The worth of traded EU carbon allowances and UN emissions credits fell from €95 billion in 2011 to a reported €61 billion. Analysts blame a near halving of the average price of carbon allowances from €11.2 a tonne in 2011 to €6.4 a tonne by the end of 2012.
“This analysis doesn't come as a surprise, as we all know the reality of the market,” Sarah Deblock, the EU policy director of the International Emissions Trading Association (IETA) told EurActiv in an email.
“It reaffirms the importance of the proposal by the European Commission to backload 900 million allowances during phase III of the EU ETS,” she said.
The EU executive has proposed staggering the release of these allowances to create a temporary scarcity to slightly raise carbon allowance prices, which have been depressed by economic recession and a lack of robust political signals.