Finance
With Airplanes Grounded, Sales Test Pollution Credit Demand
- Auctions of carbon allowances Wednesday are double normal size
- Airlines may not need so many permits to offset emissions
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The European Union’s carbon market will test how much airlines still need allowances to cover greenhouse gas pollution.
With many flights grounded and carbon prices on the slide, auctions scheduled for new permits in the Emissions Trading System are about double the normal size. That raises the risk that one of the auctions will fail, which would be an indication that demand for the securities is weakening.