Société Générale cuts EU carbon emissions forecast

Société Générale cut its forecasts for EU industrial emissions, saying an EU recession may depress EU carbon permit prices for years.

Prices for carbon permits traded under the EU's Emissions Trading Scheme next year could average €17 a tonne, down a third from a previous forecast of €25.5, it said.

"Prospects on emission levels for this year and next year reduce every day, with an increasing number of industrial firms announcing temporary shutdown... and downward revised output productions for next year," Société Générale carbon analyst Emmanuel Fages said.

The bank said EU allowances could rise to €20 by 2012, down sharply from estimates of €37 made earlier this year and significantly below the €30 a tonne level experts say is needed to encourage corporate investment in clean technology.