EU carbon price could crash again: report - Reuters

[Eugene]

Source: Reuters

EU carbon price could crash again: report
Thu Aug 9, 2007 12:10PM EDT

LONDON (Reuters) - The price to emit the greenhouse gas
carbon dioxide faces a repeat of its price crash last year on
the European Union's carbon trading scheme, said a report
by a London-based group opposed to closer EU political
integration.

The report was attacked by some carbon market participants
and lobbyists.

In 2006 the EU carbon price collapsed after it emerged that
businesses had received too many permits to emit carbon
dioxide, called EU allowances (EUAs), undermining the 27-
nation bloc's flagship climate change strategy.

A repeat scenario was possible in the second trading cycle
of the scheme from 2008-12, said Open Europe on Thursday.

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Read more: http://www.reuters.com/article/environmentNews/idUSL0987906920070809