Market jitters

Carbon permit prices rose again on Monday and Tuesday, supposedly as a result of news that the German Government was considering rescinding emissions permits, and that France would seek to carry unused permits forward into Phase II of the trading programme (ie, 2008-2012).   Today, they have fallen back somewhat.

Meanwhile, the FT has called on the EU and member states to hold firm in keeping supply of permits tighter than demand for them for Phase II.  If they do, prices will likely rise from the current level.

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