FRANKFURT (Reuters) - The price of carbon dioxide (CO2) quotas in the European Union's emissions trading scheme will likely stay in its current range for the next six to seven years, the head of France's Rhodia (RHA.PA: Quote, Profile, Research, Stock Buzz) said on Thursday.
Prices for CO2 quotas have more than trebled over the last year, and are currently trading at 26-27 euros ($31.40-$32.61).
"I have a feeling that the current window is probably a good basis when we want to figure what could be the price for the next 6 to 7 years," Jean-Pierre Clamadieu, chief executive of the French specialty chemicals company, told the Reuters Chemicals Summit.
The EU scheme is a key part of its strategy to fight climate change and meet commitments under the Kyoto Protocol. It sets limits on how much CO2 can be emitted by high-polluting factories such as power stations and oil refineries.
Companies buy or sell rights to pollute, based on the limits set by national governments and approved by the European Commission, the EU's executive arm.
Rhodia said earlier this month it aimed to benefit from selling certificates in the carbon market.
"There are strong political forces that are pushing the governments in the EU to make sure that we abide by our Kyoto commitments," Clamadieu said. "I don't think that the pressure to reduce greenhouse gases will reduce in the next couple of years."
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