The media reported yesterday that the European Parliament has
rejected an attempt to raise the costs of emitting greenhouse gases
in a contentious 334-315 vote. Siding with opponents of increased
energy costs, Members voted down a measure that would have
temporarily cut a large surplus of carbon allowances currently
being traded. The BBC reports that the price of carbon on the EU
Emissions Trading Scheme has since plunged to less than 5 euros a
tonne.
Given that energy prices are already significantly higher in
Europe than in North America, the decision protected European
manufacturers who would have been at an even greater disadvantage
to their counterparts in the United States and Canada had the
measure been passed. However, there is concern that the European
Parliament's decision will give ammunition to critics of carbon
trading systems in other parts of the world including Canada.
