Bloomberg News

Carbon Market May Be Too Focused on Short-Term, Delbeke Says

February 27, 2012

Investors in the European Union emissions trading system may be overconcentrating on the short- term perspective, said Jos Delbeke, director general for climate at the European Commission. He made the comments at a conference organized by Eurelectric in Brussels today:

On EU carbon prices:

“CO2 price is low today. The role of recession is very important. Also, what we see today on the markets is that they are very concentrated on short term.”

On short-term focus in the market:

“Perhaps there’s overconcentration on the next 3-6-12-15 months. The question for policy makers is what’s beyond those months. That’s why we’re monitoring the situation and we’re not following in line immediately with those who say we intervene in the market. We’re very much cautious about the fact how we will see the impact of many different dilemmas: there’s the recession, we see a massive redesign of the industrial sector worldwide. Once we’re going out of the recession, what is going to stay in terms of emission patterns?”

On the set aside of permits:

“So setting aside, the buzz word that is currently most discussed, has many different connotations and before we go to any interference with the market we’d like to see in black and white what are the different elements that constitute market prices as we have them today. Having said that, we set ourselves a cap and the cap is going to deliver. So in terms of climate change delivery, it’s there.”

“We’re monitoring very closely the situation and the commission in its wisdom is going to come up with whatever needs to be brought up to the attention of policy makers.”

To contact the reporter on this story: Ewa Krukowska in Brussels at ekrukowska@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net NI ENV NI ENVMARKET NI CLIMATE NI UTI NI EU NI RULES NI VOICE NI PWRMARKET NI COALMARKET NI GASMARKET NI NRGMARKET NI CMDMARKET


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