Europe's critical carbon question

Calls for changes to Europe's carbon trading scheme are growing by the day, but currently the major hindrance to clean energy growth is the low price of coal, not the soft carbon price.

Limited reform of EU emissions trading may not achieve much in CO2 cuts as the falling competitiveness of cleaner technologies is driven more by plunging coal than carbon prices.

The financial crisis has slashed carbon prices to record lows by creating a glut of emissions permits.

The European Commission wants to boost prices by rationing the supply of EU allowances (EUAs) from next year.


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