The European Union’s struggle to cut a surplus of permits in its carbon market, the world’s largest, shows the bloc’s unease with a policy it wants other nations to adopt, according to Russia’s climate envoy.
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.
Carbon-market supporters from China to California will push for emissions trading even as they prepare for the end of the United Nations Kyoto Protocol in seven years, Europe’s top climate negotiator said.
Envoys at United Nations global warming talks are considering whether to adopt a target for carbon emissions around 2050 as they struggle to work toward a deal to limit climate change that they aim to agree on in 2015.
Prices for United Nations carbon offsets fell to the lowest ever as a ban on the use of some credits approached and as factories and power stations surrendered permits and credits to cover emissions in 2012.