Companies holding United Nations carbon offsets equivalent to 7 percent of the European Union’s annual emissions cap risk losing their investment unless they find a buyer for the credits the bloc banned earlier this year.
Factories, utilities and airlines snapped up a flood of carbon offsets from Ukraine and Russia to comply with European Union emission targets in 2012 amid speculation the credits would face usage restrictions.
Carbon permits advanced to the highest in three days after Jos Delbeke, director general for climate at the European Commission, said a decision on a supply fix could be possible in the second half of the year.
United Nations Certified Emission Reduction credits had their biggest one-day gain since Dec. 20, 2011 amid speculation factories and utilities are using the carbon offsets to meet European Union pollution targets.
Power stations and factories in the European Union’s emissions market probably doubled their use of United Nations carbon offsets to meet their pollution limits last year, according to a survey of analysts.
Vitol SA, the world’s largest closely held oil trader, was one of four companies that submitted emissions-reducing projects to California regulators this past month to qualify for early-offsets credits.