The European Union’s Emissions Trading System declared carbon emission fell more than 2% last year.
Although in 2011 carbon emission fell, the oversupply of pollution permits has reached 900 million, which might put more pressure on low carbon prices.
“ETS emissions decreased by more than 2 percent in 2011, despite an expanding (economic) recovery. This good result shows that the ETS is delivering cost-effective emissions reductions,” the Commission said in a statement.
Carbon analysts believe that the decline of carbon emission was due to lower power generation created by low industrial output at the end of 2011. The fall of 2.4% in 2011 means that the bloc is on its way to achieve the 2020 climate target to cut emissions 20%, under the 1990s levels. Last year the international carbon credits reached a record number in the EU carbon scheme, despite the flagging industrial output and stagnant EU economic growth.
“Last year’s record use of international credits has increased the buffer of unused allowances by some 450 million. This means more than 900 million more allowances have been put into circulation than were surrendered for compliance use over the period 2008-2011,” the Commission said.