As a good free marketeer I am of course happy with speculative trading in general; but I think I disapprove of govts deliberately creating such markets, where the price - as the FT makes clear - depends less on real world fundamentals than the political whims of the EU.
EU carbon price soars to record highs
The price of carbon in Europe has soared to a fresh record high near €38 a tonne, with prices adding more than 13 per cent over the past two sessions as traders rushed to secure supplies of EU emissions allowances says the FT. That the price is rising towards something plausible is good; that this is happening for trading reasons is not so great. This illustrates the problem with permit trading as against a nice simple carbon tax: the system is a boondoggle for traders and speculators. Which is one of the reasons that the EU prefers it.