The global downturn is effecting resource prices as investors predict continued falls in demand for all kinds of goods.
Industrial carbon emissions will fall faster in Europe as result of a coming recession, cutting the demand for and price of emissions permits under the European Union’s emissions trading scheme, said Deutsche Bank analysts.
CO2 emissions are predicted to drop by 100 million tons in 2009, and some are encouraged that industry and banks might become more willing to underwrite a stronger fight against global warming. With oil selling at lower prices, there is also the fear that consumers may abandon efforts to conserve energy and their use of petroleum.
Given the unlikely event of higher tax prices, I wonder if the US will soon create a cap-and-trade market for carbon.