Hunting a perfect carbon market recipe

With EU carbon prices at levels too low to stimulate green investment, the search is on for a solution.

Any one-off European Union intervention to clear the massive glut of permits now clogging its emissions trading scheme is likely to lead to a ‘central bank' or other policy tool to manage future imbalances in the world's biggest carbon market.

If it does act, the European Commission, the bloc's executive, is cautious about entrenching such a mechanism in the scheme, the bloc's chief weapon to fight climate change.

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