Price of EU Carbon Permits Falls to All-Time Low

Timothy B. Hurst — Wed, 28 Jan 2009 09:27:51 +0000

The decision to dole out free pollution permits to certain segments of European industry in the EU carbon market continues to look like a critical misstep.

The cause of the most recent collapse in the price of carbon in the European market is not just blatant over-allocation—as it was in 2006— the precipitous drop is a direct result of the global economic downturn that has European manufacturers down as much as fifteen percent. The problem is that the this creates another windfall for the parts of European industry that receive free permits.

The flood of credits into the carbon trading market has caused the European carbon price to drop rather precipitously from its summer peak of €31 to its current levels of around €11. Some analysts believe the price will fall to as low as €5 or €6.

UK Says Rich Nations Should Pay Billions Every Year for Rainforest

Meg Hamill — Tue, 14 Oct 2008 22:31:30 +0000

A UK commissioned report stated Tuesday that wealthy countries should pay tropical nations billions of dollars annually to save their forests.

The report, titled “Climate Change: Financing Global Forests,” offered that this money should come from private donors and global carbon markets. The report states that by 2030, developing nations should also be asked to pay to help create “carbon neutral” forests, through setting targets to help slow deforestation, and hasten reforestation.

“Deforestation will continue as long as cutting down and burning trees is more economic than preserving them,” said Johan Eliasch, Prime Minister Gordon Brown’s special representative on deforestation, and author of the report.

The report estimates that funds from carbon markets alone would be able to cut deforestation rates down 75 percent by 2030.

Green Options » carbon permits

Price of EU Carbon Permits Falls to All-Time Low

The decision to dole out free pollution permits to certain segments of European industry in the EU carbon market continues to look like a critical misstep.

UK Says Rich Nations Should Pay Billions Every Year for Rainforest

A UK commissioned report stated Tuesday that wealthy countries should pay tropical nations billions of dollars annually to save their forests.