In May 2006, the price of carbon crashed when the European Commission released actual emissions data, indicating that too many carbon credits had been given out for free during phase one of the emissions trading scheme.

The carbon market is now focusing on phase two, due to run from 2008-2012.

Analysts such as Mission Climat at Caisse des Dépôts in France have forecast a second phase carbon price of between €10 and €25. At the beginning of July, permits for settlement in December 2008 were trading at around €22.

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Posted: 07|13|07 at 7:03 am. Filed under: Auction News.