European Union carbon permits dropped to their lowest level in more than three weeks as the bloc’s environment ministers meet in Brussels to discuss greenhouse-gas targets through 2050.
EU allowances for December dropped as much as 2.3 percent to 8.25 euros a metric ton on the ICE Futures Europe exchange in London, the lowest since Feb. 16, and were at 8.38 euros as of 9:34 a.m. local time.
Nations are set for a clash over the bloc’s strategy to cut greenhouse gases at the meeting today after Poland threatened to veto any declaration that may lead to stricter targets. Three eastern European countries led by Poland object to any mention of carbon targets for 2030 and 2040 in a statement to be adopted after the meeting, said government officials. Five other countries favor including a more ambitious goal for 2020, a draft EU document obtained by Bloomberg News showed.
The option of temporarily withholding carbon permits from the trading system, a so-called set-aside measure aimed at propping up prices, isn’t on the agenda of today’s meeting, according to an EU presidency official, who declined to be identified, citing policy.
Poland and other EU nations will probably eventually agree on the targets and set-aside, Markus Weber, head of natural gas and emission trading at ThyssenKrupp AG (TKA), said March 6 at the Argus carbon conference in Amsterdam. He didn’t specify when and said his comments didn’t necessarily reflect the views of his employer, Germany’s biggest steelmaker.
“I think there will be a deal,” Weber said. “The set- aside will happen” and in return Poland will get a more generous allocation of emission rights for after this year, he said.
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