Hedge Fund Boss Says EU Carbon Has Much Further to Fall (2)

A veteran hedge fund investor sees a further slump in European Union carbon permits on the horizon as energy supplies soar and demand remains subdued.

A flood of renewable power, combined with falling gas prices and a recovery in nuclear and hydro plants will keep the pressure on carbon, said Per Lekander, chief executive officer of London-based Clean Energy Transition LLP. Prices have already slumped 30% this year as that combination curbs pollution that’s the basis for demand to buy emissions permits in Europe.

Lekander’s fund manages about $2.6 billion, invested in assets focused on the world’s transition ...