According to Swiss bank UBS, the price of carbon could tumble to as low €3 per tonne in the EU next year. This is believed to be the result of the ongoing debt crisis and the oversupply of permits. UBS also indicated that the Emissions Trading Scheme "isn't working" as carbon prices are "already too low to have any significant environmental impact." EU Allowances plunged to €9.23 on 18 November 2011, the lowest price since February 2009, going on to fall to €7.86 on 24 November.
On 24 November PointCarbon highlighted the consequences of the collapse in EUA prices. However, according to the article, on the issue of potential EU intervention on prices, Jos Delbeke, director-general at the European Commission’s DG Climate Action, has stated that “Changing the rules would mean going to a process of co-decision, it takes easily two to three years”.
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