Price For Carbon Dioxide Drops

The price for Kyoto Protocol carbon dioxide (CO2) emission credits has dropped from $38 to $17 per ton this year, but it is still very early in the Emissions Trading System of the European Union. Firms operating under the protocol will ultimately have to pay $50 per ton through 2007 and $125 per ton in 2008 for not meeting their emissions targets. Companies reducing emissions beyond their quota can sell credits and those exceeding their quoto must purchase credits. Polluting less has caused the price to fall. Hopefully speculation will not lead to credits being overly used instead of companies performing efficiency retrofits and innovative practices.