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What Next -- Climate Watch

EU carbon permit prices could crash to 3 euros next year, says UBS

Swiss investment bank UBS concludes that the carbon markets are failing – both in terms of investments as well as having any meaningful contribution to climate and environment. Quotes below from report market analysts Point Carbon.

“By 2025, the ETS will have cost consumers 210 billion euros. Had this amount been used in a targeted approach to replace EU’s dirtiest plants, emissions could have dropped by 43 percent, instead of almost zero impact on the back of emissions trading.”

"We expect the recent carbon price decline to escalate into a 'crash' as carbon market supply should double over the coming months," the analysts wrote in a note to clients.

UBS said: “With limited benefits and embarrassing consequences, including billions of euros in windfall profits and fraud, we see fading political support. We don’t expect the ETS to disappear, but politicians are unlikely to tighten the rules to revitalise it.”

Original source: Point Carbon

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