• 6 hours Getting out of oil .. now
  • 3 hours Too much or doable - $900 Billion Annual Investments Needed In Renewables By 2030
  • 9 hours Surprise! Aramco Scraps International Listing Plans
  • 5 hours U.S. Arrests Iranian Over Alleged $115 Million Sanctions Evasion Scheme Involving Venezuelan Housing Project
  • 13 hours EU Proposes Online Turnover Tax For Big Tech Firms
  • 14 mins Elon Musk’s $2.6 Billion Tesla Challenge
  • 3 hours U.S. Judge To Question Big Oil On Climate Change
  • 5 hours The Facebook/Cambridge Analytica Scandal
  • 11 hours "Rock star of science" - Stephen Hawking, Who unlocked The Secrets Of Space And Time, Dies at 76
  • 12 hours McDonald's Sets Greenhouse Gas Reduction Targets
  • 7 hours Bad seven days for Martin Shkreli
  • 14 hours Step forward or blackmail? DJT: Tariffs On Steel and Aluminum Will Only Come Off If New Fair NAFTA Agreement Is Signed.
  • 1 day 2020 - Electricity From Renewables Will Be Cheaper Than From Most Fossil Fuels?
  • 4 hours Goldman Sachs Expects Tesla to Miss Model 3 Targets Again
  • 6 hours Nuclear Bomb = Nuclear War: Saudi Arabia Will Develop Nuclear Bomb If Iran Does
  • 12 hours Country With Biggest Oil Reserves Biggest Threat to World Economy
UK Looks To Ditch Russian Gas After Spy Scandal

UK Looks To Ditch Russian Gas After Spy Scandal

Following the spy poisoning scandal…

EC Announce the Withdrawal of 900 Million Carbon Allowances from Market

The European Commission has announced its plans to delay the auction of some 900 million carbon emission allowances, in an attempt to rescue the collapsing carbon market. The 900 million allowances that were scheduled for the next three years will not be released for sale until the last two years of the next trading phase, with 300 million sold in 2019, and 60 million in 2020.

Struggling economies throughout Europe have caused a collapse in demand, meaning that carbon prices have hit all-time lows this year, and lost over 80 percent of their value since 2008. The oversupply in the market is estimated to be in the area of two billion tonnes.

Matthew Gray, an analyst at Jefferies, said that the EC may even decide to eliminate the allowances permanently, in an attempt to boost carbon prices.

Related Article: PwC Report States that Global Temperatures will Increase by 6°C by 2100

Marcus Ferdinand, a senior market analyst at Thompson Reuters Point Carbon, said that, “we think it likely that some 700 million allowances will be permanently cancelled, with just 200m reinjected in 2019 and 2020, increasing EUA prices to an average of €10/t in 2013 rising to an average of €14/t in 2015 and settling around the €12/t for phase 3 as a whole.”

There are some who believe that the EC should have eliminated more permits. Statoil, Shell, and Dong Energy, have called for 1.4 billion permits to be withdrawn from the market, and some environmental groups are even asking for 2 billion.

By. Joao Peixe of Oilprice.com

Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News