VIDEO: What next for EU emissions trading?

A vote aimed at reforming the EU’s beleaguered emissions trading scheme has saved it for now – but serious doubts remain over its future.

The price of carbon allowances dropped 20% after the vote, suggesting the markets were not convinced despite an important committee backing reforms.

If adopted, these would see the EU holding back a tranche of carbon permits until 2019, to ensure there is no over-supply of carbon in the market.

Carbon permits are currently trading around the €5 mark, down from €30 a few years ago.

The aim of the trading scheme is to incentivise heavy industries and power generators to cut their emissions – but with the price of permits so low it is easy for them to ‘purchase’ vast quantities of Co2 and thus continue to emit as usual.

VIDEO: EU ETS roundup from EU Policy Broadcaster viEUws

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