As Europe’s recession recedes, trading via brokers in the $74 billion carbon emissions market is plunging amid a record glut in the commodity Richard Sandor once predicted to reach the highest volume in the world.
The European Commission may propose next month a law to manage the supply of carbon permits as a way of combating a surplus that drove prices to a record low, said Jos Delbeke, head of the regulator’s climate department.
The European Union’s emissions trading system may have a surplus of 500 million metric tons in the current trading period from 2008 to 2012, said Jos Delbeke, director general for climate at the European Commission.
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.
China and other emerging nations are engaged in “encouraging” efforts to curb greenhouse gases, while the U.S. is blocking prospects for a global agreement, according to a European Union climate official.
Investors in the European Union emissions trading system may be overconcentrating on the short- term perspective, said Jos Delbeke, director general for climate at the European Commission. He made the comments at a conference organized by Eurelectric in Brussels today: