U.K. Set to Intervene in Carbon Market If Prices Stay Elevated
- Government may take action in December to contain carbon price
- Carbon permits in the U.K. are up over 40% this year
Photographer: Chris Ratcliffe/Bloomberg
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The U.K. government said it’s on track to intervene in its national carbon market in December if prices remain elevated through November.
In September, carbon averaged 58.36 pounds per metric ton, or more than 10% higher than the price that would trigger government action. Prices are required to stay above the trigger for three consecutive months before the government is allowed to intervene through a measure known as the cost-containment mechanism, which enables it to increase the supply of permits.