Barclays Capital Raises Forecast for 2012 Carbon Price by 17%

Barclays Capital raised its estimate for European Union carbon prices for 2012 by 17 percent on speculation there will be tighter emissions limits through 2020 and a shortage of permit supply over the next two years.

Barclays forecast EU allowances in 2012 will be 28 euros ($34.55) a metric ton. This compares with last month’s estimate of 24 euros. Prices may be higher as the EU holds back on supply for the third phase of its cap-and-trade program and shifts to a tougher emissions target.

Source: businessweek