The global economic slowdown will have a significant effect on the European carbon market, nearly halving an expected shortfall of EU carbon allowances in 2008-12, carbon market analyst IDEAcarbon forecast last week.
IDEAcarbon expects the shortfall of carbon allowances during the second trading phase of Europe's emission trading scheme (ETS) to be 115m per year. This is 44 per cent less than what the analyst predicted last year.
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