Europe's carbon market begins long road to recovery

Long road ahead

July 3 was a day of high drama for the European Union Emissions Trading System (EU ETS). That day, the European Parliament voted for the second time on a measure many market observers consider vital to the future of Europe's flagship climate change policy and the world's largest carbon trading scheme.

The measure in question was back-loading – a plan drawn up by the European Commission (EC) last November, which entails giving the EC the legal right to postpone the auction of 900 million European