Plummeting EU Carbon Market Bodes Ill for Clean Tech Investment
In the Environmental Leader, December 22 2009
As carbon emissions allowance prices inch ever lower, it becomes less and less feasible for companies to invest in renewable energy, carbon capture and storage and other alternative energy means, observers say.
After the Copenhagen talks failed to reach a binding agreement, EU carbon prices fell to a six-month low of 12.4 euros Dec. 21, well below the zenith of 30 euros reached in the summer of 2008, Reuters reports. The Dec. 22 spot price was 12.16 euros, according to the European Climate Exchange.
Analysts say that sustained prices of at least 25-30 euros are needed to spur investment in clean tech.