EU: With airlines grounded, a pollution permit auction fails

Airlines pulled back from bidding in the EU’s auction for permits covering greenhouse gas pollution, another indication that demand for energy is dropping rapidly. None of the four bidders for carbon emissions allowances were successful in a contest for airline carbon allowances run by ICE Futures Europe Wednesday. It was the second auction failure in a little more than a week. With many flights grounded and carbon prices on the slide, demand for the securities is weakening. Thousands of industrial sites, power generators and airlines are required to buy the credits for their greenhouse-gas pollution. But with the economy and energy use weakening, their need for those permits is declining too. The contest Wednesday was further complicated by the expiry of March options and by the scale of another auction held earlier in the day. <br/>