EU Said to Consider Linking Carbon-Permit Supply to Growth
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The European Union may propose linking the supply of carbon permits with economic performance as a long-term option for the world’s biggest emissions market, a person with knowledge of the matter said.
The European Commission, the EU’s regulatory arm, may propose introducing a so-called adjustment mechanism to react to macroeconomic developments in a report on the carbon market due to be published next month, said the person, who declined to be identified because the information is private. The EU currently doesn’t have any tools to adapt emission caps once established.