Can the EU Emissions Trading Scheme survive Europe's debt crisis?

Confidence crisis for carbon?

Emissions - smoke stacks

The price of carbon under the European Union Emissions Trading Scheme (EU ETS) has dropped considerably this year and looks set to remain low throughout 2012 and beyond. To maintain confidence in the scheme as a method of lowering carbon emissions and triggering investment in clean energy, experts say the issue of oversupply of credits needs to be addressed and changes need to take place in the next phase of the scheme – phase three – which starts in 2013.

The price of an EU ETS carbon credit – a

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