The price of emitting one tonne of CO2 in Europe fell from €30 last Monday to €16.50 on Thursday. This followed news that France, Estonia, the Netherlands, the Czech Republic and the Walloon region of Belgium all had a surplus of carbon credit, pulling down the price.
The carbon trading scheme was launched in Europe in January 2005 to limit total carbon emissions under the Kyoto Protocol.
It is good news for the environment if countries are coming in under target – it means they are emitting less carbon dioxide than predicted.
However, some countries are expected to not have enough carbon credits including Britain, Germany, Spain, Italy and Portugal. These countries have to report by the 15th May.
Will they push the price back up?
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