EU Would Win From Australia’s Flexible CO2 Cap, Group Says

The European Union carbon market, where prices have plunged by half in the past year, should consider installing a more flexible cap such as that proposed in Australia, said the Carbon Market Institute.

Prices in the EU program, the world’s biggest greenhouse gas market by traded volume, dropped as the region’s sovereign-debt crisis exacerbated an oversupply through this year and beyond. The cap for 2020 was set in 2008. In the Australian market, annual supply of permits will be set five years in advance.