Climate Changed

German Vow to Cancel Permits Sends Carbon to 11-Year High

  • Ministry seeks to prevent coal exit hurting market demand
  • BloombergNEF says Germany may not want to give up carbon cash
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European Union carbon permits rose to an 11-year high after Germany signaled it will protect the region’s emissions market by canceling allowances to prevent a surplus accumulating as it closes coal power plants.

Germany may close about a third of its coal capacity in the next few years, and the government will request a “corresponding” withdrawal of permits issued in the system, Environment Minister Svenja Schulze said in an interview.