CO2 trading to triple by 2016

The price of carbon in the EU is likely to increase from around €15 per tonne to €40 by 2016, according to market analyst Point Carbon’s latest carbon market brief. Such an increase is vital in order to meet the EU’s current emission reduction targets of 20% below 1990 levels and any possible increased reduction targets that may be discussed at the UN’s Copenhagen summit this December. By creating a surplus of allowances however, the current economic crisis could make it politically easier for the EU to commit to a 30% cut in Copenhagen.