Europe's CO2 Emission Prices Take Yet Another Tumble

摘要

Prices for carbon dioxide(CO2)permits in Europe's Emissions Trading System(ETS)have taken a tumble in recent weeks,hitting a four-month low last week of euro 18.63(25.29)per metric ton for the December 2008 contract.That represents a decline of around 25% from early-June highs(WGI Jun.20,p7).The numerous factors contributing to this slide include falling natural gas prices and recently high coal prices.The combination is seen as reducing demand for pollution permits,known as European Union Allowances(EUAs),since generators will tend to favor cleaner-burning gas when prices allow.When burned for power generation,coal typically emits twice the amount of C02 that gas does and so requires more permits.