Prices on the EU Carbon Allowances market have crashed due to oversupply headed into the seasonal (summer) downturn. The market for emission permits has been discredited by fraud, re-sale of used allowances and VAT scams since it’s launch. But also it seems that buyers realise that the backlash against the anti-growth “carbon=pollution” agenda of the EU Commission has finally arrived:
“Poland [this week] blocked an attempt by European Union environment ministers on Tuesday to strengthen the EU’s carbon market and to aim for a 25 percent reduction in greenhouse gases by 2020, three EU sources said” Extract from Poland blocks EU move for deeper CO2 cuts | Reuters
The US carbon trading market crashed (and disappeared) last year for lack of interest. But the spectacular fall in the EU market seems to have been precipitated by both distressed sales of permits by the cash-strapped Greek government and by the EU Commission itself that decided to dump 300 million permits into the market to fund “green” programs including uneconomic carbon-capture-and-storage experiments.