FT: EU carbon prices plunge 20%

Carbon prices tumbled as much as 20 per cent on Tuesday as investors doubted a vote in the European Parliament would be sufficient to rescue the EU’s moribund carbon market.

The vote by the parliament’s environment committee had been closely anticipated since the market collapsed late last month after the parliament’s industry committee rejected a plan to shore up prices.

The plan, known as ‘backloading’, would postpone the auction of 900m carbon allowances in an attempt to ease the market’s oversupply. Members of the environment committee gave their backing on Tuesday by a margin of 38 to 25, with two abstentions.  MORE