Due to the economic downturn and the consequences of a mix of EU climate and energy policies, the price of the greenhouse gas emission allowances (EUA) traded in the EU Emissions Trading System (EU ETS) is during 2011/12 much lower than expected.
This has led to criticism that the EU ETS is not delivering - due to the current carbon price being “too low” to drive sufficient emissions reductions. Policymakers are considering intervening in the market to push the price up. Tools debated are 'set-aside' (removing allowances from auctions) and, sometimes, 'floor price' (minimum price for CO2).

 

Impact on the petrochemical industry