By Timothy Cama - 07/09/14 09:22 AM EDT
The European Union’s Parliament will start work this fall on a measure aimed at increasing carbon dioxide prices in the emissions trading system by setting supply controls.
Giovanni La Via, chairman of the Parliament’s environmental committee, said told Bloomberg News his panel would consider a proposed measure “carefully and comprehensively.” A draft measure unveiled in January would remove and reserve excess carbon pollution credits to keep prices high.
Excess emissions permits rose above 2.1 billion allowances last year, a record under the cap-and-trade program, Bloomberg said. Prices hit a record low of 2.46 euros per ton in April 2013.
Under the proposal unveiled in January, credits would be reserved if there were more than 833 million metric tons of excess capacity, and they would be reintroduced into the market if the number fell below 400 tons. The reserve system would start banking or releasing credits in 2021.
The EU adopted an emergency measure this year to delay carbon credits at auctions for the next two years, another action aimed at increasing prices.