ECONOMY

EU carbon breakthrough not seen likely in June

European Union governments are unlikely to reach a breakthrough this month on a proposal to make supply more flexible in the world’s biggest carbon market, according to Greece, which holds the EU’s rotating presidency.

Climate officials from the 28 EU nations will next discuss the draft law at a meeting on June 16 and are unlikely to agree a common position, said Kyriakos Psychas, Greek environment attache in Brussels.

The proposal to introduce a stability mechanism to adjust supply in the $73 billion carbon market needs support from EU governments and the European Parliament to become binding.

“I do not foresee any big decisions by member states this month,” Psychas said by telephone on Tuesday.

“We will have a discussion and some member states may comment, but I would not expect a breakthrough. We will have more clarity only after the new Parliament starts work on it,” Psychas said.

“Member states will continue working on the proposal under the Italian presidency.”

Italy takes over the EU presidency from Greece on July 1.

[Bloomberg]