forgot to send yesterday
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CO2 Permits May Quadruple on EU Measures, Orbeo Says (Update1)
2010-10-25 10:36:59.682 GMT
(Adds low forecast in second paragraph.)
By Mathew Carr
Oct. 25 (Bloomberg) -- Prices for carbon permits may
quadruple this decade as the European Union tightens its 2020
emissions target and restricts the use of United Nations offset
credits, an analyst at Orbeo said.
EU carbon permits may jump to 60 euros ($84.17) a metric
ton by 2020 from today's 15.14 euros a ton, Emmanuel Fages, an
analyst for Orbeo in Paris, said today in an e-mailed research
note. Orbeo is the carbon venture of Rhodia SA and Societe
Generale SA. Prices may be as low as 22 euros a ton assuming the
current emissions target of 20 percent below 1990 levels and no
quality limits on offsets, it said.
The bloc, which runs the world's biggest carbon market, is
setting rules over the next few years for the third phase of its
cap-and-trade program, which runs from 2013 through 2020.
"The political acceptability at this stage of such a high
price seems dubious," Fages said in the report. "What we are
essentially saying here is that the EU emission trading system
rules will probably be adapted towards more flexibility, should
such a level be reached in the absence of any kind of
commitments in the rest of the world."
For Related News and Information:
Emission market news NI ENVMARKET <GO>
Today's top energy stories ETOP <GO>
European power-markets home page EPWR <GO>
--Editors: Mike Anderson, Alex Devine.
To contact the reporter on this story:
Mathew Carr in London at +44-20-7073-3531 or
m.carr@bloomberg.net
To contact the editor responsible for this story:
Stephen Voss at +44-20-7073-3520 or sev@bloomberg.net
