The December futures contract advanced 22 percent since April 26, closing at €3.78 ($4.98) a metric ton on London’s ICE Futures Europe exchange, Bloomberg reports. The May 3 close represents a 23 percent jump from the day before. Trading volume doubled between May 2 and May 3 to 27 million tons, Bloomberg says.
In a 334-315 vote, with more than 60 abstentions, lawmakers rejected a proposal to postpone — or backload — the auctioning of 900 million EU Emissions Trading Scheme allowances from the years 2013-2015 to 2019-2020. This measure was intended to reballance supply and demand, and reduce price volatility.
At a May 3 Protestant church event in Hamburg, Merkel said: “Something also has to be done on backloading, otherwise we have a development that goes in the wrong direction. All of the assumptions that are the basis of CO2 trading no longer apply,” according to Bloomberg.
The European Parliament’s environment committee meets today in an attempt to revive the backloading plan rejected by the full assembly last month.