Wednesday, May 25, 2005

European carbon prices go up

Carbon prices have been rising sharply since the European emissions trading scheme was launched at the start of this year, reaching a record closing price of €19 a tonne yesterday, the Financial Times reports.
Under the emissions trading scheme, the amount of carbon dioxide - a gas that causes climate change - that industries can emit is capped. Companies that use less than their allowance can sell their excess permits.
The paper quoted Margaret Beckett, UK secretary of state for the environment, as saying that emissions trading would boost the City of London, which has become an international centre for this emerging business.
A senior associate at the law firm Baker and McKenzie added that London has developed one of the biggest concentrations of expertise [on] greenhouse gas emissions trading. Many of the contracts are based on English law, and already the City is working on some sophisticated financial products around carbon, he added.
Read article here (for subscribers):
  • Financial Times website