EU Urged to Protect Carbon Market From Excessive Speculation

  • Cost of emissions surges to record at unprecedented pace
  • Carbon speculation set to be raised at EU summit this week
Photographer: Krisztian Bocsi/Bloomberg
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The European Union should strengthen supervision of its red-hot emissions market to avoid distortions driven by financial investors, according to a report published on Wednesday.

The recommendation from researchers at the Potsdam Institute for Climate Impact Research comes a day before a meeting of EU leaders, who are set to discuss surging carbon prices. Permits to pollute rose to a record last week and are trading almost 150% higher this year amid stricter climate policies, soaring energy prices and increased interest from investors.