Climate Changed
Cost of Pollution Reaches Highest In a Decade In Europe
- EU cut volumes to revive market as a tool to reduce pollution
- Fewer permits sold expected to tighten secondary market
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Carbon pollution allowances soared to their highest level since 2008 after the European Union’s move to ration supply stoked concern that a shortage will unfold in the months ahead.
Futures prices are poised to more than double along with a tightening of supply in the traded market, Berenberg Bank said Tuesday. The cost of those allowances has already more than doubled in the past year as the EU cut the amount sold in auctions by 40 percent from the start of 2019, addressing a glut that had weighed on prices through 2017.