Earlier this week, Senate Republicans killed legislation that would have called for major cuts in U.S. greenhouse gas emissions.  The Washington Post reports bipartisan support for the bill, which was sponsored by Senators Lieberman (I-Conn) and Warner (R-Va), was not enough to save it from party politics, as leaders from both sides of the aisle traded blame.  Democrats charged Republicans with ignoring one of the most important issues of the era, while Republicans called Democrats insensitive to economic turmoil, which they said would increase with the bill’s passage.

Carbon prices in Europe have reached a two-year high due to rising oil prices, according to Business Week.  The same forces that are pushing the price of gasoline up worldwide are forcing utilities and power companies to switch from oil to dirtier coal plants.  Increased demand for carbon credits to offset the corresponding carbon emissions has raised the prices of credits, of which only a limited number are permitted.  An EU carbon contract for December is now priced at €27.54, up 40% over just the last four months.