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Britain auctions 6.05 million carbon permits at 43.99 pounds/tonne

By Reuters

LONDON (Reuters) – Britain sold 6.052 mln spot carbon permits at 43.99 pounds a tonne each on Wednesday, exchange ICE, which hosted the auction said on its website, in the first government sale of permits in Britain’s domestic emissions trading system (ETS).

The ETS, which charges emitters such as power plants and industrial factories for each tonne of carbon dioxide they emit, is part of Britain’s plan to reach a net zero carbon emissions target by 2050, and replaces Britain’s participation in the EU’s ETS following Brexit.

The auction cleared with a cover ratio of 4.8 times, indicating strong demand for the permits.

(Reporting By Susanna Twidale; editing by David Evans)