Why the slump matters

Stock markets across the world are not the only markets crashing at the moment. The carbon market hasn’t been doing too well either. On 27 October the price of European carbon collapsed to an 18-month low of €17.60. Three months ago, it was close to €25.

As the industrial sector prepares for a major slowdown, the numbers of carbon emission allowances different sectors have been granted in the EU for 2008-12 may prove to be more generous that initially anticipated.

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