EU Tightens Emissions Limits

The European Union has tightened emissions limits for 2020, which is likely to boost demand for carbon credits as governments and companies try to stay under the allowance.

The Carbon Markets & Investors Association, a lobby group of banks and greenhouse-gas-trading companies, has said it supports this adoption of tighter limits. The group would support a unilateral target of a 30 percent cut in emissions from 1990 levels by the end of the decade, the lobby said today in an e-mailed statement. The current target is for a 20 percent reduction.

The EU is setting rules this year for the third phase of its carbon market, the eight years through 2020. The second phase runs for the five years through 2012.

“The global economic downturn has had the effect of leaving many installations covered by the EU emissions trading system with an excess of Phase II allowances that can be banked into Phase III,” the association said in the statement.

---

For more information about carbon credits, speak to one of our consultants at 360 Invest Group today.