Carbon Costs to a Record Are Now Selling

  • BNP Paribas fund with more than $3 billion sold some positions
  • European carbon prices have plunged 8% since a record in May
Energy-intensive users have been required to match their emissions with permits.

Energy-intensive users have been required to match their emissions with permits.

Photographer: Lukas Schulze/Getty Images

Investors have helped drive the cost of polluting to a record in Europe, the world’s largest emissions market. Now they are taking some money off the table.

A BNP Paribas Asset Management fund with more than 3 billion euros ($3.6 billion) under management closed some of its bets on rising carbon prices after a gain of more than 100%, according to its co-manager Edward Lees. Investors slashed their bullish positions on pollution permits by 38% from an all-time high in April, exchange data showed.