EU carbon price collapses: Carbon trading is not the solution to climate change

EU carbon price collapses: Carbon trading is not the solution to climate change

The EU Emissions Trading Scheme is in crisis. Yesterday, the European Parliament voted against the backloading proposal which was aimed at increasing the price of carbon permits. After the vote, the price of carbon permits dropped by about 40% to its lowest ever price of €2.63. New Energy Finance predicts that it might fall as low as €1.

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Disagreement on REDD finance during the “stalemate” climate negotiations in Bonn

Disagreement on REDD finance during the stalemate climate negotiations in BonnLast year, emissions of carbon dioxide increased by 3.2% to 31.6 billion tonnes, according to figures released by the International Energy Agency. Fatih Birol, IEA’s chief economist told Reuters that, “[T]he trend is perfectly in line with a temperature increase of 6 degrees Celsius (towards the end of this century), which would have devastating consequences for the planet.”

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Durban feedback: Is the carbon market “still on life support” or did it get a “Viagra shot”?

The agreement that came out of the Conference of Polluters (COP-17) in Durban included no new commitments to reduce emissions. “What we got instead was a clear signal that we might get another clear signal in 2015,” as Jonathan Grant, director of carbon markets and climate policy at PricewaterhouseCoopers told the Financial Times.

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