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EU’s Carbon Market Is Beset by ‘High Uncertainty,’ Report Shows

  • There are questions on provisions to address volatility: ERCST
  • Overall, the ETS market functioned well last year: report

There’s “high uncertainty” in the European Union’s carbon market amid a lack of clarity over what measures will be used to combat volatility, according to think tanks and analysts.

While the market functioned well last year, proposals by lawmakers and member states to curb speculation and sharp price swings in carbon allowances are raising questions over what level a future emissions cap may be set at, according to an annual report released by the European Roundtable on Climate Change and Sustainable Transition.