04 SEP 2010

By Ewa Krukowska | Bloomberg

The European Union Climate Commissioner said higher carbon prices are needed to drive innovations as nations establish a framework to cut emissions.

Pollution allowances in the EU’s emissions-trading system, the world’s largest, lost 40 percent from their 2008 levels as the global financial crisis hampered growth and reduced industrial output. Permits for December 2010 closed today at 15.74 euros ($20.28), compared with 26.47 euros two years ago.

“If there’s really a prospect that the carbon market continues and in a way that is interesting for business, that could be one of the tools to get a higher carbon price,” EU Climate Commission Connie Hedegaard said in an interview after an informal, two-day meeting of climate envoys in Geneva.

Read entire article