Media reports are emerging that the head of carbon trading for Barclays bank has resigned in the aftermath of the EU’s rejection of a backloading scheme that would have revived the cap-and-trade market.
According to Bloomberg, citing sources with “direct knowledge of the matter”, Louis Redshaw, head of carbon, coal and iron ore trading for Barclays Plc (BARC), has resigned his position after dealing in emissions permits for the bank since 2004.
On 17 April, the EU voted against a backloading proposal that would have withheld some 900 million carbon permits and released them at a later date when demand was stronger to boost prices. The result of the negative vote was an immediate drop in carbon prices.
Over the past year, emissions allowances have plummeted almost 60%, hitting a new record low after the EU vote.
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Analysts interviewed by Bloomberg described Redshaw as a “superstar” in what is now a crumbling carbon market. They also insinuated that his resignation is a sign of the times and should serve as a signal to European leaders that something needs to be done to fix the languishing cap-and-trade system.
Redshaw’s is the second carbon-related resignation at Barclays this year. In February, the head of the bank’s carbon, natural gas and coal research, Trevor Sikorski, also resigned.
The EU’s negative vote is likely to further spur the coal market in Europe.
At the same time, United Nations carbon offsets hit a record low this week of 1 euro cent, after having a tough year facing the European glut.
By. Charles Kennedy of Oilprice.com