European emissions trading

The Financial Times reports that the prices paid for permits to produce carbon under the European Union’s emissions trading scheme suffered precipitous falls last December and in the early part of this year, tumbling from about €30 (£27) last summer to €15 in December before a fresh plunge to only about €8 in mid-February. In recent weeks, the prices have recovered to about €13.30, the analyst group Point Carbon estimates.

The recovery encourages carbon traders. They are affected by the prices, as they amass portfolios of carbon credits to be sold to participants in the EU scheme. The credits are issued by the United Nations to developing world projects that cut emissions, such as wind farms or solar panels.