The European Parliament has voted against propping up the EU’s emissions trading scheme in a move that sent prices plunging to new lows in the world’s biggest carbon market.
In what some analysts fear will be a significant setback for global efforts to tackle climate change by putting a price on carbon emissions, members of parliament voted 334-315 on Tuesday against a measure known as “backloading”. This would have temporarily removed some 900m allowances from the over-supplied emissions trading system.
The EU carbon price fell more than 40 per cent to a new record low of €2.63 a tonne as news of the result filtered out.
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