Emissions trading obituaries are a lot of hot air

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Launched in 2005, the European Union Emissions Trading System (EU ETS) was meant to encourage firms to switch towards greener alternatives than burning dirty fossil fuels. But due to economic woes, a glut of European Union Allowances (EUAs) has emerged, causing the market price of emissions to plummet. During 2006, these allowances – each of which represents one tonne of carbon dioxide or equivalent gases – changed hands for more than €30 per tonne. By January 2 this year, the price of EUA

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