EU CO2 Emissions Price Drop Due To Failure In Copenhagen

Click on photo for Center Carbon Mercantile Exchange (CMX)
The failure of the United Nations climate summit in Copenhagen to produce a binding agreement to cut carbon-dioxide emissions caused prices for carbon-emissions permits in European carbon markets to drop by more than 8%. And the nonbinding Copenhagen Accord did not stipulate how much big countries, such as the U.S. or China, have to reduce their emissions of greenhouse gases.

That helped push prices for carbon permits down from €13.58 ($19.35) on Friday to €12.41 ($17.73) per metric ton (2,200 lbs) on Monday. Carbon-permit prices have fallen 14% since the beginning of the Copenhagen conference. The Center is currently marketing CO2 offsets for $20 per ton.

The European Union's emissions-trading plan caps the amount of greenhouse gases that power companies and the like can emit. They can purchase carbon permits on the market in order to comply with emissions limits. The Center markets CO2 offsets through its Carbon Mercantile Exchange (CMX). CMX offsets are based on short tons. (WSJ, 12/22/09)