Carbon market future hinges on Germany

The future of the EU ETS is in the balance this year, with Germany holding the key. If it does not vote for changes to boost low prices then a near useless price of €3 could be on the cards.

The future of the European Union's emissions trading scheme, meant to be a cornerstone of the bloc's climate policy, is in the balance this year as traders look to Germany to back a plan to boost low prices.

Launched in 2005, the EU ETS has been beset by problems ranging from overestimating the number of permits required by Europe's industry, to fraud, to a glut of permits generated by low demand during recession.

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