European Parliament vote on carbon market reforms seen as bullish

Energy traders welcome reforms seen as shoring up the ailing EU carbon market

Power plant carbon emissions
Higher price could cause firms to lower their emissions by investing in new technology

A package of ambitious reforms designed to shore up the European Union emissions trading scheme (EU ETS) was approved by the European Parliament on Wednesday (February 15), offering a lifeline to the ailing carbon market, say analysts.

While the vote slightly watered down the strident proposals put forward by Parliament’s Environment Committee (Envi) on December 15, the final position is considerably more bullish for the market than the European Commission’s earlier proposals, analysts say. 

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