European Union carbon permits and U.N.-backed credits collapsed to record lows on Thursday, extending this week’s sharp price slide as fears of a slowing economy sapped demand in the markets that are heavily supplied with emissions units.It was also a signal that market participants are losing confidence in the flagging EU carbon market, the world’s biggest cap-trade scheme, traders and analysts said.This latest crash could not have come at a worse time. In just a few days a U.N. climate summit in South Africa will resume work on a new globally binding pact to cut emissions.Investors are already nervous about the future of carbon markets, given the uncertainty around when a new climate pact will emerge and what trading mechanisms will operate under it.Confidence is at an absolute minimum. It’s the macro-economic picture and the whole sentiment is not too good,” said a carbon trader at a financial institution.
Source: ACM
