is europe's emissions trading system broken?

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    Emitting CO2 into the atmosphere is dirt cheap in Europe these days. At just 8 euros per ton, the low price is undermining the European Union's effort to establish an effective cap and trade system. Implementing necessary fixes to the system, however, won't be easy in the face of industry opposition.

    *** Europe's carbon market is in deep trouble and it's not just environmentalists sounding the alarm. Back in April, the CEO of Shell said that the European Union's system for trading allowances for the emission of greenhouse gases was "in danger." But that's about as direct as anyone will get in this world of bureaucratese. Most simply talk of "price weakness" (meaning that emission credits are absurdly cheap), a desire for "long-term policy certainty" (the system needs a fix!), and the need to "restore confidence" (and the fix has to come fast!).
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