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Page last updated at 07:26 GMT, Monday, 8 February 2010

EU carbon trading 'can work'

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The EU operates the world's biggest scheme for trading carbon emissions allowances. But the market price of carbon emissions on that exchange is now very low.

The Commons Environmental Audit Committee now says it is failing to deliver green investment. Chairman of the committee Tim Yeo discusses how at the moment the price of carbon simply isn't high enough to make the exchange work.

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