LONDON: The benchmark European Union carbon price extended last week's losses on Monday, falling more than 6 percent amid a general fall in energy prices.
The Dec-16 contract was 6.13 percent, or 0.39 euro, lower at 5.97 euros a tonne, just 10 euro cents above 5.87 euros hit last week, which was its lowest since 2014.
Carbon prices have been losing value steadily this month as oil prices and other energy markets have fallen.
"The weaker energy complex is the main driver. Coal, gas, power and oil have all fallen," a trader said.
Oil prices fell 3 percent on Monday as Iraq announced record-high oil production feeding into a heavily oversupplied market, wiping out much of the gain made in one of the biggest daily rallies last week.
"Lower outright power prices mean less need for utilities to hedge," the trader said.
Mild winter weather has also meant utilities have not needed to buy as many carbon permits to cover their output as they usually would at this time of year.
Marcus Ferdinand, carbon analyst at Thomson Reuters, said the fall was driven by speculators and anxiety about the bearish moves in the wider energy complex.
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