Lex: Carbon pricing

Carbon prices dropped sharply on Monday in response to disappointment at the outcome of the United Nations climate conference in Copenhagen, which ended with an agreement that fell well short of its goals for significant cuts in greenhouse gas emissions. European Union allowances for December 2010 delivery, the benchmark contract for pricing European carbon emissions, dropped 8.7 per cent to E12.40 a tonne in early trading before recovering slightly to trade 5.7 per cent lower at E12.80 a tonne. Luke Templeman talks about movements in the carbon market.