EU Carbon Drops Most in Two Months as Ruling Sparks Uncertainty
- Exxon, Dow Chemical lose challenge to EU's cut in free permits
- Court tells EU regulator to rectify mistakes in calculations
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Permits to emit greenhouse gases under the European Union cap-and-trade program had the biggest drop in two months after the region’s top court told regulators to correct mistakes in the way they calculate the allocation of free allowances to companies.
Exxon Mobil Corp., Dow Chemical Co. and OMV AG lost a challenge to a EU decision to cut the number of free emission permits they receive under Europe’s emissions trading system, the EU Court of Justice in Luxembourg said on Thursday. In the same ruling, it gave the commission 10 months to rectify errors in the existing regulation. The final number of permits that companies get for free could be higher or lower, the court said.