Global: Analysts predict collapse of carbon market

European Union carbon prices could shed some 70 per cent from current levels, as the bloc struggles with a mounting debt crisis and a glut of supply in the carbon market is unlikely to disappear until 2025, analysts at UBS said. The investment bank also said the EU emissions trading scheme (ETS), the 27-nation bloc's main policy tool to fight global warming, 'isn't working' because carbon prices are 'already too low to have any significant environmental impact'.