European nations yet to hand out 61 million free 2015 CO2 permits

LONDON (Reuters) - European nations have yet to hand out a combined 61 million free European Union carbon permits to industry to cover 2015 emissions, European Commission data showed. In total member states have given out around 730 million permits for 2015 since the beginning of the year, out of a total of around 791 million they can award, the data published late on Tuesday showed. The increased supply could place downward pressure on carbon prices in the EU Emissions Trading System (ETS), which is already struggling with a surplus of around 2 billion permits. The benchmark carbon contract traded at 7.55 euros a tonne at 0940 GMT (05:40 a.m. EDT), down 1.1 percent from the previous day's settlement. Italy and Britain have the most left to hand out, with 33 and 12.2 million respectively, the data showed. The EU ETS caps the emissions of over 12,000 power plants, factories and airlines, forcing them to surrender one carbon permit for every tonne of carbon dioxide emitted annually by April of the following year. Industrial firms regulated by the scheme, such as steel and cement makers, will get a total of around 6.6 billion free allowances between 2013 and 2020 to help them compete with rivals in other countries that have looser environmental rules. The Commission said on its website it will not publish any further updates on the number of permits distributed for 2015. (Reporting by Susanna Twidale, editing by Louise Heavens)