Europe’s carbon market faces an uncertain few weeks over whether the UK, one of its biggest participants, will continue in its flagship system to curb pollution on the continent. Because of uncertainty over its exit from the EU, Britain has declined to schedule any of its twice-monthly auctions for new emissions permits beyond December, fearing allowances for 2019 may become invalid. The potential end of UK carbon auctions, more than three months before Britain is officially due to leave the EU, risks stoking fresh volatility in prices across the continent, according to analysts. That is because Britain is one of the biggest net suppliers of the credits that can be bought by participants in the Europe-wide scheme. While the UK could remain in the EU’s ambitious Emissions Trading Scheme (ETS), a hard Brexit that sees the country crash out of the single market would leave any 2019 allowances sold by the UK worthless, creating a potential bureaucratic mess if they continue selling them after December. Financial Times


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