Dismay at 'no' vote to ETS fix

The vote is a blow to hopes that carbon can be made more expensive

The vote is a blow to hopes that carbon can be made more expensive

The European Parliament has rejected a proposed change to the EU’s ailing emissions trading scheme (ETS), sending prices plunging to new record lows on the world’s biggest carbon market.

Members voted 334-315 against the so-called "backloading” proposal.  This would have temporarily removed some 900 million allowances from the over-supplied scheme.

The EU carbon price fell by more than 40% to a new record low of €2.63/tonne on the ICE Futures Europe Exchange in London following news of the vote.

In an effort to push up the carbon price and make low-carbon investments more attractive, the European Commission had proposed withholding the 900 million allowances over the next two years.

The hope was that the resulting scarcity would drive up the price.

The move was backed by a number Log in to read complete article.

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