“The scheme is not working”
The Financial Times reports,
… the price of carbon permits in the European Union… crashed to record lows.
The eurozone debt crisis is partly to blame for the price falls in the world’s largest emissions trading scheme, but a UBS report saying “the scheme is not working” and will suffer from an oversupply of permits until 2025 has also unnerved traders.
The price of European allowances under Brussels’ six-year-old emissions trading scheme fell to a record low of €7.80 on Thursday, and have tumbled 15 per cent this week. As a result, the EU could be more open to charges from those opposed to a deal in Durban that its own policies are inadequate.