EU carbon market roiled by intervention rumours

European Commission has expressed concern about speculators driving up prices in the ETS

European carbon prices were sent spinning last week by media reports that the European Commission was considering ways to limit speculative activity in the market. Prices plunged by €2.54 ($3.09), or 6pc, after an article published last Thursday by Bloomberg suggested the market regulator was mulling “introduc[ing] a limit on the number of CO2 allowances that can be held by investors in a central registry of the Emissions Trading System (EU ETS).” Prices recovered later after the European Securities and Markets Authority said it was not aware of any initiative by the Commission to impose additional position limits on EUAs—but the fall reveals nervousness in the market. Front-year EU emission