The cost of UK carbon emissions permits has fallen to an all-time low, raising fears it will weaken the incentive to build cleaner renewable energy sources.
Futures contracts tracking the UK carbon price to December dropped to £31.48 per tonne of carbon dioxide on Monday, with analysts blaming the decline on the mild winter weather, slowing demand from industrial users and an excess of permits available to cover pollution in Britain.
The price has recovered marginally, closing on Thursday up 6.4 per cent at £36.71, but is trading at its lowest since the UK started its replacement for the EU trading scheme in May 2021 following Brexit.
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