As EU economy stagnates and carbon swindle prices drop 60%, EU Commission suggests that the carbon swindle is driving "low carbon growth" in Europe

EU ETS emissions down in 2011, permit glut grows | Reuters

The glut in pollution permits has grown to 900 million, data showed, which could put further pressure on low carbon prices.

 "ETS emissions decreased by more than 2 percent in 2011, despite an expanding (economic) recovery. This good result shows that the ETS is delivering cost-effective emissions reductions," the Commission said in a statement.

 "It also emphasises why the ETS remains the engine to drive low carbon growth in Europe."

 However, some carbon analysts said the decline in emissions was due to lower power generation due to weak industrial output towards the latter end of the year and a slowing economy.

...Tuesday's data also points to a growing oversupply of carbon units, thanks to a record use of international carbon credits in the EU carbon scheme at a time of stagnant EU economic growth and flagging industrial output.

...European carbon prices have shed around 60 percent of their value over the past year due to market worries about the growing supply glut and weak demand.

  The benchmark carbon price hit a low of 5.99 euros a tonne in April, well below the level needed to spur green investment.