Isramart : CO2 quota prices plunge

Isramart news:
Disappointing COP15 climate conference outcome prompts sharp drop in the cost of CO2 quota allowances

The weak agreement reached at the COP15 climate summit is the direct cause of CO2 quota prices plunging sharply, reports the Financial Times.

Market analysts believe the current allowance prices are about a third of what they ought to be after the 8.3 percent fall on Monday. It now costs 12.41 euro to emit one tonne of CO2.
The analysts say a firm agreement to reduce greenhouse gas emissions by at least 30 percent by 2020 would have been needed to make CO2 allowances more valuable. It would have brought prices up to where companies would see it as being more profitable to invest in environmentally sound technologies.

‘The Copenhagen Accord was very disappointing,’ said Trevor Sikorski, chief executive of international investment bank Barclays Capital.

‘I can see nothing right now that encourages investment in environmentally friendly technologies.’