Price of carbon credits slumps to new low
â€¢ US considers whether to imitate criticised scheme
continue to cash in credits to bolster their balance sheets.
trading scheme has plunged to €10.15 ( £8.85) a tonne, compared with highs over
€30 seen in July last year.
the carbon information provider, said: “There seems to be no bottom to carbon
prices at the moment.” Market experts blame the decline on profit-taking and a
collapse in manufacturing, which plunged in Britain at the end of last year at
its fastest rate since the 1970s.
cash but also because they are confident they will not need so many
projects, in which companies invest in green schemes to counter the impact of
their carbon production, are being cut back.
the cap and trade scheme has turned carbon into another volatile market commodity
used by speculators to make money.
that the operations of the emissions trading scheme needed to be reviewed by Brussels
before carbon was turned into a “sub-prime tool” by unscrupulous companies instead
of doing the job it was set up for: reducing CO2 emissions.
of its carbon credits on the market but only in very small numbers with the rest
being transferred for use around the group’s other overseas businesses.
made by the power groups in the course of phase two of the scheme, which runs
from 2008 to 2012. They pointed out that there would have to be a high carbon
price to achieve those particular financial gains.
free permits to power companies is like handing them a cash bonus.” He added
that “cheap profits for doing nothing is scandalous”.
production picks up and the EU tightens the regulation on allowances, especially
for phase three of the scheme, to run to 2020. But analysts have been consistently
wrong about the direction of carbon prices, predicting 12 months ago that they
would double from €22 a tonne to over €40.
phase of the scheme, when the credits were all given out free, but since then
some credits have been auctioned to the highest bidder. The auction system is
expected to be used even more heavily in the third phase, which is still going
through the political approval process in Brussels.
say all these projects should be halted.
6 Feb 2009
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30 Jan 2009
23 Sep 2008