Carbon Market Prices Tumbles

U.N.-backed carbon prices fell to a new record low on Wednesday, taking a cue from a 7-percent drop in European Union carbon permits amid growing worries about a slowing economy.

• EU Allowances (EUA's ) hit a fresh 33-month low of 8.45 euros.
• Certified Emissions Reduction (CERs) contract traded at a record 5.99 euros ($8.08), down 6.4 percent from the previous day's settlement.

In the same week a United Nations Environment Program (UNEP) report showed that Greenhouse gas emissions in 2020 could rise more than forecast to between 6 billion and 11 billion tons above what is needed to limit global warming to 2 degrees Celsius.

"To stay within the 2 degree limit, global emissions will have to peak soon (and) total greenhouse gas emissions in 2050 must be about 46 percent lower than their 1990 level, or about 53 percent lower than their 2005 level," the report said.


Reuters - EU CO2 underperfomance strains traders' faith
Reuters- Emissions cuts off course to halt global warming: UNEP