IHS Chemical Week

EnviroTech :: Regulatory :: Regulatory: Climate Change

Mixed responses to reform of European emissions trading system

8:24 AM MST | February 27, 2015 | Michael Ravenscroft

The European Union’s emissions trading system (EU ETS) allows businesses to purchase permits for carbon dioxide emissions. The current glut of allowances on the market has caused the price of permits to drop to €7–€8 ($8–9) per m.t., whereas it was originally hoped they could be sold for €30 per m.t. The European Commission proposed the introduction of a market stability reserve (MSR) to reduce the number of allowances on the market in the event of a glut, and to release new permits to the market in case of a shortage. The...

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