EU politicians back proposal to withhold EU carbon permits

Reuters News
Posted: Feb 28, 2012 5:28 AM

BRUSSELS (Reuters) - A senior European Union parliamentary committee backed a proposal on Tuesday to allow the EU Commission to cut the supply of carbon permits in the bloc's emissions trading scheme in a bid to prop up low prices.

The industry committee of the EU Parliament passed an amendment to the Energy Efficiency Directive that would let the Commission take measures that "may include withholding of the necessary amount of allowances" from the 2013-2020 phase of the EU market.

Before becoming law the bill requires approval from the full parliament and the council of 27 environment ministers.

(Reporting by Ben Garside; Editing by Alison Birrane)