The price of carbon credits in the EU's emissions trading scheme reached a record low for the current phase of the scheme of just €11.60 as many of the large scale emitters covered by the scheme continued to offload their EUA carbon credits.
The price of EUAs has been on a steady slide since the start of the year when they stood just shy of €16 a tonne and market watchers are concerned that the price of carbon is no longer tracking oil prices.
Rising oil prices typically lead to an increase in the price of carbon, as they tend to result in energy producers switching from gas to more carbon intensive coal -- a scenario that leads to increased demand for carbon credits.
However, the price of carbon has failed to track recent fluctuations in the oil price, prompting fears that any increase in demand for credits from energy companies arising from changes in the oil price is being outweighed by the on-going sell off of credits amongst heavy ...