UK carbon market limps to a close as scramble for EU allowances starts

The UK emissions trading market reached the end of its first cycle in mid-February. Prices of allowances fell to a low level and are expected to slump further as the market comes to terms with chronic over-supply. Attention is now turning to implementation of the EU trading scheme in 2005 - with the prospect of a significant increase in wholesale electricity prices and a revival of the "dash for gas" in power generation.

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