EU Carbon Market Reserve Seen Absorbing 85% of Glut by 2021
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An unprecedented overhaul of the European Union’s carbon market will probably remove 85 percent of a glut of permits that sent prices tumbling and eroded incentives to reduce emissions.
A proposed reserve to control the number of allowances in circulation will probably hold 1.7 billion metric tons of the contracts by 2021, according to the median estimate in a survey of eight analysts and traders. The European Commission will unveil on Wednesday a package of rules for the market through 2030, some of which will probably set the size of the reserve.