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Watch: Key EU Panel Vote to Shape Carbon Market Future

EU carbon allowance prices may react to a key vote on December 15 by the EU Parliament’s environment committee. At stake are the rules governing the annual decline of the CO2 cap after 2020, the auction share, free allocation to trade-exposed sectors and the volume of allowances earmarked for new EU funds.

The committee’s vote is expected to form the basis of the Parliament’s negotiations with the EU Council and European Commission, with final legislation expected in late 2017. Frank Watson, managing editor, European Emissions, explains what the vote means for European markets.