E3G

Reuters: EU Carbon Market

By Nick Mabey

The first couple of years of the EU Emissions Trading Scheme have been plagued by falling carbon prices.

As the data from 2006 was released, an article by Reuters was quick to focus on accusations of overly-generous permit allocations by Member State governments.

First to be quoted in its 3-page report was E3G Chief Executive Nick Mabey on the political nature of the problem:

I think the first phase shows you have to have the politics and the market right.”

Markets aren’t magic, they only work if the politics creates scarcity.”