Carbon emissions permits for releasing carbon dioxide into the atmosphere slumped to their lowest in more than two years on 4 October, threatening investment in renewables, reports Bloomberg.

Carbon permits for delivery in December slumped to €9.82 ($13.27) /tonne this week, the lowest since February 2009 and 46 per cent down from the peak so far this year in May.

Europe’s sovereign debt has undermined the market, with a recent auction of permits by Greece as it struggles to avoid default aggravating a glut of permits, UBS AG analyst Per Lekander told Bloomberg. Economic slowdown also boosts supply as manufacturers and generators sell permits for idled factories and power plant.

A slump in carbon permit prices undermines the benefits for European utilities such as E.ON and GDF Suez in investing in wind and solar generation facilities that require no permits.

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