German bourse scraps EU carbon emissions trading
FRANKFURT (Reuters) - Bavaria's stock exchange will abandon its carbon emissions certificate trading operations in the EU-traded CO2 market on June 30 after volumes in Europe "plunged to practically zero" in recent months, it said on Tuesday.
The EU's emissions trading scheme (EU ETS) limits the carbon dioxide emissions of the 27-nation bloc's factories and power plants and covers nearly half of EU emissions.
Prices in the ETS have shed around 60 percent of their value over the past year due to market worries about the growing supply glut and weak demand.
"Emissions trading will never find its feet again without radical political action," said Christine Bortenlaenger, the head of the exchange, in a statement.
"To actually achieve the original goal of reducing carbon emissions, trading prices must be boosted by drastically reducing the number of certificates. Only then will companies perceive investment in carbon reduction technologies as worthwhile," she added.
The bourse cited the uncertainty caused by the euro zone debt crisis which hampers industrial activity and hence the need to hedge or bring down carbon emissions output.
(Reporting by Vera Eckert, editing by Christiaan Hetzner)
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