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Environment & Energy Report

Fathers of Carbon Market Say Policymakers Should Let Prices Drop

March 26, 2020, 3:21 PM

Two of the architects of the European Union’s pollution cap-and-trade system said policymakers shouldn’t rush to intervene in the market after prices dropped by almost a third.

Thousands of industrial energy users and airlines buy the allowances to cover their greenhouse gas emissions. Since the start of the month, prices of those allowances has tumbled about a third, reducing the economic pressure on companies to rein in fossil-fuel use.

That drop is probably temporary and relieves pressure on companies troubled by the economic slowdown, according to Jos Delbeke and Peter Vis, who are both former senior officials in...

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