Climate Changed
Why Brexit Is Rattling Europe’s Market for Pollution Allowances
- U.K. will probably leave the carbon market as it exits the EU
- General election of Dec. 12 seen shaping U.K.’s Brexit plan
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Britain’s exit from the European Union is also likely to end its participation in the region’s market for carbon dioxide emissions, but exactly how the break will happen is still rattling traders.
The market started in 2005 to limit greenhouse gases from thousands of industrial sites including power plants, steel mills, cement factories and airlines. It requires polluters to hand in allowances covering their annual emissions, raising about 11 billion euros ($12 billion) for governments in 2018.