EU carbon market crashes


The shambles that is the EU is held up as a shining example of what Australia should aspire to be – fractured, miserable, uncertain, and verging on bankruptcy. Terrific. And to cap it all the carbon price has now crashed to 12 Euros, or AU$16, far less than the Three Gs (Garnaut, Government and Greens) want ours to start at. Hopefully it will continue on down until it reaches the level of the Chicago Climate Exchange, where trading finally ceased at a few sad, sorry cents per tonne. Right before it was closed for good.

PRICES in the European Union’s emissions trading scheme have plunged to two-year lows, intensifying pressure on the Gillard government to start with a low carbon tax and threatening to complicate negotiations with the Greens, who are pushing for a strong start to the Australian scheme.

Business groups yesterday seized on reports that the EU permit price fell 11 per cent on Friday — and 22 per cent in a week, testing a two-year low of $16.79 a tonne — saying it highlighted the dangers of a fixed-price scheme that could leave Australian businesses facing higher prices than international competitors.

The EU price has traded well below the $20-$30 starting rate recommended for the Australian scheme by government climate change adviser Ross Garnaut.

European analysts said the reasons for the fall included the bleak economic outlook sparked by the Greek debt crisis, lack of confidence in the will of European governments to achieve their stated policy aims, and the fact energy-efficiency measures appeared to be replacing carbon pricing as the EU’s main climate change lever.

So Australia will plough into carbon pricing just as others, who have experimented with it and seen it fail, are looking elsewhere. Brilliant again, Julia, Greg, Ross etc etc.

Read it here.


  1. Sean McHugh says:

    And to cap it all the carbon price has now crashed to 12 Euros, or AU$16, far less than the Three Gs (Garnaut, Government and Greens) want ours to start at.

    You forgot the Governor General and Gaia the Greek goddess.

  2. Yeah, but remember it “worked” in NZ..

    At least the MSM are reporting on something about trading schemes elsewhere. It’s a shame though that they don’t seem to report on how riddled with fraud they are. I’m sure that would sink Labor’s popularity even further, if it is possible to go any lower.

  3. If we are falling behind, then this carbon tax must mean we would be following other countries, like those in Europe. Is this where Julia is taking us?

  4. Baldrick says:

    This is exactly why the U.S.A. will not even touch a carbon tax or an ETS. The E.U. fell into the ETS trap but America was smart enough to stay out of it, because they know what it will do to their already beleaguered economy.

    But our stupid Government will go head-first into the abyss. Our economy is already only hanging on a shoe-string thanks largely to our mining industry, which our Government wants to tax further with a Minerals and Resources Rent Tax (Mining Tax) and a Carbon Dioxide Tax. The rest of our economy is in a virtual recession … now we’ll screw the mining industry and watch our economy fall in a heap!

    The mining industry will pass on their Mining Tax as will energy suppliers who will pass on their Carbon Dioxide Tax to the end consumer – YOU and ME. But that’s okay because we’re going to hand over 15 billion in extra taxes and get 6 billion back …. go figure!

  5. SOYLENT GREEN says:

    I posted it too, hilarious.
    But I forgot, it’s even worse because, according to interpol, 90 percent of the EUrotard market is fraud anyway.

  6. rukidding says:

    Think how much fun Tony Abott will have if the Australian CO2 tax is any more than $16/ton

  7. Don’t forget the contribution to the UN Green Climate Fund from any carbon tax or ETS, to the value of 10% commitment to the UN.
    Climate Change Minister Combet signed the initial document at Cancun Dec. 2010
    From the website “Tribal Energies Research” –
    “Here’s how that’s possible: with a $25 per tonne carbon tax, $13 billion in new revenue can be raised. Several tax reform options can use this new revenue”
    Suggests $13 billion in new revenue raise from a carbon tax, could mean a commitment of $1.3 billion to the UN Green Climate Fund.
    If the Greens get their way – – well let’s not go there.

    But it would allow a lot of medical research, improve a lot of hospitals, fix a lot of roads, house a lot of people living on the streets etc.

  8. I totally agree with JeffT, so much our taxpoayers money will be wasted. But then, that’s what the Greens want, turn us all into a replica of the Stone Age people !!

  9. Richard N says:

    Great news about the EU carbon price crashing. One can only hope that the significance of these figures will penetrate the thick skulls of Windsor and Oakshott before they sign off on this economy killing carbon dioxide tax.The good ship Carbon Tax has certainly taken a few direct hits latley, but this one is a beauty. How many more can it takes before it sinks to oblivion along with Gillard government.

  10. Sling Blade says:

    They’ll start using that money wisely about two minutes after Hell freezes over.

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